Marshall & Ilsley Corp.MI

Stock Research and Analysis

by Jason Ren

Faced with a slow-growth home footprint, Marshall & Ilsley pursued an aggressive expansion strategy in Arizona and Florida earlier this decade. Real estate markets in those asset-bubble states have since collapsed, leaving M&I holding the bag Read more

Bulls Say

Historically, state-by-state population growth doesn't get much better than in Arizona and Florida. Should real estate markets bounce back, M&I has reasonable footprints in those states.

Stability in its Wisconsin base should help buoy M&I as the firm works through problem loans in Arizona and Florida. Read more

Bears Say

M&I doesn't have an attractive mix of low-cost deposits, which pares down its net interest margin.

Together, construction and commercial real estate make up 44% of the bank's loan book. Continuing credit deterioration in those loan buckets portends more pain for shareholders and may force an equity raise.

M&I has cut its quarterly common dividend to a penny while it works to build up its capital cushion. Read more

Strategy

Presently, M&I is focused on internally expanding its wealth-management enterprise and its core banking services. Read more

Management

CEO Mark Furlong has helmed M&I since early 2007, replacing Dennis Kuester, who remained the bank's chairman. Although we're not fans of the bank's previous expansion efforts, we think management is trying to right the ship through paring construction Read more

Profile

Based in Milwaukee, Marshall & Ilsley has 370 branches scattered across seven major regions: Wisconsin, Arizona, Florida, Minneapolis, Indianapolis, St. Louis, and Kansas Read more

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