MILWAUKEE, July 20 /PRNewswire-FirstCall/ --
- Net loss of $173.8 million or
$0.33 per share for second quarter
2010.
- Continued improvement in credit quality.
- Early stage delinquencies fell 14 percent from first quarter
2010 – the fifth consecutive quarterly decline and the lowest level
since 2007. Delinquencies down 64 percent since peak at
March 31, 2009.
- Nonperforming loan inflows dropped 9 percent from prior quarter
to $612 million – the lowest level
since first quarter 2008.
- Nonperforming loans decreased 8 percent from first quarter 2010
– the fourth consecutive quarterly decline and down 25 percent from
second quarter 2009 high.
- Allowance for loan and lease losses at quarter-end was over
$1.5 billion, or 3.67 percent of
total loans and leases.
- Net interest margin rose 38 basis points to 3.17 percent from
same quarter last year.
Marshall & Ilsley Corporation (NYSE: MI) (M&I) today
reported a 2010 second quarter net loss of $173.8 million, or $0.33 per share, as compared to a net loss of
$234.0 million, or $0.83 per share, in the second quarter of 2009.
For the six months ended June 30,
2010, M&I reported a net loss of $314.3 million, or $0.60 per share, as compared to a net loss of
$350.9 million, or $1.29 per share, for the six months ended
June 30, 2009.
“Our second quarter results were in line with the prior
quarter after adjusting for last quarter’s gain on the sale of our
merchant processing business,” said Mark
Furlong, president and CEO, Marshall & Ilsley
Corporation. “Loan loss provision and net charge-offs were
consistent with the first quarter and substantially better than
last year. This continues the progress we have made in addressing
asset quality challenges through our early identification of
problem credits. We will remain diligent in continuing to improve
our credit profile, but our attention will increasingly shift
toward a return to profitability and growth opportunities.”
Net Interest Income
The Corporation’s net interest income (FTE) was $407.3 million for the second quarter of 2010, up
$8.8 million or 2 percent compared to
the second quarter of 2009. The net interest margin was 3.17
percent, up 38 basis points from the second quarter of 2009, and
rising 4 basis points from the prior quarter. During the second
quarter of 2010, M&I’s net interest margin benefited from lower
funding costs and deployment of excess liquidity.
Asset Quality
M&I continued to proactively address credit quality in the
second quarter of 2010 by identifying and writing down troubled
assets, selling problem loans, reducing exposure to construction
and development loans, and maintaining loan loss reserves.
- Provision for loan and lease losses was $439.9 million in the second quarter of 2010,
down $179.1 million or 29 percent
versus the second quarter of 2009. Net charge-offs for the period
were $438.3 million, falling
$165.0 million or 27 percent compared
to the same period last year.
- Construction and development (C&D) exposure declined from
the first quarter of 2010 to 10.7 percent of total loans. Arizona
C&D exposure fell 74 percent since the fourth quarter of
2007.
- Allowance for loan and lease losses at quarter-end was over
$1.5 billion, or 3.67 percent of
total loans and leases, an increase of 83 basis points from the
same period last year.
Asset quality trends demonstrated further stabilization through
lower early stage delinquencies, nonperforming loan inflows, and
nonperforming loans.
- Early stage delinquencies fell 14 percent from the first
quarter of 2010 – the fifth consecutive quarterly decline and the
lowest level since 2007.
- Nonperforming loan inflows dropped 9 percent from the prior
quarter to $612 million – the lowest
level since first quarter 2008.
- Nonperforming loans decreased $152.4
million, or 8 percent from the first quarter of 2010 – the
fourth consecutive quarterly decline and down 25 percent from the
high point set in the second quarter of 2009.
- Nonperforming loans and leases were 4.36 percent (or 2.76
percent excluding nonperforming loans and leases less than ninety
days past due) of total loans and leases at June 30, 2010, compared to 4.58 percent at
March 31, 2010.
