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| UNITED STATES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| SECURITIES AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Washington, D.C. 20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|           (Mark One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| For the quarterly period ended March 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| OR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| [  ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| For the transition period from __________ to __________                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Commission file number  1-33488                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| MARSHALL & ILSLEY CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Wisconsin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 20-8995389 |
| (State or other jurisdiction of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (I.R.S. Employer |
| incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 770 North Water Street                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Milwaukee, Wisconsin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 53202 |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (Zip Code) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Registrant's telephone number, including area code:  (414) 765-7801                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes   [X]       No   [  ]                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant has submitted electronically and posted on its Corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).      Yes   [  ]       No   [  ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.                                                                                                                                                                                    |
| Large accelerated filer   [X]      Accelerated filer    [  ]   Non-accelerated filer   [  ] (Do not check if a smaller reporting company)     Small reporting company [  ]                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes   [  ]       No   [X]                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Outstanding at April 30, 2010 |
| Common Stock, $1.00 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 527,244,964 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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TABLE OF CONTENTS

| PART I. FINANCIAL INFORMATION                                                                       | Page   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                        | 2      |
| CONSOLIDATED BALANCE SHEETS (Unaudited)                                                             | 2      |
| CONSOLIDATED STATEMENTS OF INCOME – THREE MONTHS ENDED (Unaudited)                            | 3      |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)                                          | 4      |
| NOTES TO THE FINANCIAL STATEMENTS (Unaudited)                                                       | 5      |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 37     |
| OVERVIEW                                                                                            | 38     |
| FORWARD-LOOKING STATEMENTS                                                                          | 40     |
| OTHER NOTEWORTHY TRANSACTIONS AND EVENTS                                                            | 41     |
| NET INTEREST INCOME                                                                                 | 41     |
| SUMMARY OF LOAN AND LEASE LOSS EXPERIENCE AND CREDIT QUALITY                                        | 48     |
| OTHER INCOME                                                                                        | 62     |
| OTHER EXPENSE                                                                                       | 63     |
| INCOME TAXES                                                                                        | 64     |
| LIQUIDITY AND CAPITAL RESOURCES                                                                     | 65     |
| OFF-BALANCE SHEET ARRANGEMENTS                                                                      | 69     |
| CRITICAL ACCOUNTING POLICIES                                                                        | 70     |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 77     |
| ITEM 4. CONTROLS AND PROCEDURES                                                                     | 79     |
|                                                                                                |   |
| PART II. OTHER INFORMATION                                                                          |   |
|                                                                                                |   |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 | 80     |
| ITEM 6. EXHIBITS                                                                                    | 81     |
|                                                                                                |   |
| SIGNATURES                                                                                          | 82     |
|                                                                                                |   |
| EXHIBIT INDEX                                                                                       | 83     |
| EX-11                                                                                               | 83     |
| EX-12                                                                                               | 84     |
| EX-31(i)                                                                                            | 85     |
| EX-31(ii)                                                                                           | 86     |
| EX-32(i)                                                                                            | 87     |
| EX-32(ii)                                                                                           | 88     |

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Table of Contents

ITEM 1.  FINANCIAL STATEMENTS

MARSHALL & ILSLEY CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

($000’s except share data)

|                                                                                                                                                                                    |   | March 31, |       |   | December 31, |   |       | March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|--------------|--------|------------|-----------|--------|
|                                                                                                                                                                                    |   | 2010      |       |   | 2009         |   |       | 2009      |   |
| Assets:                                                                                                                                                                                 |   |      |       |   |         |   |       |      |   |
| Cash and cash equivalents:                                                                                                                                                              |   |      |       |   |         |   |       |      |   |
| Cash and due from banks                                                                                                                                                                 |   | $         | 588,687    |   |         | $      | 769,034    |      |   | $ | 744,861 |   |
| Federal funds sold and security resale agreements                                                                                                                                       |   |      | 27,057     |   |         |   | 26,839     |      |   |   | 49,698 |   |
| Money market funds                                                                                                                                                                      |   |      | 55,434     |   |         |   | 36,610     |      |   |   | 285,307 |   |
| Total cash and cash equivalents                                                                                                                                                         |   |      | 671,178    |   |         |   | 832,483    |      |   |   | 1,079,866 |   |
| Interest bearing deposits at other banks                                                                                                                                                |   |      | 1,939,006  |   |         |   | 1,128,794  |      |   |   | 116,353 |   |
| Trading assets, at fair value                                                                                                                                                           |   |      | 254,549    |   |         |   | 255,646    |      |   |   | 686,723 |   |
| Investment securities:                                                                                                                                                                  |   |      |       |   |         |   |       |      |   |   |   |   |
| Available for sale, at fair value                                                                                                                                                       |   |      | 7,520,465  |   |         |   | 7,073,592  |      |   |   | 7,540,076 |   |
| Held to maturity, fair value $107,319 ($106,962 at December 31, 2009 and $192,324 at March 31, 2009)                                                                                    |   |      | 104,245    |   |         |   | 103,566    |      |   |   | 187,551 |   |
| Loans held for sale                                                                                                                                                                     |   |      | 174,103    |   |         |   | 214,159    |      |   |   | 305,082 |   |
|                                                                                                                                                                                    |   |      |       |   |         |   |       |      |   |   |   |   |
| Loans and leases                                                                                                                                                                        |   |      | 42,474,704 |   |         |   | 44,003,467 |      |   |   | 48,939,572 |   |
| Allowance for loan and lease losses                                                                                                                                                     |   |      | (1,515,154 | )      |         |   | (1,480,470 | )         |   |   | (1,352,117 | ) |
| Net loans and leases                                                                                                                                                                    |   |      | 40,959,550 |   |         |   | 42,522,997 |      |   |   | 47,587,455 |   |
| Premises and equipment, net                                                                                                                                                             |   |      | 557,650    |   |         |   | 565,806    |      |   |   | 570,303 |   |
| Goodwill                                                                                                                                                                                |   |      | 609,517    |   |         |   | 609,517    |      |   |   | 607,954 |   |
| Other intangible assets                                                                                                                                                                 |   |      | 129,064    |   |         |   | 134,067    |      |   |   | 150,154 |   |
| Bank-owned life insurance                                                                                                                                                               |   |      | 1,200,130  |   |         |   | 1,189,360  |      |   |   | 1,165,887 |   |
| Other real estate owned (OREO)                                                                                                                                                          |   |      | 454,317    |   |         |   | 430,821    |      |   |   | 344,271 |   |
| Accrued interest and other assets                                                                                                                                                       |   |      | 1,995,595  |   |         |   | 2,149,170  |      |   |   | 1,448,357 |   |
| Total Assets                                                                                                                                                                            |   | $         | 56,569,369 |   |         | $      | 57,209,978 |      |   | $ | 61,790,032 |   |
|                                                                                                                                                                                    |   |      |       |   |         |   |       |      |   |   |   |   |
| Liabilities and Equity:                                                                                                                                                                 |   |      |       |   |         |   |       |      |   |   |   |   |
| Deposits:                                                                                                                                                                               |   |      |       |   |         |   |       |      |   |   |   |   |
| Noninterest bearing                                                                                                                                                                     |   | $         | 7,787,831  |   |         | $      | 7,832,752  |      |   | $ | 6,988,312 |   |
| Interest bearing                                                                                                                                                                        |   |      | 34,194,419 |   |         |   | 33,804,773 |      |   |   | 32,576,052 |   |
| Total deposits                                                                                                                                                                          |   |      | 41,982,250 |   |         |   | 41,637,525 |      |   |   | 39,564,364 |   |
| Federal funds purchased and security repurchase agreements                                                                                                                              |   |      | 829,665    |   |         |   | 520,905    |      |   |   | 2,513,039 |   |
| Other short-term borrowings                                                                                                                                                             |   |      | 64,348     |   |         |   | 599,242    |      |   |   | 2,823,244 |   |
| Accrued expenses and other liabilities                                                                                                                                                  |   |      | 957,329    |   |         |   | 1,040,860  |      |   |   | 1,100,063 |   |
| Long-term borrowings                                                                                                                                                                    |   |      | 5,865,381  |   |         |   | 6,425,855  |      |   |   | 9,538,664 |   |
| Total Liabilities                                                                                                                                                                       |   |      | 49,698,973 |   |         |   | 50,224,387 |      |   |   | 55,539,374 |   |
|                                                                                                                                                                                    |   |      |       |   |         |   |       |      |   |   |   |   |
| Equity:                                                                                                                                                                                 |   |      |       |   |         |   |       |      |   |   |   |   |
| Preferred stock, $1.00 par value; 5,000,000 shares authorized; 1,715,000 shares issued and outstanding of Senior Preferred Stock, Series B (liquidation preference of $1,000 per share) |   |      | 1,715      |   |         |   | 1,715      |      |   |   | 1,715 |   |
| Common Stock, $1.00 par value;  530,164,081 shares issued (530,164,081 shares at December 31, 2009 and 272,318,615 shares at March 31, 2009)                                  |   |      | 530,164    |   |         |   | 530,164    |      |   |   | 272,319 |   |
| Additional paid-in capital                                                                                                                                                              |   |      | 4,959,570  |   |         |   | 4,997,606  |      |   |   | 3,841,725 |   |
| Retained earnings                                                                                                                                                                       |   |      | 1,520,214  |   |         |   | 1,666,021  |      |   |   | 2,419,433 |   |
| Treasury stock, at cost:  3,029,908 shares (4,793,885 shares at December 31, 2009 and 6,617,041 shares at March 31, 2009)                                                     |   |      | (81,122    | )      |         |   | (132,191   | )         |   |   | (182,840 | ) |
| Deferred compensation                                                                                                                                                                   |   |      | (37,751    | )      |         |   | (37,538    | )         |   |   | (36,533 | ) |
| Accumulated other comprehensive income, net of related taxes                                                                                                                            |   |      | (33,730    | )      |         |   | (51,321    | )         |   |   | (75,606 | ) |
| Total Marshall & Ilsley Corporation shareholders' equity                                                                                                                            |   |      | 6,859,060  |   |         |   | 6,974,456  |      |   |   | 6,240,213 |   |
| Noncontrolling interest in subsidiaries                                                                                                                                                 |   |      | 11,336     |   |         |   | 11,135     |      |   |   | 10,445 |   |
| Total Equity                                                                                                                                                                            |   |      | 6,870,396  |   |         |   | 6,985,591  |      |   |   | 6,250,658 |   |
| Total Liabilities and Equity                                                                                                                                                            |   | $         | 56,569,369 |   |         | $      | 57,209,978 |      |   | $ | 61,790,032 |   |
|                                                                                                                                                                                    |   |      |       |   |         |   |       |      |   |   |   |   |
| See notes to financial statements.                                                                                                                                                      |   |      |       |   |         |   |       |      |   |   |   |   |

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Table of Contents

MARSHALL & ILSLEY CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

($000’s except per share data)

|                                                                                    |   | Three Months Ended March 31, |     |
|-----------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                    |   | 2010                         |     |   | 2009 |   |
| Interest and fee income                                                                 |   |                         |     |   |   |   |
| Loans and leases                                                                        |   | $                            | 509,573  |   |   | $ | 566,334 |   |
| Investment securities:                                                                  |   |                         |     |   |   |   |   |   |
| Taxable                                                                                 |   |                         | 49,370   |   |   |   | 63,117 |   |
| Exempt from federal income taxes                                                        |   |                         | 9,386    |   |   |   | 12,255 |   |
| Trading securities                                                                      |   |                         | 183      |   |   |   | 1,449 |   |
| Short-term investments                                                                  |   |                         | 1,086    |   |   |   | 628 |   |
| Total interest and fee income                                                           |   |                         | 569,598  |   |   |   | 643,783 |   |
| Interest expense                                                                        |   |                         |     |   |   |   |   |   |
| Deposits                                                                                |   |                         | 112,564  |   |   |   | 138,089 |   |
| Short-term borrowings                                                                   |   |                         | 677      |   |   |   | 3,992 |   |
| Long-term borrowings                                                                    |   |                         | 52,892   |   |   |   | 99,956 |   |
| Total interest expense                                                                  |   |                         | 166,133  |   |   |   | 242,037 |   |
| Net interest income                                                                     |   |                         | 403,465  |   |   |   | 401,746 |   |
| Provision for loan and lease losses                                                     |   |                         | 458,112  |   |   |   | 477,924 |   |
| Net interest income (loss) after provision for loan and lease losses                    |   |                         | (54,647  | ) |   |   | (76,178 | ) |
| Other income                                                                            |   |                         |     |   |   |   |   |   |
| Wealth management                                                                       |   |                         | 68,147   |   |   |   | 62,682 |   |
| Service charges on deposits                                                             |   |                         | 32,099   |   |   |   | 35,313 |   |
| Gain on sale of mortgage loans                                                          |   |                         | 5,660    |   |   |   | 9,814 |   |
| Other mortgage banking revenue                                                          |   |                         | 692      |   |   |   | 993 |   |
| Net investment securities gains (losses)                                                |   |                         | 102      |   |   |   | 72 |   |
| Bank-owned life insurance revenue                                                       |   |                         | 10,794   |   |   |   | 9,316 |   |
| Gain on termination of debt                                                             |   |                         | 10,296   |   |   |   | 3,056 |   |
| Sale of merchant portfolio processing                                                   |   |                         | 48,272   |   |   |   | - |   |
| OREO income                                                                             |   |                         | 6,078    |   |   |   | 2,568 |   |
| Other                                                                                   |   |                         | 45,424   |   |   |   | 52,892 |   |
| Total other income                                                                      |   |                         | 227,564  |   |   |   | 176,706 |   |
| Other expense                                                                           |   |                         |     |   |   |   |   |   |
| Salaries and employee benefits                                                          |   |                         | 161,598  |   |   |   | 155,188 |   |
| Net occupancy and equipment                                                             |   |                         | 34,102   |   |   |   | 33,793 |   |
| Software expenses                                                                       |   |                         | 7,902    |   |   |   | 6,598 |   |
| Processing charges                                                                      |   |                         | 32,082   |   |   |   | 33,722 |   |
| Supplies, printing, postage and delivery                                                |   |                         | 8,154    |   |   |   | 9,094 |   |
| FDIC insurance                                                                          |   |                         | 27,254   |   |   |   | 15,104 |   |
| Professional services                                                                   |   |                         | 20,790   |   |   |   | 19,181 |   |
| Amortization of intangibles                                                             |   |                         | 5,140    |   |   |   | 5,794 |   |
| OREO expenses                                                                           |   |                         | 37,504   |   |   |   | 32,623 |   |
| Other                                                                                   |   |                         | 36,965   |   |   |   | 34,060 |   |
| Total other expense                                                                     |   |                         | 371,491  |   |   |   | 345,157 |   |
| Income (loss) before income taxes                                                       |   |                         | (198,574 | ) |   |   | (244,629 | ) |
| Provision (benefit) for income taxes                                                    |   |                         | (83,605  | ) |   |   | (152,982 | ) |
| Net income (loss) before noncontrolling interests                                       |   |                         | (114,969 | ) |   |   | (91,647 | ) |
| Less:  Net income attributable to noncontrolling interests                    |   |                         | (389     | ) |   |   | (319 | ) |
| Net income (loss) attributable to Marshall & Ilsley Corporation                     |   |                         | (115,358 | ) |   |   | (91,966 | ) |
| Preferred dividends                                                                     |   |                         | (25,180  | ) |   |   | (24,959 | ) |
| Net income (loss) attributable to Marshall & Ilsley Corporation common shareholders |   | $                            | (140,538 | ) |   | $ | (116,925 | ) |
| Per share attributable to Marshall & Ilsley Corporation common shareholders         |   |                         |     |   |   |
| Basic                                                                                   |   | $                            | (0.27    | ) |   | $ | (0.44 | ) |
| Diluted                                                                                 |   | $                            | (0.27    | ) |   | $ | (0.44 | ) |
| Dividends paid per common share                                                         |   | $                            | 0.01     |   |   | $ | 0.01 |   |
| Weighted average common shares outstanding (000's):                                     |   |                         |     |   |   |   |   |   |
| Basic                                                                                   |   |                         | 524,086  |   |   |   | 264,544 |   |
| Diluted                                                                                 |   |                         | 524,086  |   |   |   | 264,544 |   |
|                                                                                    |   |                         |     |   |   |   |   |   |

