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Home > BizTimes Daily > Archives > August 10, 2009
M&I sells $297 million in bad home loans, reports bigger loss
Published August 10, 2009 - BizTimes Daily
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Milwaukee-based Marshall & Ilsley Corp. today announced that it has sold a pool of "predominantly non-performing" residential loans. In the transaction, completed on July 31, M&I sold approximately 800 residential mortgage loans with an unpaid principal balance of $297 million, predominantly all of which were non-performing first mortgage loans and approximately two-thirds of which were located in Arizona.
As a result of the sale M&I said it had to adjust its second quarter results, originally reported on July 17, to show a much bigger loss.
The company now says it lost $234 million, or 83 cents per share, during the second quarter, up from the previously reported loss of $139.3 million, or 50 cents per share, for the quarter.
The sale of the residential loan pool resulted in additional second quarter charge-offs of $151 million. The allowance for loan and lease losses remains at the same level ($1.37 billion) as the company reported on July 17. The adjustment resulted in total net charge-offs for the second quarter of $603.3 million and provision for loan and lease losses of $619.0 million.
