Marshall & Ilsley Corporation Reports First Quarter Earnings

Announces New Chief Financial Officer, Completion of Metavante Corporation

Realignment, Acquisition of Eleven Fifth Third Bank Branches in Arizona



Apr 11, 2001, 01:00 ET from Marshall & Ilsley Corporation

    MILWAUKEE, April 11 /PRNewswire/ --
     Marshall & Ilsley Corporation (NYSE:   MI) today announced operating income
 for the first quarter ended March 31, 2001 was $91.1 million, compared to the
 $90.7 million recorded in the same period in 2000.  On an operating basis,
 diluted income per share increased to $.85 for the first quarter, versus
 $.83 for the same period a year ago.  Cash diluted income per share was $.89,
 versus $.87 a year ago.
     On an operating basis, return on average assets was 1.42 percent versus
 1.48 percent in 2000 and the return on tangible equity was 19.60 percent this
 quarter compared to 21.92 percent for the first quarter of 2000.
     Operating income for the three months ended March 31, 2001 excludes
 expenses associated with charter consolidations and the cumulative effect of
 adopting Statement of Financial Accounting Standards No. 133, Accounting for
 Derivative Instruments and Hedging Activities, which in the aggregate amounted
 to a charge of $4.9 million after tax.  Operating income for the three months
 ended March 31, 2000, excludes the cumulative effect of adopting Staff
 Accounting Bulletin No. 101, Revenue Recognition, which amounted to a charge
 of $2.3 million after tax.
     Net income and diluted earnings per share for the three months ended
 March 31, 2001, were $86.2 million and $.80, respectively, compared to
 $88.4 million and $.81 for the first quarter of 2000.
     Assets at quarter end were $26.2 billion, compared to $25.0 billion for
 the same period in 2000.  Book value per share was $21.84 at March 31, 2001,
 compared to $19.40 for the same date a year ago.  Total loans were
 $17.8 billion, versus $17.0 billion at March 31, 2000.
 
     Mark F. Furlong Joins Marshall & Ilsley Corporation as Chief Financial
      Officer
     Marshall & Ilsley Corporation today announced that Mark F. Furlong will
 assume the duties of senior vice president and chief financial officer
 effective April 16, 2001.
     Furlong comes to Marshall & Ilsley Corporation from Old Kent Financial
 Corporation in Grand Rapids, Mich., where he was chief financial officer and
 executive vice president.  Old Kent was recently acquired by Fifth Third Bank
 in Cincinnati.  Furlong's previous positions include first vice president and
 director of Corporate Development/Commercial Lending for H.F. Ahmanson & Co.,
 audit partner with Deloitte and Touche, and audit manager with KMPG Peat
 Marwick.
 
     Metavante Corporation Completes Realignment
     Metavante Corporation, a wholly owned subsidiary of Marshall & Ilsley
 Corporation, announced an organizational realignment as the final step in the
 strategic initiative it began a year ago and a workforce consolidation which
 is the result of the realignment and changing revenue mix.
     "This organizational alignment and the resulting actions complete a
 strategic initiative we began in 2000 to focus our company on the emerging
 growth opportunities through seven distinct business solutions," said
 Metavante CEO and President Joseph L. Delgadillo.  "We are positioned to
 better serve our clients by responding quickly to changing market
 opportunities, capturing greater operating efficiencies and continuing to
 deliver superior client service through a more streamlined organizational
 structure.  This new organization mirrors our 'one face, one name to the
 customer' brand strategy that we introduced last July, with the creation of
 Metavante.
     "A significant aspect of this strategy will be the ongoing investments and
 addition of necessary skills to exploit the market opportunities," said
 Delgadillo.  "In 2000, Metavante invested over $130 million in software,
 technology research and development and infrastructure.  We plan to invest
 approximately $172 million in 2001 and to increase our investments in 2002.
 We continue to add resources and investments in such high-growth areas as our
 Electronic Presentment and Payment and Electronic Banking solutions."
     Today's organizational realignment includes the closing of selected
 regional offices and a reduction of 400 positions, or approximately 10 percent
 of Metavante's 4,035 employees, including 208 full-time positions in
 Milwaukee.  Metavante will close six of its 15 regional offices, which
 includes 125 of the eliminated positions.
     The Metavante offices closed today are located in Boise, Idaho; Columbia,
 Md.; Green Bay, Wis. and Flint, Mich.  The company's Lynchburg, Va. facility,
 which employs 64 persons, will be closed in 60 days.  The company's Fort
 Washington, Penn., office will be closed on November 1, 2001.
     "These decisions were very difficult because of the impact to our valued
 employees and their families," said Delgadillo.  "The Metavante employees who
 are affected by the consolidation have been part of the growth of our company.
 We appreciate and thank them for their contributions.  In all cases, Metavante
 has provided an equitable severance and outplacement package to help in their
 transition to new employment.
     "Today's industry dynamics create both challenges and opportunities within
 the technology marketplace.  Our action today is consistent with steps we took
 last year to focus on core competencies and drive our solutions strategy to
 expand our market reach," Delgadillo said.  "We have been shifting our
 investment focus to projects that allow us to develop more products, improve
 speed-to-market and deliver increased efficiencies to meet the needs of our
 clients."
     The Corporation is positive about the business opportunities for Metavante
 and continues to be confident it will achieve its annual revenue and net
 income projections included in its plan for 2001.
 
