MILWAUKEE, Jan. 12 /PRNewswire-FirstCall/ -- Marshall & Ilsley
Corporation (NYSE:MI) today reported 2005 fourth quarter net income
of $0.78 per diluted share, or $185.3 million, as compared to $0.76
per diluted share, or $173.8 million, in the fourth quarter of
2004. Fourth quarter net income per share increased 2.6 percent
over the same period in 2004. Net income for the year ended
December 31, 2005, was $3.10 per diluted share, or $727.5 million,
as compared to $2.77 per diluted share, or $627.1 million, in 2004.
Net income per share for 2005 increased 11.9 percent over 2004.
Earnings for the year ended December 31, 2005, include the
following items: -- A pre-tax realized gain of $29.4 million
related to venture capital investments -- A pre-tax realized gain
of $6.6 million from the cash tender of an equity investment, and
-- Pre-tax compensation expense of $2.7 million related to the
gains. The net effect of these items was an increase of $0.09 per
share. Without these items, diluted earnings per share would have
been $3.01 for the year ended December 31, 2005. Earnings for the
quarter and year ended December 31, 2004, include the following
items: -- A pre-tax unrealized gain of $34.1 million related to
venture capital investments -- A pre-tax loss of $7.1 million on
the sale of two small Metavante business units, and -- Foundation
contributions and other accruals over and above normal levels of
$6.8 million pre-tax. The net effect of these items was an increase
of $0.06 per share. Without these items, diluted earnings per share
would have been $0.70 and $2.71 for the quarter and year ended
December 31, 2004, respectively. Return on average assets based on
net income for the fourth quarter and full year was 1.62 and 1.68
percent, respectively, as compared to 1.75 and 1.69 percent,
respectively, for the same periods in 2004. Return on equity based
on net income was 15.96 percent this quarter, as compared to 18.59
percent for the fourth quarter of 2004. The Corporation's provision
for loan losses was $13.0 million in the fourth quarter of 2005,
versus $12.8 million in the same period last year. Net charge-offs
for the period were $11.5 million, or 0.14 percent of total average
loans outstanding this quarter, and $12.8 million a year ago, or
0.18 percent of total average loans. At December 31, 2005, the
allowance for loan losses was 1.06 percent of total loans, compared
to 1.21 percent a year earlier. Nonperforming loans were 0.41
percent of total loans at December 31, 2005, and 0.45 percent at
December 31, 2004. Assets at year-end were $46.2 billion, compared
to $40.4 billion at the end of 2004. Book value per share was
$19.98 at December 31, 2005, compared to $17.24 for the same date a
year ago. Total loans were $34.2 billion, compared to $29.5 billion
at December 31, 2004. Marshall & Ilsley Corporation (NYSE:MI)
is a diversified financial services corporation headquartered in
Milwaukee, Wis., with $46.2 billion in assets. Founded in 1847,
M&I Marshall & Ilsley Bank is the largest Wisconsin- based
bank. M&I Bank has 195 offices throughout the state, in
addition to 42 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. In addition, adjusted income results for the
year ended December 31, 2005 and quarter and year ended December
31, 2004 exclude certain items which management believes should be
excluded in order to have a clear understanding of the
Corporation's financial results. These items, which are included in
GAAP net income but which are excluded from the adjusted income
results, are described in the reconciliation table at the end of
this press release. Note: Marshall & Ilsley Corporation will
hold a conference call at 4:00 p.m. Central Standard Time Thursday,
January 12, regarding fourth quarter earnings. For those interested
in listening, please call 1-800-500-3170 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 January
19, 5:00 p.m. Central Standard Time by calling 1-888-203-1112 and
entering pass code 432 31 95 to listen. Supplemental financial
