Nov. 3--Bank Mutual Corp. said Tuesday it will pay a quarterly cash dividend of seven cents per share -- two cents less than its previous dividend.

The Brown Deer-based parent company of Bank Mutual banks also announced another stock repurchase program under which the corporation will buy back up to 1 million shares, or about 2.2%, of its outstanding shares. The repurchase program does not specify the timing of the buybacks or prices to be paid.

Michael T. Crowley Jr., chairman, president and chief executive of Bank Mutual, said the lower dividend was set "in light of an evolving regulatory environment that is becoming stricter, our results over the past several quarters, the current marketplace and the desire to maintain a strong capital position."

The cash dividend will be payable Dec. 1 to shareholders of record on Nov. 13.

"While we believe that it is appropriate to set a dividend in an amount that is better aligned to current conditions, we also continue to believe that it is in the best interests of Bank Mutual and its shareholders to maintain our flexibility to repurchase shares in appropriate circumstances to help maintain capital at an appropriate level," Crowley said in a statement.

Bank Mutual, the fifth-biggest bank based in Wisconsin, operates 78 branches in the state and one in Minnesota.

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