MARSHALL & ILSLEY CORPORATION

EX-99.1 2 exhibit991.htm PRESS RELEASE DATED JULY 12, 2005 MARSHALL & ILSLEY CORPORATION

		Exhibit 99.1







		Marshall & Ilsley Corporation
		770 North Water Street
		Milwaukee, WI 53202
		414 765-7700 Main
		414 298-2921 Fax
		www.mibank.com

For Release:	Immediately
Contact:	John Presley, senior vice president, chief financial officer, 414 765-7833 Don Wilson, senior vice president, corporate treasurer, 414 765-8043

MARSHALL & ILSLEY CORPORATION ANNOUNCES SECOND QUARTER RESULTS

Milwaukee, Wis. – July 12, 2005 – Marshall & Ilsley Corporation (NYSE: MI) today reported 2005 second quarter net income of $0.81 per diluted share, or $188.5 million, as compared to $0.67 per diluted share, or $151.7 million, in the second quarter of 2004. Second quarter net income per share increased 20.9 percent over the same period in 2004.

Net income for the six months ended June 30, 2005 was $358.1 million, or $1.54 per diluted share, compared to $297.8 million, or $1.32 per diluted share, in the first half of 2004.

Earnings for the quarter and the six months ended June 30, 2005, include a $16.2 million after-tax gain, or $0.07 per diluted share, resulting from the sale of one of the Corporation’s venture capital investments, net of related expenses.

Return on average assets based on net income for the second quarter was 1.77 percent, as compared to 1.69 percent for the same period in 2004. Return on average equity based on net income was 18.25 percent this quarter as compared to 17.92 percent for the second quarter of 2004.

The Corporation’s provision for loan and lease losses was $13.7 million in the second quarter of 2005, versus $9.2 million in the same period last year. Net charge-offs for the period were $11.9 million, or 0.15 percent of total average loans and leases outstanding this quarter, and $5.0 million a year ago or 0.08 percent of total average loans and leases. At June 30, 2005, the allowance for loan and lease losses was 1.12 percent of total loans and leases, compared to 1.32 percent a year earlier. Nonperforming loans and leases were 0.41 percent of total loans and leases at June 30, 2005, and 0.53 percent at June 30, 2004.

Assets at June 30, 2005 were $43.5 billion, compared to $37.1 billion at June 30, 2004. Book value per share was $18.48 at June 30, 2005, compared to $15.52 for the same date a year ago. Total loans and leases were $32.1 billion, compared to $27.2 billion at June 30, 2004.

Marshall & Ilsley Corporation (NYSE: MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $43.5 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank has the largest banking presence in Wisconsin with 197 offices throughout the state. In addition, M&I has 36 locations throughout Arizona; 12 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 (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.

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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.

Note:

Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Tuesday, July 12, regarding second quarter earnings. For those interested in listening, please call 1-800-211-3767 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 July 19, 5:00 p.m. Central Daylight Time by calling 1-800-839-6713 and entering passcode 721 27 59 to listen.

Supplemental financial information referenced in the conference call can be found at www.micorp.com, Investor Relations, after 8:00 a.m. on July 12.

M&I Corporation
Financial Information
(unaudited)
	Three Months Ended						Six Months Ended
	June 30,		June 30,		Percent		June 30,		June 30,		Percent
	2005		2004		Change		2005		2004		Change
PER SHARE DATA
Diluted:
Net Income	$0.81		$0.67		20.9	%	$1.54		$1.32		16.7	%
Basic:
Net Income	0.82		0.68		20.6		1.57		1.34		17.2
Dividend Declared	0.240		0.210		14.3		0.450		0.390		15.4
Book Value	18.48		15.52		19.1		18.48		15.52		19.1
Shares Outstanding (millions):
Average - Diluted	232.7		225.5		3.2		232.1		225.8		2.8
End of Period	229.7		222.8		3.1		229.7		222.8		3.1

INCOME STATEMENT ($millions)

Net Interest Income (FTE)	$313.2		$292.0		7.3	%	$613.2		$578.5		6.0	%
Provision for Loan and Lease Losses	13.7		9.2		48.9		21.9		18.3		19.7

Data Processing Services	271.7		197.3		37.7		544.0		383.5		41.9
Item Processing	10.7		10.9		-1.8		21.3		22.3		-4.5
Trust Services	41.1		37.9		8.4		81.5		74.2		9.8
Service Charge on Deposits	23.9		25.1		-4.8		47.5		50.6		-6.1
Mortgage Banking	10.5		11.7		-10.3		18.4		18.7		-1.6
Net Investment Securities Gains (Losses)	29.4		0.1		n.m.		35.3		(0.5)		n.m.
All Other	55.3		47.0		17.7		104.1		94.6		10.0
Total Non-Interest Revenues	442.6		330.0		34.1		852.1		643.4		32.4

