MILWAUKEE, Jan. 20, 2011 /PRNewswire/ --
- Net loss of $133.4 million, or
$0.25 per share, for fourth quarter
2010.
- Sustained improvement in credit quality.
- Nonperforming loans decreased 23 percent from fourth quarter
2009 – the sixth consecutive quarterly decline and down 35 percent
from high in second quarter 2009.
- Early stage delinquencies fell 20 percent from same quarter
last year, and declined 15 percent from prior quarter.
Delinquencies down 71 percent since peak at March 31, 2009.
- Continued net interest margin stabilization.
- Net interest margin rose 20 basis points to 3.15 percent from
fourth quarter 2009, and gained 1 basis point from prior
quarter.
- Solid deposit trends.
- Transaction deposits increased $2.8
billion or 12 percent compared to fourth quarter 2009.
- Declared $0.01 per share cash
dividend on common stock and $21.4
million cash dividend on Senior Preferred Stock, Series
B.
Marshall & Ilsley Corporation (NYSE: MI) (M&I) today
reported a 2010 fourth quarter net loss of $133.4 million, or $0.25 per share, as compared to a net loss of
$259.5 million, or $0.54 per share, in the fourth quarter of 2009.
For the year ended December 31,
2010, M&I reported a net loss of $616.9 million, or $1.18 per share, as compared to a net loss of
$858.8 million, or $2.46 per share, for the year ended December 31, 2009.
"Our fourth quarter results were substantially better than
the same period last year," said Mark
Furlong, president and CEO, Marshall & Ilsley
Corporation. "We continue to make steady progress in addressing
credit challenges, posting six consecutive quarters of asset
quality improvement, and we continue to remain diligent in
improving our credit profile."
Net Interest Income
The Corporation's net interest income (FTE) was $375.9 million for the fourth quarter of 2010,
down $30.2 million or 7 percent
compared to the fourth quarter of 2009. The net interest margin was
3.15 percent, up 20 basis points from the fourth quarter of 2009,
and up 1 basis point from the prior quarter. During the fourth
quarter of 2010, M&I's net interest margin benefited from
changes in deposit mix, but continued to be penalized by a high
cash balance.
Asset Quality
M&I continued to proactively address credit quality in the
fourth 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 $429.1 million in the fourth quarter of 2010,
down $209.9 million or 33 percent
versus the fourth quarter of 2009. Net charge-offs for the period
were $429.7 million, falling
$142.6 million or 25 percent compared
to the same quarter last year.
- Construction and development (C&D) exposure declined from
the third quarter of 2010 to 8.65 percent of total loans. Arizona
C&D exposure fell 79 percent since the fourth quarter of
2007.
- Allowance for loan and lease losses at quarter-end was
$1.4 billion, or 3.75 percent of
total loans and leases, an increase of 40 basis points from the
same quarter last year.
Asset quality trends demonstrated further stabilization through
lower early stage delinquencies, nonperforming loan inflows, and
nonperforming loans.
- Early stage delinquencies fell 20 percent from the same quarter
last year, and declined 15 percent from the prior quarter.
- Nonperforming loan inflows decreased 32 percent from the fourth
quarter of 2009 to $638 million, and
dropped 10 percent from the third quarter of 2010.
- Nonperforming loans decreased $477.1
million, or 23 percent from the fourth quarter of 2009 – the
sixth consecutive quarterly decline and down 35 percent from the
high point set in the second quarter of 2009.
- Nonperforming loans and leases were 4.24 percent (or 2.58
percent excluding nonperforming loans and leases less than ninety
days past due) of total loans and leases at December 31, 2010, compared to 4.62 percent at
December 31, 2009.