Non-Interest Income
The Corporation’s non-interest income was $174.0 million for the second quarter of 2010
compared to $264.8 million for the
second quarter of 2009. Unusual gains were $4.6 million for the current quarter versus
$91.9 million in the same period last
year. After adjusting for unusual gains, M&I’s non-interest
income fell $3.5 million or 2 percent
versus the second quarter of 2009. In spite of volatile equity
markets, Wealth Management revenue was $69.9
million for the current quarter, exceeding the same quarter
last year by $4.1 million or 6
percent. Assets under management and assets under administration
were $31.7 billion and $121.4 billion, respectively, at June 30, 2010, compared to $31.7 billion and $109.3
billion, respectively, at June 30,
2009.
Non-Interest Expense
M&I’s non-interest expense was $388.0
million for the second quarter of 2010 compared to
$412.7 million for the second quarter
of 2009. Credit-related expenses (meaning expenses associated with
collection efforts and carrying nonperforming assets) were
$37.5 million for the current quarter
versus $44.5 million in the same
period last year. After adjusting for credit-related expenses,
M&I’s non-interest expense fell $17.7
million or 5 percent versus the second quarter of 2009. The
Corporation’s adjusted efficiency ratio was 60.6 percent in the
current quarter after adjusting for net credit-related expenses and
other one-time items.
Loan and Deposit Growth
M&I’s average loans and leases totaled $42.2 billion for the second quarter of 2010,
decreasing $6.7 billion or 14 percent
compared to the second quarter of 2009. When adjusted for the
targeted reduction in the Corporation’s construction and
development portfolio, loans fell $4.0
billion or 10 percent versus the same period last year. Loan
balances continued to be negatively impacted by lower utilization
rates on commercial lines of credit and the depressed real estate
markets.
The Corporation’s average deposits totaled $41.2 billion for the second quarter of 2010,
rising $1.3 billion or 3 percent
versus the second quarter of 2009. M&I’s core deposits posted
strong growth over the past year, reflecting expanded product
offerings. The Corporation’s average noninterest bearing deposits
totaled $7.9 billion for the second
quarter of 2010, increasing $570
million or 8 percent compared to the second quarter of 2009.
M&I’s average savings accounts totaled $2.7 billion for the second quarter of 2010,
increasing $1.3 billion or 92 percent
compared to the second quarter of 2009.
Year-To-Date Results
M&I reported a net loss of $314.3
million, or $0.60 per share,
for the six months ended June 30,
2010, as compared to a net loss of $350.9 million, or $1.29 per share, for the six months ended
June 30, 2009. The Corporation’s net
interest income (FTE) was $816.5
million for the six months ended June
30, 2010, an increase of $9.1
million or 1 percent compared to the six months ended
June 30, 2009. M&I’s non-interest
income was $395.6 million for the six
months ended June 30, 2010 versus
$439.2 million the six months ended
June 30, 2009. The Corporation’s
non-interest expense was $754.0
million for the six months ended June
30, 2010, falling $1.9 million
or 0.3 percent compared to the six months ended June 30, 2009.
Balance Sheet and Capital Management
The Corporation’s consolidated assets and total equity were
$53.9 billion and $6.8 billion, respectively, at June 30, 2010, compared to $59.7 billion and $6.6
billion, respectively, at June 30,
2009. There were 527.6 million common shares outstanding at
June 30, 2010, versus 368.1 million
outstanding at June 30, 2009. In the
second quarter of 2010, M&I’s net loss included $25.2 million or $0.05 per share for dividends on the
Corporation’s Senior Preferred Stock, Series B, owned by the U.S.
Treasury under the Capital Purchase Program.
M&I’s tangible common equity ratio was 8.3 percent at
June 30, 2010, compared to 7.2
percent at June 30, 2009.
Conference Call
Marshall & Ilsley Corporation will hold a conference call at
11:00 a.m. (Central Daylight Time) Tuesday,
July 20, regarding second 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 3:00 p.m. on
July 20 and will run through
5:00 p.m. August 17, by calling 1-800-642-1687 and entering
pass code 822 34 915. Supplemental financial information referenced
in the conference call can be found at www.micorp.com, Investor
Relations, after 8:00 a.m. on
July 20.