Salaries and Employee Benefits	262.4		211.9		23.8		500.9		415.8		20.5
Occupancy and Equipment	50.9		44.5		14.4		104.2		91.8		13.5
Intangible Amortization	8.1		5.4		50.0		16.2		10.9		48.6
Other	131.2		112.9		16.2		267.7		218.5		22.5
Total Non-Interest Expenses	452.6		374.7		20.8		889.0		737.0		20.6

Tax Equivalent Adjustment	8.5		8.0		6.3		16.6		15.8		5.1
Pre-Tax Earnings	281.0		230.1		22.1		537.8		450.8		19.3
Income Taxes	92.5		78.4		18.0		179.7		153.0		17.5

Net Income	$188.5		$151.7		24.3	%	$358.1		$297.8		20.2	%

KEY RATIOS

Net Interest Margin (FTE) / Avg. Earning Assets	3.33	%	3.61	%			3.35	%	3.65	%
Interest Spread (FTE)	2.89		3.32				2.93		3.35

Efficiency Ratio	59.9		60.2				60.9		60.3
Efficiency Ratio without Metavante	47.7		48.8				48.2		49.0

Return on Assets	1.77		1.69				1.73		1.69
Return on Equity	18.25		17.92				17.78		17.67

Equity / Assets (End of Period)	9.69		9.26				9.69		9.26




M&I Corporation
Financial Information
(unaudited)
	As of
	June 30,		June 30,		Percent
ASSETS ($millions)	2005		2004		Change
Cash & Due From Banks	$976		$824		18.4	%
Trading Securities	22		28		-21.4
Short - Term Investments	271		336		-19.3
Investment Securities	6,241		5,915		5.5
Loans and Leases:
Commercial Loans & Leases	9,612		8,158		17.8
Commercial Real Estate	10,029		8,775		14.3
Residential Real Estate	5,877		3,632		61.8
Home Equity Loans & Lines	4,978		4,885		1.9
Personal Loans and Leases	1,650		1,745		-5.4
Total Loans and Leases	32,146		27,195		18.2
Reserve for Loan & Leases Losses	(360)		(358)		0.6
Premises and Equipment, net	449		434		3.5
Goodwill and Intangibles	2,160		1,269		70.2
Other Assets	1,567		1,429		9.7
Total Assets	$43,472		$37,072		17.3	%

LIABILITIES & SHAREHOLDERS' EQUITY ($millions)
Deposits:
Noninterest Bearing	$5,089		$4,710		8.0	%
Bank Issued Interest Bearing Activity	9,881		9,928		-0.5
Bank Issued Time	4,306		3,352		28.5
Total Bank Issued Deposits	19,276		17,990		7.1
Wholesale Deposits	6,786		7,235		-6.2
Total Deposits	26,062		25,225		3.3
Short - Term Borrowings	5,162		3,562		44.9
Long - Term Borrowings	6,471		3,701		74.8
Other Liabilities	1,564		1,150		36.0
Shareholders' Equity	4,213		3,434		22.7
Total Liabilities & Shareholders' Equity	$43,472		$37,072		17.3	%

	Three Months Ended						Six Months Ended
	June 30,		June 30,		Percent		June 30,		June 30,		Percent
AVERAGE ASSETS ($millions)	2005		2004		Change		2005		2004		Change
Cash & Due From Banks	$939		$802		17.1	%	$929		$787		18.0	%
Trading Securities	26		22		18.2		24		23		4.3
Short - Term Investments	271		165		64.2		230		188		22.3
Investment Securities	6,162		5,842		5.5		6,132		5,761		6.4
Loans and Leases:
Commercial Loans & Leases	9,357		7,856		19.1		9,109		7,698		18.3
Commercial Real Estate	9,867		8,583		15.0		9,693		8,452		14.7
Residential Real Estate	5,368		3,502		53.3		5,050		3,364		50.1
Home Equity Loans and Lines	5,099		4,688		8.8		5,114		4,563		12.1
Personal Loans and Leases	1,603		1,879		-14.7		1,627		1,891		-14.0
Total Loans and Leases	31,294		26,508		18.1		30,593		25,968		17.8
Reserve for Loan & Leases Losses	(361)		(360)		0.3		(361)		(358)		0.8
Premises and Equipment, net	445		435		2.3		448		437		2.5
Goodwill and Intangibles	2,154		1,167		84.6		2,148		1,138		88.8
Other Assets	1,723		1,591		8.3		1,709		1,564		9.3
Total Assets	$42,653		$36,172		17.9	%	$41,852		$35,508		17.9	%