Non-Interest Income
The Corporation's non-interest income was $255.9 million for the fourth quarter of 2010
compared to $239.8 million for the
fourth quarter of 2009. Net investment securities gains were
$54.4 million for the current quarter
versus $40.6 million in the same
quarter last year. After adjusting for net investment securities
gains, M&I's non-interest income increased $2.1 million or 1 percent versus the fourth
quarter of 2009. Wealth Management revenue was $72.9 million for the current quarter, exceeding
the same quarter last year by $3.0
million or 4 percent. Assets under management and assets
under administration were $33.6
billion and $134.2 billion,
respectively, at December 31, 2010,
compared to $32.9 billion and
$122.3 billion, respectively, at
December 31, 2009.
Non-Interest Expense
M&I's non-interest expense was $400.4
million for the fourth quarter of 2010 compared to
$405.4 million for the fourth quarter
of 2009. Net credit-related expenses (meaning expenses associated
with collection efforts and carrying nonperforming assets) were
$45.3 million for the current quarter
versus $65.1 million in the same
quarter last year. Non-interest expense in the fourth quarter of
2010 included expenses associated with the recently announced
transaction with BMO Financial Group. In addition, M&I incurred
increases in expenses in the fourth quarter of 2010 compared to the
fourth quarter of 2009 for severance and retiring wholesale CDs.
After adjusting for net credit-related expenses, deal fees,
severance, and non-cash expenses related to retiring wholesale CDs,
M&I's non-interest expense amounted to $335.2 million in the fourth quarter of 2010
compared to $335.6 million in the
fourth quarter of 2009 and was relatively unchanged. The
Corporation's adjusted efficiency ratio was 59.0 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 $38.7 billion for the fourth quarter of 2010,
decreasing $6.6 billion or 15 percent
compared to the fourth 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 quarter 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 $38.6 billion for the fourth quarter of 2010,
falling $3.0 billion or 7 percent
versus the fourth quarter of 2009 due to the decline in wholesale
deposits. M&I's bank-issued deposits rose $0.9 billion or 3 percent over the past year,
reflecting successful growth in transaction accounts. The
Corporation's transaction deposits totaled $24.8 billion for the fourth quarter of 2010,
increasing $2.8 billion or 13 percent
compared to the fourth quarter of 2009. M&I's wholesale
deposits totaled $7.0 billion for the
fourth quarter of 2010, down $3.9
billion or 36 percent compared to the same quarter last
year.
Year-To-Date Results
M&I reported a net loss of $616.9
million, or $1.18 per share,
for the year ended December 31, 2010,
as compared to a net loss of $858.8
million, or $2.46 per share,
for the year ended December 31, 2009.
The Corporation's net interest income (FTE) was $1,579.5 million for the year ended December 31, 2010, a decrease of $28.5 million or 2 percent compared to the year
ended December 31, 2009. M&I's
non-interest income was $875.0
million for the year ended December
31, 2010 versus $903.0 million
for the year ended December 31, 2009.
The Corporation's non-interest expense was $1,574.3 million for the year ended December 31, 2010 compared to $1,566.8 million for the year ended December 31, 2009.
Balance Sheet and Capital Management
The Corporation's consolidated assets and total equity were
$50.8 billion and $6.3 billion, respectively, at December 31, 2010, compared to $57.2 billion and $7.0
billion, respectively, at December
31, 2009. There were 528.7 million common shares outstanding
at December 31, 2010, versus 525.4
million outstanding at December 31,
2009. For the three months and year ended December 31, 2010, M&I's net loss included
$25.3 million, or $0.04 per share, and $101.0 million, or $0.20 per share, for dividends on the
Corporation's Senior Preferred Stock, Series B, owned by the U.S.
Treasury under the Capital Purchase Program. For the three months
and year ended December 31, 2009,
M&I's net loss included $25.2
million, or $0.05 per share,
and $100.2 million, or $0.28 per share, for dividends on the Series B
preferred stock.
M&I's tangible common equity ratio was 7.9 percent at
December 31, 2010, compared to 8.2
percent at December 31, 2009.
Dividend Declarations
Marshall & Ilsley Corporation's Board of Directors today
declared a regular quarterly cash dividend of $0.01 per share on its common stock. The dividend
is payable on March 11, 2011, to
common stock shareholders of record at the close of business on
March 1, 2011.