About Marshall & Ilsley Corporation
Marshall & Ilsley Corporation (NYSE: MI) is a diversified
financial services corporation headquartered in Milwaukee, Wis., with $53.9 billion in assets. Founded in 1847, M&I
Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 192 offices
throughout the state. In addition, M&I has 53 locations
throughout Arizona; 36 offices
along Florida’s west coast and in central Florida; 33 offices in Indianapolis and nearby communities; 26
offices in metropolitan Minneapolis/St.
Paul, and one in Duluth,
Minn.; 17 offices in the greater St. Louis area; 15 offices in Kansas City and nearby communities; and one
office in Las Vegas, Nev. 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 (www.mibank.com or 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) general
business and economic conditions, including credit risk and
interest rate risk, (ii) M&I’s exposure to increased credit
risks associated with its real estate loans, (iii) various factors,
including changes in economic conditions affecting borrowers, new
information regarding existing loans and identification of
additional problem loans, which could require an increase in
M&I’s allowance for loan and lease losses, (iv) federal and
state agency regulation and enforcement actions, which could limit
M&I’s activities, increase its cost structures or have other
negative effects on M&I, (v) M&I’s ability to maintain
required levels of capital, (vi) the impact of recent and future
legislative initiatives on the financial markets or on M&I,
(vii) M&I’s exposure to the actions and potential failure of
other financial institutions, (viii) volatility in M&I’s stock
price and in the capital and credit markets in general, and (ix)
those factors referenced in Item 1A. Risk Factors in M&I’s
Annual Report on Form 10-K for the year ended December 31, 2009 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
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Financial Information
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(unaudited)
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Three Months
Ended
June 30,
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Percent
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Six Months Ended
June 30,
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Percent
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2010
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2009
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Change
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2010
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2009
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Change
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PER COMMON SHARE
DATA
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Diluted:
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Net Income
(Loss)
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($0.33)
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($0.83)
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n.m.
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%
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($0.60)
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($1.29)
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n.m.
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%
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Basic:
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Net Income
(Loss)
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(0.33)
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(0.83)
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n.m.
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(0.60)
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(1.29)
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n.m.
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Dividend Declared per Common
Share
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0.01
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0.01
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0.0
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0.02
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0.02
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0.0
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Book Value per Common
Share
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9.72
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13.52
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-28.1
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9.72
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13.52
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-28.1
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Common Shares Outstanding
(millions):
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Average - Diluted
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524.3
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280.8
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86.7
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524.2
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272.7
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92.2
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End of
Period
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527.6
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368.1
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43.3
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527.6
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368.1
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43.3
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INCOME STATEMENT
($millions)
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Net Interest Income (FTE)
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$407.3
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$398.5
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2.2
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%
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$816.5
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$807.4
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1.1
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%
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Provision for Loan and Lease
Losses
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439.9
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619.0
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-28.9
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898.0
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1,096.9
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-18.1
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Wealth
Management
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69.9
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65.8
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6.2
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138.0
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128.5
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7.4
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Service Charges on
Deposits
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33.2
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34.1
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-2.5
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65.3
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69.4
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-5.8
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Mortgage Banking
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7.8
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18.0
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-56.8
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14.1
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28.9
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-51.0
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Net Investment
Securities Gains (Losses)
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3.7
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82.7
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-95.5
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3.8
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82.7
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-95.4
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Other
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59.4
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64.2
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-7.5
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174.4
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129.7
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34.4
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Total Non-Interest
Revenues
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174.0
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264.8
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-34.3
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395.6
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439.2
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-9.9
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Salaries and
Employee Benefits
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185.3
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187.2
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-1.0
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346.9
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342.4
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1.3
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Net Occupancy and
Equipment
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33.0
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32.4
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1.7
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67.1
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66.2
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1.3
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FDIC
Insurance
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26.6
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49.2
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-45.9
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53.9
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64.3
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-16.2
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Intangible
Amortization
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5.0
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5.8
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-13.7
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10.2
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11.6
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-12.5
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Other
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138.1
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138.1
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0.1
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275.9
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271.4
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1.7
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Total Non-Interest
Expenses
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388.0
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412.7
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-6.0
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754.0
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755.9
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-0.3
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Tax Equivalent Adjustment
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5.4
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6.7
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-18.6
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11.1
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13.8
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-19.3
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Pre-Tax Income (Loss)
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(252.0)
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(375.1)
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n.m.
