- Net loss available to common shareholders (net loss) of $1.55 per
share for 2008 fourth quarter. MILWAUKEE, Jan. 15
/PRNewswire-FirstCall/ -- Marshall & Ilsley Corporation
(NYSE:MI) (M&I) today reported a 2008 fourth quarter net loss
of $403.9 million, or $1.55 per share, as compared to a loss from
continuing operations of $24.5 million, or $0.09 per share, in the
fourth quarter of 2007. The Corporation also reported a net loss of
$568.3 million, or $2.19 per share, as compared to income from
continuing operations of $496.9 million, or $1.87 per share, for
the twelve months ended December 31, 2008 and 2007, respectively.
"Our fourth quarter and year-end results reflect the extent to
which the current recession has had an impact on our economy," said
Mark Furlong, president and CEO, Marshall & Ilsley Corporation.
"Although these are disappointing results, our excess capital and
strong levels of reserves will keep us ahead of the industry's
challenges." 2008 Fourth Quarter Key Performance Highlights -- On
an acquisition-adjusted basis, average loans and leases increased 7
percent over the fourth quarter of 2007. -- Net interest margin
rose 12 basis points on a linked quarter basis and was up 5 basis
points from the fourth quarter of 2007. -- Net interest income
increased 10 percent compared to the same period last year. --
Adjusted efficiency ratio was 49.7 percent, an improvement of 2.8
percentage points from the same period last year. -- Tangible
equity ratio was 8.9 percent at December 31, 2008. Loan and Core
Deposit Growth M&I's average loans and leases totaled $50.2
billion for the fourth quarter of 2008, reflecting an
acquisition-adjusted increase of $3.2 billion or 7 percent compared
to the fourth quarter of 2007. The Corporation's average
bank-issued deposits totaled $28.3 billion for the fourth quarter
of 2008, an acquisition-adjusted decline of $1.1 billion or 4
percent versus the fourth quarter of 2007. This drop reflected
M&I's continued pricing discipline in highly competitive
markets. Net Interest Income The Corporation's net interest income
(FTE) was $469.0 million for the fourth quarter of 2008--up $43.1
million or 10 percent compared to the fourth quarter of 2007. The
net interest margin was 3.18 percent, up 12 basis points on a
linked quarter basis, and up 5 basis points from the same period
last year. For the twelve months ended December 31, 2008, M&I's
net interest income (FTE) was $1,808.6 million, increasing $164.2
million or 10 percent versus the twelve months ended December 31,
2007. Asset Quality M&I's construction and development
portfolio continued to experience deterioration in the estimated
collateral values and repayment abilities of some of the
Corporation's customers, particularly among small and mid-sized
local residential developers. M&I's provision for loan and
lease losses was $850 million in the fourth quarter of 2008. Net
charge-offs for the period were $680 million. At December 31, 2008
and 2007, the allowance for loan and lease losses was 2.41 percent
and 1.07 percent, respectively, of total loans and leases.
Non-performing loans and leases were 3.62 percent of total loans
and leases at December 31, 2008, compared to 2.00 percent at
December 31, 2007. Renegotiated loans were $270.3 million in the
fourth quarter of 2008--up $180.8 million from the prior quarter.
M&I's homeowner assistance program, which included a 90-day
foreclosure moratorium on all owner-occupied residential loans,
contributed to the higher level of renegotiated loans. Non-Interest
Income The Corporation's non-interest income was $166.1 million for
the fourth quarter of 2008, a decrease of $37.6 million or 18
percent from the fourth quarter of 2007. Wealth Management total
revenue was $64.2 million for the current quarter, falling $5.9
million or 8 percent over the fourth quarter of 2007. The primary
drivers of the decline were overall equity market declines and the
shifting of higher fee assets into cash equivalents. Assets under
Management and Assets under Administration were $30.4 billion and
$104.4 billion, respectively, at December 31, 2008, compared to
$25.7 billion and $105.7 billion, respectively, at December 31,
2007. The Corporation's service charges on deposits were $35.9
million for the fourth quarter of 2008, an increase of $3.9 million
or 12 percent from the same period last year. For the twelve months
ended December 31, 2008, M&I's non-interest income was $748.1
million, increasing $19.0 million or 3 percent versus the twelve
months ended December 31, 2007. Non-Interest Expense M&I's
non-interest expense was $402.8 million for the fourth quarter of
2008, a decrease of $43.3 million from the fourth quarter of 2007.
