Marshall & Ilsley Corp. restated its second-quarter loss on Monday as Wisconsin's largest bank sold 800 residential mortgage loans, nearly all of which were nonperfoming.
The sale of the loans, with an unpaid principal balance of $297 million and two-thirds of which on Arizona properties, will also result in third-quarter charge-offs and loan-loss provisions being sharply less than what the company projected last month.
M&I had projected the figures to be close to second-quarter levels. But the loan sale will result in the figures being sharply less sequentially, the bank said Monday.
Meanwhile, the sale resulted M&I restating its second-quarter loss to 83 cents from 50 cents as it resulted in another $151 million of charge-offs.
M&I has cut costs and jobs and slashed its dividend to preserve cash. It has struggled with heavy exposure to some of the most troubled housing markets, as well as commercial construction loans.
In June, Marshall & Ilsley joined other banks in boosting capital, netting proceeds of about $552 million from selling 100 million shares, roughly 38% of its shares outstanding.
In recent premarket trading, shares were down 0.7% at $7.06. The stock has lost half its value this year.
