MI Marshall & Ilsley Corp

MILWAUKEE, Oct. 14 /PRNewswire-FirstCall/ -- Marshall & Ilsley Corporation (NYSE:MI) today reported 2005 third quarter net income of $0.78 per diluted share, or $184.1 million, as compared to $0.69 per diluted share, or $155.4 million, in the third quarter of 2004. Third quarter net income per share increased 13.0 percent over the same period in 2004. Third quarter results include gains of $0.02 per share resulting primarily from the sale of shares of a company pursuant to a tender offer by the issuer of such shares. Net income for the nine months ended September 30, 2005 was $542.2 million, or $2.32 per diluted share, compared to $453.3 million, or $2.01 per diluted share, in the nine months ended September 30, 2004. Return on average assets based on net income for the third quarter was 1.66 percent, as compared to 1.63 percent for the same period in 2004. Return on average equity based on net income was 16.49 percent this quarter as compared to 17.58 percent for the third quarter of 2004. The Corporation's provision for loan and lease losses was $9.9 million in the third quarter of 2005, versus $6.9 million in the same period last year. Net charge-offs for the period were $7.8 million, or 0.10 percent of total average loans and leases outstanding this quarter, and $6.7 million a year ago or 0.10 percent of total average loans and leases. At September 30, 2005, the allowance for loan and lease losses was 1.09 percent of total loans and leases, compared to 1.27 percent a year earlier. Nonperforming loans and leases were 0.44 percent of total loans and leases at September 30, 2005, and 0.51 percent at September 30, 2004. Assets at September 30, 2005 were $45.0 billion, compared to $39.0 billion at September 30, 2004. Book value per share was $19.51 at September 30, 2005, compared to $16.19 for the same date a year ago. Total loans and leases were $33.1 billion, compared to $28.1 billion at September 30, 2004. Marshall & Ilsley Corporation (NYSE:MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $45.0 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin-based bank. M&I Bank has 198 offices throughout the state, in addition to 36 locations throughout Arizona; 13 offices in metropolitan Minneapolis/St. Paul, Minn.; and, locations in Duluth, Minn.; Las Vegas, Nev.; and, Naples and Bonita Springs, Fla. M&I's Southwest Bank affiliate has seven offices in the St. Louis area and one office in Belleville, Ill. Metavante Corporation, Marshall & Ilsley Corporation's wholly owned technology subsidiary, provides virtually all of the technology an organization needs to offer financial services. M&I also provides trust and investment management, equipment leasing, mortgage banking, asset-based lending, financial planning, investments, and insurance services from offices throughout the country and on the Internet ( http://www.mibank.com/ or http://www.micorp.com/ ). M&I's customer-based approach, internal growth, and strategic acquisitions have made M&I a nationally recognized leader in the financial services industry. This press release contains forward-looking statements concerning M&I's future operations and financial results. Such statements are subject to important factors that could cause M&I's actual results to differ materially from those anticipated by the forward-looking statements. These factors include (i) the factors identified in M&I's Annual Report on Form 10-K for the year ended December 31, 2004 under the heading "Forward-Looking Statements" which factors are incorporated herein by reference, and (ii) such other factors as may be described from time to time in M&I's SEC filings. Note: Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Friday, October 14, regarding third quarter earnings. For those interested in listening, please call 1-800-437-3848 and ask for M&I's quarterly earnings