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(451.0)
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(620.0)
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n.m.
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Provision (Benefit) for Income
Taxes
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(103.4)
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(166.1)
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n.m.
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(187.1)
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(319.1)
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n.m.
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Net Income (Loss) Attributable
to M&I
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($148.6)
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($209.0)
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n.m.
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($263.9)
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($300.9)
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n.m.
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Preferred Dividends
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(25.2)
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(25.0)
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(50.4)
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(50.0)
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Net Income (Loss) Attributable
to M&I Common Shareholders
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($173.8)
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($234.0)
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n.m.
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%
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($314.3)
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($350.9)
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n.m.
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%
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KEY RATIOS
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Net Interest Margin (FTE) / Avg.
Earning Assets
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3.17
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%
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2.79
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%
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3.15
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%
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2.81
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%
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Interest Spread (FTE)
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2.82
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2.40
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2.80
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2.44
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Efficiency Ratio
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67.2
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%
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71.1
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%
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62.4
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%
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65.0
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%
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Equity / Assets (End of Period)
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12.54
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%
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11.05
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%
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12.54
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%
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11.05
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%
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Marshall & Ilsley
Corporation
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Financial Information
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(unaudited)
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As of June 30,
|
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Percent
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2010
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2009
|
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Change
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ASSETS
($millions)
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Cash & Due From Banks
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$663
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$797
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-16.8
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%
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Trading Assets
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299
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261
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14.4
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Short - Term
Investments
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837
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916
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-8.6
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Investment Securities
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7,329
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6,125
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19.6
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Loans and Leases:
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Commercial Loans
& Leases
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12,247
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14,792
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-17.2
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Commercial Real
Estate
|
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13,310
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13,938
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-4.5
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Residential Real
Estate
|
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4,625
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5,465
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-15.4
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Construction and
Development
|
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4,419
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|
6,829
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-35.3
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Home Equity Loans
& Lines
|
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4,487
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4,912
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-8.6
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Personal Loans and
Leases
|
|
2,229
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|
2,247
|
|
-0.8
|
|
|
|
Total Loans and Leases
|
|
41,317
|
|
48,183
|
|
-14.2
|
|
|
|
Reserve for Loan & Lease
Losses
|
|
(1,517)
|
|
(1,368)
|
|
10.9
|
|
|
|
Premises and Equipment, net
|
|
553
|
|
573
|
|
-3.4
|
|
|
|
Goodwill and Other Intangibles
|
|
734
|
|
757
|
|
-3.0
|
|
|
|
Other Assets
|
|
3,689
|
|
3,450
|
|
6.9
|
|
|
|
Total Assets
|
|
$53,904
|
|
$59,694
|
|
-9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY
($millions)
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Noninterest
Bearing
|
|
$7,489
|
|
$7,848
|
|
-4.6
|
%
|
|
|
Interest
Bearing:
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
5,613
|
|
4,893
|
|
14.7
|
|
|
|
Money
Market
|
|
13,349
|
|
9,979
|
|
33.8
|
|
|
|
Time
|
|
12,912
|
|
18,080
|
|
-28.6
|
|
|
|
Foreign
|
|
199
|
|
392
|
|
-49.3
|
|
|
|
Total Interest
Bearing
|
|
32,073
|
|
33,344
|
|
-3.8
|
|
|
|
Total Deposits
|
|
39,562
|
|
41,192
|
|
-4.0
|
|
|
|
Short - Term Borrowings
|
|
957
|
|
1,475
|
|
-35.1
|
|
|
|