After adjusting for certain non-recurring items that include a
severance accrual related to the Corporation's expense initiatives,
certain credit-related expenses, and other market
disruption-related expenses, M&I's efficiency ratio was 49.7
percent in the current quarter--an improvement of 2.8 percentage
points from the same period last year. For the twelve months ended
December 31, 2008, M&I's non-interest expense was $1,459.0
million, increasing $144.1 million or 11 percent versus the twelve
months ended December 31, 2007. Balance Sheet and Capital
Management The Corporation's consolidated assets and total
shareholders' equity were $63.8 billion and $7.7 billion,
respectively, at December 31, 2008, compared to $59.8 billion and
$7.0 billion, respectively, at December 31, 2007. There were 265.3
million common shares outstanding at December 31, 2008, compared to
263.5 million outstanding at December 31, 2007. M&I has a Stock
Repurchase Program authorization under which up to 12 million
shares of the Corporation's common stock can be repurchased
annually. In the fourth quarter of 2008, M&I did not repurchase
any shares. The Corporation's tangible equity ratio was 8.9 percent
at December 31, 2008. Recent Events The Corporation has announced
the following actions to strengthen its balance sheet in light of
the nation's rapid decline into recession and the lack of clarity
surrounding the future of the economy. Dividend Reduction Marshall
& Ilsley Corporation announced that the quarterly cash dividend
has been reduced to $0.01 per share. The next regular dividend
declaration date is in February 2009. Expense Initiatives M&I
also announced the following expense initiatives: Executive/Board
Compensation -- Proxy officers and all other executive officers
will receive no bonuses for 2008. -- Total 2008 annual cash
compensation for proxy officers as a group will decline
approximately 26 percent from 2007, and a total of 56 percent for
the two-year period since 2006. -- Proxy officer and all executive
officer salaries will be frozen in 2009 and a broad salary freeze
has been instituted for other senior officers. -- The Board of
Directors has reduced the annual cash retainer for directors by 25
percent. -- The Corporation has also decreased awards and benefits
under a variety of other programs for employees. Reduction in Force
-- The Corporation will eliminate approximately 830 positions, or 8
percent of its workforce. -- The reductions include positions
already eliminated in 2008, the elimination of open positions,
staff reductions, and attrition. -- Approximately 80 percent of the
staff reductions are complete. The remaining 20 percent are related
to operational efficiencies and are expected to be achieved by
year-end 2009. -- The Corporation recorded a pre-tax charge of
approximately $9 million in the fourth quarter of 2008 in
connection with the costs related to the reduction in force. Other
Expenses -- The Corporation is also cutting other expenses, which
aggregate on an annualized, pre-tax basis approximately $30
million. The expense initiatives outlined above are expected to
reduce the Corporation's expenses on an annualized, pre-tax basis
by approximately $100 million, or $0.23 per share after-tax. "We
believe the dividend reduction, the aggressive steps to address
credit quality, and the expense initiatives will allow us to
maintain a strong capital base as we move through what is looking
to be the most severe economic downturn since the Great
Depression," continued Furlong. "The dividend and staff reductions
are particularly painful and difficult decisions to make. However,
these actions will help us maintain a strong capital base, which
combined with a high level of reserves for loan losses, is
essential for M&I to serve its customers, shareholders,
employees, and communities. We expect that in the long run the