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Table of Contents

MARSHALL & ILSLEY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

($000’s)

|                                                                  |   | Three Months Ended March 31, |     |
|-----------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                  |   | 2010                         |     |   | 2009 |   |
| Net Cash Provided by / (Used in) Operating Activities                 |   | $                            | 379,613  |   |   | $ | (63,732 | ) |
|                                                                  |   |                         |     |   |   |   |   |   |
| Cash Flows from Investing Activities:                                 |   |                         |     |   |   |   |   |   |
| Net increase in short-term investments                                |   |                         | (810,213 | ) |   |   | (106,669 | ) |
| Proceeds from sales of securities available for sale                  |   |                         | 8        |   |   |   | 46,023 |   |
| Proceeds from maturities of securities available for sale             |   |                         | 346,054  |   |   |   | 337,432 |   |
| Proceeds from maturities of securities held to maturity               |   |                         | 14,009   |   |   |   | 50,804 |   |
| Purchases of securities available for sale                            |   |                         | (771,139 | ) |   |   | (376,840 | ) |
| Net decrease in loans and leases                                      |   |                         | 961,738  |   |   |   | 352,247 |   |
| Purchases of premises and equipment, net                              |   |                         | (5,474   | ) |   |   | (16,890 | ) |
| Cash paid for acquisitions, net of cash and cash equivalents acquired |   |                         | -        |   |   |   | (454 | ) |
| Proceeds from sale of merchant portfolio processing                   |   |                         | 48,272   |   |   |   | - |   |
| Net proceeds from sale of OREO                                        |   |                         | 106,641  |   |   |   | 49,684 |   |
| Net cash (used in) / provided by investing activities                 |   |                         | (110,104 | ) |   |   | 335,337 |   |
|                                                                  |   |                         |     |   |   |   |   |   |
| Cash Flows from Financing Activities:                                 |   |                         |     |   |   |   |   |   |
| Net increase (decrease) in deposits                                   |   |                         | 413,879  |   |   |   | (1,460,417 | ) |
| Net (decrease) / increase in short-term borrowings                    |   |                         | (226,027 | ) |   |   | 1,281,558 |   |
| Proceeds from issuance of long-term borrowings                        |   |                         | -        |   |   |   | 375 |   |
| Payments of long-term borrowings                                      |   |                         | (593,557 | ) |   |   | (63,461 | ) |
| Dividends paid on preferred stock                                     |   |                         | (21,437  | ) |   |   | (21,676 | ) |
| Dividends paid on common stock                                        |   |                         | (5,269   | ) |   |   | (2,630 | ) |
| Proceeds from the issuance of common stock                            |   |                         | 1,542    |   |   |   | 2,105 |   |
| Other                                                                 |   |                         | 55       |   |   |   | - |   |
| Net cash used in financing activities                                 |   |                         | (430,814 | ) |   |   | (264,146 | ) |
| Net (decrease) / increase in cash and cash equivalents                |   |                         | (161,305 | ) |   |   | 7,459 |   |
| Cash and cash equivalents, beginning of year                          |   |                         | 832,483  |   |   |   | 1,072,407 |   |
| Cash and cash equivalents, end of period                              |   | $                            | 671,178  |   |   | $ | 1,079,866 |   |
|                                                                  |   |                         |     |   |   |   |   |   |
| Supplemental Cash Flow Information:                                   |   |                         |     |   |   |   |   |   |
| Cash paid/(received) during the period for:                           |   |                         |     |   |   |   |   |   |
| Interest                                                              |   | $                            | 196,936  |   |   | $ | 286,504 |   |
| Income taxes                                                          |   |                         | (136,313 | ) |   |   | (119,001 | ) |
|                                                                  |   |                         |     |   |   |   |   |   |

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Table of Contents

MARSHALL & ILSLEY CORPORATION

Notes to Financial Statements

March 31, 2010 & 2009 (Unaudited)

| 1.   | Basis of Presentation |
|----------------|-----------------------|

|   | The accompanying unaudited consolidated financial statements should be read in conjunction with Marshall & Ilsley Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009.  In management’s opinion, the unaudited financial information included in this report reflects all adjustments consisting of normal recurring accruals which are necessary for a fair statement of the financial position and results of operations as of and for the three months ended March 31, 2010 and 2009.  The results of operations for the three months ended March 31, 2010 and 2009 are not necessarily indicative of results to be expected for the entire year. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | New Accounting Pronouncements |
|----------------|-------------------------------|

|   | On January 1, 2010 the Corporation adopted updated accounting guidance to the Transfers and Servicing Topic and the Consolidations Topic to the FASB Accounting Standards Codification.  Changes to the Transfers and Servicing Topic eliminate the concept of a qualifying special-purpose entity (“QSPE”), change the requirements for derecognizing financial assets, and require additional disclosures regarding an entity’s continuing involvement in and exposure to risks related to transferred financial assets. The changes to the Consolidations Topic replace the quantitative approach previously required for determining which enterprise should consolidate a variable interest entity with a consolidation approach focused on which enterprise has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the entity or the right to receive benefits from the entity that could potentially be significant to the entity. The updated Consolidations Topic also requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity, and eliminates an exception indicating that a troubled debt restructuring, as defined by the Debt Topic, is not an event that required reconsideration of whether an entity is a variable interest entity and whether an enterprise is the primary beneficiary of a variable interest entity.  The adoption of this updated accounting guidance did not have a material impact on the financial statements and related disclosures. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.   | Fair Value Measurements |
|----------------|-------------------------|

|   | The Fair Value Measurements and Disclosures Topic of the Codification generally apply whenever other topics require or permit assets or liabilities to be measured at fair value.  Under the topic, fair value refers to the price at the measurement date that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in which the reporting entity is engaged.  The topic does not expand the use of fair value in any new circumstances. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Fair-Value Hierarchy |
|--------|----------------------|

|   | The Fair Value Measurements and Disclosures Topic of the Codification establishes a three-tier hierarchy for fair value measurements based upon the transparency of the inputs to the valuation of an asset or liability and expands the disclosures about instruments measured at fair value.  A financial instrument is categorized in its entirety and its categorization within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The three levels are described below. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 1- Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2- Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3- Inputs to the valuation methodology are unobservable and significant to the fair value measurement.  Fair values are initially valued based upon transaction price and are adjusted to reflect exit values as evidenced by financing and sale transactions with third parties. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Determination of Fair Value |
|--------|-----------------------------|

|   | The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trading Assets and Investment Securities |
|--------|------------------------------------------|

|   | When available, the Corporation uses quoted market prices to determine the fair value of trading assets and investment securities; such items are classified in Level 1 of the fair value hierarchy. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For the Corporation’s investments in government agencies, residential mortgage-backed securities and obligations of states and political subdivisions where quoted prices are not available for identical securities in an active market, the Corporation determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources.  These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures.  Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.  Fair values from these models are verified, where possible, against quoted prices for recent trading activity of assets with similar characteristics to the security being valued.  Such methods are generally classified as Level 2.  However, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The Corporation’s Private Equity investments generally take the form of investments in private equity funds.  The private equity investments are valued using the valuations and financial statements provided by the general partners on a quarterly basis.  The transaction price is used as the best estimate of fair value at inception.  When evidence supports a change to the carrying value from the transaction price, adjustments are made to reflect expected exit values.  These nonpublic investments are included in Level 3 of the fair value hierarchy because they trade infrequently and, therefore, the fair value is unobservable. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Estimated fair values for residual interests in the form of interest only strips from automobile loan securitizations are based on a discounted cash flow analysis and are classified as a Level 3.  There were no automobile loan securitizations outstanding at March 31, 2010. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Derivative Financial Instruments |
|--------|----------------------------------|

|   | Fair values for exchange-traded contracts are based on quoted prices and are classified as Level 1.  Fair values for over-the-counter interest rate contracts are provided either by third-party dealers in the contracts or by quotes provided by the Corporation’s independent pricing services.  The significant inputs, including the LIBOR curve and measures of volatility, used by these third-party dealers or independent pricing services to determine fair values are considered Level 2, observable market inputs. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Certain derivative transactions are executed with counterparties who are large financial institutions (“dealers”).  These derivative transactions primarily consist of interest rate swaps that are used for fair value hedges, cash flow hedges and economic hedges of interest rate swaps executed with the Corporation’s customers.  The Corporation and its subsidiaries maintain risk management policies and procedures to monitor and limit exposure to credit risk to derivative transactions with dealers.  Approved dealers for these transactions must have and maintain an investment grade rating on long-term senior debt from at least two nationally recognized statistical rating organizations or have a guarantor with an acceptable rating from such organizations.  International Swaps and Derivative Association Master Agreements (“ISDA”) and Credit Support Annexes (“CSA”) are employed for all contracts with dealers.  These agreements contain bilateral collateral arrangements.  Notwithstanding its policies and procedures, the Corporation recognizes that unforeseen events could result in counterparty failure.  The Corporation also recognizes that there could be additional credit exposure due to certain industry conventions established for operational efficiencies. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On a quarterly basis, the Corporation performs an analysis using historical and market implied default and recovery rates that also consider certain industry conventions established for operational efficiencies to estimate the potential impact on the reported fair values of these derivative financial assets and liabilities due to counterparty credit risk and the Corporation’s own credit risk.  Based on this analysis, the Corporation determined that the impact of these factors was insignificant and did not make any additional credit risk adjustments for purposes of determining the reported fair values of these derivative assets and liabilities with dealers at March 31, 2010. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | Certain derivative transactions are executed with customers whose counterparty credit risk is similar in nature to the credit risk associated with the Corporation’s lending activities.  As is the case with a loan, the Corporation evaluates the credit risk of each of these customers on an individual basis and, where deemed appropriate, collateral is obtained.  The type of collateral varies and is often the same collateral as the collateral obtained to secure a customer’s loan.  For purposes of assessing the potential impact of counterparty credit risk on the fair values of derivative assets with customers, the Corporation used a probability analysis to estimate the amount of expected loss exposure due to customer default at some point in the remaining term of the entire portfolio of customer derivative contracts outstanding at March 31, 2010.  While not significant, the Corporation did factor the estimated amount of expected loss due to customer default in the reported fair value of its customer derivative assets at March 31, 2010. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations as of March 31, 2010 ($000’s): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |      | Significant Unobservable Inputs (Level 3) |   |
|----------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|-----------|------------------------------------------------|--------|
| Assets (1)                                         |   |                                                                               |   |   |                                               |   |      |                                           |   |
| Trading Assets:                                    |   |                                                                               |   |   |                                               |   |      |                                           |   |
| Trading securities                                 |   | $                                                                                  | -      |   |                                               | $      | 21,859    |                                           |   | $ | - |   |
| Derivative assets                                  |   |                                                                               | -      |   |                                               |   | 232,690   |                                           |   |   | - |   |
| Total trading assets                               |   | $                                                                                  | -      |   |                                               | $      | 254,549   |                                           |   | $ | - |   |
|                                               |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities available for sale (2)       |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| U.S. treasury                                      |   | $                                                                                  | -      |   |                                               | $      | 7,367     |                                           |   | $ | - |   |
| U.S. government agencies                           |   |                                                                               | -      |   |                                               |   | 5,801,642 |                                           |   |   | - |   |
| States and political subdivisions                  |   |                                                                               | -      |   |                                               |   | 769,010   |                                           |   |   | 40,683 |   |
| Residential mortgage backed securities             |   |                                                                               | -      |   |                                               |   | 203,167   |                                           |   |   | - |   |
| Corporate notes                                    |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | - |   |
| Asset backed securities                            |   |                                                                               | -      |   |                                               |   | 63,052    |                                           |   |   | 88,551 |   |
| Foreign                                            |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 43 |   |
| Private equity investments                         |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 70,686 |   |
| Total investment securities available for sale     |   | $                                                                                  | -      |   |                                               | $      | 6,844,238 |                                           |   | $ | 199,963 |   |
| Accrued interest and other assets:                 |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Financial guarantees - credit protection purchased |   | $                                                                                  | -      |   |                                               | $      | 8         |                                           |   | $ | - |   |
|                                               |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Liabilities (1)                                    |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Short-term borrowings                              |   | $                                                                                  | -      |   |                                               | $      | 7,261     |                                           |   | $ | - |   |
| Accrued expenses and other liabilities:            |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Derivative liabilities                             |   | $                                                                                  | -      |   |                                               | $      | 203,307   |                                           |   | $ | 11,600 |   |
| Financial guarantees - credit protection sold      |   |                                                                               | -      |   |                                               |   | 271       |                                           |   |   | - |   |
| Total accrued expenses and other liabilities       |   | $                                                                                  | -      |   |                                               | $      | 203,578   |                                           |   | $ | 11,600 |   |
|                                               |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |

| (1)   | The amounts presented above exclude certain over-the-counter interest rate swaps that are the designated hedging instruments in fair value and cash flow hedges that are used by the Corporation to manage its interest rate risk.  These interest rate swaps are measured at fair value on a recurring basis based on significant other observable inputs and are categorized as Level 2.  See Note 11 – Derivative Financial Instruments and Hedging Activities in Notes to Financial Statements for further information.  Level 3 derivative liabilities represent the fair value of the derivative financial instrument entered into in conjunction with the sale of the Corporation’s shares of Visa, Inc. (“Visa”) Class B common stock.  See Note 14 – Guarantees in Notes to Financial Statements for additional information regarding Visa. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The investment securities included in Level 3 are primarily senior tranche asset-backed securities.  The amounts presented are exclusive of $411,901 of investments in Federal Reserve Bank and FHLB stock, which are bought and sold at par and are carried at cost, and $64,363 in affordable housing partnerships, which are generally carried on the equity method. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                           |   | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |      | Significant Unobservable Inputs (Level 3) |   |
|------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|-----------|------------------------------------------------|--------|
| Assets (1)                                     |   |                                                                               |   |   |                                               |   |      |                                           |   |
| Trading Assets:                                |   |                                                                               |   |   |                                               |   |      |                                           |   |
| Trading securities                             |   | $                                                                                  | -      |   |                                               | $      | 385,344   |                                           |   | $ | - |   |
| Derivative assets                              |   |                                                                               | 85     |   |                                               |   | 301,294   |                                           |   |   | - |   |
| Total trading assets                           |   | $                                                                                  | 85     |   |                                               | $      | 686,638   |                                           |   | $ | - |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities available for sale (2)   |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| U.S. treasury                                  |   | $                                                                                  | -      |   |                                               | $      | 2,327     |                                           |   | $ | - |   |
| U.S. government agencies                       |   |                                                                               | -      |   |                                               |   | 5,543,626 |                                           |   |   | 10 |   |
| States and political subdivisions              |   |                                                                               | -      |   |                                               |   | 907,933   |                                           |   |   | 11,967 |   |
| Residential mortgage backed securities         |   |                                                                               | -      |   |                                               |   | 288,500   |                                           |   |   | - |   |
| Corporate notes                                |   |                                                                               | -      |   |                                               |   | 140,263   |                                           |   |   | 10,000 |   |
| Asset backed securities                        |   |                                                                               | -      |   |                                               |   | 1,414     |                                           |   |   | 143,120 |   |
| Foreign                                        |   |                                                                               | -      |   |                                               |   | 2,375     |                                           |   |   | 2,030 |   |
| Equity                                         |   |                                                                               | 46     |   |                                               |   | -         |                                           |   |   | - |   |
| Private equity investments                     |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 66,222 |   |
| Other                                          |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 5,254 |   |
| Total investment securities available for sale |   | $                                                                                  | 46     |   |                                               | $      | 6,886,438 |                                           |   | $ | 238,603 |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Liabilities (1)                                |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Other short-term borrowings                    |   | $                                                                                  | -      |   |                                               | $      | 168       |                                           |   | $ | - |   |
| Accrued expenses and other liabilities:        |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Derivative liabilities                         |   | $                                                                                  | 55     |   |                                               | $      | 257,223   |                                           |   | $ | - |   |

