Marshall & Ilsley Falls To A 3Q Loss

MILWAUKEE (AP) — Marshall & Ilsley Corp. on Tuesday reported a third-quarter loss of $248.4 million as soured loans made to other banks and to mortgage borrowers hurt results.

The loss was in line with a forecast the company offered two weeks ago, and met analysts' expectations. But shares fell about 10 percent in afternoon trading after Marshall & Ilsley separately announced plans to raise $775 million through a common stock offering that will dilute the value of existing shares.

Milwaukee-based Marshall & Ilsley, which operates bank branches and other financial services throughout several states stretching as far south as Florida and Arizona, said its loss for the three months ended Sept. 30 equaled 68 cents per share. In the year-ago period, the company reported net income of $83.1 million, or 32 cents per share.

On Oct. 6, Marshall & Ilsley said it expected to report a third-quarter loss in a per-share range of 68 cents to 70 cents. Analysts surveyed by Thomson Reuters forecast a loss of 68 cents, on average.

Shares of Marshall & Ilsley fell 73 cents, or about 10.2 percent, to $6.45 in afternoon trading.