release conference call. If you are unable to join us at this time, a replay of the call will run through October 21, 5:00 p.m. Central Daylight Time by calling 1-800-839-6713 and entering pass code 737 98 41 to listen. Supplemental financial information referenced in the conference call can be found at http://www.micorp.com/ , Investor Relations, after 8:00 a.m. on October 14. M&I Corporation Financial Information (unaudited) Three Months Ended Nine Months Ended September September September September 30, 30, Percent 30, 30, Percent 2005 2004 Change 2005 2004 Change PER SHARE DATA Diluted: Net Income $0.78 $0.69 13.0% $2.32 $2.01 15.4% Basic: Net Income 0.79 0.70 12.9 2.36 2.04 15.7 Dividend Declared 0.240 0.210 14.3 0.690 0.600 15.0 Book Value 19.51 16.19 20.5 19.51 16.19 20.5 Shares Outstanding (millions): Average - Diluted 237.0 226.2 4.8 233.7 225.9 3.5 End of Period 234.4 223.1 5.1 234.4 223.1 5.1 INCOME STATEMENT ($millions) Net Interest Income (FTE) $321.7 $289.3 11.2% $934.9 $867.8 7.7% Provision for Loan and Lease Losses 9.9 6.9 43.5 31.8 25.1 26.7 Data Processing Services 285.0 239.0 19.2 829.0 622.4 33.2 Item Processing 11.0 10.3 6.8 32.3 32.6 -0.9 Trust Services 41.9 37.5 11.7 123.4 111.7 10.5 Service Charge on Deposits 23.8 25.0 -4.8 71.3 75.6 -5.7 Mortgage Banking 14.7 8.9 65.2 33.1 27.5 20.4 Net Investment Securities Gains (Losses) 7.4 0.5 n.m. 42.6 - n.m. All Other 54.9 46.7 17.6 159.1 141.5 12.4 Total Non-Interest Revenues 438.7 367.9 19.2 1,290.8 1,011.3 27.6 Salaries and Employee Benefits 271.3 231.5 17.2 772.2 647.3 19.3 Occupancy and Equipment 54.6 50.8 7.5 158.8 142.6 11.4 Intangible Amortization 6.1 8.3 -26.5 22.3 19.2 16.1 Other 131.8 117.5 12.2 399.5 336.0 18.9 Total Non-Interest Expenses 463.8 408.1 13.6 1,352.8 1,145.1 18.1 Tax Equivalent Adjustment 8.5 8.2 3.7 25.1 24.0 4.6 Pre-Tax Earnings 278.2 234.0 18.9 816.0 684.9 19.1 Income Taxes 94.1 78.6 19.7 273.8 231.6 18.2 Net Income $184.1 $155.4 18.5% $542.2 $453.3 19.6% KEY RATIOS Net Interest Margin (FTE) / Avg. Earning Assets 3.27% 3.42% 3.32% 3.57% Interest Spread (FTE) 2.78 3.11 2.88 3.27 Efficiency Ratio 61.6 62.2 61.1 61.0 Efficiency Ratio without Metavante 48.7 49.0 48.4 49.0 Return on Assets 1.66 1.63 1.70 1.67 Return on Equity 16.49 17.58 17.32 17.64 Equity / Assets (End of Period) 10.10 9.21 10.10 9.21 M&I Corporation Financial Information (unaudited) As of September September 30, 30, Percent ASSETS ($millions) 2005 2004 Change Cash & Due From Banks $1,080 $887 21.8% Trading Securities 28 36 -22.2 Short - Term Investments 306 162 88.9 Investment Securities 6,330 6,079 4.1 Loans and Leases: Commercial Loans & Leases 9,721 8,326 16.8 Commercial Real Estate 10,259 9,127 12.4 Residential Real Estate 6,491 3,995 62.5 Home Equity Loans & Lines 4,916 5,033 -2.3 Personal Loans and Leases 1,719 1,664 3.3 Total Loans and Leases 33,106 28,145 17.6 Reserve for Loan & Leases Losses (362) (358) 1.1 Premises and Equipment, net 469 461 1.7 Goodwill and Intangibles 2,388 2,042 16.9 Other Assets 1,650 1,526 8.1 Total Assets $44,995 $38,980 15.4% LIABILITIES & SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing $5,224 $4,753 9.9% Bank Issued Interest Bearing Activity 10,075 9,835 2.4 Bank Issued Time 4,790 3,529 35.7 Total Bank Issued Deposits 20,089 18,117 10.9 Wholesale Deposits 6,902 6,769 2.0 Total Deposits 26,991 24,886 8.5 Short - Term Borrowings 5,497 4,622 18.9 Long - Term Borrowings 6,375 4,486 42.1 Other Liabilities 1,588 1,398 13.6 Shareholders' Equity 4,544 3,588 26.6 Total Liabilities & Shareholders' Equity $44,995 $38,980 15.4% Three Months Ended Nine Months Ended September September September September AVERAGE ASSETS 30, 30, Percent 30, 30, Percent ($millions) 2005 2004 Change 2005 2004 Change Cash & Due From Banks $993 $853 16.4% $950 $809 17.4% Trading Securities 26 23 13.0 25 23 8.7 Short - Term Investments 273 166 64.5 