     M&I Acquires Branches from Fifth Third
     Marshall & Ilsley Corporation also announces the planned acquisition of
 eleven Arizona branches of Fifth Third Bank.  The acquisitions, scheduled to
 be complete in 2001, will enhance M&I Marshall & Ilsley Bank's presence in
 this market.
     "Fifth Third's Arizona franchise has tremendous growth potential," said
 James B. Wigdale, chairman, Marshall & Ilsley Corporation.  "This move is
 consistent with our business plan to expand our customer base in Arizona.  The
 residential and business development has been growing rapidly and we are now
 better positioned to deliver a more encompassing level of service."
     Fifth Third Bank's Arizona franchise is the number one mortgage lender in
 the state.  The acquisition will add $400 million in deposits.  New
 communities to be served include Prescott and Sedona and additional locations
 will be added in Phoenix, Scottsdale and Tucson.
 
     Marshall & Ilsley Corporation is a diversified financial services
 corporation headquartered in Milwaukee, Wis. with $26.2 billion in assets.
 Founded in 1847, M&I has the largest retail banking presence in Wisconsin with
 over 200 offices throughout the state.  In addition, M&I retail locations are
 located in Phoenix and Tucson, Ariz.; Las Vegas, Nev.; and Naples, Fla.  M&I
 also provides trust and investment management, equipment leasing, mortgage
 banking, financial planning, investments, insurance services and data
 processing from offices throughout the country and on the Internet
 ( http://www.mibank.com and 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.
 
     Note:
     Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m.
 central daylight time Thursday, April 12 regarding first quarter earnings.
 For those interested in listening, please call 800-949-2163 and reference the
 M&I Quarterly Conference Call.  If you are unable to join us at this time, a
 replay of the call will be available through Thursday, April 19 5:00 p.m.
 central daylight time by calling 800-839-6713 and using passcode
 409 02 04.
 
 

SOURCE Marshall & Ilsley Corporation
    MILWAUKEE, April 11 /PRNewswire/ --
     Marshall & Ilsley Corporation (NYSE:   MI) today announced operating income
 for the first quarter ended March 31, 2001 was $91.1 million, compared to the
 $90.7 million recorded in the same period in 2000.  On an operating basis,
 diluted income per share increased to $.85 for the first quarter, versus
 $.83 for the same period a year ago.  Cash diluted income per share was $.89,
 versus $.87 a year ago.
     On an operating basis, return on average assets was 1.42 percent versus
 1.48 percent in 2000 and the return on tangible equity was 19.60 percent this
 quarter compared to 21.92 percent for the first quarter of 2000.
     Operating income for the three months ended March 31, 2001 excludes
 expenses associated with charter consolidations and the cumulative effect of
 adopting Statement of Financial Accounting Standards No. 133, Accounting for
 Derivative Instruments and Hedging Activities, which in the aggregate amounted
 to a charge of $4.9 million after tax.  Operating income for the three months
 ended March 31, 2000, excludes the cumulative effect of adopting Staff
 Accounting Bulletin No. 101, Revenue Recognition, which amounted to a charge
 of $2.3 million after tax.
     Net income and diluted earnings per share for the three months ended
 March 31, 2001, were $86.2 million and $.80, respectively, compared to
 $88.4 million and $.81 for the first quarter of 2000.
     Assets at quarter end were $26.2 billion, compared to $25.0 billion for
 the same period in 2000.  Book value per share was $21.84 at March 31, 2001,
 compared to $19.40 for the same date a year ago.  Total loans were
 $17.8 billion, versus $17.0 billion at March 31, 2000.
 
     Mark F. Furlong Joins Marshall & Ilsley Corporation as Chief Financial
      Officer
     Marshall & Ilsley Corporation today announced that Mark F. Furlong will
 assume the duties of senior vice president and chief financial officer
 effective April 16, 2001.
     Furlong comes to Marshall & Ilsley Corporation from Old Kent Financial
 Corporation in Grand Rapids, Mich., where he was chief financial officer and
 executive vice president.  Old Kent was recently acquired by Fifth Third Bank
 in Cincinnati.  Furlong's previous positions include first vice president and
 director of Corporate Development/Commercial Lending for H.F. Ahmanson & Co.,
 audit partner with Deloitte and Touche, and audit manager with KMPG Peat
 Marwick.
 