difficult decisions we are announcing today will lay the foundation
for a strong and profitable future for M&I." TARP Funds On
November 14, 2008, M&I issued 1.715 million shares of its
preferred stock to the U.S. Treasury in return for $1.715 billion
in cash pursuant to the Treasury's Capital Purchase Program. This
program is designed to infuse capital into the nation's healthiest
and strongest banks. Since this infusion of capital, M&I has
extended approximately $1.3 billion of new credit to new and
existing customers throughout the communities it serves. The "new
credit" amount includes new and expanded extensions of credit (or
commitments to extend credit) as well as renewals of existing
credit where a new promissory note was executed. In addition, the
TARP funds allowed the Corporation to announce on December 18, 2008
a system-wide foreclosure abatement program designed to keep
families in their homes, including a 90-day foreclosure moratorium
on all owner-occupied residential loans. The cost of this program
has not been determined. Conference Call Marshall & Ilsley
Corporation will hold a conference call at 11:00 a.m. (Central
Standard Time) Thursday, January 15, regarding fourth quarter
results. For those interested in listening, please call
1-888-711-1825 and ask for M&I's quarterly results conference
call. If you are unable to join us at this time, a replay of the
call will be available beginning at 2:30 p.m. on January 15 and
will run through 5:00 p.m. January 22, by calling 1-800-642-1687
and entering pass code 777 40 229. Supplemental financial
information referenced in the conference call can be found at
http://www.micorp.com/, Investor Relations, after 8:00 a.m. on
January 15. About Marshall & Ilsley Corporation Marshall &
Ilsley Corporation (NYSE:MI) is a diversified financial services
corporation headquartered in Milwaukee, Wis., with $63.8 billion in
assets. Founded in 1847, M&I Marshall & Ilsley Bank is the
largest Wisconsin-based bank, with 193 offices throughout the
state. In addition, M&I has 53 locations throughout Arizona; 32
offices in Indianapolis and nearby communities; 34 offices along
Florida's west coast and in central Florida; 15 offices in Kansas
City and nearby communities; 25 offices in metropolitan
Minneapolis/St. Paul, and one in Duluth, Minn.; and one office in
Las Vegas, Nev. M&I's Southwest Bank subsidiary has 17 offices
in the greater St. Louis area. 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. Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
include, without limitation, statements regarding expected
financial and operating activities and results that are preceded
by, followed by, or that include words such as "may," "expects,"
"anticipates," "estimates" or "believes." 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) M&I's
exposure to the volatile commercial and residential real estate
markets, which could result in increased charge-offs and increases
in M&I's allowance for loan and lease losses to compensate for
potential losses in its real estate loan portfolio, (ii) adverse
changes in the financial performance and/or condition of M&I's
borrowers, which could impact repayment of such borrowers'
outstanding loans, (iii) M&I's ability to maintain required
levels of capital, (iv) fluctuation of M&I's stock price, and
(v) those factors referenced in Part II, Item 1A. Risk Factors in
M&I's quarterly report on Form 10-Q for the quarter ended
September 30, 2008, and as may be described from time to time in
M&I's subsequent SEC filings, which factors are incorporated
herein by reference. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect only
M&I's belief as of the date of this press release. Except as
required by federal securities law, M&I undertakes no
obligation to update these forward-looking statements or reflect
events or circumstances after the date of this press release.