In addition, the Board of Directors declared a regular quarterly
cash dividend of $21.4 million in the
aggregate on its Senior Preferred Stock, Series B. The Senior
Preferred Stock, Series B was purchased from M&I by the U.S.
Treasury as part of the U.S. Treasury's Capital Purchase Program.
The Preferred Stock dividend is payable on February 15, 2011, to the shareholder of record
at the close of business on February 1,
2011.
About Marshall & Ilsley Corporation
Marshall & Ilsley Corporation (NYSE: MI) is a diversified
financial services corporation headquartered in Milwaukee, Wis., with $50.8 billion in assets. Founded in 1847, M&I
Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 191 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).
On December 17, 2010, M&I
entered into a definitive agreement under which BMO Financial Group
will acquire all outstanding shares of common stock of M&I in a
stock-for-stock transaction. Under the terms of the agreement, each
outstanding share of M&I will be exchanged for 0.1257 shares of
Bank of Montreal upon closing. The
transaction is expected to close prior to July 31, 2011. The transaction is subject
to customary closing conditions, including regulatory approvals and
approval from shareholders of M&I.
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) risks
associated with M&I's pending merger with BMO Financial Group,
including, without limitation, failure to receive regulatory or
shareholder approval of the merger or to complete the merger in a
timely manner or at all, deposit or customer attrition, disruption
of M&I's business, and unanticipated costs relating to the
merger, (ii) 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, (iii) general
business and economic conditions, including credit risk and
interest rate risk, (iv) M&I's exposure to increased credit
risks associated with its real estate loans, (v) 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, (vi) M&I's
ability to maintain required levels of capital, (vii) the impact of
recent and future legislative initiatives on the financial markets
or on M&I, (viii) M&I's exposure to the actions and
potential failure of other financial institutions, (ix) volatility
in M&I's stock price and in the capital and credit markets in
general, and (x) 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.
Additional Information for Shareholders
In connection with M&I's pending merger with BMO Financial
Group, BMO will file with the SEC a Registration Statement on Form
F-4 that will include a Proxy Statement of M&I and a Prospectus
of BMO, as well as other relevant documents concerning the proposed
transaction. Shareholders are urged to read the Registration
Statement and the Proxy Statement/Prospectus regarding the merger
when it becomes available and any other relevant documents filed
with the SEC, as well as any amendments or supplements to those
documents, because they will contain important information.
A free copy of the Proxy Statement/Prospectus, as well as other
filings containing information about BMO and M&I, may be
obtained at the SEC's Internet site (http://www.sec.gov). You
will also be able to obtain these documents, free of charge, from
BMO at www.BMO.com under the tab "About BMO - Investor Relations,"
from M&I by accessing M&I's website at www.MICorp.com under
the tab "Investor Relations" and then under the heading "SEC
Filings", or from M&I at (414) 765-7814.
BMO and M&I and certain of their directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the shareholders of M&I in connection with the
merger. Information about the directors and executive
officers of BMO is set forth in the proxy statement for BMO's 2010
annual meeting of shareholders, as filed with the SEC on Form 6-K
on February 26, 2010. Information about the directors
and executive officers of M&I is set forth in the proxy
statement for M&I's 2010 annual meeting of shareholders, as
filed with the SEC on a Schedule 14A on March 12, 2010.
Additional information regarding the interests of those
participants and other persons who may be deemed participants in
the transaction may be obtained by reading the Proxy
Statement/Prospectus regarding the merger when it becomes
available. Free copies of this document may be obtained as
described in the preceding paragraph.
Marshall & Ilsley
Corporation
|
|
Financial Information
|
|
(unaudited)
|
|
|
|
|
Three Months
Ended December 31,
|
|
Percent
|
|
|
Twelve
Months Ended December 31,
|
|
Percent
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
PER COMMON
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
($0.25)
|
|
($0.54)
|
|
n.m.
|
%
|
|
($1.18)
|
|
($2.46)
|
|
n.m.