| (1)   | The amounts presented above exclude certain over-the-counter interest rate swaps that are the designated hedging instruments in fair value and cash flow hedges that are used by the Corporation to manage its interest rate risk.  These interest rate swaps are measured at fair value on a recurring basis based on significant other observable inputs and are categorized as Level 2.  See Note 11 – Derivative Financial Instruments and Hedging Activities in Notes to Financial Statements for further information. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The investment securities included in Level 3 are primarily senior tranche asset-backed securities.  The amounts presented are exclusive of $362,890 of investments in Federal Reserve Bank and FHLB stock, which are bought and sold at par and are carried at cost, and $52,099 in affordable housing partnerships, which are generally carried on the equity method. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The table presented below summarizes the change in balance sheet carrying values associated with financial instruments measured using significant unobservable inputs (Level 3) during the three months ended March 31, 2010 ($000’s): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                               |   | Investment Securities (1) |     |   | Private Equity Investments (2) |   |   | Total  |   |   | Derivative Liabilities |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|----------|--------|--------------------------------|--------|--------|--------|--------|--------|------------------------|--------|
| Balance at December 31, 2009                                                                                                                                       |   | $                         | 271,196  |   |                           | $      | 68,482 |   |   | $      | 339,678                |   |   | $ | 11,600 |   |
| Net payments, purchases and sales                                                                                                                                  |   |                      | (370     | )      |                           |   | 1,402  |   |   |   | 1,032                  |   |   |   | - |   |
| Discount accretion                                                                                                                                                 |   |                      | (8       | )      |                           |   | -      |   |   |   | (8                     | )      |   |   | - |   |
| Transfers out of Level 3                                                                                                                                           |   |                      | (140,483 | )      |                           |   | -      |   |   |   | (140,483               | )      |   |   | - |   |
| Total gains or losses (realized or unrealized):                                                                                                                    |   |                      |     |   |                           |   |   |   |   |   |                   |   |   |   |   |   |
| Included in earnings                                                                                                                                               |   |                      | -        |   |                           |   | 802    |   |   |   | 802                    |   |   |   | - |   |
| Included in other comprehensive income                                                                                                                             |   |                      | (1,058   | )      |                           |   | -      |   |   |   | (1,058                 | )      |   |   | - |   |
| Balance at March 31, 2010                                                                                                                                          |   | $                         | 129,277  |   |                           | $      | 70,686 |   |   | $      | 199,963                |   |   | $ | 11,600 |   |
|                                                                                                                                                               |   |                      |     |   |                           |   |   |   |   |   |                   |   |   |   |   |   |
| Unrealized gains or (losses) for the period included in earnings attributable to unrealized gains or losses for financial instruments still held at March 31, 2010 |   | $                         | -        |   |                           | $      | 802    |   |   | $      | 802                    |   |   |   | - |   |

| (1)   | Unrealized changes in fair value for available-for-sale investments (debt securities) are recorded in other comprehensive income, while gains and losses from sales are recorded in Net investment securities gains (losses) in the Consolidated Statements of Income. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Private equity investments are generally recorded at fair value.  Accordingly, both unrealized changes in fair value and gains or losses from sales are included in Net investment securities gains (losses) in the Consolidated Statements of Income. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The table presented below summarizes the change in balance sheet carrying values associated with financial instruments measured using significant unobservable inputs (Level 3) during the three months ended March 31, 2009 ($000’s): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                        |   | Investment Securities (1) |    |    | Private Equity Investments (2) |   |   | Other Assets |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|---------|--------------------------------|--------|--------|--------------|--------|--------|--------|--------|
| Balance at December 31, 2008                                                                                                                                                |   | $                         | 135,953 |    |                           | $      | 65,288 |         |   | $      | 5,903  |   |   | $ | 207,144 |   |
| Net payments, purchases and sales                                                                                                                                           |   |                      | (1,008  | )       |                           |   | 706    |         |   |   | (255   | )      |   |   | (557 | ) |
| Discount accretion                                                                                                                                                          |   |                      | 49      |    |                           |   | -      |         |   |   | 160    |   |   |   | 209 |   |
| Net transfers in and/or out of Level 3                                                                                                                                      |   |                      | (2,860  | )  |                           |   | -      |         |   |   | -      |   |   |   | (2,860 | )  |
| Total gains or losses (realized or unrealized):                                                                                                                             |   |                      |    |    |                           |   |   |         |   |   |   |   |   |   |   |   |
| Included in earnings                                                                                                                                                        |   |                      | -       |    |                           |   | 228    |         |   |   | 52     |   |   |   | 280 |   |
| Included in other comprehensive income                                                                                                                                      |   |                      | 34,993  |    |                           |   | -      |         |   |   | (606   | )      |   |   | 34,387 |   |
| Balance at March 31, 2009                                                                                                                                                   |   | $                         | 167,127 |    |                           | $      | 66,222 |         |   | $      | 5,254  |   |   | $ | 238,603 |   |
|                                                                                                                                                                        |   |                      |    |    |                           |   |   |         |   |   |   |   |   |   |   |   |
| Unrealized gains or losses for the period included in earnings attributable to unrealized gains or losses for financial instruments still held at  March 31, 2009 |   | $                         | -       |    |                           | $      | 191    |         |   | $      | -      |   |   | $ | 191 |   |

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| (1)   | Unrealized changes in fair value for available-for-sale investments (debt securities) are recorded in other comprehensive income, while gains and losses from sales are recorded in Net investment securities gains (losses) in the Consolidated Statements of Income. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Private equity investments are generally recorded at fair value.  Accordingly, both unrealized changes in fair value and gains or losses from sales are included in Net investment securities gains (losses) in the Consolidated Statements of Income. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
|--------|-----------------------------------------------------------------------|

|   | Loans held for sale are recorded at lower of cost or market and therefore are reported at fair value on a nonrecurring basis.  Such fair values are generally based on bids and are considered Level 2 fair values. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | OREO is recorded at fair value based on property appraisals, less estimated selling costs, at the date of transfer. Subsequent to transfer, OREO is carried at the lower of cost or fair value, less estimated selling costs. The carrying value of OREO is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs.  At March 31, 2010 and 2009, the estimated fair value of OREO, less estimated selling costs, amounted to $454,317 and $344,271, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Book values and estimated fair values for on and off-balance sheet financial instruments as of March 31, 2010 are presented in the following table.  Derivative financial instruments designated as hedging instruments are included in the book values and fair values presented for the related hedged items.  Derivative financial instruments designated as trading and other free standing derivatives are included in Trading assets. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | March 31, 2010 |     |
|------------------------------------------|--------|----------------|----------|
|                                     |   | Book Value     |     |   | Fair Value |   |
|                                     |   |           |     |   |   |   |
| Financial assets:                        |   |           |     |   |   |   |
| Cash and short term investments          |   | $              | 2,610.2  |   |   | $ | 2,610.2 |   |
| Trading assets                           |   |           | 254.5    |   |   |   | 254.5 |   |
| Investment securities available for sale |   |           | 7,520.5  |   |   |   | 7,520.5 |   |
| Investment securities held to maturity   |   |           | 104.2    |   |   |   | 107.3 |   |
| Net loans and leases                     |   |           | 41,133.7 |   |   |   | 36,511.1 |   |
| Interest receivable                      |   |           | 164.3    |   |   |   | 164.3 |   |
|                                     |   |           |     |   |   |   |   |   |
| Financial liabilities:                   |   |           |     |   |   |   |   |   |
| Deposits                                 |   | $              | 41,982.3 |   |   | $ | 42,325.5 |   |
| Short-term borrowings                    |   |           | 894.0    |   |   |   | 894.0 |   |
| Long-term borrowings                     |   |           | 5,865.4  |   |   |   | 5,745.8 |   |
| Derivative liabilities                   |   |           | 215.2    |   |   |   | 215.2 |   |
| Interest payable                         |   |           | 126.8    |   |   |   | 126.8 |   |

|   | Where readily available, quoted market prices are utilized by the Corporation for determining fair value.  If quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  The calculated fair value estimates, therefore, cannot be substantiated by comparison to independent markets and, in many cases, could not be realized upon immediate settlement of the instrument.  The current reporting requirements exclude certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the entire Corporation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The following methods and assumptions are used in estimating the fair value for financial instruments. |
|--------|--------------------------------------------------------------------------------------------------------|

|   | Cash and short-term investments |
|--------|---------------------------------|

|   | The carrying amounts reported for cash and short-term investments approximate the fair values for those assets. |
|--------|-----------------------------------------------------------------------------------------------------------------|

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|   | Fair values of off-balance sheet financial instruments have been estimated based on the equivalent fees, net of expenses, that would be charged for similar contracts and customers at March 31, 2010 ($ in millions): |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   |   |   |
|------------------------------|--------|--------|--------|
| Loan commitments             |   | $      | 9.7    |   |
| Commercial letters of credit |   |   | 0.3    |   |
| Standby letters of credit    |   |   | 8.6    |   |
|                         |   |   |   |   |

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| 4.   | Comprehensive Income |
|----------------|----------------------|

|   | The following tables present the Corporation’s comprehensive income ($000’s): |
|--------|-------------------------------------------------------------------------------------------|

|                                                                                                             |   | Three Months Ended March 31, 2010 |     |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                                             |   | Before-Tax Amount                 |     | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss before noncontrolling interests                                                                         |   | $                                 | (114,969 | ) |
| Other comprehensive income (loss):                                                                               |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |
| Arising during the period                                                                                        |   | $                                 | 40,310   |   |   | $ | (14,636 | ) |   | $ | 25,674 |   |
| Reclassification for securities transactions included in net income                                              |   |                              | -        |   |   |   | - |   |   |   | - |   |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                                 | 40,310   |   |   | $ | (14,636 | ) |   | $ | 25,674 |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |
| Arising during the period                                                                                        |   | $                                 | (29,136  | ) |   | $ | 10,850 |   |   | $ | (18,286 | ) |
| Reclassification adjustments for hedging activities included in net income                                       |   |                              | 16,889   |   |   |   | (6,289 | ) |   |   | 10,600 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                                 | (12,247  | ) |   | $ | 4,561 |   |   | $ | (7,686 | ) |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on funded status of defined benefit postretirement plan:                               |   |
| Arising during the period                                                                                        |   | $                                 | -        |   |   | $ | - |   |   | $ | - |   |
| Reclassification for amortization of actuarial loss and prior service credit amortization included in net income |   |                              | (559     | ) |   |   | 162 |   |   |   | (397 | ) |
| Total unrealized gains (losses) on funded status of defined benefit postretirement plan                          |   | $                                 | (559     | ) |   | $ | 162 |   |   | $ | (397 | ) |
| Other comprehensive income, net of tax                                                                           |   |                              | 17,591   |   |
| Total comprehensive income (loss)                                                                                |   |                              | (97,378  | ) |
| Less: Comprehensive income attributable to the noncontrolling interests                                     |   |                              | (389     | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                                    |   | $                                 | (97,767  | ) |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   | Three Months Ended March 31, 2009 |     |
|                                                                                                             |   | Before-Tax Amount                 |     | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss before noncontrolling interests                                                                         |   | $                                 | (91,647  | ) |
| Other comprehensive income (loss):                                                                               |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |
| Arising during the period                                                                                        |   | $                                 | 112,266  |   |   | $ | (39,428 | ) |   | $ | 72,838 |   |
| Reclassification for securities transactions included in net income                                              |   |                              | (246     | ) |   |   | 86 |   |   |   | (160 | ) |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                                 | 112,020  |   |   | $ | (39,342 | ) |   | $ | 72,678 |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |
| Arising during the period                                                                                        |   | $                                 | 614      |   |   | $ | (215 | ) |   | $ | 399 |   |
| Reclassification adjustments for hedging activities included in net income                                       |   |                              | 14,555   |   |   |   | (5,094 | ) |   |   | 9,461 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                                 | 15,169   |   |   | $ | (5,309 | ) |   | $ | 9,860 |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on funded status of defined benefit postretirement plan:                               |   |
| Arising during the period                                                                                        |   | $                                 | -        |   |   | $ | - |   |   | $ | - |   |
| Reclassification for amortization of actuarial loss and prior service credit amortization included in net income |   |                              | (350     | ) |   |   | 158 |   |   |   | (192 | ) |
| Total unrealized gains (losses) on funded status of defined benefit postretirement plan                          |   | $                                 | (350     | ) |   | $ | 158 |   |   | $ | (192 | ) |
| Other comprehensive income (loss), net of tax                                                                    |   |                              | 82,346   |   |
| Total comprehensive income                                                                                       |   |                              |     | (9,301 | ) |
| Less: Comprehensive income attributable to the noncontrolling interests                                     |   |                              | (319     | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                               |   | $                                 | (9,620   | ) |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                              |     |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| 5.   | Earnings Per Common Share |
|----------------|---------------------------|

|   | A reconciliation of the numerators and denominators of the basic and diluted per common share computations are as follows (dollars and shares in thousands, except per share data): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                           |   | Three Months Ended March 31, 2010 |     |
|--------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                           |   | Income (Numerator)                |     |   | Average Shares (Denominator) |   |   | Per Share Amount |   |
| Basic:                                                                         |   |                              |     |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                 | (115,358 | ) |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                              | (25,180  | ) |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                 | (140,538 | ) |   |   | 524,086 |   |   | $ | (0.27 | ) |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                              |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                              |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                              |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                 | (115,358 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                              | (25,180  | ) |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                 | (140,538 | ) |   |   | 524,086 |   |   | $ | (0.27 | ) |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Three Months Ended March 31, 2009 |     |
|                                                                           |   | Income (Numerator)                |     |   | Average Shares (Denominator) |   |   | Per Share Amount |   |
| Basic:                                                                         |   |                              |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                 | (91,966  | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                              | (24,959  | ) |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                 | (116,925 | ) |   |   | 264,544 |   |   | $ | (0.44 | ) |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                              |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                              |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                              |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                 | (91,966  | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                              | (24,959  | ) |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                 | (116,925 | ) |   |   | 264,544 |   |   | $ | (0.44 | ) |
|                                                                           |   |                              |     |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                      |   | Three Months Ended March 31, |
|---------------------------|--------|------------------------------|
|                      |   | 2010                         |   | 2009 |
| Shares Subject to Options |   | 33,276                       |   | 33,162 |
|                      |   |                         |   |   |
| Price Range               |   | $4.76 - $36.82               |   | $8.55 - $36.82 |

