MILWAUKEE, Jan. 20 /PRNewswire-FirstCall/ -- -- Net loss of $0.54
per share for fourth quarter 2009. -- Continued stabilization in
credit quality. -- Nonperforming loans decreased $205 million, or 9
percent from third quarter 2009 - the second consecutive quarterly
decline. -- Early stage delinquencies fell $134 million, or 16
percent, from third quarter 2009 - the third consecutive quarterly
decline and at lowest level since December 2007. -- Increased
allowance for loan and lease losses to 3.35 percent of total loans
and leases. -- Net interest margin rose 13 basis points to 2.95
percent from prior quarter. Marshall & Ilsley Corporation
(NYSE:MI) (M&I) today reported a 2009 fourth quarter net loss
of $259.5 million, or $0.54 per share, as compared to a net loss of
$1,891.7 million, or $7.25 per share, in the fourth quarter of
2008. For the year ended December 31, 2009, M&I reported a net
loss of $858.8 million, or $2.46 per share, as compared to a net
loss of $2,056.2 million, or $7.92 per share, for the year ended
December 31, 2008. The financial results for the fourth quarter of
2008 and the year ended December 31, 2008 included a goodwill
impairment charge of $1,487.9 million after-tax. "Our aggressive
approach to managing credit continued to impact M&I's financial
results during the fourth quarter of 2009," said Mark Furlong,
president and CEO, Marshall & Ilsley Corporation. "Despite the
loss, there are some encouraging signs that credit quality has
stabilized and core earnings trends have improved. M&I remains
committed to returning the Company to profitability as soon as
possible." Loan and Deposit Growth M&I's average loans and
leases totaled $45.3 billion for the fourth quarter of 2009,
decreasing $4.9 billion or 10 percent compared to the fourth
quarter of 2008. When adjusted for the targeted reduction in the
Corporation's construction and development portfolio, loans fell
$1.2 billion or 3 percent versus the same period last year. The
Corporation's average deposits totaled $41.6 billion for the fourth
quarter of 2009, rising $1.0 billion or 2 percent versus the fourth
quarter of 2008. M&I's core deposits posted strong growth over
the past year, reflecting expanded product offerings. The
Corporation's average noninterest bearing deposits totaled $8.0
billion for the fourth quarter of 2009, increasing $1.9 billion or
32 percent compared to the fourth quarter of 2008. M&I's
average savings and NOW accounts totaled $6.5 billion for the
fourth quarter of 2009, increasing $3.2 billion or 100 percent
compared to the fourth quarter of 2008. Net Interest Income The
Corporation's net interest income (FTE) was $406.1 million for the
fourth quarter of 2009, up $11.6 million or 3 percent compared to
the third quarter of 2009. The net interest margin was 2.95
percent, up 13 basis points from the previous quarter. During the
fourth quarter of 2009, M&I's net interest margin benefited
from credit quality improvement and the restructuring and/or
retiring of certain debt instruments. Asset Quality M&I
continued to proactively address credit quality in the fourth
quarter of 2009 by identifying and writing down troubled assets,
selling problem loans, reducing exposure to construction and
development loans, and building loan loss reserves. -- Provision
for loan and lease losses was $639.0 million in the fourth quarter
of 2009 versus $578.7 million in the third quarter of 2009. Net
charge-offs for the period were $572.3 million compared to $532.7
million in the prior quarter. -- Construction and development
(C&D) exposure declined from the third quarter of 2009 to 12.5
percent of total loans. Arizona C&D exposure fell 64 percent
since the fourth quarter of 2007. -- Allowance for loan and lease
losses increased 28 basis points to 3.35 percent of total loans and
leases from the prior quarter. Asset quality trends demonstrated
further stabilization through lower early stage delinquencies and
nonperforming loans. -- Early stage delinquencies fell $134
million, or 16 percent, from the third quarter of 2009 - the third
consecutive quarterly decline and at the lowest level since
December 2007. -- Nonperforming loans decreased $205 million, or 9
percent from the third quarter of 2009 - the second consecutive
quarterly decline. -- Nonperforming loans and leases were 4.62
percent (or 3.05 percent excluding nonperforming loans and leases
less than ninety days past due) of total loans and leases at
December 31, 2009, compared to 4.88 percent at September 30, 2009.
