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Thursday, January 15, 2009

Regional Banks: Marshall & Ilsley Posts Large Loss

by Calculated Risk on 1/15/2009 12:22:00 PM

From Reuters: Marshall & Ilsley has big loss (hat tip Justin)

In a bad sign for other regional banks, Marshall & Ilsley Corp said it was slashing its dividend and cutting its workforce and posted a surprising fourth-quarter loss as bad loans surged.
In the fourth quarter, Marshall & Ilsley increased the amount set aside for bad loans to $850.4 million from $235.1 million, as commercial and construction loan losses surged, especially among residential developers and in the states of Arizona and Florida. Net charge-offs more than tripled to $679.8 million.

"The nation's current recessionary climate is unlike any we have experienced," Chief Executive Mark Furlong said in a letter to shareholders.
emphasis added
This may seem like a small story compared to Citi, BofA and JPMorgan, but the regional banks are going to be hit especially hard in 2009 as the commercial real estate bust unfolds.