According to the latest data released by BizBuySell.com, an online business-for-sale marketplace, the median business asking price in Milwaukee has fallen 16.5 percent to $330,000 for the second quarter of 2009. At the end of the second quarter of 2008, the median asking price for a Milwaukee business was $395,000.
The data is based on 93 Milwaukee area businesses listed for sale at BizBuySell.com. Those listings include business broker listings, as well as “for sale by owner” listings.
Revenues for the listed companies have fallen as well. During the second quarter of this year, median revenues were $490,000, compared to $530,000 in the second quarter of 2008. According to BizBuySell.com, business owners in metro Milwaukee are, on average, asking for revenue multiples of 1 and cash flow multiples of 4.28. One year ago, they were asking for revenue multiples of 1.11 and cash flow multiples of 4.12.

Milwaukee-based Marshall & Ilsley Corp. announced that it is "consolidating the back room operations" of its Appleton and Brookfield offices. The consolidation will result in the elimination of 170 jobs in Appleton, but 135 new positions will be created in Brookfield, the company said.
"These positions (in Brookfield) will be offered to the 170 displaced Appleton employees," said Sara Schmitz, spokeswoman for Marshall & Ilsley. "Those electing not to accept one of these positions will be offered a severance package."

M&I lost $139.3 million in second quarter
Marshall & Ilsley Corp. reported a second quarter net loss of $139.3 million, or 50 cents per share, compared with a net loss of $393.8 million, or $1.52 per share, in the same period a year ago.
"The second quarter of 2009 continued to be challenging for our nation's economy, the financial services industry and Marshall & Ilsley Corp.," said Mark Furlong, president and chief executive officer of Marshall & Ilsley, the Milwaukee-based parent company of M&I Bank. "We continue to work hard to address the challenges of this economic cycle, specifically focusing on the proactive resolution of problem credits. We remain committed to ensuring M&I emerges from this cycle in a position of strength and believe we are continuing to make progress toward our goal of returning to profitability."
M&I's average loans and leases totaled $48.9 billion for the second quarter of 2009, decreasing $1.1 billion or 2 percent from the second quarter of 2008. When adjusted for the targeted reduction in the corporation's construction and development portfolio, loan growth was $1.7 billion or 4 percent vs. the same period last year.
M&I's construction and development portfolio continued to experience deterioration in the estimated collateral values and repayment abilities of some of the corporation's customers, particularly among small and mid-sized local residential developers. M&I's provision for loan and lease losses was $468.2 million in the second quarter of 2009 vs. $477.9 million in the previous quarter. Net charge-offs for the period were $452.6 million. Included in this number was an acceleration in charge-offs related to consumer real estate nonperforming loans. This change led to a one-time increase in charge-offs of $47 million, which would otherwise have been taken in the following quarter. These charge-offs were fully reserved.
For the first six months of the year, M&I reported a net loss of $256.3 million, or 94 cents per share, compared with a net loss of $247.6 million, or 95 cents per share, for the same period a year earlier.

North Shore Bank second quarter profit up 25 percent
Brookfield-based North Shore Bank reported that its second quarter net income increased by 25 percent to $1.9 million compared to $1.5 million in the second quarter of 2008.
“This trend is a reflection of a significant increase in home loan refinancing, an unprecedented inflow of deposits and our ability to grow our industry-leading capital,” said Jim McKenna, North Shore Bank president and CEO. “We’ve also been able to reach out to credit-worthy customers to help put money back into the communities we serve.”
McKenna said the bank's quarterly gain would have been even greater were it not for a special FDIC assessment imposed on all financial institutions to help fund costs related to the increased number of failed banks and protection of insured depositors. Additional FDIC assessments reduced pre-tax income by more than $1.2 million and represented a more than 1,000-percent increase from the previous quarter.
“Even with the extra FDIC assessments, our continued growth in the second quarter of 2009 shows that North Shore Bank remains a strong and stable bank that saw no need to accept or apply for any federal aid under the Troubled Asset Relief Program (TARP),” said McKenna.
North Shore Bank has assets of nearly $1.9 billion and 43 offices throughout eastern Wisconsin and northeastern Illinois.