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
(0.25)
|
|
(0.54)
|
|
n.m.
|
|
|
(1.18)
|
|
(2.46)
|
|
n.m.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Declared per Common
Share
|
|
0.01
|
|
0.01
|
|
0.0
|
|
|
0.04
|
|
0.04
|
|
0.0
|
|
|
|
Book Value per Common
Share
|
|
8.89
|
|
10.21
|
|
-12.9
|
|
|
8.89
|
|
10.21
|
|
-12.9
|
|
|
|
Common Shares Outstanding
(millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - Diluted
|
|
525.3
|
|
479.3
|
|
9.6
|
|
|
524.6
|
|
348.5
|
|
50.5
|
|
|
|
End of
Period
|
|
528.7
|
|
525.4
|
|
0.6
|
|
|
528.7
|
|
525.4
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
STATEMENT ($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (FTE)
|
|
$375.9
|
|
$406.1
|
|
-7.4
|
%
|
|
$1,579.5
|
|
$1,608.0
|
|
-1.8
|
%
|
|
|
Provision for Loan and Lease
Losses
|
|
429.1
|
|
639.0
|
|
-32.8
|
|
|
1,758.9
|
|
2,314.6
|
|
-24.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management
|
|
72.9
|
|
69.9
|
|
4.2
|
|
|
280.4
|
|
265.1
|
|
5.7
|
|
|
|
Service Charges on
Deposits
|
|
30.4
|
|
33.6
|
|
-9.6
|
|
|
127.5
|
|
136.6
|
|
-6.6
|
|
|
|
Mortgage Banking
|
|
15.7
|
|
6.7
|
|
133.5
|
|
|
37.6
|
|
48.3
|
|
-22.2
|
|
|
|
Net Investment
Securities Gains (Losses)
|
|
54.4
|
|
40.6
|
|
34.2
|
|
|
99.8
|
|
121.8
|
|
-18.0
|
|
|
|
Other
|
|
82.5
|
|
89.0
|
|
-7.3
|
|
|
329.7
|
|
331.2
|
|
-0.5
|
|
|
|
Total Non-Interest
Revenues
|
|
255.9
|
|
239.8
|
|
6.7
|
|
|
875.0
|
|
903.0
|
|
-3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
Employee Benefits
|
|
175.8
|
|
169.2
|
|
3.9
|
|
|
713.7
|
|
690.8
|
|
3.3
|
|
|
|
Net Occupancy and
Equipment
|
|
33.6
|
|
36.2
|
|
-7.3
|
|
|
133.6
|
|
135.7
|
|
-1.6
|
|
|
|
FDIC
Insurance
|
|
23.0
|
|
25.8
|
|
-10.9
|
|
|
99.4
|
|
107.9
|
|
-7.9
|
|
|
|
Intangible
Amortization
|
|
5.0
|
|
5.9
|
|
-15.0
|
|
|
20.2
|
|
23.4
|
|
-13.7
|
|
|
|
Other
|
|
163.0
|
|
168.3
|
|
-3.2
|
|
|
607.4
|
|
609.0
|
|
-0.3
|
|
|
|
Total Non-Interest
Expenses
|
|
400.4
|
|
405.4
|
|
-1.3
|
|
|
1,574.3
|
|
1,566.8
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Equivalent Adjustment
|
|
5.5
|
|
5.8
|
|
-5.0
|
|
|
22.2
|
|
25.4
|
|
-12.7
|
|
|
|
Pre-Tax Loss
|
|
(203.2)
|
|
(404.3)
|
|
n.m.
|
|
|
(900.9)
|
|
(1,395.8)
|
|
n.m.
|
|
|
|
Benefit for Income
Taxes
|
|
(95.1)
|
|
(170.0)
|
|
n.m.
|
|
|
(385.0)
|
|
(637.2)
|
|
n.m.
|
|
|
|
Net Loss Attributable to
M&I
|
|
($108.1)
|
|
($234.3)
|
|
n.m.
|
|
|
($515.9)
|
|
($758.6)
|
|
n.m.
|
|
|
|
Preferred Dividends
|
|
(25.3)
|
|
(25.2)
|
|
|
|
|
(101.0)
|
|
(100.2)
|
|
|
|
|
|
Net Loss Attributable to M&I
Common Shareholders
|
|
($133.4)
|
|
($259.5)
|
|
n.m.
|
%
|
|
($616.9)
|
|
($858.8)
|
|
n.m.