information referenced in the conference call can be found at
http://www.micorp.com/ , Investor Relations, after 3:30 p.m. on
January 12. M&I Corporation Financial Information (unaudited)
Three Months Ended Twelve Months Ended Dec. 31, Dec. 31, Percent
Dec. 31, Dec. 31, Percent 2005 2004 Change 2005 2004 Change PER
SHARE DATA Diluted: Net Income $0.78 $0.76 2.6% $3.10 $2.77 11.9%
Basic: Net Income 0.79 0.77 2.6 3.15 2.81 12.1 Dividend Declared
0.240 0.210 14.3 0.930 0.810 14.8 Book Value 19.98 17.24 15.9 19.98
17.24 15.9 Shares Outstanding (millions): Average - Diluted 238.3
228.5 4.3 234.9 226.6 3.7 End of Period 235.4 227.3 3.6 235.4 227.3
3.6 INCOME STATEMENT ($millions) Net Interest Income (FTE) $331.0
$296.4 11.7% $1,265.9 $1,164.2 8.7% Provision for Loan and Lease
Losses 13.0 12.8 1.6 44.8 38.0 17.9 Data Processing Services 312.4
268.6 16.3 1,141.4 891.0 28.1 Item Processing 11.4 10.5 8.6 43.7
43.1 1.4 Trust Services 42.3 39.2 7.9 165.7 150.9 9.8 Service
Charge on Deposits 23.5 24.2 -2.9 94.8 99.8 -5.0 Mortgage Banking
12.9 7.6 69.7 46.0 35.1 31.1 Net Investment Securities Gains
(Losses) 2.8 35.3 n.m. 45.4 35.4 28.2 All Other 52.9 49.8 6.2 211.9
191.2 10.8 Total Non-Interest Revenues 458.2 435.2 5.3 1,748.9
1,446.5 20.9 Salaries and Employee Benefits 270.6 240.0 12.8
1,042.7 887.3 17.5 Occupancy and Equipment 56.8 50.3 12.9 215.6
192.8 11.8 Intangible Amortization 8.8 8.7 1.1 31.1 27.9 11.5 Other
157.3 151.5 3.8 556.9 487.5 14.2 Total Non-Interest Expenses 493.5
450.5 9.5 1,846.3 1,595.5 15.7 Tax Equivalent Adjustment 8.2 8.2
0.0 33.3 32.2 3.4 Pre-Tax Earnings 274.5 260.1 5.5 1,090.4 945.0
15.4 Income Taxes 89.2 86.3 3.4 362.9 317.9 14.2 Net Income $185.3
$173.8 6.6% $727.5 $627.1 16.0% KEY RATIOS Net Interest Margin
(FTE) / Avg. Earning Assets 3.29% 3.39% 3.31% 3.52% Interest Spread
(FTE) 2.73 3.04 2.84 3.21 Efficiency Ratio 62.6 61.6 61.5 61.1
Efficiency Ratio without Metavante 48.6 47.0 48.4 48.4 Return on
Assets 1.62 1.75 1.68 1.69 Return on Equity 15.96 18.59 16.95 17.89
Equity / Assets (End of Period) 10.10 9.62 10.10 9.62 M&I
Corporation Financial Information (unaudited) As of December
December 31, 31, Percent ASSETS ($millions) 2005 2004 Change Cash
& Due From Banks $1,155 $839 37.7% Trading Securities 30 18
66.7 Short - Term Investments 300 173 73.4 Investment Securities
6,320 6,085 3.9 Loans and Leases: Commercial Loans & Leases
10,066 8,888 13.3 Commercial Real Estate 10,421 9,339 11.6
Residential Real Estate 7,096 4,489 58.1 Home Equity Loans &
Lines 4,834 5,149 -6.1 Personal Loans and Leases 1,750 1,672 4.7
Total Loans and Leases 34,167 29,537 15.7 Reserve for Loan &
Leases Losses (364) (358) 1.7 Premises and Equipment, net 491 467
5.1 Goodwill and Intangibles 2,461 2,126 15.8 Other Assets 1,653
1,550 6.6 Total Assets $46,213 $40,437 14.3% LIABILITIES &
SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing
$5,525 $4,888 13.0% Bank Issued Interest Bearing Activity 10,530
9,924 6.1 Bank Issued Time 5,279 3,654 44.5 Total Bank Issued
Deposits 21,334 18,466 15.5 Wholesale Deposits 6,340 7,989 -20.6
Total Deposits 27,674 26,455 4.6 Short - Term Borrowings 5,627
3,530 59.4 Long - Term Borrowings 6,669 5,027 32.7 Other
Liabilities 1,575 1,535 2.6 Shareholders' Equity 4,668 3,890 20.0
Total Liabilities & Shareholders' Equity $46,213 $40,437 14.3%
Three Months Ended Twelve Months Ended December December December
December 31, 31, Percent 31, 31, Percent AVERAGE ASSETS 2005 2004
Change 2005 2004 Change ($millions) Cash & Due From Banks
$1,012 $914 10.7% $966 $835 15.7% Trading Securities 33 20 65.0 27
22 22.7 Short - Term Investments 216 143 51.0 237 171 38.6
Investment Securities 6,256 6,028 3.8 6,183 5,872 5.3 Loans and
Leases: Commercial Loans & Leases 9,761 8,478 15.1 9,394 8,018
17.2 Commercial Real Estate 10,414 9,185 13.4 9,989 8,756 14.1
Residential Real Estate 6,717 4,251 58.0 5,752 3,695 55.7 Home
Equity Loans and Lines 4,822 5,035 -4.2 4,988 4,765 4.7 Personal
Loans and Leases 1,688 1,679 0.5 1,653 1,787 -7.5 Total Loans and
Leases 33,402 28,628 16.7 31,776 27,021 17.6 Reserve for Loan &
