Marshall & Ilsley Corp., which lost $248.4 million in the third quarter, announced today it has commenced a public offering of $775 million of its common stock for sale to the public.
The Milwaukee-based parent company of M&I Bank intends to use the net proceeds of the offering for general corporate purposes and may contribute some portion of the net proceeds to the capital of its subsidiaries, which will use the contributions for their general corporate purposes.
M&I also may use a portion of the net proceeds of the offering to repurchase portions of its outstanding indebtedness.
The company today reported a third quarter net loss of $248.4 million, or 68 cents per share, compared with net income of $83.1 million, or 32 cents per share, in the same period a year ago.
M&I's provision for loan and lease losses was $578.7 million in the third quarter of 2009, which was a slight improvement over the $619.0 million in the previous quarter. The company's net charge-offs for the period were $532.7 million, which was slightly better than $603.3 million in the second quarter.
The company's early stage loan delinquencies fell $218 million, or 21 percent, from the second quarter.
"Our financial results during the third quarter of 2009 were negatively impacted by bank holding company loans and housing-related credits," said Mark Furlong, president and chief executive officer of Marshall & Ilsley Corp. "The company remains focused on the aggressive resolution of these loans in order to return M&I to profitability as soon as possible. There are some encouraging early signs that credit quality is improving, but we realize it will take a few more quarters to fully address our problem loans."
M&I seeks to balance its books by selling more stock
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