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (FTE) / Avg.
Earning Assets
|
|
3.15
|
%
|
2.95
|
%
|
|
|
|
3.15
|
%
|
2.85
|
%
|
|
|
|
|
Interest Spread (FTE)
|
|
2.79
|
|
2.55
|
|
|
|
|
2.79
|
|
2.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
|
|
69.4
|
%
|
67.0
|
%
|
|
|
|
66.9
|
%
|
65.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity / Assets (End of Period)
|
|
12.47
|
%
|
12.21
|
%
|
|
|
|
12.47
|
%
|
12.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall & Ilsley
Corporation
|
|
Financial Information
|
|
(unaudited)
|
|
|
|
|
As of
December 31,
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
|
|
|
|
|
ASSETS
($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & Due From Banks
|
|
$511
|
|
$769
|
|
-33.6
|
%
|
|
|
|
|
|
|
|
|
|
Trading Assets
|
|
258
|
|
256
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
Short - Term
Investments
|
|
2,464
|
|
1,192
|
|
106.7
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
|
|
6,957
|
|
7,177
|
|
-3.1
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
& Leases
|
|
11,623
|
|
12,950
|
|
-10.2
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate
|
|
12,401
|
|
13,646
|
|
-9.1
|
|
|
|
|
|
|
|
|
|
|
Residential Real
Estate
|
|
4,341
|
|
4,969
|
|
-12.6
|
|
|
|
|
|
|
|
|
|
|
Construction and
Development
|
|
3,202
|
|
5,539
|
|
-42.2
|
|
|
|
|
|
|
|
|
|
|
Home Equity Loans
& Lines
|
|
4,213
|
|
4,715
|
|
-10.6
|
|
|
|
|
|
|
|
|
|
|
Personal Loans and
Leases
|
|
1,219
|
|
2,399
|
|
-49.2
|
|
|
|
|
|
|
|
|
|
|
Total Loans and Leases
|
|
36,999
|
|
44,218
|
|
-16.3
|
|
|
|
|
|
|
|
|
|
|
Reserve for Loan & Lease
Losses
|
|
(1,388)
|
|
(1,481)
|
|
-6.3
|
|
|
|
|
|
|
|
|
|
|
Premises and Equipment, net
|
|
528
|
|
566
|
|
-6.7
|
|
|
|
|
|
|
|
|
|
|
Goodwill and Other Intangibles
|
|
724
|
|
744
|
|
-2.6
|
|
|
|
|
|
|
|
|
|
|
Other Assets
|
|
3,779
|
|
3,769
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$50,832
|
|
$57,210
|
|
-11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
& EQUITY ($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Bearing
|
|
$8,079
|
|
$7,833
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
Interest
Bearing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
4,922
|
|
6,938
|
|
-29.1
|
|
|
|
|
|
|
|
|
|
|
Money
Market
|
|
15,898
|
|
11,315
|
|
40.5
|
|
|
|
|
|
|
|
|
|
|
Time
|
|
9,197
|
|
15,306
|
|
-39.9
|
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
163
|
|
246
|
|
-33.6
|
|
|
|
|
|
|
|
|
|
|
Total Interest
Bearing
|
|
30,180
|
|
33,805
|
|
-10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
38,259
|
|
41,638
|
|
-8.1
|
|
|
|
|
|
|
|
|
|
|
Short - Term Borrowings
|
|
228
|
|
1,120
|
|
-79.7
|
|
|
|
|
|
|
