WLIP News -

In the wake of banking firm Marshall & Ilsley (NYSE: MI) (M&I)
Corporation's stunning 2008 second-quarter loss of $393.8 million, or
$1.52 per share, the firm announced some remedial efforts and blamed
the loss on "continued stress on its construction and development
portfolio due to the ongoing deterioration in the housing market".
M&I Bank has six Kenosha County locations, three within the city and
one each in Twin lakes, Paddock Lake and Pleasant Prairie.

M&I announced the following actions were taken: a provision for loan
and lease losses of $886 million, representing $485 million in excess
of charge-offs of $401 million; and approximately $20 million was
added to the reserve for unfunded commitments. Also, an allowance-to-
loan ratio was boosted to 2.05 percent, up 105 basis points versus
the second quarter of 2007.

On the brighter side at M&I, second-quarter key performance
highlights included, on an acquisition-adjusted basis, an increase in
average loans and leases of 11 percent over the second quarter of
2007; net interest margin rose 5 basis points on a linked quarter
basis and was down 1 basis point from the second quarter of 2007; and
net interest income increased 12 percent compared to the same period
last year. Also, Wealth Management total revenue increased 14 percent
over the second quarter of 2007.

M&I's adjusted efficiency ratio was 51.3 percent, up 0.4 percentage
points from the adjusted efficiency ratio for the same period last
year. Tangible common equity ratio was 7.0 percent at June 30, 2008 --
up 1.2 percentage points from June 30, 2007.

On an acquisition-adjusted basis, M&I's average loans and leases
totaled $49.9 billion for the second quarter of 2008, reflecting an
increase of $4.9 billion or 11 percent compared to the second quarter
of 2007. M&I's average bank-issued deposits totaled $29.5 billion on
an acquisition-adjusted basis for the second quarter of 2008,
essentially unchanged versus the second quarter of 2007.

However, M&I's construction and development portfolio continued to
experience deterioration in the estimated collateral values and
repayment abilities of some of its customers, particularly among
small and mid-sized local developers. M&I's provision for loan and
lease losses was $886.0 million in the second quarter of 2008. Net
charge-offs for the period were $400.7 million, or 3.23 percent of
total average loans and leases. At June 30, 2008 and 2007, the
allowance for loan and lease losses was 2.05 percent and 1.00
percent, respectively, of total loans and leases. Non-performing
loans and leases were 2.07 percent of total loans and leases at June
30, 2008, compared to 0.89 percent at June 30, 2007.

Marshall & Ilsley Corporation is a diversified financial
services corporation headquartered in Milwaukee, with $64.3 billion
in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest
Wisconsin-based bank, with 193 offices throughout the state including
the aforementioned six in Kenosha and Kenosha County. In addition,
M&I has 51 locations throughout Arizona; 32 offices in Indianapolis
and nearby communities; 31 offices along Florida's west coast and in
central Florida; 15 offices in Kansas City and nearby communities; 24
offices in metropolitan Minneapolis/St. Paul, and one in Duluth,
Minn.; and one office in Las Vegas, Nev. http://www.mibank.com or
http://www.micorp.com .