----

Table of Contents

| 6.   | Investment Securities |
|----------------|-----------------------|

|   | The amortized cost, fair value and unrealized gains and losses of selected investment securities, by major security type, held by the Corporation were as follows ($000's): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | March 31, 2010 |      |
|----------------------------------------|--------|----------------|-----------|
|                                   |   | Amortized Cost |      |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Fair Value |   |
| Available for sale:                    |   |           |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                          |   | $              | 7,325     |   |   | $ | 42 |   |   | $ | - |   |   | $ | 7,367 |   |
| U.S. Government agencies               |   |           | 5,739,353 |   |   |   | 69,796 |   |   |   | 7,507 |   |   |   | 5,801,642 |   |
| States and political subdivisions      |   |           | 799,007   |   |   |   | 22,796 |   |   |   | 12,110 |   |   |   | 809,693 |   |
| Residential mortgage backed securities |   |           | 201,297   |   |   |   | 3,440 |   |   |   | 1,570 |   |   |   | 203,167 |   |
| Asset backed securities                |   |           | 207,261   |   |   |   | 7 |   |   |   | 55,665 |   |   |   | 151,603 |   |
| Private Equity investments             |   |           | 70,698    |   |   |   | 52 |   |   |   | 64 |   |   |   | 70,686 |   |
| Federal Reserve Bank & FHLB stock  |   |           | 411,901   |   |   |   | - |   |   |   | - |   |   |   | 411,901 |   |
| Affordable Housing Partnerships        |   |           | 64,363    |   |   |   | - |   |   |   | - |   |   |   | 64,363 |   |
| Foreign                                |   |           | 43        |   |   |   | - |   |   |   | - |   |   |   | 43 |   |
| Total                                  |   | $              | 7,501,248 |   |   | $ | 96,133 |   |   | $ | 76,916 |   |   | $ | 7,520,465 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                      |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions      |   | $              | 88,877    |   |   | $ | 3,192 |   |   | $ | 239 |   |   | $ | 91,830 |   |
| Corporate notes                        |   |           | 10,000    |   |   |   | 13 |   |   |   | - |   |   |   | 10,013 |   |
| Foreign                                |   |           | 5,368     |   |   |   | 121 |   |   |   | 13 |   |   |   | 5,476 |   |
| Total                                  |   | $              | 104,245   |   |   | $ | 3,326 |   |   | $ | 252 |   |   | $ | 107,319 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | December 31, 2009 |      |
|----------------------------------------|--------|-------------------|-----------|
|                                   |   | Amortized Cost    |      |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Fair Value |   |
| Available for sale:                    |   |              |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                          |   | $                 | 7,335     |   |   | $ | 47 |   |   | $ | 3 |   |   | $ | 7,379 |   |
| U.S. Government agencies               |   |              | 5,291,115 |   |   |   | 53,272 |   |   |   | 31,852 |   |   |   | 5,312,535 |   |
| States and political subdivisions      |   |              | 831,248   |   |   |   | 23,557 |   |   |   | 10,803 |   |   |   | 844,002 |   |
| Residential mortgage backed securities |   |              | 221,819   |   |   |   | 2,041 |   |   |   | 3,250 |   |   |   | 220,610 |   |
| Corporate notes                        |   |              | 10,000    |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Asset backed securities                |   |              | 208,330   |   |   |   | 8 |   |   |   | 54,118 |   |   |   | 154,220 |   |
| Equity                                 |   |              | 115       |   |   |   | 20 |   |   |   | - |   |   |   | 135 |   |
| Private Equity investments             |   |              | 68,494    |   |   |   | 52 |   |   |   | 64 |   |   |   | 68,482 |   |
| Federal Reserve Bank & FHLB stock  |   |              | 395,281   |   |   |   | - |   |   |   | - |   |   |   | 395,281 |   |
| Affordable Housing Partnerships        |   |              | 56,538    |   |   |   | - |   |   |   | - |   |   |   | 56,538 |   |
| Foreign                                |   |              | 4,410     |   |   |   | - |   |   |   | - |   |   |   | 4,410 |   |
| Total                                  |   | $                 | 7,094,685 |   |   | $ | 78,997 |   |   | $ | 100,090 |   |   | $ | 7,073,592 |   |
|                                   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                      |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions      |   | $                 | 102,566   |   |   | $ | 3,613 |   |   | $ | 217 |   |   | $ | 105,962 |   |
| Foreign                                |   |              | 1,000     |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Total                                  |   | $                 | 103,566   |   |   | $ | 3,613 |   |   | $ | 217 |   |   | $ | 106,962 |   |
|                                   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                   |   | March 31, 2009 |      |
|----------------------------------------|--------|----------------|-----------|
|                                   |   | Amortized Cost |      |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Fair Value |   |
| Available for sale:                    |   |           |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                          |   | $              | 2,308     |   |   | $ | 19 |   |   | $ | - |   |   | $ | 2,327 |   |
| U.S. Government agencies               |   |           | 5,445,591 |   |   |   | 131,480 |   |   |   | 33,435 |   |   |   | 5,543,636 |   |
| States and political subdivisions      |   |           | 911,880   |   |   |   | 20,480 |   |   |   | 12,460 |   |   |   | 919,900 |   |
| Residential mortgage backed securities |   |           | 301,394   |   |   |   | 935 |   |   |   | 13,829 |   |   |   | 288,500 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate notes                        |   |           | 152,980   |   |   |   | 234 |   |   |   | 3,435 |   |   |   | 149,779 |   |
| Cash flow hedge - corporate notes      |   |           | 484       |   |   |   | - |   |   |   | - |   |   |   | 484 |   |
| Total Corporate notes                  |   |           | 153,464   |   |   |   | 234 |   |   |   | 3,435 |   |   |   | 150,263 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset backed securities                |   |           | 210,755   |   |   |   | - |   |   |   | 66,221 |   |   |   | 144,534 |   |
| Equity                                 |   |           | 115       |   |   |   | - |   |   |   | 69 |   |   |   | 46 |   |
| Private Equity investments             |   |           | 66,234    |   |   |   | 52 |   |   |   | 64 |   |   |   | 66,222 |   |
| Federal Reserve Bank & FHLB stock  |   |           | 362,890   |   |   |   | - |   |   |   | - |   |   |   | 362,890 |   |
| Affordable Housing Partnerships        |   |           | 52,099    |   |   |   | - |   |   |   | - |   |   |   | 52,099 |   |
| Foreign                                |   |           | 4,405     |   |   |   | - |   |   |   | - |   |   |   | 4,405 |   |
| Other                                  |   |           | 4,423     |   |   |   | 831 |   |   |   | - |   |   |   | 5,254 |   |
| Total                                  |   | $              | 7,515,558 |   |   | $ | 154,031 |   |   | $ | 129,513 |   |   | $ | 7,540,076 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                      |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions      |   | $              | 186,551   |   |   | $ | 4,933 |   |   | $ | 160 |   |   | $ | 191,324 |   |
| Foreign                                |   |           | 1,000     |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Total                                  |   | $              | 187,551   |   |   | $ | 4,933 |   |   | $ | 160 |   |   | $ | 192,324 |   |
|                                   |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | Less than 12 Months |      |   | 12 Months or More |   |   | Total           |   |
|----------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|--------|-----------------|--------|
|                                   |   | Fair Value     |      |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                                   |   |                |      |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                          |   | $                   | -         |   |              | $      | -      |            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| U.S. Government agencies               |   |                | 1,632,198 |   |              |   | 5,749  |            |   |   | 457,651 |   |   |   | 1,758 |   |   |   | 2,089,849 |   |   |   | 7,507 |   |
| States and political subdivisions      |   |                | 55,955    |   |              |   | 5,533  |            |   |   | 96,724 |   |   |   | 6,816 |   |   |   | 152,679 |   |   |   | 12,349 |   |
| Residential mortgage backed securities |   |                | 11,263    |   |              |   | 1,066  |            |   |   | 34,926 |   |   |   | 504 |   |   |   | 46,189 |   |   |   | 1,570 |   |
| Corporate notes                        |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset backed securities                |   |                | -         |   |              |   | -      |            |   |   | 150,690 |   |   |   | 55,665 |   |   |   | 150,690 |   |   |   | 55,665 |   |
| Private Equity investments             |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | 64 |   |   |   | - |   |   |   | 64 |   |
| Federal Reserve Bank & FHLB stock  |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Affordable Housing Partnerships        |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                                |   |                | 1,438     |   |              |   | 12     |            |   |   | 399 |   |   |   | 1 |   |   |   | 1,837 |   |   |   | 13 |   |
| Other                                  |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                  |   | $                   | 1,700,854 |   |              | $      | 12,360 |            |   | $ | 740,390 |   |   | $ | 64,808 |   |   | $ | 2,441,244 |   |   | $ | 77,168 |   |
|                                   |   |                |      |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                   |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total           |   |
|----------------------------------------|--------|---------------------|---------|--------|-------------------|--------|--------|-----------------|--------|
|                                   |   | Fair Value     |    |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                                   |   |                |    |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                          |   | $                   | -       |   |              | $      | -      |            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| U.S. Government agencies               |   |                | 342,841 |   |              |   | 5,316  |            |   |   | 1,058,923 |   |   |   | 28,119 |   |   |   | 1,401,764 |   |   |   | 33,435 |   |
| States and political subdivisions      |   |                | 91,205  |   |              |   | 3,083  |            |   |   | 127,602 |   |   |   | 9,537 |   |   |   | 218,807 |   |   |   | 12,620 |   |
| Residential mortgage backed securities |   |                | 141,812 |   |              |   | 8,573  |            |   |   | 57,652 |   |   |   | 5,256 |   |   |   | 199,464 |   |   |   | 13,829 |   |
| Corporate notes                        |   |                | 91,239  |   |              |   | 3,435  |            |   |   | - |   |   |   | - |   |   |   | 91,239 |   |   |   | 3,435 |   |
| Asset backed securities                |   |                | 995     |   |              |   | 4      |            |   |   | 143,119 |   |   |   | 66,217 |   |   |   | 144,114 |   |   |   | 66,221 |   |
| Equity                                 |   |                | 46      |   |              |   | 69     |            |   |   | - |   |   |   | - |   |   |   | 46 |   |   |   | 69 |   |
| Private Equity investments             |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | 64 |   |   |   | - |   |   |   | 64 |   |
| Federal Reserve Bank & FHLB stock  |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Affordable Housing Partnerships        |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                                |   |                | 1,150   |   |              |   | -      |            |   |   | 400 |   |   |   | - |   |   |   | 1,550 |   |   |   | - |   |
| Other                                  |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                  |   | $                   | 669,288 |   |              | $      | 20,480 |            |   | $ | 1,387,696 |   |   | $ | 109,193 |   |   | $ | 2,056,984 |   |   | $ | 129,673 |   |
|                                   |   |                |    |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                        |   | Investment Securities |      |   | Investment Securities |   |
|-----------------------------|--------|-----------------------|-----------|--------|-----------------------|--------|
|                        |   | Available for Sale    |      |   | Held to Maturity      |   |
|                        |   | Amortized             |      |   | Fair                  |   |   | Amortized |   |   | Fair |   |
|                        |   | Cost                  |      |   | Value                 |   |   | Cost |   |   | Value |   |
| Within one year             |   | $                     | 420,944   |   |                  | $      | 430,312 |   |   | $ | 22,508 |   |   | $ | 22,757 |   |
| From one through five years |   |                  | 3,614,413 |   |                  |   | 3,671,727 |   |   |   | 35,156 |   |   |   | 36,571 |   |
| From five through ten years |   |                  | 2,293,008 |   |                  |   | 2,304,855 |   |   |   | 46,581 |   |   |   | 47,991 |   |
| After ten years             |   |                  | 1,172,883 |   |                  |   | 1,113,571 |   |   |   | - |   |   |   | - |   |
|                        |   | $                     | 7,501,248 |   |                  | $      | 7,520,465 |   |   | $ | 104,245 |   |   | $ | 107,319 |   |
|                        |   |                  |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

| 7.   | Loans and Leases |
|----------------|------------------|

|   | Total loans and leases were $42,648,807, $44,217,626 and $49,244,654 at March 31, 2010, December 31, 2009, and March 31, 2009, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | March 31, |       |   | December 31, |   |       | March 31, |   |
|----------------------------------------|--------|-----------|------------|--------|--------------|--------|------------|-----------|--------|
|                                   |   | 2010      |       |   | 2009         |   |       | 2009      |   |
| Commercial, financial and agricultural |   | $         | 11,858,422 |   |         | $      | 12,473,995 |      |   | $ | 14,576,302 |   |
| Real estate:                           |   |      |       |   |         |   |       |      |   |   |   |   |
| Commercial mortgage                    |   |      | 13,517,055 |   |         |   | 13,634,894 |      |   |   | 12,984,609 |   |
| Construction and development           |   |      | 5,055,544  |   |         |   | 5,481,547  |      |   |   | 8,135,368 |   |
| Residential mortgage                   |   |      | 4,786,886  |   |         |   | 4,920,765  |      |   |   | 5,616,988 |   |
| Home equity loans and lines of credit  |   |      | 4,547,066  |   |         |   | 4,685,370  |      |   |   | 5,006,401 |   |
| Total real estate                      |   |      | 27,906,551 |   |         |   | 28,722,576 |      |   |   | 31,743,366 |   |
|                                   |   |      |       |   |         |   |       |      |   |   |   |   |
| Personal                               |   |      | 2,131,523  |   |         |   | 2,191,449  |      |   |   | 1,889,910 |   |
| Lease financing                        |   |      | 578,208    |   |         |   | 615,447    |      |   |   | 729,994 |   |
| Total loans and leases                 |   | $         | 42,474,704 |   |         | $      | 44,003,467 |      |   | $ | 48,939,572 |   |
|                                   |   |      |       |   |         |   |       |      |   |   |   |   |

|                                   |   | March 31, |    |   | December 31, |   |    | March 31, |   |
|----------------------------------------|--------|-----------|---------|--------|--------------|--------|---------|-----------|--------|
|                                   |   | 2010      |    |   | 2009         |   |    | 2009      |   |
| Commercial, financial and agricultural |   | $         | 2,774   |   |         | $      | 1,633   |      |   | $ | - |   |
| Real estate:                           |   |      |    |   |         |   |    |      |   |   |   |   |
| Commercial mortgage                    |   |      | 14,995  |   |         |   | 11,031  |      |   |   | 14,317 |   |
| Construction and development           |   |      | 50,014  |   |         |   | 57,333  |      |   |   | 115,983 |   |
| Residential mortgage                   |   |      | 36,947  |   |         |   | 48,105  |      |   |   | 94,045 |   |
| Home equity loans and lines of credit  |   |      | 43,040  |   |         |   | 29,224  |      |   |   | 18,691 |   |
| Total real estate                      |   |      | 144,996 |   |         |   | 145,693 |      |   |   | 243,036 |   |
|                                   |   |      |    |   |         |   |    |      |   |   |   |   |
| Personal                               |   |      | 26,333  |   |         |   | 66,833  |      |   |   | 62,046 |   |
| Total loans and leases                 |   | $         | 174,103 |   |         | $      | 214,159 |      |   | $ | 305,082 |   |
|                                   |   |      |    |   |         |   |    |      |   |   |   |   |

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Table of Contents

| 8.   | Allowance for Loan and Lease Losses |
|----------------|-------------------------------------|

|   | An analysis of the allowance for loan and lease losses follows ($000's): |
|--------|--------------------------------------------------------------------------|

|                                |   | Three Months Ended March 31, |      |
|-------------------------------------|--------|------------------------------|-----------|
|                                |   | 2010                         |      |   | 2009 |   |
| Balance at beginning of period      |   | $                            | 1,480,470 |   |   | $ | 1,202,167 |   |
| Provision for loan and lease losses |   |                         | 458,112   |   |   |   | 477,924 |   |
| Charge-offs                         |   |                         | (436,459  | ) |   |   | (340,223 | ) |
| Recoveries                          |   |                         | 13,031    |   |   |   | 12,249 |   |
| Balance at end of period            |   | $                            | 1,515,154 |   |   | $ | 1,352,117 |   |
|                                |   |                         |      |   |   |   |   |   |

|   | For purposes of impairment testing, nonaccrual loans greater than one million dollars, renegotiated commercial loans greater than $250,000 and all consumer related renegotiated loans were individually assessed for impairment.  Consumer-related renegotiated loans are evaluated at the present value of expected future cash flows discounted at the loan’s effective interest rate.  Nonaccrual loans below the threshold were collectively evaluated as homogeneous pools.  The required valuation allowance is included in the allowance for loan and lease losses in the Consolidated Balance Sheets. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | March 31, 2010 |      |   | March 31, 2009 |   |
|------------------------------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                                                 |   | Recorded       |      |   | Valuation      |   |   | Recorded |   |   | Valuation |   |
|                                                 |   | Investment     |      |   | Allowance      |   |   | Investment |   |   | Allowance |   |
| Total nonaccrual and renegotiated loans and leases   |   | $              | 2,685,636 |   |           |   |   |   | $ | 2,520,548 |   |   |   |   |
| Less:  nonaccrual loans held for sale      |   |           | (55,063   | )      |           |   |   |   |   | (113,737 | ) |   |   |   |
| Total impaired loans and leases                      |   | $              | 2,630,573 |   |           |   |   |   | $ | 2,406,811 |   |   |   |   |
| Loans and leases excluded from individual evaluation |   |           | (664,771  | )      |           |   |   |   |   | (838,941 | ) |   |   |   |
| Impaired loans evaluated                             |   | $              | 1,965,802 |   |           |   |   |   | $ | 1,567,870 |   |   |   |   |
|                                                 |   |           |      |   |           |   |   |   |   |   |   |   |   |   |
| Valuation allowance required                         |   | $              | 1,413,884 |   |           | $      | 359,788 |   |   | $ | 1,026,947 |   |   | $ | 222,827 |   |
| No valuation allowance required                      |   |           | 551,918   |   |           |   | - |   |   |   | 540,923 |   |   |   | - |   |
| Impaired loans evaluated                             |   | $              | 1,965,802 |   |           | $      | 359,788 |   |   | $ | 1,567,870 |   |   | $ | 222,827 |   |
|                                                 |   |           |      |   |           |   |   |   |   |   |   |   |   |   |   |   |

