EX-99.2 4 exhibit99-2.htm UPDATED ITEM 6, "SELECTED FINANCIAL DATA," OF THE ANNUAL REPORT ON FORM 10-K OF MARSHALL & ILSLEY CORPORATION FOR THE YEAR ENDED DECEMBER 31, 2005 EXHIBIT 99.2

EXHIBIT 99.2

ITEM 6.

SELECTED FINANCIAL DATA

Consolidated Summary of Earnings

Years Ended December 31 ($000’s except share data)

 

As Adjusted

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

Interest and Fee Income:

 

 

 

 

 

 

 

 

 

 

Loans and leases

$1,959,063

 

$1,432,754

 

$1,336,288

 

$1,318,175

 

$1,374,162

 

Investment securities

 

 

 

 

 

 

 

 

 

 

Taxable

214,537

 

200,107

 

165,075

 

198,037

 

270,336

 

Exempt from federal income taxes

64,127

 

58,826

 

57,968

 

60,637

 

62,273

 

Trading securities

229

 

271

 

258

 

328

 

884

 

Short-term investments

8,675

 

2,397

 

2,559

 

11,168

 

16,812

 

Total interest and fee income

2,246,631

 

1,694,355

 

1,562,148

 

1,588,345

 

1,724,467

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

Deposits

544,920

 

276,102

 

228,216

 

283,385

 

566,899

 

Short-term borrowings

106,333

 

61,256

 

81,070

 

150,310

 

188,587

 

Long-term borrowings

330,144

 

196,440

 

163,348

 

127,343

 

110,842

 

Total interest expense

981,397

 

533,798

 

472,634

 

561,038

 

866,328

 

Net interest income

1,265,234

 

1,160,557

 

1,089,514

 

1,027,307

 

858,139

 

Provision for loan and lease losses

44,795

 

37,963

 

62,993

 

74,416

 

54,115

 

Net interest income after

 

 

 

 

 

 

 

 

 

 

provision for loan and lease losses

1,220,439

 

1,122,594

 

1,026,521

 

952,891

 

804,024

 

 

 

 

 

 

 

 

 

 

 

 

Other Income:

 

 

 

 

 

 

 

 

 

 

Data processing services

1,185,024

 

934,128

 

700,530

 

640,578

 

607,454

 

    Wealth management

191,720

 

175,119

 

148,348

 

140,736

 

138,666

 

    Net investment securities gains (losses)

45,514

 

35,336

 

21,572

 

(6,275)

 

(6,759)

 

Other

294,001

 

273,347

 

313,123

 

286,640

 

246,529

 

Total other income

1,716,259

 

1,417,930

 

1,183,573

 

1,061,679

 

985,890

 

 

 

 

 

 

 

 

 

 

 

 

Other Expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

1,074,758

 

919,431

 

830,779

 

779,836

 

720,544

 

Other

804,286

 

709,253

 

654,808

 

551,370

 

594,242

 

Total other expense

1,879,044

 

1,628,684

 

1,485,587

 

1,331,206

 

1,314,786

 

Income before income taxes and cumulative

 

 

 

 

 

 

 

 

 

 

effect of changes in accounting principles

1,057,654

 

911,840

 

724,507

 

683,364

 

475,128

 

Provision for income taxes

351,464

 

305,987

 

202,060

 

225,455

 

153,900

 

Income before cumulative effect of changes

 

 

 

 

 

 

 

 

 

 

in accounting principles

706,190

 

605,853

 

522,447

 

457,909

 

321,228

 

Cumulative effect of changes in accounting

 

 

 

 

 

 

 

 

 

 

principles, net of income taxes

 

 

 

 

(436)

 

Net Income

$     706,190

 

$    605,853

 

$    522,447

 

$    457,909

 

$    320,792

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:**

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

Income before cumulative effect of changes

 

 

 

 

 

 

 

 

 

 

in accounting principles

$           3.06

 

$           2.72

 

$          2.31

 

$           2.15

 

$          1.52

 

Cumulative effect of changes in accounting

 

 

 

 

 

 

 

 

 

 

principles, net of income taxes

               —

 

              —

 

              —

 

              —

 

              —

 

Net income

$          3.06

 

$           2.72

 