Marshall & Ilsley Corporation Financial Information (unaudited)
Three Months Ended Twelve Months Ended December 31, Percent
December 31, Percent 2008 2007 Change 2008 2007 Change PER COMMON
SHARE DATA Diluted: Income (Loss) from Continuing Operations
($1.55) ($0.09) n.m.% ($2.19) $1.87 n.m.% Net Income (Loss) (1.55)
1.83 n.m. (2.19) 4.34 n.m. Basic: Income (Loss) from Continuing
Operations (1.55) (0.09) n.m. (2.19) 1.91 n.m. Net Income (Loss)
(1.55) 1.86 n.m. (2.19) 4.42 n.m. Dividend Declared per Common
Share 0.32 0.31 3.2 1.27 1.20 5.8 Book Value per Common Share 23.19
26.86 -13.7 23.19 26.86 -13.7 Common Shares Outstanding (millions):
Average - Diluted 261.0 269.4 -3.1 259.6 265.5 -2.2 End of Period
265.3 263.5 0.7 265.3 263.5 0.7 INCOME STATEMENT ($millions) Net
Interest Income (FTE) $469.0 $425.9 10.1% $1,808.6 $1,644.4 10.0%
Provision for Loan and Lease Losses 850.4 235.1 261.8 2,037.7 319.8
537.3 Wealth Management 64.2 70.1 -8.4 282.2 262.8 7.4 Service
Charges on Deposits 35.9 32.0 12.3 146.2 120.6 21.2 Mortgage
Banking 4.5 5.4 -16.6 26.0 34.1 -23.6 Net Investment Securities
Gains (Losses) (9.9) 4.9 -303.2 17.2 34.8 -50.5 Other 71.4 91.3
-21.8 276.5 276.8 -0.1 Total Non- Interest Revenues 166.1 203.7
-18.5 748.1 729.1 2.6 Salaries and Employee Benefits 178.0 174.0
2.3 723.2 659.9 9.6 Net Occupancy and Equipment 32.8 28.8 13.9
126.9 112.0 13.3 Intangible Amortization 6.4 5.4 16.9 24.3 20.6
18.2 Other 185.6 237.9 -22.0 584.6 522.4 11.9 Total Non- Interest
Expenses 402.8 446.1 -9.7 1,459.0 1,314.9 11.0 Tax Equivalent
Adjustment 7.0 7.1 -2.1 27.8 28.2 -1.3 Pre-Tax Income (Loss)
(625.1) (58.7) n.m. (967.8) 710.6 n.m. Provision (Benefit) for
Income Taxes (233.9) (34.2) n.m. (412.2) 213.7 n.m. Income (Loss)
from Continuing Operations (391.2) (24.5) n.m. (555.6) 496.9 n.m.
Discontinued Operations, net of tax: Separation Transaction Costs -
(18.6) - (25.3) Gain on Sale of Metavante - 525.6 - 525.6 Metavante
Net Income - 11.4 - 153.7 Discontinued Operations, net of tax -
518.4 - 654.0 Net Income (Loss) ($391.2) $493.9 n.m.% ($555.6)
$1,150.9 n.m.% Less: Preferred Dividends 12.7 - 12.7 - Net Income
(Loss) Available to Common Shareholders ($403.9) $493.9 n.m.%
($568.3) $1,150.9 n.m.% KEY RATIOS Net Interest Margin (FTE) / Avg.
Earning Assets 3.18% 3.13% 3.12% 3.14% Interest Spread (FTE) 2.77
2.42 2.67 2.47 Based on Income from Continuing Operations
Efficiency Ratio 62.4% 71.2% 57.4% 56.0% Return on Assets n.m. n.m.
n.m. 0.87 Return on Equity n.m. n.m. n.m. 7.44 Based on Net Income
Return on Assets n.m.% 3.30% n.m.% 1.98% Return on Equity n.m.
27.34 n.m. 17.23 Equity / Assets (End of Period) 12.14% 11.75%
12.14% 11.75% Marshall & Ilsley Corporation Financial
Information (unaudited) ----------- As of December 31,
---------------- Percent 2008 2007 Change ---- ---- ------ ASSETS
($millions) Cash & Due From Banks $851 $1,369 -37.8% Trading
Securities 518 125 316.0 Short - Term Investments 231 462 -50.0
Investment Securities 7,668 7,818 -1.9 Loans and Leases: Commercial
Loans & Leases 15,442 14,327 7.8 Commercial Real Estate 17,605
16,054 9.7 Residential Real Estate 9,714 9,745 -0.3 Home Equity
Loans & Lines 5,082 4,413 15.2 Personal Loans and Leases 2,142
1,757 21.9 ----- ----- Total Loans and Leases 49,985 46,296 8.0
Reserve for Loan & Lease Losses (1,202) (496) 142.3 Premises
and Equipment, net 565 470 20.2 Goodwill and Intangibles 2,299
1,808 27.1 Other Assets 2,909 1,997 45.7 ----- ----- Total Assets
$63,824 $59,849 6.6% ======= ======= LIABILITIES &
SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing
$6,880 $6,174 11.4% Bank Issued Interest Bearing Activity 12,467
14,137 -11.8 Bank Issued Time 9,545 8,277 15.3 ----- ----- Total
Bank Issued Deposits 28,892 28,588 1.1 Wholesale Deposits 12,131
6,603 83.7 ------ ----- Total Deposits 41,023 35,191 16.6 Short -
Term Borrowings 4,058 6,811 -40.4 Long - Term Borrowings 9,614
9,873 -2.6 Other Liabilities 1,381 941 46.8 Shareholders' Equity
7,748 7,033 10.2 ----- ----- Total Liabilities & Shareholders'
Equity $63,824 $59,849 6.6% ======= ======= Three Months Ended
Twelve Months Ended December 31, Percent December 31, Percent 2008
2007 Change 2008 2007 Change AVERAGE ASSETS ($millions) Cash &
Due From Banks $867 $1,000 -13.3% $898 $1,005 -10.7% Trading
Securities 304 78 291.4 197 57 248.6 Short - Term Investments 617
468 31.8 427 352 21.3 Investment Securities 7,298 7,672 -4.9 7,612
7,496 1.6 Loan to Metavante - 331 n.m. - 818 n.m. Loans and Leases:
Commercial Loans & Leases 15,422 13,792 11.8 15,362 13,187 16.5
Commercial Real Estate 17,693 15,861 11.5 17,282 15,122 14.3
Residential Real Estate 9,971 9,730 2.5 10,227 9,466 8.0 Home
Equity Loans and Lines 5,071 4,344 16.7 4,902 4,277 14.6 Personal
Loans and Leases 2,089 1,715 21.8 1,934 1,598 21.0 Total Loans and
Leases 50,246 45,442 10.6 49,707 43,650 13.9 Reserve for Loan &
Lease Losses (1,183) (492) 140.4 (878) (448) 95.8 Premises and
Equipment, net 552 471 17.3 529 459 15.3 Goodwill and Intangibles
2,254 1,819 23.9 2,245 1,739 29.0 Other Assets 2,670 2,048 30.4
2,397 1,816 32.0 Total Assets of Continuing Operations 63,625
58,837 8.1 63,134 56,944 10.9 Assets of Discontinued Operations -
520 n.m. - 1,266 n.m. Total Assets $63,625 $59,357 7.2% $63,134
$58,210 8.5% Memo: Average Earning Assets $58,465 $53,991 $57,943
$52,373 Average Earning Assets Excluding Investment Securities
Unrealized Gains/Losses $58,600 $54,009 $57,985 $52,422 AVG
LIABILITIES & SHAREHOLDERS' EQUITY ($millions) Deposits:
Noninterest Bearing $6,063 $5,563 9.0% $5,857 $5,470 7.1% Bank
Issued Interest Bearing Activity 13,034 13,879 -6.1 14,233 13,490
5.5 Bank Issued Time 9,213 8,346 10.4 8,999 8,555 5.2 Total Bank
Issued Deposits 28,310 27,788 1.9 29,089 27,515 5.7 Wholesale
Deposits 12,300 6,854 79.5 10,186 6,554 55.4 Total Deposits 40,610
34,642 17.2 39,275 34,069 15.3 Short - Term Borrowings 5,035 5,725
-12.1 6,163 4,694 31.3 Long - Term Borrowings 9,686 10,674 -9.3
9,749 11,534 -15.5 Other Liabilities 988 1,104 -10.5 991 1,073 -7.6
Liabilities of Discontinued Operations - 44 n.m. - 160 n.m.