Holding company of Marine Bank plans to file for bankruptcy
CIB Marine Bancshares Inc., the Pewaukee-based holding company that operates Marine Bank in the Milwaukee area, announced that it has asked holders of its trust preferred securities to give advance approval of a "pre-packaged" Chapter 11 bankruptcy plan.
Under terms of the plan, holders' debt securities would be converted to preferred stock in the company.
John Hickey Jr., chairman and chief executive officer of CIB Marine Bancshares, said the bankruptcy filing for the holding company is necessary because of a "previous expansion effort that did not meet its business goals and objectives."
The failed expansion effort occurred earlier in this decade, when CIB Marine Bancshares took out about $60 million in debt to help fuel its growth. The company's banks then made several large loans to real estate projects, which ran into problems in 2003, Hickey said.
"There were some large construction loans that went bad, and the holding company has been trying to dig itself out since," Hickey said. "Those loans were made through the banks, and it forced the holding company to restructure because of the large losses at the multiple banks it had back then."
Today, CIB Marine Bancshares only operates Marine Bank, which is well-capitalized and relatively debt-free, Hickey said.
"This is a creative approach at the holding company to restructure the debt of the holding company," he said. "Essentially, the bank has no debt. It's all at the holding company."
In a solicitation sent to the holders of the trust preferred securities, the holding company said approval of the reorganization, similar to the approach used recently by Chrysler LLC and General Motors Corp., will allow the holding company to emerge as a stronger and better business.
Hickey stressed that the bank owned by CIB Marine Bancshares Inc. - operating as Marine Bank in the metro Milwaukee area, Indianapolis and Scottsdale, and as Central Illinois Bank in mid-state Illinois - will not be affected by the bankruptcy plan.
"The bank is in a strong position with capital levels that are above the national average and higher than most of our local competitors," Hickey said. "Any restructuring of the holding company would have no impact on the operations of the bank and deposits, and the bank would continue to be safe and sound."
Hickey said the bank is regulated separately from the holding company by both federal and state regulators and its accounts are insured by the Federal Deposits Insurance Corp. (FDIC).
"Our bank remains committed to meeting the needs of our valued customers and has the resources to maintain a safe and secure position. The bank is conducting regular banking business, making loans and meeting our customers' banking needs," Hickey said.
If the plan is approved by the holders of the trust preferred securities, the reorganization could be completed within about 60 days, pending confirmation by the court, Hickey said.
Hickey said the reorganization would make the holding company "stronger and better" and make it more attractive to a prospective partner.
Upon approval of the plan by the trust preferred security holders, the holding company will present it to the court for approval.
"It is critical and essential that people understand and make clear the difference between the holding company and the bank. The bank is strong, sound and conducting business as usual. On the other hand, the holding company has to resolve the challenges brought on by the previous expansion effort. In simple language, the bank is fine, but the holding company needs to be financially restructured," Hickey said.

Milwaukee software reseller acquires Cleveland company
Security MicroImaging Corp. of Milwaukee has acquired Imaging Solutions Group Inc., a Cleveland, Ohio-based company installs and sells content management software.
Both companies are resellers of OnBase document management software made by Hyland Software Inc. of Westlake.
Imaging Solutions Group will remain in Cleveland and will become part of Security MicroImaging, a spokeswoman for the Milwaukee company said.
Security MicroImaging has 29 employees in its Milwaukee office at 1515 N. River Center Drive.
Being acquired by Security MicroImaging will enable Imaging Solutions Group to fulfill larger contracts with existing and new customers, David Geller, prior owner and president of Imaging Solutions Group, told Crain's Cleveland Business.
Security MicroImaging also has offices in Chicago and St. Louis.
"With some of our expanding customers and our expanding customer base, I couldn't really grow fast enough," Geller told Crain's.
Imaging Solutions' seven employees will continue working from its office in Cleveland's Tremont neighborhood.

As its financial losses continue to compound, Milwaukee-based MGIC Investment Corp. today announced a restructuring plan that will downstream capital to a subsidiary with the hopes of generating additional business.
MGIC reported a second quarter net loss of $339.8 million, or $2.74 per share, compared with a net loss of $99.9 million, or 81 cents per share, for the same quarter a year ago.
Curt Culver, chairman and chief executive officer of MGIC, said that the company's financial results continue to be adversely impacted by increased delinquencies, which are occurring due to a weakened economy, increased unemployment and lower home prices. Culver added that as MGIC continues to navigate through the most severe housing correction since the Great Depression and the worst economy in his lifetime, the company continues to believe that it has more than adequate resources to pay all of its insured claim obligations on the existing insurance in force.
MGIC's Mortgage Guaranty Insurance Corp. today announced that the Office of the Commissioner of Insurance for the State of Wisconsin (OCI) will allow a reactivation plan under which MGIC will contribute up to $1 billion to MGIC Indemnity Corp. (MIC), a wholly owned MGIC subsidiary. The restructuring will enable MIC to write new mortgage guaranty insurance.
MIC is currently seeking Fannie Mae's and Freddie Mac's approval to be an eligible mortgage insurer for loans. Assuming MIC is approved as an eligible mortgage insurer, MIC plans to begin writing new business as of Jan. 1, 2010.
MIC's additional capital will be provided in two $500 million installments, the first of which is to be made by July 31, 2009, and the second within five business days after Jan. 1, 2011.
The restructuring plan was not greeted warmly on Wall Street, where Fitch Ratings downgraded the insurer financial strength (IFS) rating of MGIC to "BBB-" from "BBB" and placed it and the long-term debt and senior debt ratings of MGIC Investment Corp. on Rating Watch Negative.

