MILWAUKEE, July 17, 2006 /PRNewswire-FirstCall via COMTEX News Network/ — Marshall & Ilsley Corporation (NYSE: MI) today reported 2006 second quarter net income of $203.7 million, or $0.79 per diluted share, as compared to $183.7 million, or $0.79 per diluted share, in the second quarter of 2005. Second quarter net income increased 10.9 percent over the same period in 2005.
Net income for the six months ended June 30, 2006 was $390.5 million, or $1.57 per diluted share, compared to $349.1 million, or $1.50 per diluted share, in the first half of 2005.
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 a venture capital investment, net of related expenses.
The results of operations and financial position as at and for the three and six months ended June 30, 2006, include the effect of the previously announced acquisitions of Gold Banc Corporation, Inc., and Trustcorp Financial, Inc., which were both completed on April 1, 2006. As of April 1, 2006, Gold Banc Corporation, Inc., and Trustcorp Financial, Inc., had assets of $4.9 billion. The acquired companies had loans of $3.9 billion and bank issued deposits of $3.1 billion. The combined purchase price for these companies, which included approximately $146 million of cash, was $898 million.
Return on average assets based on net income for the second quarter was 1.53 percent, as compared to 1.73 percent for the same period in 2005. Return on average equity based on net income was 14.36 percent this quarter as compared to 17.52 percent for the second quarter of 2005. Without the gain on the sale of the venture capital investment, net of expenses, the return on average assets for the second quarter of 2005 would have been 1.58 percent, and the return on average equity for the same period would have been 15.97 percent.
The Corporation’s provision for loan and lease losses was $11.1 million in the second quarter of 2006, versus $13.7 million in the same period last year. Net charge-offs for the period were $9.9 million, or 0.10 percent of total average loans and leases outstanding this quarter, and $11.9 million a year ago or 0.15 percent of total average loans and leases. At June 30, 2006, the allowance for loan and lease losses was 1.03 percent of total loans and leases, compared to 1.12 percent a year earlier. Nonperforming loans and leases were 0.49 percent of total loans and leases at June 30, 2006, and 0.41 percent at June 30, 2005.
Assets at June 30, 2006, were $54.4 billion, compared to $43.5 billion at June 30, 2005. Book value per share was $22.81 at June 30, 2006, compared to $18.76 for the same date a year ago. Total loans and leases were $40.4 billion, compared to $32.1 billion at June 30, 2005.
Marshall & Ilsley Corporation (NYSE: MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $54 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin- based bank with 196 offices throughout the state. In addition, M&I has 42 locations throughout Arizona; 17 offices in Kansas City and nearby communities; 15 offices on Florida’s west coast; 15 offices in metropolitan Minneapolis/St. Paul, and one in Duluth, Minn.; three offices in Tulsa, Okla.; and one office in Las Vegas, Nev. M&I’s Southwest Bank subsidiary has 15 offices in the greater St. Louis area. 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, 2005 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.
Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Monday, July 17, regarding second quarter earnings. For those interested in listening, please call 1-800-500-0920 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 be available beginning at 2:30 p.m. on July 17 and will run through 5:00 p.m. July 24, by calling 1-888-203-1112 and entering pass code 334 28 00.
Supplemental financial information referenced in the conference call can be found at http://www.micorp.com , Investor Relations, after 8:00 a.m. on July 17.