     Metavante Corporation Completes Realignment
     Metavante Corporation, a wholly owned subsidiary of Marshall & Ilsley
 Corporation, announced an organizational realignment as the final step in the
 strategic initiative it began a year ago and a workforce consolidation which
 is the result of the realignment and changing revenue mix.
     "This organizational alignment and the resulting actions complete a
 strategic initiative we began in 2000 to focus our company on the emerging
 growth opportunities through seven distinct business solutions," said
 Metavante CEO and President Joseph L. Delgadillo.  "We are positioned to
 better serve our clients by responding quickly to changing market
 opportunities, capturing greater operating efficiencies and continuing to
 deliver superior client service through a more streamlined organizational
 structure.  This new organization mirrors our 'one face, one name to the
 customer' brand strategy that we introduced last July, with the creation of
 Metavante.
     "A significant aspect of this strategy will be the ongoing investments and
 addition of necessary skills to exploit the market opportunities," said
 Delgadillo.  "In 2000, Metavante invested over $130 million in software,
 technology research and development and infrastructure.  We plan to invest
 approximately $172 million in 2001 and to increase our investments in 2002.
 We continue to add resources and investments in such high-growth areas as our
 Electronic Presentment and Payment and Electronic Banking solutions."
     Today's organizational realignment includes the closing of selected
 regional offices and a reduction of 400 positions, or approximately 10 percent
 of Metavante's 4,035 employees, including 208 full-time positions in
 Milwaukee.  Metavante will close six of its 15 regional offices, which
 includes 125 of the eliminated positions.
     The Metavante offices closed today are located in Boise, Idaho; Columbia,
 Md.; Green Bay, Wis. and Flint, Mich.  The company's Lynchburg, Va. facility,
 which employs 64 persons, will be closed in 60 days.  The company's Fort
 Washington, Penn., office will be closed on November 1, 2001.
     "These decisions were very difficult because of the impact to our valued
 employees and their families," said Delgadillo.  "The Metavante employees who
 are affected by the consolidation have been part of the growth of our company.
 We appreciate and thank them for their contributions.  In all cases, Metavante
 has provided an equitable severance and outplacement package to help in their
 transition to new employment.
     "Today's industry dynamics create both challenges and opportunities within
 the technology marketplace.  Our action today is consistent with steps we took
 last year to focus on core competencies and drive our solutions strategy to
 expand our market reach," Delgadillo said.  "We have been shifting our
 investment focus to projects that allow us to develop more products, improve
 speed-to-market and deliver increased efficiencies to meet the needs of our
 clients."
     The Corporation is positive about the business opportunities for Metavante
 and continues to be confident it will achieve its annual revenue and net
 income projections included in its plan for 2001.
 
     M&I Acquires Branches from Fifth Third
     Marshall & Ilsley Corporation also announces the planned acquisition of
 eleven Arizona branches of Fifth Third Bank.  The acquisitions, scheduled to
 be complete in 2001, will enhance M&I Marshall & Ilsley Bank's presence in
 this market.
     "Fifth Third's Arizona franchise has tremendous growth potential," said
 James B. Wigdale, chairman, Marshall & Ilsley Corporation.  "This move is
 consistent with our business plan to expand our customer base in Arizona.  The
 residential and business development has been growing rapidly and we are now
 better positioned to deliver a more encompassing level of service."
     Fifth Third Bank's Arizona franchise is the number one mortgage lender in
 the state.  The acquisition will add $400 million in deposits.  New
 communities to be served include Prescott and Sedona and additional locations
 will be added in Phoenix, Scottsdale and Tucson.
 
     Marshall & Ilsley Corporation is a diversified financial services
 corporation headquartered in Milwaukee, Wis. with $26.2 billion in assets.
 Founded in 1847, M&I has the largest retail banking presence in Wisconsin with
 over 200 offices throughout the state.  In addition, M&I retail locations are
 located in Phoenix and Tucson, Ariz.; Las Vegas, Nev.; and Naples, Fla.  M&I
 also provides trust and investment management, equipment leasing, mortgage
 banking, financial planning, investments, insurance services and data
 processing from offices throughout the country and on the Internet
 ( http://www.mibank.com and 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.
 
     Note:
     Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m.
 central daylight time Thursday, April 12 regarding first quarter earnings.
 For those interested in listening, please call 800-949-2163 and reference the
 M&I Quarterly Conference Call.  If you are unable to join us at this time, a
 replay of the call will be available through Thursday, April 19 5:00 p.m.
 central daylight time by calling 800-839-6713 and using passcode
 409 02 04.
 
 SOURCE  Marshall & Ilsley Corporation