Leases Losses (365) (363) 0.6 (363) (360) 0.8 Premises and
Equipment, net 478 461 3.7 458 448 2.2 Goodwill and Intangibles
2,425 2,081 16.5 2,261 1,547 46.2 Other Assets 1,792 1,671 7.2
1,739 1,607 8.2 Total Assets $45,249 $39,583 14.3% $43,284 $37,163
16.5% Memo: Average Earning Assets $39,907 $34,819 $38,223 $33,086
Average Earning Assets Excluding Investment Securities Unrealized
Gains/Losses $39,945 $34,762 $38,218 $33,044 AVG LIABILITIES &
SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing
$5,195 $4,871 6.7% $4,943 $4,586 7.8% Bank Issued Interest Bearing
Activity 10,349 9,943 4.1 10,027 9,960 0.7 Bank Issued Time 5,057
3,591 40.8 4,410 3,384 30.3 Total Bank Issued Deposits 20,601
18,405 11.9 19,380 17,930 8.1 Wholesale Deposits 6,723 6,867 -2.1
6,721 6,058 10.9 Total Deposits 27,324 25,272 8.1 26,101 23,988 8.8
Short - Term Borrowings 2,563 2,461 4.1 2,926 2,908 0.6 Long - Term
Borrowings 8,936 6,454 38.5 8,193 5,330 53.7 Other Liabilities
1,821 1,677 8.6 1,773 1,432 23.8 Shareholders' Equity 4,605 3,719
23.8 4,291 3,505 22.4 Total Liabilities & Shareholders' Equity
$45,249 $39,583 14.3% $43,284 $37,163 16.5% Memo: Average Interest
Bearing Liabilities $33,628 $29,316 $32,277 $27,640 M&I
Corporation Financial Information (unaudited) Three Months Ended
Twelve Months Ended December December December December 31, 31,
Percent 31, 31, Percent 2005 2004 Change 2005 2004 Change CREDIT
QUALITY (a) Net Charge-Offs ($millions) $11.5 $12.8 -10.2% $39.1
$29.5 32.5% Net Charge-Offs / Average Loans & Leases 0.14%
0.18% 0.12% 0.11% Loan and Lease Loss Reserve ($millions) $363.8
$358.1 1.6% $363.8 $358.1 1.6% Loan and Lease Loss Reserve /
Period-End Loans & Leases 1.06% 1.21% 1.06% 1.21%
Non-Performing Loans & Leases (NPL) ($millions) $140.6 $132.4
6.2% $140.6 $132.4 6.2% NPL's / Period-End Loans & Leases 0.41%
0.45% 0.41% 0.45% Loan and Lease Loss Reserve / Non-Performing
Loans & Leases 259% 271% 259% 271% MARGIN ANALYSIS (b) Loans
and Leases: Commercial Loans & Leases 6.51% 5.19% 5.96% 4.83%
Commercial Real Estate 6.57 5.55 6.20 5.41 Residential Real Estate
6.43 5.42 6.09 5.47 Home Equity Loans and Lines 6.39 5.43 6.04 5.29
Personal Loans and Leases 6.38 5.28 5.97 5.12 Total Loans and
Leases 6.49 5.39 6.07 5.21 Investment Securities 5.00 4.94 5.01
4.95 Short - Term Investments 3.89 2.07 3.38 1.39 Interest Income
(FTE) / Avg. Interest Earning Assets 6.24% 5.30% 5.88% 5.14%
Interest Bearing Deposits: Bank Issued Interest Bearing Activity
2.49% 1.06% 1.92% 0.78% Bank Issued Time 3.65 2.55 3.21 2.45 Total
Bank Issued Deposits 2.87 1.46 2.31 1.20 Wholesale Deposits 3.64
2.26 3.14 1.91 Total Interest Bearing Deposits 3.10 1.73 2.58 1.42
Short - Term Borrowings 4.34 2.72 3.63 2.11 Long - Term Borrowings
4.26 3.75 4.03 3.69 Interest Expense / Avg. Interest Bearing
Liabilities 3.51% 2.26% 3.04% 1.93% Net Interest Margin(FTE) / Avg.
Earning Assets 3.29% 3.39% 3.31% 3.52% Interest Spread (FTE) 2.73%
3.04% 2.84% 3.21% Notes: (a) Includes Loans past due 90 days or
more (b) Based on average balances excluding fair value adjustments
for available for sale securities. Reconciliation of Net Income to
Income as Adjusted Twelve Months Ended December Diluted 31, EPS
2005 Impact Net Income $727.5 $3.10 Adjustments (Net of Tax)
Realized Gain Venture Capital Investments 18.2 0.08 Cash Tender -
Equity Investment 3.9 0.02 Related Compensation Expense (1.7)
(0.01) Total Adjustments 20.4 0.09 Income as Adjusted $707.1 $3.01
Three Twelve Months Months Ended Ended December Diluted December
Diluted 31, EPS 31, EPS 2004 Impact 2004 Impact Net Income $173.8
$0.76 $627.1 $2.77 Adjustments (Net of Tax) Unrealized Gain Venture
Capital Investments 22.2 0.10 22.2 0.10 Metavante Disposition of
two Subsidiaries (4.2) (0.02) (4.2) (0.02) Foundation Contributions
and Other (4.5) (0.02) (4.5) (0.02) Total Adjustments 13.5 0.06
13.5 0.06 Income as Adjusted $160.3 $0.70 $613.6 $2.71 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/
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