MI Marshall & Ilsley Corp

Marshall & Ilsley Corporation Announces First Quarter Results MILWAUKEE, April 12 /PRNewswire-FirstCall/ -- Marshall & Ilsley Corporation (NYSE:MI) today reported 2005 first quarter net income of $0.73 per diluted share, or $169.6 million, as compared to $0.65 per diluted share, or $146.1 million, in the first quarter of 2004. First quarter net income per share increased 12.3 percent over the same period in 2004. Return on average assets based on net income for the first quarter was 1.68 percent, as compared to 1.69 percent for the same period in 2004. Return on average equity based on net income was 17.28 percent this quarter as compared to 17.42 percent for the first quarter of 2004. The Corporation's provision for loan and lease losses was $8.1 million in the first quarter of 2005, versus $9.0 million in the same period last year. Net charge-offs for the period were $8.0 million, or 0.11 percent of total average loans and leases outstanding this quarter, and $4.9 million a year ago or 0.08 percent of total average loans and leases. At March 31, 2005, the allowance for loan and lease losses was 1.17 percent of total loans and leases, compared to 1.36 percent a year earlier. Nonperforming loans and leases were 0.42 percent of total loans and leases at March 31, 2005, and 0.60 percent at March 31, 2004. Assets at March 31, 2005 were $41.6 billion, compared to $35.5 billion at March 31, 2004. Book value per share was $17.71 at March 31, 2005, compared to $15.42 for the same date a year ago. Total loans and leases were $30.6 billion, compared to $26.1 billion at March 31, 2004. Marshall & Ilsley Corporation (NYSE:MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $41.6 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank has the largest banking presence in Wisconsin with 196 offices throughout the state. In addition, M&I has 35 locations throughout Arizona; 11 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 six 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. Note: Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Tuesday, April 12, regarding first quarter earnings. For those interested in listening, please call 1-800-243-6403 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 April 19, 5:00 p.m. Central Daylight Time by calling 1-800-839-6713 and entering passcode 700 88 47 to listen. Supplemental financial information referenced in the conference call can be found at http://www.micorp.com/, Investor Relations, after 8:00 a.m. on April 12. M&I Corporation Financial Information (unaudited) Three Months Ended March 31, March 31, Percent 2005 2004 Change PER SHARE DATA Diluted: Net Income $0.73 $0.65 12.3 % Basic: Net Income 0.75 0.66 13.6 Dividend Declared 0.210 0.180 16.7 Book Value 17.71 15.42 14.9 Shares Outstanding (millions): Average - Diluted 231.6 226.0 2.5 End of Period 228.7 222.1 3.0 INCOME STATEMENT ($millions) Net Interest Income (FTE) $300.0 $286.5 4.7 % Provision for Loan and Lease Losses 8.1 9.0 -10.0 Data Processing Services 272.4 186.1 46.4 Item Processing 10.6 11.4 -7.0 Trust Services 40.3 36.3 11.0 Service Charge on Deposits 23.6 25.5 -7.5 Mortgage Banking 8.0 6.9 15.9 Net Investment Securities Gains (Losses) 5.8 (0.5) n.m. All Other 48.8 47.7 2.3 Total Non-Interest Revenues 409.5 313.4 30.7 Salaries and Employee Benefits 238.5 203.9 17.0 Occupancy and Equipment 53.4 47.4 12.7 Intangible Amortization 8.1 5.5 47.3 Other 136.4 105.5 29.3 Total Non-Interest Expenses 436.4 362.3 20.5 Tax Equivalent Adjustment 8.2 7.9 3.8 Pre-Tax Earnings 256.8 220.7 16.4 Income Taxes 87.2 74.6 16.9 Net Income $169.6 $146.1 16.1 % KEY RATIOS Net Interest Margin (FTE) / Avg. Earning Assets 3.36 % 3.69 % Interest Spread (FTE) 2.97 3.39 Efficiency Ratio 62.0 60.4 Efficiency Ratio without Metavante 48.8 49.2 Return on Assets 1.68 1.69 Return on Equity 17.28 17.42 Equity / Assets (End of Period) 9.66 9.59 M&I Corporation Financial Information (unaudited) As of March 31, March 31, Percent ASSETS ($millions) 2005 2004 Change Cash & Due From Banks $873 $691 26.3 % Trading Securities 24 47 -48.9 Short - Term Investments 158 136 16.2 Investment Securities 6,158 6,010 