$           2.31

 

$           2.15

 

$           1.52

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

Income before cumulative effect of changes

 

 

 

 

 

 

 

 

 

 

in accounting principles

$          2.99          

 

$           2.66

 

$           2.28

 

$           2.06

 

$           1.47

 

Cumulative effect of changes in accounting

 

 

 

 

 

 

 

 

 

 

principles, net of income taxes

               —

 

               —

 

              —

 

              —

 

              —

 

Net income

$           2.99      

 

$           2.66

 

$           2.28

 

$           2.06

 

$           1.47

 

 

 

 

 

 

 

 

 

 

 

 

Other Significant Data:

 

 

 

 

 

 

 

 

 

 

Year-End Common Stock Price**

$        43.04

 

$        44.20

 

$        38.25

 

$        27.38

 

$        31.64

 

Return on Average Shareholders’ Equity

16.21

%

17.00

%

15.87

%

16.32

%

13.04

%

Return on Average Assets

1.63

 

1.63

 

1.57

 

1.57

 

1.22

 

Dividend Payout Ratio

31.10

 

30.45

 

30.70

 

30.34

 

38.64

 

Average Equity to Average Assets Ratio

10.07

 

9.59

 

9.89

 

9.61

 

9.33

 

Ratio of Earnings to Fixed Charges*

 

 

 

 

 

 

 

 

 

 

Excluding Interest on Deposits

3.28

x

4.24

x

3.71

x

3.27

x

2.48

x

Including Interest on Deposits

2.05

x

2.64

x

2.46

x

2.17

x

1.54

x

______________

    *

See Exhibit 12 for detailed computation of these ratios.

  **

Restated for 2-for-1 stock split effective June 17, 2002.



Consolidated Average Balance Sheets

Years ended December 31 ($000’s except share data)

 

2005

 

2004

 

2003

 

2002

 

2001

 

Assets:


 


 


 


 


 

Cash and due from banks

$   966,078        

 

$   835,391

 

$    752,215

 

$    708,256

 

$    651,367

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

Trading securities

26,922

 

22,297

 

23,017

 

15,247

 

21,284

 

Short-term investments

237,178

 

171,057

 

264,254

 

717,129

 

503,857

 

Other investment securities:

 

 

 

 

 

 

 

 

 

 

Taxable

4,847,722

 

4,672,741

 

4,038,579

 

3,325,568

 

3,926,737

 

Tax exempt

1,334,793

 

1,199,139

 

1,173,466

 

1,224,737

 

1,269,175

 

Total investment securities

6,446,615

 

6,065,234

 

5,499,316

 

5,282,681

 

5,721,053

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases:

 

 

 

 

 

 

 

 

 

 

Commercial

8,954,619

 

7,621,040

 

6,905,323

 

6,143,862

 

5,478,342

 

Real estate

20,728,918

 

17,215,467

 

14,938,082

 

12,633,208

 

10,514,536

 

Personal

1,525,502

 

1,632,440

 

1,874,315

 

1,388,447

 

1,182,049

 

Lease financing

567,344

 

552,551

 

674,871

 

862,927

 

1,026,215

 

Total loans and leases

31,776,383

 

27,021,498

 

24,392,591

 

21,028,444

 

18,201,142

 

  Less:  Allowance for loan and lease losses

362,886

 

360,408

 

347,838

 

302,664

 

253,089

 

Net loans and leases

31,413,497

 

26,661,090

 

24,044,753

 

20,725,780

 

17,948,053

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

458,179

 

448,134

 

440,492

 

418,042

 

391,633

 

Accrued interest and other assets

3,999,172

 

3,152,745

 

2,531,245

 

2,067,891

 

1,658,203

 

Total Assets

$43,283,541

 

$37,162,594

 

$33,268,021

 

$29,202,650

 

$26,370,309

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest bearing

$4,942,803

 

$4,585,628

 

$ 4,189,724

 

$3,509,133

 

$ 2,895,083

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Bank issued deposits:

 

 

 

 

 

 

 

 

 

 

Bank issued interest bearing activity

 

 

 

 

 

 

 

 

 

 

Deposits

10,027,250

 

9,960,645

 

10,084,996

 

8,996,778

 

7,833,126

 