|   | The average recorded investment in total impaired loans and leases for the quarters ended March 31, 2010 and 2009 amounted to $2,758,713 and $2,271,378 respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The amount of cumulative net charge-offs recorded on the Corporation’s impaired loans outstanding at March 31, 2010 was approximately $829,570. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 9.   | Goodwill and Other Intangibles |
|----------------|--------------------------------|

|   | The changes in the carrying amount of goodwill for the three months ended March 31, 2010 were as follows ($000’s): |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Commercial Banking |      |   | Community Banking |   |     | Wealth Management |   |   | Others  |   |   | Total  |    |
|------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|----------|-------------------|--------|--------|---------|--------|--------|--------|---------|
| Gross amount of goodwill                 |   | $                  | 1,250,595 |   |              | $      | 609,510  |              |   | $      | 163,779 |   |   | $      | 120,777 |   |   | $ | 2,144,661 |   |
| Accumulated impairment losses            |   |               | (925,634  | )      |              |   | (609,510 | )                 |   |   | -       |   |   |   | -       |   |   |   | (1,535,144 | ) |
| Goodwill balance as of December 31, 2009 |   |               | 324,961   |   |              |   | -        |              |   |   | 163,779 |   |   |   | 120,777 |   |   |   | 609,517 |   |
| Activity                                 |   |               | -         |   |              |   | -        |              |   |   | -       |   |   |   | -       |   |   |   | - |   |
| Goodwill balance as of March 31, 2010    |   | $                  | 324,961   |   |              | $      | -        |              |   | $      | 163,779 |   |   | $      | 120,777 |   |   | $ | 609,517 |   |
|                                     |   |               |      |   |              |   |     |              |   |   |    |   |   |   |    |   |   |   |   |   |

|   | The changes in the carrying amount of goodwill for the three months ended March 31, 2009 were as follows ($000’s): |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Commercial Banking |      |   | Community Banking |   |     | Wealth Management |   |   | Others  |   |   | Total  |    |
|------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|----------|-------------------|--------|--------|---------|--------|--------|--------|---------|
| Gross amount of goodwill                 |   | $                  | 1,252,880 |   |              | $      | 609,510  |              |   | $      | 157,121 |   |   | $      | 120,777 |   |   | $ | 2,140,288 |   |
| Accumulated impairment losses            |   |               | (925,634  | )      |              |   | (609,510 | )                 |   |   | -       |   |   |   | -       |   |   |   | (1,535,144 | ) |
| Goodwill balance as of December 31, 2008 |   |               | 327,246   |   |              |   | -        |              |   |   | 157,121 |   |   |   | 120,777 |   |   |   | 605,144 |   |
| Purchase accounting adjustments          |   |               | -         |   |              |   | -        |              |   |   | 2,810   |   |   |   | -       |   |   |   | 2,810 |   |
| Goodwill balance as of March 31, 2009    |   | $                  | 327,246   |   |              | $      | -        |              |   | $      | 159,931 |   |   | $      | 120,777 |   |   | $ | 607,954 |   |
|                                     |   |               |      |   |              |   |     |              |   |   |    |   |   |   |    |   |   |   |   |   |

|   | Purchase accounting adjustments for Wealth Management represent adjustments made to the initial estimates of fair value associated with the acquisition of Taplin, Canida & Habacht. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At March 31, 2010, the Corporation’s other intangible assets consisted of the following ($000’s): |
|--------|---------------------------------------------------------------------------------------------------------------|

|                           |   | Gross Carrying Amount |    |   | Accumulated Amortization |   |     | Net Carrying Amount |   |
|--------------------------------|--------|-----------------------|---------|--------|--------------------------|--------|----------|---------------------|--------|
| Other intangible assets:       |   |                  |    |   |                     |   |     |                |   |
| Core deposit intangible        |   | $                     | 216,177 |   |                     | $      | (116,966 | )                   |   | $ | 99,211 |   |
| Trust customers                |   |                  | 29,354  |   |                     |   | (8,014   | )                   |   |   | 21,340 |   |
| Tradename                      |   |                  | 3,975   |   |                     |   | (1,147   | )                   |   |   | 2,828 |   |
| Other intangibles              |   |                  | 7,336   |   |                     |   | (3,181   | )                   |   |   | 4,155 |   |
|                           |   | $                     | 256,842 |   |                     | $      | (129,308 | )                   |   | $ | 127,534 |   |
| Mortgage loan servicing rights |   |                  |    |   |                     |   |     |                |   | $ | 1,530 |   |
|                           |   |                  |    |   |                     |   |     |                |   |   |   |   |

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Table of Contents

|   | At March 31, 2009, the Corporation’s other intangible assets consisted of the following ($000’s): |
|--------|---------------------------------------------------------------------------------------------------------------|

|                           |   | Gross Carrying Amount |    |   | Accumulated Amortization |   |     | Net Carrying Amount |   |
|--------------------------------|--------|-----------------------|---------|--------|--------------------------|--------|----------|---------------------|--------|
| Other intangible assets        |   |                  |    |   |                     |   |     |                |   |
| Core deposit intangible        |   | $                     | 254,229 |   |                     | $      | (138,336 | )                   |   | $ | 115,893 |   |
| Trust customers                |   |                  | 28,424  |   |                     |   | (5,015   | )                   |   |   | 23,409 |   |
| Tradename                      |   |                  | 3,975   |   |                     |   | (617     | )                   |   |   | 3,358 |   |
| Other intangibles              |   |                  | 6,787   |   |                     |   | (1,647   | )                   |   |   | 5,140 |   |
|                           |   | $                     | 293,415 |   |                     | $      | (145,615 | )                   |   | $ | 147,800 |   |
| Mortgage loan servicing rights |   |                  |    |   |                     |   |     |                |   | $ | 2,354 |   |
|                           |   |                  |    |   |                     |   |     |                |   |   |   |   |

|   | Amortization expense of other intangible assets for the three months ended March 31, 2010 and 2009 amounted to $4.9 million and $5.5 million, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Amortization of mortgage loan servicing rights amounted to $0.2 million and $0.3 million for the three months ended March 31, 2010 and 2009, respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The estimated amortization expense of other intangible assets and mortgage loan servicing rights for the next five fiscal years are ($000’s): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011 |   | $      | 19,379 |   |
|------|--------|--------|--------|--------|
| 2012 |   |   | 16,785 |   |
| 2013 |   |   | 14,322 |   |
| 2014 |   |   | 12,358 |   |
| 2015 |   |   | 11,078 |   |

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Table of Contents

| 10.   | Deposits |
|-----------------|----------|

|   | The Corporation's deposit liabilities consisted of the following ($000's): |
|--------|----------------------------------------------------------------------------|

|                                |   | March 31, |       |   | December 31, |   |       | March 31, |   |
|-------------------------------------|--------|-----------|------------|--------|--------------|--------|------------|-----------|--------|
|                                |   | 2010      |       |   | 2009         |   |       | 2009      |   |
| Noninterest bearing demand          |   | $         | 7,787,831  |   |         | $      | 7,832,752  |      |   | $ | 6,988,312 |   |
| Interest bearing:                   |   |      |       |   |         |   |       |      |   |   |   |   |
| Savings and NOW                     |   |      | 7,373,242  |   |         |   | 6,938,091  |      |   |   | 3,628,284 |   |
| Money Market                        |   |      | 12,758,186 |   |         |   | 11,314,909 |      |   |   | 10,613,915 |   |
| CD's $100,000 and over:             |   |      |       |   |         |   |       |      |   |   |   |   |
| CD's $100,000 and over              |   |      | 8,691,562  |   |         |   | 9,702,183  |      |   |   | 11,757,126 |   |
| Cash flow hedge - Institutional CDs |   |      | 13,349     |   |         |   | 13,427     |      |   |   | 22,933 |   |
| Total CD's $100,000 and over        |   |      | 8,704,911  |   |         |   | 9,715,610  |      |   |   | 11,780,059 |   |
| Other time                          |   |      | 5,124,930  |   |         |   | 5,589,900  |      |   |   | 5,945,355 |   |
| Foreign                             |   |      | 233,150    |   |         |   | 246,263    |      |   |   | 608,439 |   |
| Total interest bearing              |   |      | 34,194,419 |   |         |   | 33,804,773 |      |   |   | 32,576,052 |   |
| Total deposits                      |   | $         | 41,982,250 |   |         | $      | 41,637,525 |      |   | $ | 39,564,364 |   |
|                                |   |      |       |   |         |   |       |      |   |   |   |   |

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| 11.   | Derivative Financial Instruments and Hedging Activities |
|-----------------|---------------------------------------------------------|

|   | The following is an update of the Corporation’s use of derivative financial instruments and its hedging activities as described in its Annual Report on Form 10-K for the year ended December 31, 2009.  There were no significant new hedging strategies employed during the three months ended March 31, 2010. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Corporation has strategies designed to confine these risks within the established limits and identify appropriate risk / reward trade-offs in the financial structure of its balance sheet.  These strategies include the use of derivative financial instruments to help achieve the desired balance sheet repricing structure while meeting the desired objectives of its customers. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trading Instruments and Other Free Standing Derivatives |
|--------|---------------------------------------------------------|

|   | The Corporation enters into various derivative contracts which are designated as trading and other free standing derivative contracts.  These derivative contracts are not linked to specific assets and liabilities on the balance sheet or to forecasted transactions in an accounting hedge relationship and, therefore, do not qualify for hedge accounting under the Derivatives and Hedging Topic of the Codification.  They are carried at fair value with changes in fair value recorded as a component of other noninterest income. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trading and other free standing derivatives are used primarily to focus on providing derivative products to customers which enables them to manage their exposures to interest rate risk.  The Corporation’s market risk from unfavorable movements in interest rates is generally economically hedged by concurrently entering into offsetting derivative contracts.  The offsetting derivative contracts generally have nearly identical notional values, terms and indices.  The Corporation used interest rate futures to economically hedge exposure to interest rate risk arising from the interest rate swap (designated as trading) entered into in conjunction with its auto securitization activities.  There were no auto securitization activities during the first quarter of 2010. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As permitted under the by-laws of Visa, during the second quarter of 2009 the Corporation sold its 998,826 shares of Visa Class B common stock for $35.4 million to a qualified purchaser (“purchaser”).  At the time of the sale, the conversion ratio of Visa Class B common stock to Visa Class A common stock was 0.6296. That exchange ratio can change based on the outcome of certain litigation matters.  Concurrently with the sale, the Corporation and the purchaser entered into a derivative transaction whereby the Corporation will make cash payments to the purchaser whenever the conversion ratio of Visa Class B common stock to Visa Class A common stock was reset to an amount less than 0.6296. The purchaser will make cash payments to the Corporation when the litigation is settled and the ultimate settlement results in a return of cash or additional shares of Visa common stock to the purchaser. The Corporation determined that the initial fair value of the derivative was equal to the Corporation’s Visa U.S.A. membership proportion of the unfunded estimated fair value of the litigation settlement amount. That amount was determined to be a liability of $14.7 million. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The Corporation’s estimate of the fair value of the litigation settlement amount was based in part on the announced settled litigation and based in part on an estimate of the amount required to settle the unresolved matters. Estimating the amount required to settle the unresolved matters involved a significant amount of judgment that can not be verified other than by information disclosed by Visa. As a result, the Corporation has determined that the estimated fair value should be classified in Level 3 of the fair value hierarchy. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On June 30, 2009, Visa announced that it had decided to deposit $700 million (“Loss Funds”) into the litigation escrow account previously established under its retrospective responsibility plan. Despite the funding, Visa did not disclose any updates about the litigation matters that would change the Corporation’s estimate of the fair value of the litigation settlement amount. As a result of the deposit, the conversion ratio of Visa Class B common stock to Visa Class A common stock was revised to 0.5824 and the Corporation made a $3.1 million payment to the counterparty in 2009.  There has been no further activity since that payment was made. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| March 31, 2010                                         |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                                   | Fair Value ($ in millions) |   |
|--------------------------------------------------------|--------|--------------------------------------|---------|------------------------|----------------------------------------|---------------------------------|--------|
| Assets:                                                |   |                                 |    |                   |                                   |                            |   |
| Interest rate contracts - swaps                        |   | $                                    | 4,550.3 |                   | Trading assets                         |                            | $      | 222.9 |   |
| Interest rate contracts - purchased interest rate caps |   |                                 | 151.5   |                   | Trading assets                         |                            |   | 1.3 |   |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 94.7    |                   | Trading assets                         |                            |   | 8.5 |   |
| Total assets                                           |   |                                 |    |                   |                                   |                            | $      | 232.7 |   |
|                                                   |   |                                 |    |                   |                                   |                            |   |   |   |
| Liabilities:                                           |   |                                 |    |                   |                                   |                            |   |   |   |
| Interest rate contracts - swaps                        |   | $                                    | 4,272.1 |                   | Accrued expenses and other liabilities |                            | $      | 193.6 |   |
| Interest rate contracts - sold interest rate caps      |   |                                 | 135.4   |                   | Accrued expenses and other liabilities |                            |   | 1.3 |   |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 94.2    |                   | Accrued expenses and other liabilities |                            |   | 8.4 |   |
| Equity derivative contracts - Visa                     |   |                                 | 1.0     |                   | Accrued expenses and other liabilities |                            |   | 11.6 |   |
| Total liabilities                                      |   |                                 |    |                   |                                   |                            | $      | 214.9 |   |
| Net positive fair value impact                         |   |                                 |    |                   |                                   |                            | $      | 17.8 |   |
|                                                   |   |                                 |    |                   |                                   |                            |   |   |   |

| March 31, 2009                                   |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                                   | Fair Value ($ in millions) |   |
|--------------------------------------------------|--------|--------------------------------------|---------|------------------------|----------------------------------------|---------------------------------|--------|
| Assets:                                          |   |                                 |    |                   |                                   |                            |   |
| Interest rate contracts - swaps                  |   | $                                    | 4,844.8 |                   | Trading assets                         |                            | $      | 297.9 |   |
| Interest rate contracts - options                |   |                                 | 184.0   |                   | Trading assets                         |                            |   | 1.2 |   |
| Equity derivative contracts - equity indexed CDs |   |                                 | 49.2    |                   | Trading assets                         |                            |   | 2.2 |   |
| Equity derivative contracts - warrants           |   |                                 | 0.1     |                   | Trading assets                         |                            |   | 0.1 |   |
| Total assets                                     |   |                                 |    |                   |                                   |                            | $      | 301.4 |   |
|                                             |   |                                 |    |                   |                                   |                            |   |   |   |
| Liabilities:                                     |   |                                 |    |                   |                                   |                            |   |   |   |
| Interest rate contracts - swaps                  |   | $                                    | 4,690.0 |                   | Accrued expenses and other liabilities |                            | $      | 253.8 |   |
| Interest rate contracts - options                |   |                                 | 203.8   |                   | Accrued expenses and other liabilities |                            |   | 1.2 |   |
| Interest rate contracts - interest rate futures  |   |                                 | 1,427.0 |                   | Accrued expenses and other liabilities |                            |   | 0.1 |   |
| Equity derivative contracts - equity indexed CDs |   |                                 | 49.1    |                   | Accrued expenses and other liabilities |                            |   | 2.2 |   |
| Total liabilities                                |   |                                 |    |                   |                                   |                            | $      | 257.3 |   |
| Net positive fair value impact                   |   |                                 |    |                   |                                   |                            | $      | 44.1 |   |
|                                             |   |                                 |    |                   |                                   |                            |   |   |   |