Long - Term Borrowings
|
|
5,604
|
|
9,297
|
|
-39.7
|
|
|
|
Other Liabilities
|
|
1,023
|
|
1,135
|
|
-9.8
|
|
|
|
Total Liabilities
|
|
47,146
|
|
53,099
|
|
-11.2
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
Marshall &
Ilsley Corporation Shareholders' Equity
|
|
6,747
|
|
6,584
|
|
2.5
|
|
|
|
Noncontrolling
Interest in Subsidiaries
|
|
11
|
|
11
|
|
-0.8
|
|
|
|
Total Equity
|
|
6,758
|
|
6,595
|
|
2.5
|
|
|
|
Total Liabilities & Equity
|
|
$53,904
|
|
$59,694
|
|
-9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Percent
|
|
|
Six Months Ended
June 30,
|
|
Percent
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
AVERAGE ASSETS
($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & Due From Banks
|
|
$693
|
|
$748
|
|
-7.3
|
%
|
|
$690
|
|
$775
|
|
-11.0
|
%
|
|
|
Trading Assets
|
|
262
|
|
581
|
|
-55.0
|
|
|
257
|
|
583
|
|
-55.9
|
|
|
|
Short - Term Investments
|
|
1,674
|
|
459
|
|
265.1
|
|
|
1,698
|
|
514
|
|
230.2
|
|
|
|
Investment Securities
|
|
7,412
|
|
7,314
|
|
1.3
|
|
|
7,433
|
|
7,501
|
|
-0.9
|
|
|
|
Loans and Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
and Leases
|
|
12,326
|
|
14,926
|
|
-17.4
|
|
|
12,505
|
|
15,108
|
|
-17.2
|
|
|
|
Commercial Real
Estate
|
|
13,485
|
|
13,549
|
|
-0.5
|
|
|
13,536
|
|
13,212
|
|
2.4
|
|
|
|
Residential Real
Estate
|
|
4,752
|
|
5,695
|
|
-16.6
|
|
|
4,809
|
|
5,732
|
|
-16.1
|
|
|
|
Construction and
Development
|
|
4,831
|
|
7,587
|
|
-36.3
|
|
|
5,128
|
|
8,126
|
|
-36.9
|
|
|
|
Home Equity Loans
and Lines
|
|
4,529
|
|
4,969
|
|
-8.9
|
|
|
4,587
|
|
5,017
|
|
-8.6
|
|
|
|
Personal Loans and
Leases
|
|
2,234
|
|
2,149
|
|
4.0
|
|
|
2,276
|
|
2,148
|
|
5.9
|
|
|
|
Total Loans and Leases
|
|
42,157
|
|
48,875
|
|
-13.7
|
|
|
42,841
|
|
49,343
|
|
-13.2
|
|
|
|
Reserve for Loan & Lease
Losses
|
|
(1,532)
|
|
(1,361)
|
|
12.5
|
|
|
(1,534)
|
|
(1,304)
|
|
17.6
|
|
|
|
Premises and Equipment, net
|
|
556
|
|
572
|
|
-2.9
|
|
|
559
|
|
571
|
|
-2.0
|
|
|
|
Goodwill and Other Intangibles
|
|
737
|
|
757
|
|
-2.7
|
|
|
739
|
|
759
|
|
-2.6
|
|
|
|
Other Assets
|
|
3,725
|
|
2,999
|
|
24.2
|
|
|
3,702
|
|
2,944
|
|
25.7
|
|
|
|
Total Assets
|
|
$55,684
|
|
$60,944
|
|
-8.6
|
%
|
|
$56,385
|
|
$61,686
|
|
-8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Assets
|
|
$51,505
|
|
$57,229
|
|
|
|
|
$52,229
|
|
$57,941
|
|
|
|
|
|
Average Earning Assets Excluding
Investment Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Gains/Losses
|
|
$51,465
|
|
$57,190
|
|
|
|
|
$52,207
|
|
$57,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVG LIABILITIES & EQUITY
($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Bearing
|
|
$7,925
|
|
$7,355
|
|
7.7
|
%
|
|
$7,872
|
|
$6,921
|
|
13.8
|
%
|
|
|
Interest
Bearing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
6,910
|
|
4,175
|
|
65.5
|
|
|
7,068
|
|
3,854
|
|
83.4
|
|
|
|
Money
Market
|
|
12,685
|
|
10,207
|
|
24.3
|
|
|
12,313
|
|
10,418
|
|
18.2
|
|
|
|
Time
|
|
13,440
|
|
17,652
|
|
-23.9
|
|
|
14,056
|
|
17,776
|
|
-20.9
|
|
|
|
Foreign
|
|
214
|
|
469
|
|
-54.4
|
|
|
231
|
|
794
|
|
-70.9
|
|
|
|
Total Interest
Bearing
|
|
33,249
|
|
32,503
|
|
2.3
|
|
|
33,668
|
|
32,842
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
41,174
|
|
39,858
|
|
3.3
|
|
|
41,540
|
|
39,763
|
|
4.5
|
|
|
|
Short - Term Borrowings
|
|
774
|
|
4,206
|
|
-81.6
|
|
|
894
|
|
4,961
|
|
-82.0
|
|
|
|
Long - Term Borrowings
|
|
5,816
|
|
9,440
|
|
-38.4
|
|
|
6,023
|
|
9,505
|
|
-36.6
|
|
|
|
Other Liabilities
|
|
1,020
|
|
1,041
|
|
-2.0
|
|
|
974
|
|
1,081
|
|
-9.9
|
|
|
|
Total Liabilities
|
|
48,784
|
|
54,545
|
|
-10.6
|
|
|
49,431
|
|
55,310
|
|
-10.6
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall &
Ilsley Corporation Shareholders' Equity
|
|
6,889
|
|
6,388
|
|
7.8
|
|
|
6,943
|
|
6,365
|
|
9.1
|
|
|
|
Noncontrolling
Interest in Subsidiaries
|
|
11
|
|
11
|
|
3.9
|
|
|
11
|
|
11
|
|
5.9
|
|
|
|
Total Equity
|
|
6,900
|
|
6,399
|
|
7.8
|
|
|
6,954
|
|
6,376
|
|
9.1
|
|
|
|
Total Liabilities
& Equity
|
|
$55,684
|
|
$60,944
|
|
-8.6
|
%
|
|
$56,385