Snap-on Inc., a Kenosha-based innovator, manufacturer and marketer of tools, diagnostics, equipment, software and service solutions for professional users, announced that it has notified CIT of termination of the operating agreement between CIT and Snap-on relating to the parties' Snap-on Credit LLC joint venture.
Snap-on and CIT are partners in Snap-on Credit LLC, which provides a broad range of financial services to Snap-on's U.S. franchisees and customers. The joint venture was established in 1999 and CIT has been the exclusive purchaser of the financing contracts originated by Snap-on Credit. Snap-on and CIT have been in ongoing discussions concerning a longer-term new joint venture agreement. Both parties have agreed to continue the discussions.
As a consequence of the termination, Snap-on will acquire CIT's interest in the joint venture for approximately $8.2 million, Snap-on Credit will become a wholly owned subsidiary of Snap-on Inc., and Snap-on Credit will continue to service the existing portfolio of contracts owned by CIT. The approximate outstanding balance of this portfolio is $834 million. Snap-on has no obligation to purchase the existing portfolio of contracts owned by CIT.

Minneapolis-based U.S. Bancorp announced it has completed the repurchase of a warrant held by the U.S. Treasury Department.
The 10-year warrant was issued on Nov. 14, 2008, through the company's participation in the U.S. Treasury's Capital Purchase Program, which is part of the Troubled Asset Relief Program (TARP). The warrants entitled the Treasury to purchase 32.7 million shares of U.S. Bancorp's common stock at an exercise price of $30.29 per share. The company paid $139 million to the Treasury to repurchase the warrant.
"We are very pleased to have completed the repurchase of the warrant, effectively concluding U.S. Bancorp's participation in the Capital Purchase Program," said Richard Davis, chairman, president and chief executive officer of U.S. Bancorp. "We entered into the Capital Purchase Program to support the efforts of the U.S. Treasury Department to stimulate the economy and increase the flow of credit to both consumers and businesses across the country. We look forward to continuing those efforts as we support our customers and communities from a position of strength and independence."
U.S. Bancorp, with $264 billion in assets, is the parent company of U.S. Bank, the sixth-largest commercial bank in the United States.

New Berlin-based International Monetary Systems Ltd., a business-to-business bartering services firm, recently announced a plan to enact a one-for-six reverse stock split, to be effective Friday, July 17.
"It has always been the goal of IMS to be listed on the American Stock Exchange or NASDAQ," said chief executive officer Don Mardak. "Management believes that this stock split will be a major step toward that goal. We also feel that our company and its share price have been highly undervalued for many months. At the current pricing level, INLM shares are trading at less than our book value and at less than one-half of our net revenue. At the same time, the past two quarters have shown marked improvement in our financial statements, as cash flow has been steadily rising, while debts have been reduced through share buybacks and other loan reductions. The time is right for us to make this move so that more of the investing public has an opportunity to see what our company is accomplishing and the great value that IMS shares represent."
The recent financial improvements are a result of hundreds of thousands of dollars spent on infrastructure last year, as well as numerous cost-cutting measures that were enacted recently, the company said.

Fiserv Inc. announced that more than 2 million U.S. households adopted online banking and bill payment during the last year, according to a new consumer survey.
A total of 69.7 million households, representing four out of five households with Internet access, now use online banking services, primarily to access balance and account history and transfer money between accounts. In addition, 64.4 million households pay at least one bill online, either at a bank website or directly at a company website.
The Fiserv-sponsored survey - which reflects the habits of the 88.2 million households in the United States with Internet access - was conducted by The Marketing Workshop and Harris Interactive. Brookfield-based Fiserv has conducted the Consumer Billing and Payment Trends survey since 2001.
"We believe that consumers will continue to conduct more and more of their financial activities online," said Geoff Knapp, vice president of online banking and consumer insights for Fiserv. "Online banking and bill payment is a free service, and a convenient and environmentally friendly way to bank. Consumers are actively becoming fans of the user-friendly, secure services financial institutions are implementing."

World Trade Center Wisconsin will present “Obama's International Tax Plan: Proposed Changes and How It Will Affect Your Company's Ability to Remain Competitive” on Thursday, Aug. 27 from 7:30 to 10 a.m. in the Milwaukee County War Memorial Center, Room 413, 750 North Lincoln Memorial Drive, Milwaukee. The event will examine the impact of reduced tax incentives that currently help multinational companies remain competitive in overseas markets. According to an executive briefing from Ernst & Young, these main proposals are projected to increase taxes more than $200 billion to U.S. based multinational companies over the next 10 years. For information or to register, visit http://wistrade.org/Calendar/index.asp?C=3&E=590.