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Table of Contents

| Three Months Ended March 31, 2010                            |   | Category of Gain or (Loss) Recognized in Income on Derivative |   | Amount of Gain or(Loss) Recognized in Income on Derivative ($ in millions) |   |
|--------------------------------------------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
| Interest Rate Contracts – Swaps                        |   | Other income - Other                                          |   | $                                                                          | 0.8    |   |
| Interest Rate Contracts – Purchased Interest Rate Caps |   | Other income - Other                                          |   |                                                                       | (0.1   | ) |
| Interest Rate Contracts – Sold Interest Rate Caps      |   | Other income - Other                                          |   |                                                                       | 0.1    |   |
| Equity Derivative Contracts – Equity-Indexed CDs       |   | Other income - Other                                          |   |                                                                       | (0.0   | ) |
| Equity Derivative Contracts – Visa                     |   | Other income - Other                                          |   |                                                                       | -      |   |

| Three Months Ended March 31, 2009                            |   |   Category of Gain or (Loss) Recognized in Income on Derivative |   | Amount of Gain or(Loss) Recognized in Income on Derivative($ in millions) |   |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|
| Interest Rate Contracts – Swaps                        |   | Other income - Other                                                 |   | $                                                                         | 3.2    |   |
| Interest Rate Contracts – Purchased Interest Rate Caps |   | Other income - Other                                                 |   |                                                                      | 1.0    |   |
| Interest Rate Contracts – Sold Interest Rate Caps      |   | Other income - Other                                                 |   |                                                                      | (1.0   | ) |
| Interest Rate Contracts – Interest Rate Futures        |   | Other income - Other                                                 |   |                                                                      | (0.5   | ) |
| Equity Derivative Contracts – Equity-Indexed CDs       |   | Other income - Other                                                 |   |                                                                      | -      |   |
| Equity Derivative Contracts – Warrants                 |   | Other income - Other                                                 |   |                                                                      | (0.0   | ) |

|   | The Corporation uses various derivative instruments that qualify as hedging relationships under the Derivatives and Hedging Topic of the Codification.  These instruments are designated as either fair value hedges or cash flow hedges.  The Corporation recognizes these derivative instruments as either assets or liabilities at fair value in the statement of financial position. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Corporation employs certain over-the-counter interest rate swaps that are the designated hedging instruments in fair value and cash flow hedges that are used by the Corporation to manage its interest rate risk.  These interest rate swaps are measured at fair value on a recurring basis based on significant other observable inputs and are categorized as Level 2.  See Note 3 – Fair Value Measurements in Notes to Financial Statements for additional information. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | The following tables summarize the balance sheet category and fair values of derivatives designated as hedging instruments: |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| March 31, 2010                 |   | Derivative Type |   | Hedged Item              |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                 | Fair Value ($ in millions) |   |   | Weighted Average Remaining Term (Years) |   |
|--------------------------------|--------|-----------------|--------|--------------------------|--------|--------------------------------------|---------|------------------------|----------------------|---------------------------------|--------|--------|-----------------------------------------|--------|
| Liabilities                    |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |
| Interest rate contracts:       |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Institutional CDs        |   | $                                    | 25.0    |                   | Deposits             |                            | $      | (1.3   | )                                       |   |   | 26.2 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Callable CDs             |   |                                 | 4,972.1 |                   | Deposits             |                            |   | 4.6    |                                    |   |   | 14.2 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Brokered Bullet CD's     |   |                                 | 204.9   |                   | Deposits             |                            |   | (10.4  | )                                       |   |   | 3.2 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Institutional CDs        |   |                                 | 250.0   |                   | Deposits             |                            |   | 13.3   |                                    |   |   | 1.1 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Fixed rate bank notes    |   |                                 | 590.0   |                   | Long-term borrowings |                            |   | (5.0   | )                                       |   |   | 5.2 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | FHLB advances            |   |                                 | 800.0   |                   | Long-term borrowings |                            |   | 64.2   |                                    |   |   | 2.3 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | FHLB advances            |   |                                 | 280.0   |                   | Long-term borrowings |                            |   | (7.1   | )                                       |   |   | 2.4 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Floating Rate Bank Notes |   |                                 | 78.8    |                   | Long-term borrowings |                            |   | 4.4    |                                    |   |   | 1.2 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Medium term notes        |   |                                 | 6.6     |                   | Long-term borrowings |                            |   | 0.0    |                                    |   |   | 17.9 |   |
| Total liabilities              |   |            |   |                     |   |                                 |    |                   |                 |                            |   | 62.7   |                                    |   |   |   |   |
| Net negative fair value impact |   |            |   |                     |   |                                 |    |                   |                 |                            | $      | (62.7  | )                                       |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |

| March 31, 2009                 |   | Derivative Type |   | Hedged Item              |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                  | Fair Value ($ in millions) |   |   | Weighted Average Remaining Term (Years) |   |
|--------------------------------|--------|-----------------|--------|--------------------------|--------|--------------------------------------|---------|------------------------|-----------------------|---------------------------------|--------|--------|-----------------------------------------|--------|
| Assets                         |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |
| Interest rate contracts        |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |
| Receive fixed rate swaps       |   | Cash Flow       |   | Corporate Notes - AFS    |   | $                                    | 57.4    |                   | Investment Securities |                            | $      | 0.5    |                                    |   |   | 1.3 |   |
| Total Assets                   |   |            |   |                     |   |                                 |    |                   |                  |                            |   | 0.5    |                                    |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Liabilities                    |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Interest rate contracts:       |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Institutional CDs        |   | $                                    | 25.0    |                   | Deposits              |                            | $      | (2.6   | )                                       |   |   | 27.2 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Callable CDs             |   |                                 | 5,746.5 |                   | Deposits              |                            |   | 3.0    |                                    |   |   | 13.6 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Brokered Bullet CD's     |   |                                 | 209.3   |                   | Deposits              |                            |   | (13.4  | )                                       |   |   | 4.2 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Institutional CDs        |   |                                 | 550.0   |                   | Deposits              |                            |   | 22.9   |                                    |   |   | 1.1 |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Fixed rate bank notes    |   |                                 | 428.2   |                   | Long-term borrowings  |                            |   | (43.3  | )                                       |   |   | 7.4 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | FHLB advances            |   |                                 | 1,060.0 |                   | Long-term borrowings  |                            |   | 91.5   |                                    |   |   | 2.8 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Floating Rate Bank Notes |   |                                 | 429.6   |                   | Long-term borrowings  |                            |   | 27.8   |                                    |   |   | 2.0 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Medium term notes        |   |                                 | 6.9     |                   | Long-term borrowings  |                            |   | (0.1   | )                                       |   |   | 18.9 |   |
| Total liabilities              |   |            |   |                     |   |                                 |    |                   |                  |                            |   | 85.8   |                                    |   |   |   |   |
| Net negative fair value impact |   |            |   |                     |   |                                 |    |                   |                  |                            | $      | (85.3  | )                                       |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |

----

Table of Contents

| Derivatives Designated as Hedging Instruments |   | Category of Gain (Loss) Recognized in Income on Derivative |   | Amount of Gain (Loss) Recognized in Income on Derivative (a) |   | Category of Gain (Loss) Recognized in Income on Hedged Item |                  | Amount of Gain (Loss) Recognized in Income on Hedged Item |   |
|-----------------------------------------------|--------|------------------------------------------------------------|--------|--------------------------------------------------------------|--------|-------------------------------------------------------------|-----------------------|-----------------------------------------------------------|--------|
| Interest Rate Contracts                       |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |
|                                          |   | Interest expense:                                          |   |                                                         |   | Interest expense:                                           |                  |                                                      |   |
|                                          |   | Deposits:                                                  |   |                                                         |   | Deposits:                                                   |                  |                                                      |   |
| Receive fixed rate swaps                      |   | Institutional CDs                                          |   | $                                                            | 0.4    |                                                        | Institutional CDs     |                                                      | $      | (0.0 | ) |
| Receive fixed rate swaps                      |   | Callable CDs                                               |   |                                                         | 120.3  |                                                        | Callable CDs          |                                                      |   | (61.0 | ) |
| Receive fixed rate swaps                      |   | Brokered Bullet CDs                                        |   |                                                         | 3.4    |                                                        | Brokered Bullet CDs   |                                                      |   | (1.7 | ) |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |   |   |
|                                          |   | Long-term borrowings:                                      |   |                                                         |   |                                                        | Long-term borrowings: |                                                      |   |   |   |
| Receive fixed rate swaps                      |   | FHLB advances                                              |   |                                                         | 4.5    |                                                        | FHLB advances         |                                                      |   | (2.9 | ) |
| Receive fixed rate swaps                      |   | Fixed rate bank notes                                      |   |                                                         | 24.0   |                                                        | Fixed rate bank notes |                                                      |   | (18.5 | ) |
| Receive fixed rate swaps                      |   | Medium term notes                                          |   |                                                         | 0.1    |                                                        | Medium term notes     |                                                      |   | (0.1 | ) |
| Receive fixed rate swaps                      |   | Other                                                      |   |                                                         | -      |                                                        | Other                 |                                                      |   | 0.1 |   |
|                                          |   | Total                                                      |   | $                                                            | 152.7  |                                                        | Total                 |                                                      | $      | (84.1 | ) |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |   |   |

| (a)   | Included in the amount of gain recognized in income on derivative is net derivative interest income which totaled $68.3 million. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| Derivatives Designated as Hedging Instruments |   | Category of Gain (Loss) Recognized in Income on Derivative |   | Amount of Gain (Loss) Recognized in Income on Derivative (a) |   | Category of Gain (Loss) Recognized in Income on Hedged Item |                  | Amount of Gain (Loss) Recognized in Income on Hedged Item |   |
|-----------------------------------------------|--------|------------------------------------------------------------|--------|--------------------------------------------------------------|--------|-------------------------------------------------------------|-----------------------|-----------------------------------------------------------|--------|
| Interest rate contracts                       |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |
|                                          |   | Interest expense:                                          |   |                                                         |   | Interest expense:                                           |                  |                                                      |   |
|                                          |   | Deposits:                                                  |   |                                                         |   | Deposits:                                                   |                  |                                                      |   |
| Receive fixed rate swaps                      |   | Institutional CDs                                          |   | $                                                            | 0.4    |                                                        | Institutional CDs     |                                                      | $      | (0.1 | ) |
| Receive fixed rate swaps                      |   | Callable CDs                                               |   |                                                         | (40.1  | )                                                           | Callable CDs          |                                                      |   | 103.4 |   |
| Receive fixed rate swaps                      |   | Brokered Bullet CDs                                        |   |                                                         | 0.5    |                                                        | Brokered Bullet CDs   |                                                      |   | 1.1 |   |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |   |   |
|                                          |   | Long-term borrowings:                                      |   |                                                         |   |                                                        | Long-term borrowings: |                                                      |   |   |   |
| Receive fixed rate swaps                      |   | Fixed rate bank notes                                      |   |                                                         | (8.4   | )                                                           | Fixed rate bank notes |                                                      |   | 10.6 |   |
| Receive fixed rate swaps                      |   | Medium term notes                                          |   |                                                         | (0.1   | )                                                           | Medium term notes     |                                                      |   | 0.1 |   |
| Receive fixed rate swaps                      |   | Other                                                      |   |                                                         | -      |                                                        | Other                 |                                                      |   | 0.1 |   |
|                                          |   | Total                                                      |   | $                                                            | (47.7  | )                                                           | Total                 |                                                      | $      | 115.2 |   |
|                                          |   |                                                       |   |                                                         |   |                                                        |                  |                                                      |   |   |   |

| (a)   | Included in the amount of gain or (loss) recognized in income derivative is net derivative interest income which totaled $67.5 million. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | The effect of cash flow hedges for the three months ended March 31, 2010 ($ in millions): |
|--------|-------------------------------------------------------------------------------------------|

| Derivatives in Cash Flow Hedging Relationships                                                       |   | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) |   | Category of Amount Reclassified from Accumulated OCI into Earnings (Effective Portion) |   | Amount Reclassified from Accumulated OCI into Earnings (Effective Portion) |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                                                                 |   | Gross                                                                          |   |                                                                                        | Tax    |                                                                       |   | Net |   |   |   | Gross |   |   | Tax |   |   | Net |   |
| Interest rate contracts                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                            |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                    |   |                                                                           | (3.2   | )                                                                                           |   |                                                                       | 1.2    |   |   |   | (2.0 | ) | Institutional CDs |   |   | 3.2 |   |   |   | (1.2 | ) |   |   | 2.0 |   |
|                                                                                                 |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                        |   |                                                                           | (23.3  | )                                                                                           |   |                                                                       | 8.7    |   |   |   | (14.6 | ) | FHLB advances |   |   | 10.8 |   |   |   | (4.0 | ) |   |   | 6.8 |   |
| Floating rate bank notes                                                                             |   |                                                                           | (2.6   | )                                                                                           |   |                                                                       | 0.9    |   |   |   | (1.7 | ) | Floating rate bank notes |   |   | 2.8 |   |   |   | (1.1 | ) |   |   | 1.7 |   |
| Other                                                                                                |   |                                                                           | -      |                                                                                        |   |                                                                       | -      |   |   |   | - |   | Other (1) |   |   | 0.1 |   |   |   | (0.0 | ) |   |   | 0.1 |   |
|                                                                                                 |   | $                                                                              | (29.1  | )                                                                                           |   | $                                                                          | 10.8   |   |   | $ | (18.3 | ) |   |   | $ | 16.9 |   |   | $ | (6.3 | ) |   | $ | 10.6 |   |
| (1) Represents amortization for the three months ended March 31, 2010 from the termination of swaps. |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |

| Derivatives in Cash Flow Hedging Relationships                                                       |   | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) |   | Category of Amount Reclassified from Accumulated OCI into Earnings (Effective Portion) |   | Amount Reclassified from Accumulated OCI into Earnings (Effective Portion) |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                                                                 |   | Gross                                                                          |   |                                                                                   | Tax    |                                                                       |   | Net |   |   |   | Gross |   |   | Tax |   |   | Net |   |
| Interest rate contracts                                                                              |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   | Interest and fee income |   |   |   |   |   |   |   |   |   |
| Loans and leases - Variable rate loans                                                               |   | $                                                                              | 0.4    |                                                                                   |   | $                                                                          | (0.1   | ) |   | $ | 0.3 |   | Loans and leases - Variable rate loans |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                 |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                              |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                            |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                    |   |                                                                           | 0.2    |                                                                                   |   |                                                                       | (0.1   | ) |   |   | 0.1 |   | Institutional CDs |   |   | 4.6 |   |   |   | (1.6 | ) |   |   | 3.0 |   |
|                                                                                                 |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                                |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                        |   |                                                                           | (0.7   | )                                                                                      |   |                                                                       | 0.3    |   |   |   | (0.4 | ) | FHLB advances |   |   | 7.6 |   |   |   | (2.7 | ) |   |   | 4.9 |   |
| Floating rate bank notes                                                                             |   |                                                                           | 0.7    |                                                                                   |   |                                                                       | (0.3   | ) |   |   | 0.4 |   | Floating rate bank notes |   |   | 2.2 |   |   |   | (0.7 | ) |   |   | 1.5 |   |
| Other                                                                                                |   |                                                                           | -      |                                                                                   |   |                                                                       | -      |   |   |   | - |   | Other (1) |   |   | 0.2 |   |   |   | (0.1 | ) |   |   | 0.1 |   |
|                                                                                                 |   | $                                                                              | 0.6    |                                                                                   |   | $                                                                          | (0.2   | ) |   | $ | 0.4 |   |   |   | $ | 14.6 |   |   | $ | (5.1 | ) |   | $ | 9.5 |   |
| (1) Represents amortization for the three months ended March 31, 2009 from the termination of swaps. |   |                                                                           |   |                                                                                   |   |                                                                       |   |   |   |   |   |   |

|   | The gain recognized in income representing the ineffective portion of the hedging relationships and excluded from the assessment of hedge effectiveness was not material for the three months ended March 31, 2010 and 2009, respectively.  The estimated reclassification from accumulated other comprehensive income related to cash flow hedges in the next twelve months is approximately $51.8 million. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 12.   | Postretirement Health Plan |
|-----------------|----------------------------|

|   | The Corporation sponsors a defined benefit health plan that provides health care benefits to eligible current and retired employees.  Eligibility for retiree benefits is dependent upon age, years of service, and participation in the health plan during active service.  The plan is contributory and in 1997 and 2002 the plan was amended. Employees hired after September 1, 1997, including employees hired following business combinations, will be granted access to the Corporation’s plan upon becoming an eligible retiree; however, such retirees must pay 100% of the cost of health care benefits.  The plan continues to contain other cost-sharing features such as deductibles and coinsurance. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Net periodic postretirement benefit cost for the three months ended March 31, 2010 and 2009 included the following components ($000’s): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Three Months Ended March 31, |   |
|------------------------------------------|--------|------------------------------|--------|
|                                     |   | 2010                         |   |   | 2009 |   |
| Service cost                             |   | $                            | 222    |   |   | $ | 235 |   |
| Interest cost on APBO                    |   |                         | 855    |   |   |   | 980 |   |
| Expected return on plan assets           |   |                         | (446   | ) |   |   | (396 | ) |
| Prior service amortization               |   |                         | (559   | ) |   |   | (560 | ) |
| Actuarial loss amortization              |   |                         | -      |   |   |   | 210 |   |
| Net periodic postretirement benefit cost |   | $                            | 72     |   |   | $ | 469 |   |
|                                     |   |                         |   |   |   |   |   |   |

|   | The funded status, which is the accumulated postretirement benefit obligation net of fair value of plan assets, as of March 31, 2010 is as follows ($000’s): |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total funded status, December 31, 2009 |   | $      | 28,020 |   |
|----------------------------------------|--------|--------|--------|--------|
| Service cost                           |   |   | 222    |   |
| Interest cost on APBO                  |   |   | 855    |   |
| Expected return on plan assets         |   |   | (446   | )      |
| Employer contributions/payments        |   |   | (1,260 | )      |
| Subsidy (Medicare Part D)              |   |   | 206    |   |
| Total funded status, March 31, 2010    |   | $      | 27,597 |   |
|                                   |   |   |   |   |