|
|
|
|
Long - Term Borrowings
|
|
5,029
|
|
6,426
|
|
-21.7
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities
|
|
977
|
|
1,040
|
|
-6.1
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
44,493
|
|
50,224
|
|
-11.4
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall &
Ilsley Corporation Shareholders' Equity
|
|
6,328
|
|
6,975
|
|
-9.3
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interest in Subsidiaries
|
|
11
|
|
11
|
|
-1.8
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
6,339
|
|
6,986
|
|
-9.3
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity
|
|
$50,832
|
|
$57,210
|
|
-11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Percent
|
|
|
Twelve
Months Ended December 31,
|
|
Percent
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
AVERAGE
ASSETS ($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & Due From Banks
|
|
$639
|
|
$756
|
|
-15.5
|
%
|
|
$670
|
|
$761
|
|
-12.0
|
%
|
|
|
Trading Assets
|
|
306
|
|
261
|
|
17.3
|
|
|
286
|
|
418
|
|
-31.7
|
|
|
|
Short - Term Investments
|
|
2,458
|
|
2,475
|
|
-0.7
|
|
|
1,805
|
|
1,330
|
|
35.7
|
|
|
|
Investment Securities
|
|
5,879
|
|
6,519
|
|
-9.8
|
|
|
6,839
|
|
6,939
|
|
-1.4
|
|
|
|
Loans and Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
and Leases
|
|
11,764
|
|
13,202
|
|
-10.9
|
|
|
12,212
|
|
14,390
|
|
-15.1
|
|
|
|
Commercial Real
Estate
|
|
12,821
|
|
13,813
|
|
-7.2
|
|
|
13,255
|
|
13,523
|
|
-2.0
|
|
|
|
Residential Real
Estate
|
|
4,491
|
|
5,085
|
|
-11.7
|
|
|
4,677
|
|
5,450
|
|
-14.2
|
|
|
|
Construction and
Development
|
|
3,475
|
|
6,064
|
|
-42.7
|
|
|
4,477
|
|
7,235
|
|
-38.1
|
|
|
|
Home Equity Loans
and Lines
|
|
4,292
|
|
4,762
|
|
-9.9
|
|
|
4,470
|
|
4,909
|
|
-8.9
|
|
|
|
Personal Loans and
Leases
|
|
1,901
|
|
2,405
|
|
-21.0
|
|
|
2,157
|
|
2,269
|
|
-4.9
|
|
|
|
Total Loans and Leases
|
|
38,744
|
|
45,331
|
|
-14.5
|
|
|
41,248
|
|
47,776
|
|
-13.7
|
|
|
|
Reserve for Loan & Lease
Losses
|
|
(1,393)
|
|
(1,459)
|
|
-4.5
|
|
|
(1,487)
|
|
(1,357)
|
|
9.6
|
|
|
|
Premises and Equipment, net
|
|
542
|
|
570
|
|
-4.8
|
|
|
553
|
|
571
|
|
-3.2
|
|
|
|
Goodwill and Other Intangibles
|
|
727
|
|
749
|
|
-2.9
|
|
|
734
|
|
755
|
|
-2.8
|
|
|
|
Other Assets
|
|
3,901
|
|
3,277
|
|
19.0
|
|
|
3,781
|
|
3,070
|
|
23.2
|
|
|
|
Total Assets
|
|
$51,803
|
|
$58,479
|
|
-11.4
|
%
|
|
$54,429
|
|
$60,263
|
|
-9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Assets
|
|
$47,387
|
|
$54,586
|
|
|
|
|
$50,178
|
|
$56,463
|
|
|
|
|
|
Average Earning Assets Excluding
Investment Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Gains/Losses
|
|
$47,346
|
|
$54,548
|
|
|
|
|
$50,130
|
|
$56,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVG
LIABILITIES & EQUITY ($millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Bearing
|
|
$8,121
|
|
$7,998
|
|
1.5
|
%
|
|
$7,862
|
|
$7,429
|
|
5.8
|
%
|
|
|
Interest
Bearing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
4,980
|
|
6,468
|
|
-23.0
|
|
|
6,042
|
|
4,947
|
|
22.2
|
|
|
|
Money
Market
|
|
15,656
|
|
10,721
|
|
46.0
|
|
|
13,712
|
|
10,463
|
|
31.1
|
|
|
|
Time
|
|
9,606
|
|
16,082
|
|
-40.3
|
|
|
12,326
|
|
17,212
|
|
-28.4
|
|
|
|
Foreign
|
|
196
|
|
302
|
|
-34.9
|
|
|
217
|
|
564
|
|
-61.6
|
|
|
|
Total Interest
Bearing
|
|
30,438
|
|
33,573
|
|
-9.3
|
|
|
32,297
|
|
33,186
|
|
-2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
38,559
|
|
41,571
|
|
-7.2
|
|
|
40,159
|
|
40,615
|
|
-1.1
|
|
|
|
Short - Term Borrowings
|
|
440
|
|
1,524
|
|
-71.2
|
|
|
752
|
|
3,317
|
|
-77.3
|
|
|
|
Long - Term Borrowings
|
|
5,103
|
|
7,335
|
|
-30.4
|
|
|
5,662
|
|
8,676
|
|
-34.7
|
|
|
|
Other Liabilities
|
|
1,129
|
|
1,031
|
|
9.6
|
|
|
1,046
|
|
1,047
|
|
0.0
|
|
|
|
Total Liabilities
|
|
45,231
|
|
51,461
|
|
-12.1
|
|
|
47,619
|
|
53,655
|
|
-11.2
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall &
Ilsley Corporation Shareholders' Equity
|
|
6,561
|
|
7,007
|
|
-6.4
|
|
|
6,799
|
|
6,597
|
|
3.1
|
|
|
|
Noncontrolling
Interest in Subsidiaries
|
|
11
|
|
11
|
|
-1.5
|
|
|
11
|
|
11
|
|
2.2
|
|
|
|
Total Equity
|
|
6,572
|
|
7,018
|
|
-6.4
|
|
|
6,810
|
|
6,608
|
|
3.1
|
|
|
|
Total Liabilities
& Equity
|
|
$51,803
|
|
$58,479
|
|
-11.4
|
%
|
|
$54,429
|
|
$60,263
|
|
-9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Interest Bearing
Liabilities
|
|
$35,981
|
|
$42,432
|
|
|
|
|
$38,711
|
|
$45,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marshall & Ilsley
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Percent
|
|
|
Twelve
Months Ended
December
31,
|
|
Percent
|
|
|
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
CREDIT
QUALITY (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs ($millions)
|
|
$429.7
|
|
$572.3
|
|
-24.9
|
%
|
|
$1,851.8
|
|
$2,036.3
|
|
-9.1
|
%
|
|
|
Net Charge-Offs / Average
Loans and Leases
|
|
4.40
|
%
|
5.01
|
%
|
|
|
|
4.49
|
%
|
4.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease Loss Reserve
($millions)
|
|
$1,387.6
|
|
$1,480.5
|
|
-6.3
|
%
|
|
$1,387.6
|
|
$1,480.5
|
|
-6.3
|
%
|
|
|
Loan and Lease Loss
Reserve / Period-End Loans and Leases
|
|
3.75
|
%
|
3.35
|
%
|
|
|
|
3.75
|
%
|
3.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans & Leases
($millions)
|
|
$1,567.7
|
|
$2,044.8
|
|
-23.3
|
%
|
|
$1,567.7
|
|
$2,044.8
|
|
-23.3
|
%
|
|
|
Nonperforming Loans &
Leases / Period-End Loans and Leases
|
|
4.24
|
%
|
4.62
|
%
|