Non-Interest Income The Corporation's non-interest income was
$243.8 million for the fourth quarter of 2009 compared to $166.1
million for the fourth quarter of 2008. Net securities gains of
$40.6 million, debt termination gains of $30.9 million, and losses
on loans held for sale of $11.1 million were unique to the current
quarter. Wealth Management revenue was $69.9 million for the
current quarter, exceeding the same quarter last year by $5.7
million or 9 percent. Assets under Management and Assets under
Administration were $32.9 billion and $122.3 billion, respectively,
at December 31, 2009 (record highs), compared to $30.4 billion and
$104.4 billion, respectively, at December 31, 2008. Non-Interest
Expense M&I's non-interest expense was $409.4 million for the
fourth quarter of 2009 compared to $402.8 million for the fourth
quarter of 2008 (excluding the $1,535.1 million goodwill impairment
charge). The Corporation's non-interest expense was unchanged
versus the prior quarter. Credit-related expenses (meaning expenses
associated with collection efforts and carrying nonperforming
assets) were $69.1 million for the current quarter versus $45.2
million in the same period last year. Excluding these items and the
goodwill impairment charge, non-interest expense declined $17.3
million or 5 percent versus the fourth quarter of 2008. After
adjusting for certain net credit-related expenses and other
one-time items, M&I's efficiency ratio was 56.7 percent in the
current quarter. Year End Results M&I reported a net loss of
$858.8 million, or $2.46 per share, for the year ended December 31,
2009, as compared to a net loss of $2,056.2 million, or $7.92 per
share, for the year ended December 31, 2008. The financial results
for the year ended December 31, 2008 included a goodwill impairment
charge of $1,487.9 million after-tax. The Corporation's net
interest income (FTE) was $1,608.0 million for the year ended
December 31, 2009, a decrease of $200.6 million or 11 percent
compared to the year ended December 31, 2008. M&I's
non-interest income was $915.6 million for the year ended December
31, 2009, an increase of $167.5 million or 22 percent versus the
year ended December 31, 2008. The Corporation's non-interest
expense was $1,579.4 million for the year ended December 31, 2009,
falling $1,414.7 million or 47 percent compared to the year ended
December 31, 2008. Balance Sheet and Capital Management The
Corporation's consolidated assets and total equity were $57.2
billion and $7.0 billion, respectively, at December 31, 2009,
compared to $62.3 billion and $6.3 billion, respectively, at
December 31, 2008. There were 525.4 million common shares
outstanding at December 31, 2009, versus 265.3 million outstanding
at December 31, 2008. In the fourth quarter of 2009, M&I paid
$25 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 8.2 percent at December 31, 2009, compared to 6.4 percent
at December 31, 2008. Conference Call Marshall & Ilsley
Corporation will hold a conference call at 11:00 a.m. (Central
Standard Time) Wednesday, January 20, 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 3:00 p.m. on January 20 and
will run through 5:00 p.m. February 19, by calling 1-800-642-1687