244 181 34.8 Investment Securities 6,209 5,935 4.6 6,158 5,819 5.8 Loans and Leases: Commercial Loans & Leases 9,588 8,191 17.1 9,270 7,864 17.9 Commercial Real Estate 10,145 8,926 13.7 9,846 8,611 14.3 Residential Real Estate 6,170 3,794 62.6 5,427 3,509 54.7 Home Equity Loans and Lines 4,905 4,894 0.2 5,044 4,674 7.9 Personal Loans and Leases 1,671 1,695 -1.4 1,642 1,824 -10.0 Total Loans and Leases 32,479 27,500 18.1 31,229 26,482 17.9 Reserve for Loan & Leases Losses (364) (362) 0.6 (362) (359) 0.8 Premises and Equipment, net 459 458 0.2 452 444 1.8 Goodwill and Intangibles 2,317 1,821 27.2 2,205 1,367 61.3 Other Assets 1,743 1,622 7.5 1,720 1,584 8.6 Total Assets $44,135 $38,016 16.1% $42,621 $36,350 17.3% Memo: Average Earning Assets $38,987 $33,624 $37,656 $32,505 Average Earning Assets Excluding Investment Securities Unrealized Gains/Losses $38,979 $33,616 $37,636 $32,467 AVG LIABILITIES & SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing $5,049 $4,638 8.9% $4,858 $4,490 8.2% Bank Issued Interest Bearing Activity 10,028 9,913 1.2 9,919 9,967 -0.5 Bank Issued Time 4,516 3,458 30.6 4,192 3,314 26.5 Total Bank Issued Deposits 19,593 18,009 8.8 18,969 17,771 6.7 Wholesale Deposits 6,759 6,625 2.0 6,720 5,786 16.1 Total Deposits 26,352 24,634 7.0 25,689 23,557 9.1 Short - Term Borrowings 2,859 2,494 14.6 3,048 3,058 -0.3 Long - Term Borrowings 8,686 5,900 47.2 7,942 4,952 60.4 Other Liabilities 1,807 1,470 22.9 1,756 1,350 30.1 Shareholders' Equity 4,431 3,518 26.0 4,186 3,433 21.9 Total Liabilities & Shareholders' Equity $44,135 $38,016 16.1% $42,621 $36,350 17.3% Memo: Average Interest Bearing Liabilities $32,848 $28,390 $31,821 $27,077 M&I Corporation Financial Information (unaudited) Three Months Ended Nine Months Ended September September September September 30, 30, Percent 30, 30, Percent 2005 2004 Change 2005 2004 Change CREDIT QUALITY (a) Net Charge-Offs ($millions) $7.8 $6.7 16.4% $27.7 $16.6 66.9% Net Charge-Offs / Average Loans & Leases 0.10% 0.10% 0.12% 0.08% Loan and Lease Loss Reserve ($millions) $362.3 $358.1 1.2% $362.3 $358.1 1.2% Loan and Lease Loss Reserve / Period- End Loans & Leases 1.09% 1.27% 1.09% 1.27% Non-Performing Loans & Leases (NPL) ($millions) $147.3 $142.5 3.4% $147.3 $142.5 3.4% NPL's / Period-End Loans & Leases 0.44% 0.51% 0.44% 0.51% Loan and Lease Loss Reserve / Non- Performing Loans & Leases 246% 251% 246% 251% MARGIN ANALYSIS (b) Loans and Leases: Commercial Loans & Leases 6.08% 4.82% 5.76% 4.70% Commercial Real Estate 6.26 5.38 6.07 5.36 Residential Real Estate 6.14 5.48 5.94 5.49 Home Equity Loans and Lines 6.05 5.15 5.92 5.24 Personal Loans and Leases 6.13 5.09 5.83 5.07 Total Loans and Leases 6.14 5.17 5.92 5.14 Investment Securities 4.99 4.99 5.01 4.95 Short - Term Investments 3.60 1.55 3.21 1.20 Interest Income (FTE) / Avg. Interest Earning Assets 5.94% 5.12% 5.75% 5.08% Interest Bearing Deposits: Bank Issued Interest Bearing Activity 2.06% 0.79% 1.72% 0.68% Bank Issued Time 3.29 2.47 3.03 2.41 Total Bank Issued Deposits 2.44 1.23 2.11 1.12 Wholesale Deposits 3.29 1.96 2.97 1.77 Total Interest Bearing Deposits 2.71 1.47 2.39 1.31 Short - Term Borrowings 3.88 2.29 3.43 1.94 Long - Term Borrowings 4.04 3.69 3.94 3.66 Interest Expense / Avg. Interest Bearing Liabilities 3.16% 2.01% 2.87% 1.81% Net Interest Margin(FTE) / Avg. Earning Assets 3.27% 3.42% 3.32% 3.57% Interest Spread (FTE) 2.78% 3.11% 2.88% 3.27% Notes: (a) Includes Loans past due 90 days or more (b) Based on average balances excluding fair value adjustments for available for sale securities. DATASOURCE: Marshall & Ilsley Corporation CONTACT: John Presley, senior vice president and chief financial officer, +1-414-765-7833, or Don Wilson, senior vice president, corporate treasurer, +1-414-765-8043, both of Marshall & Ilsley Corporation Web site: http://www.micorp.com/ http://www.mibank.com/

Copyright