Shareholders' Equity 7,306 7,168 1.9 6,956 6,680 4.1 Total
Liabilities & Shareholders' Equity $63,625 $59,357 7.2% $63,134
$58,210 8.5% Memo: Average Interest Bearing Liabilities $49,268
$45,478 $49,330 $44,827 Marshall & Ilsley Corporation Financial
Information (unaudited) Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent 2008 2007 Change 2008
2007 Change CREDIT QUALITY (a) Net Charge-Offs ($millions) $679.8
$191.6 254.8% $1,363.8 $255.9 433.0% Net Charge-Offs / Average
Loans & Leases 5.38% 1.67% 2.74% 0.59% Loan and Lease Loss
Reserve ($millions) $1,202.2 $496.2 142.3% $1,202.2 $496.2 142.3%
Loan and Lease Loss Reserve / Period-End Loans & Leases 2.41%
1.07% 2.41% 1.07% Nonaccrual Loans & Leases ($millions)
$1,527.0 $686.9 122.3% $1,527.0 $686.9 122.3% Nonaccrual Loans
& Leases / Period-End Loans & Leases 3.05% 1.48% 3.05%
1.48% Loan and Lease Loss Reserve / Nonaccrual Loans & Leases
79% 72% 79% 72% Non-Performing Loans & Leases (NPL's)
($millions) $1,811.8 $925.2 95.8% $1,811.8 $925.2 95.8% NPL's /
Period- End Loans & Leases 3.62% 2.00% 3.62% 2.00% Loan and
Lease Loss Reserve / Non- Performing Loans & Leases 66% 54% 66%
54% MARGIN ANALYSIS (b) Loans and Leases: Commercial Loans &
Leases 5.36% 7.30% 5.56% 7.52% Commercial Real Estate 5.70 7.27
6.02 7.49 Residential Real Estate 5.40 6.90 5.90 7.16 Home Equity
Loans and Lines 5.84 7.33 6.28 7.48 Personal Loans and Leases 6.08
7.54 6.38 7.73 Total Loans and Leases 5.56 7.22 5.89 7.43 Loan to
Metavante - 4.31 - 4.40 Investment Securities 4.63 5.13 4.77 5.27
Short - Term Investments 1.37 4.46 1.92 4.67 Interest Income (FTE)
/ Avg. Interest Earning Assets 5.38% 6.87% 5.70% 7.05% Interest
Bearing Deposits: Bank Issued Interest Bearing Activity 0.88% 3.34%
1.54% 3.55% Bank Issued Time 3.61 4.88 3.99 4.91 Total Bank Issued
Deposits 2.01 3.92 2.49 4.08 Wholesale Deposits 2.74 4.91 3.18 5.06
Total Interest Bearing Deposits 2.27 4.15 2.70 4.31 Short - Term
Borrowings 1.06 4.66 2.27 5.04 Long - Term Borrowings 4.64 5.14
4.66 5.07 Interest Expense / Avg. Interest Bearing Liabilities
2.61% 4.45% 3.03% 4.58% Net Interest Margin(FTE) / Avg. Earning
Assets 3.18% 3.13% 3.12% 3.14% Interest Spread (FTE) 2.77% 2.42%
2.67% 2.47% Notes: (a) Non-performing loans & leases includes
renegotiated loans and 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: Greg Smith, senior vice president, chief financial
officer, +1-414-765-7727, or Dave Urban, vice president, director
of investor relations, +1-414-765-7853, both of Marshall &
Ilsley Corporation Web Site: http://www.mibank.com/
http://www.micorp.com/
Copyright
Marshall & Ilsley (NYSE:MI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Marshall & Ilsley (NYSE:MI)
Historical Stock Chart
From Jul 2023 to Jul 2024