and entering pass code 491 82 228. 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 20. About Marshall & Ilsley Corporation Marshall &
Ilsley Corporation (NYSE:MI) is a diversified financial services
corporation headquartered in Milwaukee, Wis., with $57.2 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; 33
offices in Indianapolis and nearby communities; 36 offices along
Florida's west coast and in central Florida; 16 offices in Kansas
City and nearby communities; 26 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 deterioration in the commercial and residential
real estate markets, directly or indirectly through M&I's loans
to other bank holding companies, along with the deterioration in
the U.S. economy as a whole, which could result in increased
charge-offs and increases in M&I's allowance for loan and lease
losses, (ii) various other factors, including changes in economic
conditions affecting borrowers, new information regarding
outstanding loans and identification of additional problem loans,
which could require an increase in M&I's allowance for loan and
lease losses, (iii) M&I's ability to maintain required levels
of capital, (iv) the impact of recent and future legislative
initiatives on the financial markets or on M&I, (v) M&I's
exposure to the actions and potential failure of other financial
institutions, (vi) volatility in M&I's stock price, and (vii)
those factors referenced in Item 1A. Risk Factors in M&I's
Annual Report on Form 10-K for the year ended December 31, 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 2009 2008 Change
2009 2008 Change PER COMMON SHARE DATA Diluted: Net Income (Loss)
($0.54) ($7.25) n.m.% ($2.46) ($7.92) n.m.% Basic: Net Income
(Loss) (0.54) (7.25) n.m. (2.46) (7.92) n.m. Dividend Declared per
Common Share 0.01 0.32 -96.9 0.04 1.27 -96.9 Book Value per Common
Share 10.21 17.58 -41.9 10.21 17.58 -41.9 Common Shares Outstanding
(millions): Average - Diluted 479.3 261.0 83.6 348.5 259.6 34.2 End
of Period 525.4 265.3 98.0 525.4 265.3 98.0 INCOME STATEMENT
($millions) Net Interest Income (FTE) $406.1 $469.0 -13.4% $1,608.0
$1,808.6 -11.1% Provision for Loan and Lease Losses 639.0 850.4
-24.9 2,314.6 2,037.7 13.6 Wealth Management 69.9 64.2 9.0 265.1
282.2 -6.0 Service Charges on Deposits 33.6 35.9 -6.3 136.6 146.2
-6.6 Mortgage Banking 6.7 4.5 48.4 48.3 26.0 85.6 Net Investment
Securities Gains (Losses) 40.6 (9.9) -508.7 121.8 17.2 606.9 Other
93.0 71.4 30.3 343.8 276.5 24.3 Total Non- Interest Revenues 243.8
166.1 46.8 915.6 748.1 22.4 Salaries and Employee Benefits 169.2
178.0 -4.9 690.8 723.2 -4.5 Net Occupancy and Equipment 36.2 32.8
10.5 135.7 126.9 7.0 FDIC Insurance 25.8 7.2 256.0 107.9 17.3 525.3
Intangible Amortization 5.9 6.4 -7.3 23.4 24.3 -3.5 Goodwill
Impairment - 1,535.1 -100.0 - 1,535.1 -100.0 Other 172.3 178.4 -3.4
621.6 567.3 9.6 Total Non- Interest Expenses 409.4 1,937.9 -78.9
1,579.4 2,994.1 -47.2 Tax Equivalent Adjustment 5.8 7.0 -17.2 25.4
27.9 -8.9 Pre-Tax Income (Loss) (404.3) (2,160.2) n.m. (1,395.8)
(2,503.0) n.m. Provision (Benefit) for Income Taxes (170.0) (281.2)
n.m. (637.2) (459.5) n.m. Net Income (Loss) Attributable to M&I
($234.3) ($1,879.0) n.m. ($758.6) ($2,043.5) n.m. Preferred