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Table of Contents

| 13.   | Business Segments |
|-----------------|-------------------|

|   | The Corporation’s operating segments are presented based on its management structure and management accounting practices.  The structure and practices are specific to the Corporation; therefore, the financial results of the Corporation’s business segments are not necessarily comparable with similar information for other financial institutions. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Based on the way the Corporation organizes its segments, the Corporation has determined that it has four reportable segments:  Commercial Banking, Community Banking, Wealth Management and Treasury. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Total Revenues by type in Others consist of the following ($ in millions): |
|--------|----------------------------------------------------------------------------|

|                               |   | Three Months Ended |   |
|------------------------------------|--------|--------------------|--------|
|                               |   | March 31,          |   |
|                               |   | 2010               |   |   | 2009 |   |
| Capital Markets Division           |   | $                  | 12.3   |   |   | $ | 13.0 |   |
| National Consumer Banking Division |   |               | 37.6   |   |   |   | 40.0 |   |
| Administrative & Other         |   |               | 15.0   |   |   |   | 13.7 |   |
| Other                              |   |               | 65.4   |   |   |   | 66.9 |   |
| Total                              |   | $                  | 130.3  |   |   | $ | 133.6 |   |
|                               |   |               |   |   |   |   |   |   |

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Table of Contents

|                                                          |   | Three Months Ended March 31, 2010 ($ in millions) |     |
|---------------------------------------------------------------|--------|---------------------------------------------------|----------|
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |
|                                                          |   | Commercial                                        |     |   | Community |   |   | Wealth |   |   |   |   |   |   |   |   | Corporate |   |   | Reclassifications |   |   |   |
|                                                          |   | Banking                                           |     |   | Banking |   |   |  Management |   |   | Treasury |   |   | Others |   |   | Overhead |   |   | & Adjustments |   |   | Consolidated |   |
| Net interest income                                           |   | $                                                 | 230.6    |   |   | $ | 186.2 |   |   | $ | 17.7 |   |   | $ | (74.2 | ) |   | $ | 55.5 |   |   | $ | (6.7 | ) |   | $ | (5.7 | ) |   | $ | 403.4 |   |
| Provision for loan and lease losses                           |   |                                              | 223.5    |   |   |   | 133.0 |   |   |   | 12.3 |   |   |   | - |   |   |   | 89.3 |   |   |   | - |   |   |   | - |   |   |   | 458.1 |   |
| Net interest income after provision for loan and lease losses |   |                                              | 7.1      |   |   |   | 53.2 |   |   |   | 5.4 |   |   |   | (74.2 | ) |   |   | (33.8 | ) |   |   | (6.7 | ) |   |   | (5.7 | ) |   |   | (54.7 | ) |
| Other income                                                  |   |                                              | 22.3     |   |   |   | 90.6 |   |   |   | 69.8 |   |   |   | 21.0 |   |   |   | 74.8 |   |   |   | 34.6 |   |   |   | (85.5 | ) |   |   | 227.6 |   |
| Other expense                                                 |   |                                              | 63.4     |   |   |   | 184.3 |   |   |   | 63.2 |   |   |   | 17.6 |   |   |   | 95.7 |   |   |   | 33.2 |   |   |   | (85.9 | ) |   |   | 371.5 |   |
| Income before income taxes                                    |   |                                              | (34.0    | ) |   |   | (40.5 | ) |   |   | 12.0 |   |   |   | (70.8 | ) |   |   | (54.7 | ) |   |   | (5.3 | ) |   |   | (5.3 | ) |   |   | (198.6 | ) |
| Provision (benefit) for income taxes                          |   |                                              | (13.6    | ) |   |   | (16.2 | ) |   |   | 4.9 |   |   |   | (28.3 | ) |   |   | (23.7 | ) |   |   | (1.0 | ) |   |   | (5.7 | ) |   |   | (83.6 | ) |
| Net income                                                    |   |                                              | (20.4    | ) |   |   | (24.3 | ) |   |   | 7.1 |   |   |   | (42.5 | ) |   |   | (31.0 | ) |   |   | (4.3 | ) |   |   | 0.4 |   |   |   | (115.0 | ) |
| Less:  Noncontrolling interest                      |   |                                              | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.4 | ) |   |   | (0.4 | ) |
| Segment income                                                |   | $                                                 | (20.4    | ) |   | $ | (24.3 | ) |   | $ | 7.1 |   |   | $ | (42.5 | ) |   | $ | (31.0 | ) |   | $ | (4.3 | ) |   | $ | - |   |   | $ | (115.4 | ) |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                                 | 22,110.6 |   |   | $ | 15,549.2 |   |   | $ | 1,593.8 |   |   | $ | 10,324.0 |   |   | $ | 7,248.1 |   |   | $ | 7,864.3 |   |   | $ | (8,120.6 | ) |   | $ | 56,569.4 |   |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Three Months Ended March 31, 2009 ($ in millions) |     |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |   |   |
|                                                          |   | Commercial                                        |     |   | Community |   |   | Wealth |   |   |   |   |   |   |   |   |   |   | Corporate |   |   | Reclassifications |   |   |   |   |   |
|                                                          |   | Banking                                           |     |   | Banking |   |   | Management |   |   | Treasury |   |   | Others |   |   | Overhead |   |   | & Adjustments |   |   | Consolidated |   |
| Net interest income                                           |   | $                                                 | 199.6    |   |   | $ | 173.4 |   |   | $ | 15.0 |   |   | $ | (14.6 | ) |   | $ | 54.9 |   |   | $ | (19.5 | ) |   | $ | (7.1 | ) |   | $ | 401.7 |   |
| Provision for loan and lease losses                           |   |                                              | 154.4    |   |   |   | 133.5 |   |   |   | 10.0 |   |   |   | - |   |   |   | 180.0 |   |   |   | - |   |   |   | - |   |   |   | 477.9 |   |
| Net interest income after provision for loan and lease losses |   |                                              | 45.2     |   |   |   | 39.9 |   |   |   | 5.0 |   |   |   | (14.6 | ) |   |   | (125.1 | ) |   |   | (19.5 | ) |   |   | (7.1 | ) |   |   | (76.2 | ) |
| Other income                                                  |   |                                              | 26.7     |   |   |   | 47.8 |   |   |   | 64.9 |   |   |   | 11.9 |   |   |   | 78.7 |   |   |   | 33.1 |   |   |   | (86.4 | ) |   |   | 176.7 |   |
| Other expense                                                 |   |                                              | 57.6     |   |   |   | 178.8 |   |   |   | 56.6 |   |   |   | 10.9 |   |   |   | 98.3 |   |   |   | 29.7 |   |   |   | (86.7 | ) |   |   | 345.2 |   |
| Income before income taxes                                    |   |                                              | 14.3     |   |   |   | (91.1 | ) |   |   | 13.3 |   |   |   | (13.6 | ) |   |   | (144.7 | ) |   |   | (16.1 | ) |   |   | (6.8 | ) |   |   | (244.7 | ) |
| Provision (benefit) for income taxes                          |   |                                              | 5.7      |   |   |   | (36.4 | ) |   |   | 5.7 |   |   |   | (5.4 | ) |   |   | (106.0 | ) |   |   | (9.5 | ) |   |   | (7.1 | ) |   |   | (153.0 | ) |
| Net income                                                    |   |                                              | 8.6      |   |   |   | (54.7 | ) |   |   | 7.6 |   |   |   | (8.2 | ) |   |   | (38.7 | ) |   |   | (6.6 | ) |   |   | 0.3 |   |   |   | (91.7 | ) |
| Less:  Noncontrolling interest                      |   |                                              | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.3 | ) |   |   | (0.3 | ) |
| Segment income                                                |   | $                                                 | 8.6      |   |   | $ | (54.7 | ) |   | $ | 7.6 |   |   | $ | (8.2 | ) |   | $ | (38.7 | ) |   | $ | (6.6 | ) |   | $ | - |   |   | $ | (92.0 | ) |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                                 | 25,478.6 |   |   | $ | 18,322.9 |   |   | $ | 1,676.2 |   |   | $ | 8,866.8 |   |   | $ | 7,807.8 |   |   | $ | 3,323.5 |   |   | $ | (3,685.8 | ) |   | $ | 61,790.0 |   |
|                                                          |   |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| 14.   | Guarantees |
|-----------------|------------|

|   | Capital Support Agreement |
|--------|---------------------------|

|   | Certain entities within the Wealth Management segment are the investment advisor and trustee of the M&I Employee Benefit Stable Principal Fund (“SPF”).  In prior periods, the SPF periodically participated in securities lending activities. Although not obligated to do so, the Corporation entered into a capital support agreement with the SPF under which the Corporation was required to contribute capital, under certain specific and defined circumstances in an amount not to exceed $35.0 million should certain asset loss events occur.  During the first quarter of 2010, the SPF discontinued its securities lending activities and the capital support agreement was terminated.  The net impact of terminating the capital support agreement was not significant.  The Corporation does not intend to provide any further explicit or implicit support to the SPF. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 15.   | Other Contingent Liabilities |
|-----------------|------------------------------|

| 16.   | Subsequent Events |
|-----------------|-------------------|

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

|                                                       |   | Three Months Ended March 31, |       |
|------------------------------------------------------------|--------|------------------------------|------------|
|                                                       |   | 2010                         |       |   | 2009 |   |
| Assets                                                     |   |                         |       |   |   |   |
| Cash and due from banks                                    |   | $                            | 687,090    |   |   | $ | 803,166 |   |
| Trading assets                                             |   |                         | 252,948    |   |   |   | 584,985 |   |
| Short-term investments                                     |   |                         | 1,721,227  |   |   |   | 570,380 |   |
| Investment securities:                                     |   |                         |       |   |   |   |   |   |
| Taxable                                                    |   |                         | 6,551,152  |   |   |   | 6,607,387 |   |
| Tax-exempt                                                 |   |                         | 902,793    |   |   |   | 1,081,673 |   |
| Total investment securities                                |   |                         | 7,453,945  |   |   |   | 7,689,060 |   |
| Loans and leases:                                          |   |                         |       |   |   |   |   |   |
| Loans and leases, net of unearned income                   |   |                         | 43,533,538 |   |   |   | 49,815,699 |   |
| Allowance for loan and lease losses                        |   |                         | (1,535,406 | ) |   |   | (1,245,441 | ) |
| Net loans and leases                                       |   |                         | 41,998,132 |   |   |   | 48,570,258 |   |
| Premises and equipment, net                                |   |                         | 562,873    |   |   |   | 569,270 |   |
| Accrued interest and other assets                          |   |                         | 4,417,793  |   |   |   | 3,650,360 |   |
| Total Assets                                               |   | $                            | 57,094,008 |   |   | $ | 62,437,479 |   |
|                                                       |   |                         |       |   |   |   |   |   |
| Liabilities and Equity                                     |   |                         |       |   |   |   |   |   |
| Deposits:                                                  |   |                         |       |   |   |   |   |   |
| Noninterest bearing                                        |   | $                            | 7,819,285  |   |   | $ | 6,481,719 |   |
| Interest bearing                                           |   |                         | 34,091,210 |   |   |   | 33,185,443 |   |
| Total deposits                                             |   |                         | 41,910,495 |   |   |   | 39,667,162 |   |
| Federal funds purchased and security repurchase agreements |   |                         | 714,312    |   |   |   | 1,950,080 |   |
| Other short-term borrowings                                |   |                         | 300,591    |   |   |   | 3,774,011 |   |
| Long-term borrowings                                       |   |                         | 6,231,918  |   |   |   | 9,570,721 |   |
| Accrued expenses and other liabilties                      |   |                         | 927,298    |   |   |   | 1,122,499 |   |
| Total Liabilities                                          |   |                         | 50,084,614 |   |   |   | 56,084,473 |   |
| Equity                                                     |   |                         |       |   |   |   |   |   |
| Marshall & Ilsley Corporation shareholders' equity     |   |                         | 6,998,186  |   |   |   | 6,342,617 |   |
| Noncontrolling interest in subsidiaries                    |   |                         | 11,208     |   |   |   | 10,389 |   |
| Total Equity                                               |   |                         | 7,009,394  |   |   |   | 6,353,006 |   |
| Total Liabilities and Equity                               |   | $                            | 57,094,008 |   |   | $ | 62,437,479 |   |
|                                                       |   |                         |       |   |   |   |   |   |

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OVERVIEW

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FORWARD-LOOKING STATEMENTS

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OTHER NOTEWORTHY TRANSACTIONS AND EVENTS

NET INTEREST INCOME

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|                                                                                     |   | 2010          |         |   | 2009           |   |   | Growth Percent |   |
|------------------------------------------------------------------------------------------|--------|---------------|--------------|--------|----------------|--------|--------|----------------|--------|
|                                                                                     |   | First Quarter |         |   | Fourth Quarter |   |   | Third Quarter  |   |   | Second Quarter |   |   | First Quarter |   |   | Annual |   |   | Prior Quarter |   |
| Commercial:                                                                              |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                               |   | $             | 12,225       |   |           | $      | 12,721 |           |   | $ | 13,667 |   |   | $ | 14,404 |   |   | $ | 14,745 |   |   |   | (17.1 | )% |   |   | (3.9 | )% |
| Commercial lease financing                                                               |   |          | 462          |   |           |   | 481    |           |   |   | 497 |   |   |   | 522 |   |   |   | 547 |   |   |   | (15.4 | ) |   |   | (3.9 | ) |
| Total commercial loans and leases                                                        |   |          | 12,687       |   |           |   | 13,202 |           |   |   | 14,164 |   |   |   | 14,926 |   |   |   | 15,292 |   |   |   | (17.0 | ) |   |   | (3.9 | ) |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                                                                             |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                   |   |          | 13,587       |   |           |   | 13,813 |           |   |   | 13,844 |   |   |   | 13,549 |   |   |   | 12,872 |   |   |   | 5.6 |   |   |   | (1.6 | ) |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                  |   |          | 4,868        |   |           |   | 5,085  |           |   |   | 5,263 |   |   |   | 5,695 |   |   |   | 5,768 |   |   |   | (15.6 | ) |   |   | (4.3 | ) |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction and development:                                                            |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction                                                                  |   |          | 2,392        |   |           |   | 2,649  |           |   |   | 2,860 |   |   |   | 3,290 |   |   |   | 3,966 |   |   |   | (39.7 | ) |   |   | (9.7 | ) |
| Commercial land                                                                          |   |          | 859          |   |           |   | 878    |           |   |   | 922 |   |   |   | 898 |   |   |   | 854 |   |   |   | 0.6 |   |   |   | (2.2 | ) |
| Construction by developers                                                               |   |          | 398          |   |           |   | 474    |           |   |   | 520 |   |   |   | 693 |   |   |   | 923 |   |   |   | (56.9 | ) |   |   | (16.1 | ) |
| Residential land                                                                         |   |          | 1,526        |   |           |   | 1,705  |           |   |   | 1,851 |   |   |   | 2,016 |   |   |   | 2,094 |   |   |   | (27.1 | ) |   |   | (10.5 | ) |
| Construction by individuals                                                              |   |          | 254          |   |           |   | 358    |           |   |   | 500 |   |   |   | 690 |   |   |   | 834 |   |   |   | (69.6 | ) |   |   | (29.0 | ) |
| Total construction and development                                                       |   |          | 5,429        |   |           |   | 6,064  |           |   |   | 6,653 |   |   |   | 7,587 |   |   |   | 8,671 |   |   |   | (37.4 | ) |   |   | (10.5 | ) |
| Total real estate                                                                        |   |          | 23,884       |   |           |   | 24,962 |           |   |   | 25,760 |   |   |   | 26,831 |   |   |   | 27,311 |   |   |   | (12.6 | ) |   |   | (4.3 | ) |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer loans and leases:                                                               |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit                                                    |   |          | 4,645        |   |           |   | 4,762  |           |   |   | 4,844 |   |   |   | 4,969 |   |   |   | 5,064 |   |   |   | (8.3 | ) |   |   | (2.4 | ) |
| Other personal loans                                                                     |   |          | 2,185        |   |           |   | 2,255  |           |   |   | 2,200 |   |   |   | 1,959 |   |   |   | 1,942 |   |   |   | 12.6 |   |   |   | (3.1 | ) |
| Personal lease financing                                                                 |   |          | 133          |   |           |   | 150    |           |   |   | 169 |   |   |   | 190 |   |   |   | 207 |   |   |   | (35.7 | ) |   |   | (11.3 | ) |
| Total consumer loans and leases                                                          |   |          | 6,963        |   |           |   | 7,167  |           |   |   | 7,213 |   |   |   | 7,118 |   |   |   | 7,213 |   |   |   | (3.4 | ) |   |   | (2.8 | ) |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total consolidated average loans and leases                                              |   | $             | 43,534       |   |           | $      | 45,331 |           |   | $ | 47,137 |   |   | $ | 48,875 |   |   | $ | 49,816 |   |   |   | (12.6 | )% |   |   | (4.0 | )% |
|                                                                                     |   |          |         |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total consolidated average loans and leases excluding total construction and development |   | $             |  38,105 |   |           | $      | 39,267 |           |   | $ | 40,484 |   |   | $ | 41,288 |   |   | $ | 41,145 |   |   |   | (7.4 | )% |   |   | (3.0 | )% |