|
|
|
4.24
|
%
|
4.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease Loss Reserve /
Nonperforming Loans and Leases*
|
|
90
|
%
|
75
|
%
|
|
|
|
90
|
%
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets (NPA)
($millions)
|
|
$1,907.1
|
|
$2,475.6
|
|
-23.0
|
%
|
|
$1,907.1
|
|
$2,475.6
|
|
-23.0
|
%
|
|
|
NPA / Period-End Loans
& Leases and Other Real Estate Owned
|
|
5.11
|
%
|
5.54
|
%
|
|
|
|
5.11
|
%
|
5.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing Renegotiated
($millions)
|
|
$548.4
|
|
$793.5
|
|
-30.9
|
%
|
|
$548.4
|
|
$793.5
|
|
-30.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more
($millions)
|
|
$6.1
|
|
$8.8
|
|
-30.2
|
%
|
|
$6.1
|
|
$8.8
|
|
-30.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Excludes nonperforming loans
held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARGIN
ANALYSIS (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
and Leases
|
|
4.60
|
%
|
4.43
|
%
|
|
|
|
4.58
|
%
|
4.12
|
%
|
|
|
|
|
Commercial Real
Estate
|
|
4.92
|
|
5.07
|
|
|
|
|
4.95
|
|
5.11
|
|
|
|
|
|
Residential Real
Estate
|
|
4.75
|
|
5.15
|
|
|
|
|
4.96
|
|
5.30
|
|
|
|
|
|
Construction and
Development
|
|
4.17
|
|
3.62
|
|
|
|
|
3.93
|
|
3.65
|
|
|
|
|
|
Home Equity Loans
and Lines
|
|
4.93
|
|
5.01
|
|
|
|
|
4.97
|
|
5.06
|
|
|
|
|
|
Personal Loans and
Leases
|
|
5.43
|
|
5.41
|
|
|
|
|
5.45
|
|
5.50
|
|
|
|
|
|
Total Loans and Leases
|
|
4.76
|
|
4.71
|
|
|
|
|
4.76
|
|
4.63
|
|
|
|
|
|
Investment Securities
|
|
2.99
|
|
3.57
|
|
|
|
|
3.28
|
|
3.95
|
|
|
|
|
|
Short - Term Investments
|
|
0.26
|
|
0.26
|
|
|
|
|
0.26
|
|
0.49
|
|
|
|
|
|
Interest Income (FTE) / Avg.
Interest Earning Assets
|
|
4.28
|
%
|
4.35
|
%
|
|
|
|
4.37
|
%
|
4.42
|
%
|
|
|
|
|
Interest Bearing Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
NOW
|
|
0.22
|
%
|
0.49
|
%
|
|
|
|
0.37
|
%
|
0.40
|
%
|
|
|
|
|
Money
Market
|
|
0.71
|
|
0.84
|
|
|
|
|
0.78
|
|
0.75
|
|
|
|
|
|
Time
|
|
2.30
|
|
2.33
|
|
|
|
|
2.23
|
|
2.53
|
|
|
|
|
|
Foreign
|
|
0.42
|
|
0.38
|
|
|
|
|
0.41
|
|
0.36
|
|
|
|
|
|
Total Interest Bearing Deposits
|
|
1.13
|
|
1.48
|
|
|
|
|
1.26
|
|
1.61
|
|
|
|
|
|
Short - Term Borrowings
|
|
1.47
|
|
0.29
|
|
|
|
|
0.84
|
|
0.29
|
|
|
|
|
|
Long - Term Borrowings
|
|
3.63
|
|
3.55
|
|
|
|
|
3.51
|
|
3.92
|
|
|
|
|
|
Interest Expense / Avg. Interest
Bearing Liabilities
|
|
1.49
|
%
|
1.80
|
%
|
|
|
|
1.58
|
%
|
1.96
|
%
|
|
|
|
|
Net Interest Margin (FTE) / Avg.
Earning Assets
|
|
3.15
|
%
|
2.95
|
%
|
|
|
|
3.15
|
%
|
2.85
|
%
|
|
|
|
|
Interest Spread (FTE)
|
|
2.79
|
%
|
2.55
|
%
|
|
|
|
2.79
|
%
|
2.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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