|
|
$61,686
|
|
-8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Interest Bearing
Liabilities
|
|
$39,839
|
|
$46,149
|
|
|
|
|
$40,585
|
|
$47,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall & Ilsley
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Percent
|
|
|
Six Months Ended
June 30,
|
|
Percent
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
CREDIT QUALITY
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs ($millions)
|
|
$438.3
|
|
$603.3
|
|
-27.4
|
%
|
|
$861.7
|
|
$931.3
|
|
-7.5
|
%
|
|
|
Net Charge-Offs / Average Loans
and Leases
|
|
4.17
|
%
|
4.95
|
%
|
|
|
|
4.06
|
%
|
3.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease Loss Reserve
($millions)
|
|
$1,516.8
|
|
$1,367.8
|
|
10.9
|
%
|
|
$1,516.8
|
|
$1,367.8
|
|
10.9
|
%
|
|
|
Loan and Lease Loss Reserve /
Period-End Loans and
Leases
|
|
3.67
|
%
|
2.84
|
%
|
|
|
|
3.67
|
%
|
2.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans & Leases
($millions)
|
|
$1,801.4
|
|
$2,416.1
|
|
-25.4
|
%
|
|
$1,801.4
|
|
$2,416.1
|
|
-25.4
|
%
|
|
|
Nonperforming Loans & Leases
/ Period-End Loans and
Leases
|
|
4.36
|
%
|
5.01
|
%
|
|
|
|
4.36
|
%
|
5.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease Loss Reserve /
Nonperforming Loans
and
Leases*
|
|
88
|
%
|
62
|
%
|
|
|
|
88
|
%
|
62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets (NPA)
($millions)
|
|
$2,246.9
|
|
$2,772.9
|
|
-19.0
|
%
|
|
$2,246.9
|
|
$2,772.9
|
|
-19.0
|
%
|
|
|
NPA / Period-End Loans &
Leases and Other Real
Estate Owned
|
|
5.38
|
%
|
5.71
|
%
|
|
|
|
5.38
|
%
|
5.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing Renegotiated
($millions)
|
|
$714.6
|
|
$818.5
|
|
-12.7
|
%
|
|
$714.6
|
|
$818.5
|
|
-12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more
($millions)
|
|
$8.1
|
|
$15.1
|
|
-46.5
|
%
|
|
$8.1
|
|
$15.1
|
|
-46.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Excludes nonperforming loans
held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARGIN ANALYSIS
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
and Leases
|
|
4.58
|
%
|
4.01
|
%
|
|
|
|
4.55
|
%
|
3.96
|
%
|
|
|
|
|
Commercial Real
Estate
|
|
4.94
|
|
5.11
|
|
|
|
|
4.98
|
|
5.18
|
|
|
|
|
|
Residential Real
Estate
|
|
5.05
|
|
5.25
|
|
|
|
|
5.10
|
|
5.42
|
|
|
|
|
|
Construction and
Development
|
|
3.94
|
|
3.63
|
|
|
|
|
3.83
|
|
3.67
|
|
|
|
|
|
Home Equity Loans
and Lines
|
|
5.01
|
|
5.06
|
|
|
|
|
4.99
|
|
5.12
|
|
|
|
|
|
Personal Loans and
Leases
|
|
5.48
|
|
5.64
|
|
|
|
|
5.49
|
|
5.59
|
|
|
|
|
|
Total Loans and Leases
|
|
4.77
|
|
4.58
|
|
|
|
|
4.76
|
|
4.60
|
|
|
|
|
|
Investment Securities
|
|
3.35
|
|
4.11
|
|
|
|
|
3.41
|
|
4.19
|
|
|
|
|
|
Short - Term Investments
|
|
0.25
|
|
1.13
|
|
|
|
|
0.26
|
|
1.01
|
|
|
|
|
|
Interest Income (FTE) / Avg.
Interest Earning Assets
|
|
4.39
|
%
|
4.46
|
%
|
|
|
|
4.40
|
%
|
4.48
|
%
|
|
|
|
|
Interest Bearing Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
0.41
|
%
|
0.29
|
%
|
|
|
|
0.44
|
%
|
0.22
|
%
|
|
|
|
|
Money
Market
|
|
0.80
|
|
0.72
|
|
|
|
|
0.80
|
|
0.67
|
|
|
|
|
|
Time
|
|
2.21
|
|
2.64
|
|
|
|
|
2.22
|
|
2.68
|
|
|
|
|
|
Foreign
|
|
0.42
|
|
0.36
|
|
|
|
|
0.41
|
|
0.34
|
|
|
|
|
|
Total Interest Bearing Deposits
|
|
1.29
|
|
1.71
|
|
|
|
|
1.31
|
|
1.70
|
|
|
|
|
|
Short - Term Borrowings
|
|
0.21
|
|
0.27
|
|
|
|
|
0.24
|
|
0.28
|
|
|
|
|
|
Long - Term Borrowings
|
|
3.41
|
|
4.06
|
|
|
|
|
3.43
|
|
4.15
|
|
|
|
|
|
Interest Expense / Avg. Interest
Bearing Liabilities
|
|
1.57
|
%
|
2.06
|
%
|
|
|
|
1.60
|
%
|
2.04
|
%
|
|
|
|
|
Net Interest Margin (FTE) / Avg.
Earning Assets
|
|
3.17
|
%
|
2.79
|
%
|
|
|
|
3.15
|
%
|
2.81
|
%
|
|
|
|
|
Interest Spread (FTE)
|
|
2.82
|
%
|
2.40
|
%
|
|
|
|
2.80
|
%
|
2.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Nonperforming assets
are comprised of nonaccrual loans & leases and other real
estate owned.
|
|
|
(b) Based on average
balances excluding fair value adjustments for available for sale
securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Marshall & Ilsley Corporation