Dividends (25.2) (12.7) (100.2) (12.7) Net Income (Loss)
Attributable to M&I Common Shareholders ($259.5) ($1,891.7)
n.m.% ($858.8) ($2,056.2) n.m.% KEY RATIOS Net Interest Margin
(FTE) / Avg. Earning Assets 2.95% 3.18% 2.85% 3.12% Interest Spread
(FTE) 2.55 2.77 2.46 2.67 Efficiency Ratio 67.3% n.m.% 65.8% n.m.%
Equity / Assets (End of Period) 12.21% 10.06% 12.21% 10.06%
Marshall & Ilsley Corporation Financial Information (unaudited)
As of December 31, Percent 2009 2008 Change ASSETS ($millions) Cash
& Due From Banks $769 $851 -9.7% Trading Assets 256 518 -50.7
Short - Term Investments 1,192 231 416.7 Investment Securities
7,177 7,668 -6.4 Loans and Leases: Commercial Loans & Leases
12,950 15,442 -16.1 Commercial Real Estate 13,646 12,542 8.8
Residential Real Estate 4,969 5,734 -13.3 Construction and
Development 5,539 9,043 -38.8 Home Equity Loans & Lines 4,715
5,082 -7.2 Personal Loans and Leases 2,399 2,142 12.0 Total Loans
and Leases 44,218 49,985 -11.5 Reserve for Loan & Lease Losses
(1,481) (1,202) 23.2 Premises and Equipment, net 566 565 0.2
Goodwill and Other Intangibles 744 763 -2.6 Other Assets 3,769
2,957 27.5 Total Assets $57,210 $62,336 -8.2% LIABILITIES &
EQUITY ($millions) Deposits: Noninterest Bearing $7,833 $6,880
13.8% Interest Bearing: Savings and NOW 6,938 3,454 100.9 Money
Market 11,315 10,753 5.2 Time 15,306 18,072 -15.3 Foreign 246 1,864
-86.8 Total Interest Bearing 33,805 34,143 -1.0 Total Deposits
41,638 41,023 1.5 Short - Term Borrowings 1,120 4,058 -72.4 Long -
Term Borrowings 6,426 9,614 -33.2 Other Liabilities 1,040 1,370
-24.1 Total Liabilities 50,224 56,065 -10.4 Equity: Marshall &
Ilsley Corporation Shareholders' Equity 6,975 6,260 11.4
Noncontrolling Interest in Subsidiaries 11 11 7.3 Total Equity
6,986 6,271 11.4 Total Liabilities & Equity $57,210 $62,336
-8.2% Three Months Ended Twelve Months Ended December 31, Percent
December 31, Percent 2009 2008 Change 2009 2008 Change AVERAGE
ASSETS ($millions) Cash & Due From Banks $756 $867 -12.8% $761
$898 -15.2% Trading Assets 261 304 -14.1 418 197 112.0 Short - Term
Investments 2,475 617 300.7 1,330 427 211.5 Investment Securities
6,519 7,298 -10.7 6,939 7,612 -8.8 Loans and Leases: Commercial
Loans and Leases 13,202 15,422 -14.4 14,390 15,362 -6.3 Commercial
Real Estate 13,813 12,203 13.2 13,523 11,840 14.2 Residential Real
Estate 5,085 5,675 -10.4 5,450 5,504 -1.0 Construction and
Development 6,064 9,786 -38.0 7,235 10,165 -28.8 Home Equity Loans
and Lines 4,762 5,071 -6.1 4,909 4,902 0.2 Personal Loans and
Leases 2,405 2,089 15.1 2,269 1,934 17.3 Total Loans and Leases
45,331 50,246 -9.8 47,776 49,707 -3.9 Reserve for Loan & Lease
Losses (1,459) (1,183) 23.4 (1,357) (878) 54.6 Premises and
Equipment, net 570 552 3.3 571 529 8.0 Goodwill and Other
Intangibles 749 2,237 -66.5 755 2,240 -66.3 Other Assets 3,277
2,671 22.8 3,070 2,398 28.0 Total Assets $58,479 $63,609 -8.1%
$60,263 $63,130 -4.5% Memo: Average Earning Assets $54,586 $58,465
$56,463 $57,943 Average Earning Assets Excluding Investment
Securities Unrealized Gains/ Losses $54,548 $58,600 $56,456 $57,985
AVG LIABILITIES & EQUITY ($millions) Deposits: Noninterest
Bearing $7,998 $6,063 31.9% $7,429 $5,858 26.8% Interest Bearing:
