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Janesville branches survive M&I cuts

MILWAUKEE — After reporting a fourth-quarter loss Thursday of more than $400 million, Marshall & Ilsley Corp. said it will slash its quarterly dividend and eliminate 830 jobs.

None of the job cuts, however, are taking place in Janesville, where M&I has four branches.

M&I, the largest bank based in Wisconsin, lost $403.9 million, or $1.55 a share, in the quarter. That compares with net income of $493.9 million, or $1.83 a share, a year earlier.

Of the 830 jobs M&I plans to eliminate, the bank said 80 percent had been completed. A total of 221 employees—109 of whom are in Wisconsin and 76 in the Milwaukee area—learned Wednesday they would be losing their jobs.

“We are not immune to the same economic issues that are facing other companies and organizations throughout the United States,” said Mary Willmer, M&I’s market president in Janesville. “Fortunately for us here in Janesville, we had no job loss or impact, and that is a credit to the outstanding job our team has done in managing expenses, focusing on productivity and balancing that with the needs of our customers.

“We’ve always been aware of the need to carefully manage our staffing levels to assure we are operating efficiently.”

Willmer said that low interest rates have kept her mortgage department busy.

“The lower home mortgage rates are great for consumers and certainly will give financial institutions great opportunities to jumpstart 2009,” she said.

Because of M&I’s losses, the bank said no executive officer will be paid a bonus for 2008 and that executive officer salaries will be frozen in 2009. Another $100 million in cuts will be made throughout the corporation.

M&I received $1.7 billion in new capital through the sale of preferred stock to the U.S. Treasury through TARP. The bank has stated that it has extended $1.3 billion in new credit since.

For the year, M&I reported a loss of $568.3 million, or $2.19 a share.

“Our fourth-quarter and year-end results reflect the extent to which the current recession has had an impact on our economy,” M&I president and CEO Mark Furlong said in a statement. “Although these are disappointing results, our excess capital and strong levels of reserves will keep us ahead of the industry’s challenges.”