2.5 Loans and Leases: Commercial Loans & Leases 9,096 7,719 17.8 Commercial Real Estate 9,702 8,424 15.2 Residential Real Estate 5,041 3,375 49.4 Home Equity Loans & Lines 5,162 4,604 12.1 Personal Loans and Leases 1,582 1,934 -18.2 Total Loans and Leases 30,583 26,056 17.4 Reserve for Loan & Leases Losses (358) (354) 1.1 Premises and Equipment, net 445 434 2.5 Goodwill and Intangibles 2,152 1,104 94.9 Other Assets 1,606 1,352 18.8 Total Assets $41,641 $35,476 17.4 % LIABILITIES & SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing $4,790 $4,360 9.9 % Bank Issued Interest Bearing Activity 9,860 9,956 -1.0 Bank Issued Time 4,051 3,213 26.1 Total Bank Issued Deposits 18,701 17,529 6.7 Wholesale Deposits 7,001 5,622 24.5 Total Deposits 25,702 23,151 11.0 Short - Term Borrowings 4,456 4,619 -3.5 Long - Term Borrowings 5,892 3,221 82.9 Other Liabilities 1,569 1,083 44.9 Shareholders' Equity 4,022 3,402 18.2 Total Liabilities & Shareholders' Equity $41,641 $35,476 17.4 % Three Months Ended March 31, March 31, Percent 2005 2004 Change AVERAGE ASSETS ($millions) Cash & Due From Banks $919 $771 19.2 % Trading Securities 23 23 0.0 Short - Term Investments 187 213 -12.2 Investment Securities 6,101 5,680 7.4 Loans and Leases: Commercial Loans & Leases 8,858 7,541 17.5 Commercial Real Estate 9,516 8,321 14.4 Residential Real Estate 4,729 3,227 46.5 Home Equity Loans and Lines 5,131 4,438 15.6 Personal Loans and Leases 1,650 1,901 -13.2 Total Loans and Leases 29,884 25,428 17.5 Reserve for Loan & Leases Losses (361) (356) 1.4 Premises and Equipment, net 451 438 3.0 Goodwill and Intangibles 2,142 1,108 93.3 Other Assets 1,695 1,539 10.1 Total Assets $41,041 $34,844 17.8 % Memo: Average Earning Assets $36,195 $31,344 Average Earning Assets Excluding Investment Securities Unrealized Gains/Losses $36,156 $31,261 AVG LIABILITIES & SHAREHOLDERS' EQUITY ($millions) Deposits: Noninterest Bearing $4,693 $4,316 8.7 % Bank Issued Interest Bearing Activity 9,877 9,992 -1.2 Bank Issued Time 3,861 3,243 19.1 Total Bank Issued Deposits 18,431 17,551 5.0 Wholesale Deposits 6,803 4,964 37.0 Total Deposits 25,234 22,515 12.1 Short - Term Borrowings 2,893 3,428 -15.6 Long - Term Borrowings 7,205 4,243 69.8 Other Liabilities 1,729 1,284 34.7 Shareholders' Equity 3,980 3,374 18.0 Total Liabilities & Shareholders' Equity $41,041 $34,844 17.8 % Memo: Average Interest Bearing Liabilities $30,639 $25,870 M&I Corporation Financial Information (unaudited) Three Months Ended March 31, March 31, Percent 2005 2004 Change CREDIT QUALITY (a) Net Charge-Offs ($millions) $8.0 $4.9 63.3 % Net Charge-Offs / Average Loans & Leases 0.11 % 0.08 % Loan and Lease Loss Reserve ($millions) $358.3 $353.7 1.3 % Loan and Lease Loss Reserve / Period-End Loans & Leases 1.17 % 1.36 % Non-Performing Loans & Leases (NPL) ($millions) $130.0 $156.1 -16.7 % NPL's / Period-End Loans & Leases 0.42 % 0.60 % Loan and Lease Loss Reserve / Non- Performing Loans & Leases 276 % 227 % MARGIN ANALYSIS (b) Loans and Leases: Commercial Loans & Leases 5.43 % 4.67 % Commercial Real Estate 5.85 5.37 Residential Real Estate 5.71 5.56 Home Equity Loans and Lines 5.74 5.35 Personal Loans and Leases 5.53 5.14 Total Loans and Leases 5.67 5.17 Investment Securities 5.01 5.01 Short - Term Investments 2.73 1.08 Interest Income (FTE) / Avg. Interest Earning Assets 5.54 % 5.11 % Interest Bearing Deposits: Bank Issued Interest Bearing Activity 1.38 % 0.63 % Bank Issued Time 2.74 2.38 Total Bank Issued Deposits 1.76 1.06 Wholesale Deposits 2.61 1.69 Total Interest Bearing Deposits 2.04 1.23 Short - Term Borrowings 3.08 1.86 Long - Term Borrowings 3.85 3.70 Interest Expense / Avg. Interest Bearing Liabilities 2.57 % 1.72 % Net Interest Margin(FTE) / Avg. Earning Assets 3.36 % 3.69 % Interest Spread (FTE) 2.97 % 3.39 % Notes: (a) Includes Loans past due 90 days or more (b) Based on average balances excluding fair value adjustments for available for sale securities. DATASOURCE: Marshall & Ilsley Corporation CONTACT: John Presley, senior vice president, 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.mibank.com/ http://www.micorp.com/

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