Savings and NOW 6,468 3,228 100.4 4,947 3,249 52.3 Money Market
10,721 10,641 0.7 10,463 11,016 -5.0 Time 16,082 18,272 -12.0
17,212 16,392 5.0 Foreign 302 2,406 -87.4 564 2,760 -79.6 Total
Interest Bearing 33,573 34,547 -2.8 33,186 33,417 -0.7 Total
Deposits 41,571 40,610 2.4 40,615 39,275 3.4 Short - Term
Borrowings 1,524 5,035 -69.7 3,317 6,163 -46.2 Long - Term
Borrowings 7,335 9,686 -24.3 8,676 9,749 -11.0 Other Liabilities
1,031 978 5.3 1,047 981 6.7 Total Liabilities 51,461 56,309 -8.6
53,655 56,168 -4.5 Equity: Marshall & Ilsley Corporation
Shareholders' Equity 7,007 7,290 -3.9 6,597 6,952 -5.1
Noncontrolling Interest in Subsidiaries 11 10 9.6 11 10 7.4 Total
Equity 7,018 7,300 -3.9 6,608 6,962 -5.1 Total Liabilities &
Equity $58,479 $63,609 -8.1% $60,263 $63,130 -4.5% Memo: Average
Interest Bearing Liabilities $42,432 $49,268 $45,179 49,329
Marshall & Ilsley Corporation Financial Information (unaudited)
Three Months Ended Twelve Months Ended December 31, Percent
December 31, Percent 2009 2008 Change 2009 2008 Change CREDIT
QUALITY (a) Net Charge-Offs ($millions) $572.3 $679.8 -15.8%
$2,036.3 $1,363.8 49.3% Net Charge- Offs / Average Loans and Leases
5.01% 5.38% 4.26% 2.74% Loan and Lease Loss Reserve ($millions)
$1,480.5 $1,202.2 23.2% $1,480.5 $1,202.2 23.2% Loan and Lease Loss
Reserve / Period-End Loans and Leases 3.35% 2.41% 3.35% 2.41%
Nonperforming Loans & Leases ($millions) $2,044.8 $1,527.0
33.9% $2,044.8 $1,527.0 33.9% Nonperforming Loans & Leases /
Period-End Loans and Leases 4.62% 3.05% 4.62% 3.05% Loan and Lease
Loss Reserve / Nonperforming Loans and Leases* 75% 82% 75% 82%
Nonperforming Assets (NPA) ($millions) $2,475.6 $1,847.9 34.0%
$2,475.6 $1,847.9 34.0% NPA / Period- End Loans & Leases and
Other Real Estate Owned 5.54% 3.67% 5.54% 3.67% Performing impaired
loans: Renegotiated ($millions) $793.5 $270.3 193.5% $793.5 $270.3
193.5% Contractually past due credits: Loans past due 90 days or
more ($millions) $8.8 $14.5 -39.7% $8.8 $14.5 -39.7% *Excludes
nonperforming loans held for sale. MARGIN ANALYSIS (b) Loans and
Leases: Commercial Loans and Leases 4.43% 5.36% 4.12% 5.56%
Commercial Real Estate 5.07 6.07 5.11 6.34 Residential Real Estate
5.15 5.73 5.30 6.00 Construction and Development 3.62 4.90 3.65
5.54 Home Equity Loans and Lines 5.01 5.84 5.06 6.28 Personal Loans
and Leases 5.41 6.08 5.50 6.38 Total Loans and Leases 4.71 5.56
4.63 5.89 Investment Securities 3.57 4.63 3.95 4.77 Short - Term
Investments 0.26 1.37 0.49 1.92 Interest Income (FTE) / Avg.
Interest Earning Assets 4.35% 5.38% 4.42% 5.70% Interest Bearing
Deposits: Savings and NOW 0.49% 0.32% 0.40% 0.57% Money Market 0.84
1.16 0.75 1.92 Time 2.33 3.48 2.53 3.80 Foreign 0.38 0.59 0.36 1.81
Total Interest Bearing Deposits 1.48 2.27 1.61 2.70 Short - Term
Borrowings 0.29 1.06 0.29 2.27 Long - Term Borrowings 3.55 4.64
3.92 4.66 Interest Expense / Avg. Interest Bearing Liabilities
1.80% 2.61% 1.96% 3.03% Net Interest Margin (FTE) / Avg. Earning
Assets 2.95% 3.18% 2.85% 3.12% Interest Spread (FTE) 2.55% 2.77%
2.46% 2.67% 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. 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.micorp.com/
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