Marshall & Ilsley Corp. (MI) restated its second-quarter
loss on Monday as Wisconsin's largest bank sold 800 residential
mortgage loans, nearly all of which were nonperfoming.
The sale of the loans, with an unpaid principal balance of $297
million and two-thirds of which on Arizona properties, will also
result in third-quarter charge-offs and loan-loss provisions being
sharply less than what the company projected last month.
M&I had projected the figures to be close to second-quarter
levels. But the loan sale will result in the figures being sharply
less sequentially, the bank said Monday.
Meanwhile, the sale resulted M&I restating its
second-quarter loss to 83 cents from 50 cents as it resulted in
another $151 million of charge-offs.
M&I has cut costs and jobs and slashed its dividend to
preserve cash. It has struggled with heavy exposure to some of the
most troubled housing markets, as well as commercial construction
loans.
In June, Marshall & Ilsley joined other banks in boosting
capital, netting proceeds of about $552 million from selling 100
million shares, roughly 38% of its shares outstanding.
In recent premarket trading, shares were down 0.7% at $7.06. The
stock has lost half its value this year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;
