Marshall & Ilsley Corporation Reports Revised 2008 Fourth Quarter Net Loss Driven by Noncash Goodwill Impairment Charge Resultin
March 02 2009 - 7:32AM
PR Newswire (US)
- Noncash after-tax goodwill impairment charge of $1.5 billion, or
$5.70 per share. MILWAUKEE, March 2 /PRNewswire-FirstCall/ --
Marshall & Ilsley Corporation (NYSE:MI) (M&I) today
reported a revised 2008 fourth quarter net loss of $1.9 billion, or
$7.25 per share. The revision was driven entirely by a noncash
goodwill impairment charge. The goodwill impairment charge is a
noncash accounting adjustment to the Company's balance sheet that
does not affect cash flow or liquidity and has a negligible impact
on regulatory and tangible capital ratios. The Corporation
initially reported a 2008 fourth quarter net loss of $404 million,
or $1.55 per share. M&I also reported a revised net loss of
$2.1 billion, or $7.92 per share, for the twelve months ended
December 31, 2008. The Corporation initially reported a net loss
for the twelve months ended December 31, 2008 of $568 million, or
$2.19 per share. "The goodwill impairment charge was driven by the
decline in M&I's stock price and the deteriorating economy,"
said Greg Smith, senior vice president and CFO, Marshall &
Ilsley Corporation. "This noncash charge had no impact on the
Company's cash flow or liquidity and has a negligible impact on
regulatory and tangible capital ratios." Capital levels remained
strong and virtually unchanged at December 31, 2008: -- Tangible
common equity of $3.9 billion or 6.4% of tangible assets. --
Tangible equity of $5.6 billion or 9.0% of tangible assets. -- Tier
1 risk-based capital of $5.4 billion or 9.5% of risk-based
assets--well above the regulatory capital requirement of 6.0%. --
Total risk-based capital of $7.4 billion or 13.2% of risk-based
assets--well above the regulatory capital requirement of 10.0%.
Noncash Goodwill Impairment Charge The Company recognized a noncash
after-tax goodwill impairment charge during the 2008 fourth quarter
of $1.5 billion, or $5.70 per share. The impairment loss reflected
M&I's recently completed impairment testing as of December 31,
2008. M&I's fourth quarter results, the deteriorating economy,
and unprecedented weakness in financial markets caused a
significant decline in the Company's stock price, leading to the
impairment charge. The final results showed that the estimated fair
values of certain M&I reporting units were less than their book
values, resulting in this charge. About Marshall & Ilsley
Corporation Marshall & Ilsley Corporation (NYSE:MI) is a
diversified financial services corporation headquartered in
Milwaukee, Wis., with $62.3 billion in assets. Founded in 1847,
M&I Marshall & Ilsley Bank is the largest Wisconsin-based
bank, with 193 offices throughout the state. In addition, M&I
has 53 locations throughout Arizona; 32 offices in Indianapolis and
nearby communities; 35 offices along Florida's west coast and in
central Florida; 15 offices in Kansas City and nearby communities;
25 offices in metropolitan Minneapolis/St. Paul, and one in Duluth,
Minn.; and one office in Las Vegas, Nev. M&I's Southwest Bank
subsidiary has 17 offices in the greater St. Louis area. 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.
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) M&I's exposure to the volatile commercial and
residential real estate markets, which could result in increased
charge-offs and increases in M&I's allowance for loan and lease
losses to compensate for potential losses in its real estate loan
portfolio, (ii) adverse changes in the financial performance and/or
condition of M&I's borrowers, which could impact repayment of
such borrowers' outstanding loans, (iii) M&I's ability to
maintain required levels of capital, (iv) fluctuation of M&I's
stock price, and (v) those factors referenced in Item 1A. Risk
Factors in M&I's annual report on Form 10-K for the year ended
December 31, 2008, 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.
DATASOURCE: Marshall & Ilsley Corporation CONTACT: Greg Smith,
senior vice president, chief financial officer, +1-414-765-7727, or
Dave Urban, vice president, director of investor relations,
+1-414-765-7853, both of Marshall & Ilsley Corporation Web
Site: http://www.micorp.com/
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