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|                                |   |  2010    |   |   | 2009           |   |   | Growth Percent |   |
|-------------------------------------|--------|---------------|--------|--------|----------------|--------|--------|----------------|--------|
|                                |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter  |   |   | Second Quarter |   |   | First Quarter |   |   | Annual |   |   | Prior Quarter |   |
| Noninterest bearing:                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   | $             | 5,934  |   |           | $      | 6,152  |           |   | $ | 5,973 |   |   | $ | 5,505 |   |   | $ | 4,849 |   |   |   | 22.4 | % |   |   | (3.5 | )% |
| Personal                            |   |          | 1,035  |   |           |   | 988    |           |   |   | 963 |   |   |   | 1,003 |   |   |   | 979 |   |   |   | 5.8 |   |   |   | 4.7 |   |
| Other                               |   |          | 850    |   |           |   | 858    |           |   |   | 926 |   |   |   | 847 |   |   |   | 654 |   |   |   | 29.9 |   |   |   | (0.9 | ) |
| Total noninterest bearing           |   |          | 7,819  |   |           |   | 7,998  |           |   |   | 7,862 |   |   |   | 7,355 |   |   |   | 6,482 |   |   |   | 20.6 |   |   |   | (2.2 | ) |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing:                   |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and NOW                     |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                             |   |          | 2,579  |   |           |   | 2,508  |           |   |   | 2,253 |   |   |   | 1,386 |   |   |   | 887 |   |   |   | 191.0 |   |   |   | 2.8 |   |
| NOW                                 |   |          | 4,575  |   |           |   | 3,887  |           |   |   | 3,246 |   |   |   | 2,746 |   |   |   | 2,624 |   |   |   | 74.3 |   |   |   | 17.7 |   |
| Brokered NOW                        |   |          | 73     |   |           |   | 73     |           |   |   | 76 |   |   |   | 43 |   |   |   | 19 |   |   |   | 276.1 |   |   |   | (0.1 | ) |
| Total savings and NOW               |   |          | 7,227  |   |           |   | 6,468  |           |   |   | 5,575 |   |   |   | 4,175 |   |   |   | 3,530 |   |   |   | 104.7 |   |   |   | 11.7 |   |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market                        |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market index                  |   |          | 6,783  |   |           |   | 6,395  |           |   |   | 6,125 |   |   |   | 6,185 |   |   |   | 6,541 |   |   |   | 3.7 |   |   |   | 6.1 |   |
| Money market savings                |   |          | 987    |   |           |   | 968    |           |   |   | 918 |   |   |   | 916 |   |   |   | 1,069 |   |   |   | (7.6 | ) |   |   | 2.0 |   |
| Brokered money market               |   |          | 4,166  |   |           |   | 3,358  |           |   |   | 3,250 |   |   |   | 3,106 |   |   |   | 3,021 |   |   |   | 37.9 |   |   |   | 24.1 |   |
| Total money market                  |   |          | 11,936 |   |           |   | 10,721 |           |   |   | 10,293 |   |   |   | 10,207 |   |   |   | 10,631 |   |   |   | 12.3 |   |   |   | 11.3 |   |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDs $100,000 and over               |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Large CDs                           |   |          | 2,505  |   |           |   | 2,945  |           |   |   | 3,563 |   |   |   | 4,461 |   |   |   | 4,152 |   |   |   | (39.7 | ) |   |   | (14.9 | ) |
| Brokered CDs                        |   |          | 6,853  |   |           |   | 7,417  |           |   |   | 7,830 |   |   |   | 7,455 |   |   |   | 7,888 |   |   |   | (13.1 | ) |   |   | (7.6 | ) |
| Total CDs $100,000 and over         |   |          | 9,358  |   |           |   | 10,362 |           |   |   | 11,393 |   |   |   | 11,916 |   |   |   | 12,040 |   |   |   | (22.3 | ) |   |   | (9.7 | ) |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other CDs and time                  |   |          | 5,322  |   |           |   | 5,720  |           |   |   | 5,841 |   |   |   | 5,736 |   |   |   | 5,861 |   |   |   | (9.2 | ) |   |   | (7.0 | ) |
| Total time                          |   |          | 14,680 |   |           |   | 16,082 |           |   |   | 17,234 |   |   |   | 17,652 |   |   |   | 17,901 |   |   |   | (18.0 | ) |   |   | (8.7 | ) |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                             |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign activity                    |   |          | 248    |   |           |   | 302    |           |   |   | 372 |   |   |   | 469 |   |   |   | 866 |   |   |   | (71.4 | ) |   |   | (18.0 | ) |
| Foreign time                        |   |          | -      |   |           |   | -      |           |   |   | - |   |   |   | - |   |   |   | 257 |   |   |   | (100.0 | ) |   | n.m. |   |
| Total foreign                       |   |          | 248    |   |           |   | 302    |           |   |   | 372 |   |   |   | 469 |   |   |   | 1,123 |   |   |   | (77.9 | ) |   |   | (18.0 | ) |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest bearing              |   |          | 34,091 |   |           |   | 33,573 |           |   |   | 33,474 |   |   |   | 32,503 |   |   |   | 33,185 |   |   |   | 2.7 |   |   |   | 1.5 |   |
| Total consolidated average deposits |   | $             | 41,910 |   |           | $      | 41,571 |           |   | $ | 41,336 |   |   | $ | 39,858 |   |   | $ | 39,667 |   |   |   | 5.7 | % |   |   | 0.8 | % |
|                                |   |          |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                               |   | Three Months Ended |     |   | Three Months Ended |   |
|------------------------------------|--------|--------------------|----------|--------|--------------------|--------|
|                               |   | March 31, 2010     |     |   | March 31, 2009     |   |
|                               |   | Average Balance    |     |   | Interest           |   |   | Average Yield or Cost (b) |   |   | Average Balance |   |   | Interest |   |   | Average Yield or Cost (b) |   |
| Loans and leases (a):              |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases        |   | $                  | 12,686.9 |   |               | $      | 141.7 |   |   |   | 4.53 | % |   | $ | 15,292.2 |   |   | $ | 147.2 |   |   |   | 3.90 | % |
| Commercial real estate loans       |   |               | 13,586.7 |   |               |   | 168.3 |   |   |   | 5.02 |   |   |   | 12,871.8 |   |   |   | 166.8 |   |   |   | 5.26 |   |
| Residential real estate loans      |   |               | 4,867.7  |   |               |   | 61.8 |   |   |   | 5.15 |   |   |   | 5,768.2 |   |   |   | 79.4 |   |   |   | 5.58 |   |
| Construction and development       |   |               | 5,428.6  |   |               |   | 50.0 |   |   |   | 3.74 |   |   |   | 8,671.1 |   |   |   | 79.4 |   |   |   | 3.72 |   |
| Home equity loans and lines        |   |               | 4,645.3  |   |               |   | 57.1 |   |   |   | 4.98 |   |   |   | 5,064.1 |   |   |   | 64.8 |   |   |   | 5.19 |   |
| Personal loans and leases          |   |               | 2,318.3  |   |               |   | 31.4 |   |   |   | 5.50 |   |   |   | 2,148.3 |   |   |   | 29.3 |   |   |   | 5.54 |   |
| Total loans and leases             |   |               | 43,533.5 |   |               |   | 510.3 |   |   |   | 4.75 |   |   |   | 49,815.7 |   |   |   | 566.9 |   |   |   | 4.62 |   |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities:             |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                            |   |               | 6,551.2  |   |               |   | 49.4 |   |   |   | 3.05 |   |   |   | 6,607.4 |   |   |   | 63.1 |   |   |   | 3.83 |   |
| Tax exempt (a)                     |   |               | 902.8    |   |               |   | 14.3 |   |   |   | 6.52 |   |   |   | 1,081.7 |   |   |   | 18.3 |   |   |   | 6.94 |   |
| Total investment securities        |   |               | 7,454.0  |   |               |   | 63.7 |   |   |   | 3.47 |   |   |   | 7,689.1 |   |   |   | 81.4 |   |   |   | 4.26 |   |
| Trading assets (a)                 |   |               | 253.0    |   |               |   | 0.2 |   |   |   | 0.33 |   |   |   | 585.0 |   |   |   | 1.9 |   |   |   | 1.33 |   |
| Short-term investments             |   |               | 1,721.2  |   |               |   | 1.1 |   |   |   | 0.26 |   |   |   | 570.3 |   |   |   | 0.7 |   |   |   | 0.45 |   |
| Total interest earning assets      |   | $                  | 52,961.7 |   |               | $      | 575.3 |   |   |   | 4.41 | % |   | $ | 58,660.1 |   |   | $ | 650.9 |   |   |   | 4.50 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits:         |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and NOW                    |   | $                  | 7,227.2  |   |               | $      | 8.3 |   |   |   | 0.47 | % |   | $ | 3,530.1 |   |   | $ | 1.1 |   |   |   | 0.13 | % |
| Money market                       |   |               | 11,936.3 |   |               |   | 23.6 |   |   |   | 0.80 |   |   |   | 10,631.2 |   |   |   | 16.4 |   |   |   | 0.62 |   |
| Time                               |   |               | 14,680.0 |   |               |   | 80.4 |   |   |   | 2.22 |   |   |   | 17,901.5 |   |   |   | 119.7 |   |   |   | 2.71 |   |
| Foreign                            |   |               | 247.7    |   |               |   | 0.2 |   |   |   | 0.41 |   |   |   | 1,122.7 |   |   |   | 0.9 |   |   |   | 0.33 |   |
| Total interest bearing deposits    |   |               | 34,091.2 |   |               |   | 112.5 |   |   |   | 1.34 |   |   |   | 33,185.5 |   |   |   | 138.1 |   |   |   | 1.69 |   |
| Short-term borrowings              |   |               | 1,014.9  |   |               |   | 0.7 |   |   |   | 0.27 |   |   |   | 5,724.1 |   |   |   | 4.0 |   |   |   | 0.28 |   |
| Long-term borrowings               |   |               | 6,231.9  |   |               |   | 52.9 |   |   |   | 3.44 |   |   |   | 9,570.7 |   |   |   | 99.9 |   |   |   | 4.24 |   |
| Total interest bearing liabilities |   | $                  | 41,338.0 |   |               | $      | 166.1 |   |   |   | 1.63 | % |   | $ | 48,480.3 |   |   | $ | 242.0 |   |   |   | 2.02 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin (FTE)          |   |               |     |   |               | $      | 409.2 |   |   |   | 3.13 | % |   |   |   |   |   | $ | 408.9 |   |   |   | 2.82 | % |
| Net interest spread (FTE)          |   |               |     |   |               |   |   |   |   |   | 2.78 | % |   |   |   |   |   |   |   |   |   |   | 2.48 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)   | Fully taxable equivalent (“FTE”) basis, assuming a Federal income tax rate of 35%, and excluding disallowed interest expense. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Based on average balances excluding fair value adjustments for available for sale securities. |
|-----------------|-----------------------------------------------------------------------------------------------|

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SUMMARY OF LOAN AND LEASE LOSS EXPERIENCE AND CREDIT QUALITY

|                                                                                                          |   | 2010               |      |   | 2009           |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|----------------|--------|
|                                                                                                          |   | First Quarter |      |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |   | First Quarter |   |
| Nonperforming assets:                                                                                         |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans and leases                                                                                   |   | $                  | 1,898,734 |   |           | $      | 1,987,081 |   |   | $ | 2,121,994 |   |   | $ | 2,221,659 |   |   | $ | 1,960,816 |   |
| Nonaccrual loans held for sale                                                                                |   |               | 55,063    |   |           |   | 57,670 |   |   |   | 128,067 |   |   |   | 194,489 |   |   |   | 113,737 |   |
| Total nonperforming loans and leases                                                                          |   | $                  | 1,953,797 |   |           | $      | 2,044,751 |   |   | $ | 2,250,061 |   |   | $ | 2,416,148 |   |   | $ | 2,074,553 |   |
| Other real estate owned (OREO)                                                                                |   |               | 454,317   |   |           |   | 430,821 |   |   |   | 351,216 |   |   |   | 356,790 |   |   |   | 344,271 |   |
| Total nonperforming assets                                                                                    |   | $                  | 2,408,114 |   |           | $      | 2,475,572 |   |   | $ | 2,601,277 |   |   | $ | 2,772,938 |   |   | $ | 2,418,824 |   |
|                                                                                                          |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Renegotiated loans                                                                                            |   | $                  | 731,839   |   |           | $      | 793,459 |   |   | $ | 935,260 |   |   | $ | 818,538 |   |   | $ | 445,995 |   |
|                                                                                                          |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans past due 90 days or more and still accruing interest                                                    |   | $                  | 9,332     |   |           | $      | 8,755 |   |   | $ | 13,084 |   |   | $ | 15,060 |   |   | $ | 16,099 |   |
|                                                                                                          |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan and lease losses                                                                           |   | $                  | 1,515,154 |   |           | $      | 1,480,470 |   |   | $ | 1,413,743 |   |   | $ | 1,367,782 |   |   | $ | 1,352,117 |   |
|                                                                                                          |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Statistics:                                                                                      |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs (annualized) to average loans and leases                                                      |   |               | 3.94      | %      |           |   | 5.01 | % |   |   | 4.48 | % |   |   | 4.95 | % |   |   | 2.67 | % |
| Total nonperforming loans and leases to total loans and leases                                                |   |               | 4.58      |   |           |   | 4.62 |   |   |   | 4.88 |   |   |   | 5.01 |   |   |   | 4.21 |   |
| Total nonperforming assets to total loans and leases and OREO                                                 |   |               | 5.59      |   |           |   | 5.54 |   |   |   | 5.60 |   |   |   | 5.71 |   |   |   | 4.88 |   |
| Allowance for loan and lease losses to total loans and leases                                                 |   |               | 3.55      |   |           |   | 3.35 |   |   |   | 3.07 |   |   |   | 2.84 |   |   |   | 2.75 |   |
| Allowance for loan and lease losses to nonaccrual loans and leases (excluding nonaccrual loans held for sale) |   |               | 80        |   |           |   | 75 |   |   |   | 67 |   |   |   | 62 |   |   |   | 69 |   |

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|                                  |   | March 31, 2010          |   |   | December 31, 2009                        |   |
|---------------------------------------|--------|-------------------------|--------|--------|------------------------------------------|--------|
|                                  |   | Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |   | Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |
| