M&I reports loss of $393.8 million in second quarter

By PAUL GORES pgores@journalsentinel.com Marshall & Ilsley Corp. said Wednesday it took a loss of $393.8 million in the second quarter as real estate construction and development loans in Arizona and Florida deteriorated in the continuing housing slump. M&I lost $1.52 per share in the quarter, compared with net income of $220.3 million, or 83 cents per share, in the second quarter of 2007. The loss, along with news that M&I added $886 million to its reserves to cover bad debt in the quarter, was in line with projections by bank executives in an earnings warning two weeks ago. At that time, M&I said its second-quarter loss could be as much as $1.60 per share and the loan-loss provision could be as high as $900 million. The $886 million allocation to loan-loss reserves was 34 times more than the $26 million the bank added to... [read full story]