Featuring news from M&I, Bank Mutual
M&I reports loss of nearly $400 million for quarter
Milwaukee-based Marshall & Ilsley Corp. has reported a net loss of $393.8 million, or $1.52 per share, for the second quarter of 2008. That compares to a profitable net income of $178.9 million, or 68 cents per share, from continuing operations for the second quarter of 2007. For the first half of the year, M&I had a net loss of $247.6 million, compared with profitable net income of $347.7 million, from continuing operations, for the first half of 2007. The company said its losses are directly related to the problems with the nation’s housing market. During the quarter the company took a provision for loan and lease losses of $866 million.
Bank Mutual reports flat earnings
Brown Deer-based Bank Mutual Corp. reported net income of $4.3 million, or 9 cents diluted earnings per share, for the second quarter, compared to $4.6 million, or 8 cents diluted earnings per share, for the second quarter of 2007. The company’s earnings for the first six months of the year were $9.3 million, or 19 cents diluted earnings per share, compared to $9.3 million or 16 cents diluted earnings per share during the first half of 2007. Net income decreased for the second quarter primarily as a result of net investment losses of $1.1 million and a net gain of $585,000 on the sale of undeveloped land in 2007 with no comparable gain in 2008, the company said. "Although the current volatility in financial markets is challenging, we believe our asset quality, capital strength, liquidity and cost efficiency provides us with an operating edge over our competitors," said Michael Crowley Jr., chairman, president and chief executive officer of Bank Mutual. "Specifically, our policy to not originate sub-prime loans allows us to better weather the effects of the weakening economic conditions that are reported in the daily headlines. We are also pleased to see improvement our net interest margin."