Bank issued time deposits

4,410,456

 

3,384,120

 

3,399,734

 

3,540,124

 

3,975,253

 

Total bank issued deposits

14,437,706

 

13,344,765

 

13,484,730

 

12,536,902

 

11,808,379

 

Wholesale deposits

6,720,964

 

6,057,542

 

4,311,424

 

2,596,952

 

2,487,129

 

Total interest bearing deposits

21,158,670

 

19,402,307

 

17,796,154

 

15,133,854

 

14,295,508

 

Total deposits

26,101,473

 

23,987,935

 

21,985,878

 

18,642,987

 

17,190,591

 

Short-term borrowings

2,925,642

 

2,908,168

 

3,138,752

 

4,188,339

 

3,944,160

 

Long-term borrowings

8,193,001

 

5,329,571

 

3,798,851

 

2,693,447

 

1,962,801

 

Accrued expenses and other liabilities

1,706,111

 

1,372,677

 

1,052,713

 

871,222

 

813,460

 

Total liabilities

38,926,227

 

33,598,351

 

29,976,194

 

26,395,995

 

23,911,012

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

4,357,314

 

3,564,243

 

3,291,827

 

2,806,655

 

2,459,297

 

Total Liabilities and Shareholders’ Equity

$43,283,541

 

$37,162,594

 

$33,268,021

 

$29,202,650

 

$26,370,309

 

 

 

 

 

 

 

 

 

 

 

 

Other Significant Data:

 

 

 

 

 

 

 

 

 

 

Book Value Per Share at Year End**

$        20.27

 

$        17.51

 

$         15.24

 

$         13.71

 

$         11.81

 

Average Common Shares Outstanding**

231,300,867

 

223,123,866

 

226,342,764

 

212,799,996

 

 208,587,816

 

Employees at Year End

13,967

 

13,345

 

12,244

 

12,625

 

11,657

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Ratios:

 

 

 

 

 

 

 

 

 

 

Net Loan and Lease Charge-offs to

Average Loans and Leases


0.12


%

 

 0.11


%

 

 0.21


%

 

 0.21


%

 

 0.22


%

Total Nonperforming Loans and Leases*

and OREO to End of Period Loans and

Leases and OREO



0.44

 

 

 

 0.48

 

 

 

 0.74

 

 

 

 0.85

 

 

 

 0.94

 

Allowance for Loan and Lease Losses to

End of Period Loans and Leases


1.06

 

 

 1.21

 

 

 1.39

 

 

 1.42

 

 

 1.39

 

Allowance for Loan and Lease Losses to

Total Nonperforming Loans and Leases*


259

 

 

 271

 

 

 202

 

 

 174

 

 

 154

 

______________

    *

Loans and leases nonaccrual, restructured, and past due 90 days or more.

  **

Restated for 2-for-1 stock split effective June 17, 2002.




Yield & Cost Analysis

Years ended December 31 (Tax equivalent basis)


 

2005

 

2004

 

2003

 

2002

 

2001

 

Average Rates Earned:


 


 

 

 

 

 

 

 

Loan and Leases

 6.17

%

 5.31

%

 5.49

%

 6.28

%

 7.56

%

Investment Securities – Taxable

 4.41

 

 4.30

 

 4.13

 

 6.11

 

 7.04

 

Investment Securities – Tax-Exempt

 7.26

 

 7.53

 

 7.58

 

 7.49

 

 7.28

 

Trading Securities

 0.89

 

 1.26

 

 1.16

 

 2.21

 

 4.21

 

Short-term Investments

 3.66

 

 1.40

 

 0.97

 

 1.56

 

 3.34

 


Average Rates Paid:

 

 

 

 

 

 

 

 

 

 

Interest Bearing Deposits

 2.58

%

 1.42

%

 1.28

%

 1.87

%

 3.97

%

Short-term Borrowings

 3.63

 

 2.11

 

 2.58

 

 3.59

 

 4.78

 

Long-term Borrowings

 4.03

 

 3.69

 

 4.30

 

 4.73

 

 5.65

 

M&I Marshall & Ilsley Bank

Average Prime Rate

 

 6.19

 

 

 4.34

 

 

 4.12

 

 

 4.67

 

 

 6.91