Memo:
Average Earning Assets	$37,753		$32,537				$36,979		$31,940
Average Earning Assets Excluding Investment Securities
Unrealized Gains/Losses	$37,741		$32,510				$36,953		$31,885

AVG LIABILITIES & SHAREHOLDERS' EQUITY ($millions)
Deposits:
Noninterest Bearing	$4,826		$4,514		6.9	%	$4,760		$4,415		7.8	%
Bank Issued Interest Bearing Activity	9,850		9,995		-1.5		9,863		9,994		-1.3
Bank Issued Time	4,194		3,242		29.4		4,028		3,242		24.2
Total Bank Issued Deposits	18,870		17,751		6.3		18,651		17,651		5.7
Wholesale Deposits	6,600		5,758		14.6		6,701		5,361		25.0
Total Deposits	25,470		23,509		8.3		25,352		23,012		10.2
Short - Term Borrowings	3,392		3,259		4.1		3,144		3,344		-6.0
Long - Term Borrowings	7,920		4,704		68.4		7,565		4,473		69.1
Other Liabilities	1,729		1,294		33.6		1,730		1,289		34.2
Shareholders' Equity	4,142		3,406		21.6		4,061		3,390		19.8
Total Liabilities & Shareholders' Equity	$42,653		$36,172		17.9	%	$41,852		$35,508		17.9	%

Memo:
Average Interest Bearing Liabilities	$31,956		$26,958				$31,301		$26,414

M&I Corporation
Financial Information
(unaudited)
	Three Months Ended						Six Months Ended
	June 30,		June 30,		Percent		June 30,		June 30,		Percent
	2005		2004		Change		2005		2004		Change
CREDIT QUALITY (a)

Net Charge-Offs ($millions)	$11.9		$5.0		138.0	%	$19.8		$9.9		100.0	%
Net Charge-Offs / Average Loans & Leases	0.15	%	0.08	%			0.13	%	0.08	%
Loan and Lease Loss Reserve ($millions)	$360.1		$357.9		0.6	%	$360.1		$357.9		0.6	%
Loan and Lease Loss Reserve / Period-End Loans & Leases	1.12	%	1.32	%			1.12	%	1.32	%
Non-Performing Loans & Leases (NPL) ($millions)	$131.6		$145.0		-9.2	%	$131.6		$145.0		-9.2	%
NPL's / Period-End Loans & Leases	0.41	%	0.53	%			0.41	%	0.53	%
Loan and Lease Loss Reserve / Non-Performing Loans & Leases	274	%	247	%			274	%	247	%

MARGIN ANALYSIS (b)

Loans and Leases:
Commercial Loans & Leases	5.75	%	4.59	%			5.59	%	4.63	%
Commercial Real Estate	6.07		5.34				5.96		5.35
Residential Real Estate	5.92		5.42				5.83		5.49
Home Equity Loans and Lines	5.99		5.24				5.86		5.29
Personal Loans and Leases	5.83		5.00				5.68		5.07
Total Loans and Leases	5.92		5.09				5.80		5.13
Investment Securities	5.03		4.87				5.02		4.93
Short - Term Investments	3.16		1.00				2.98		1.04
Interest Income (FTE) / Avg. Interest Earning Assets	5.76	%	5.02	%			5.65	%	5.06	%
Interest Bearing Deposits:
Bank Issued Interest Bearing Activity	1.70	%	0.64	%			1.54	%	0.63	%
Bank Issued Time	3.02		2.38				2.89		2.38
Total Bank Issued Deposits	2.10		1.06				1.93		1.06
Wholesale Deposits	3.00		1.61				2.80		1.65
Total Interest Bearing Deposits	2.39		1.23				2.22		1.23
Short - Term Borrowings	3.36		1.76				3.23		1.81
Long - Term Borrowings	3.91		3.57				3.88		3.63
Interest Expense / Avg. Interest Bearing Liabilities	2.87	%	1.70	%			2.72	%	1.71	%
Net Interest Margin(FTE) / Avg. Earning Assets	3.33	%	3.61	%			3.35	%	3.65	%
Interest Spread (FTE)	2.89	%	3.32	%			2.93	%	3.35	%


Notes: (a) Includes Loans past due 90 days or more
(b) Based on average balances excluding fair value adjustments for available for sale securities.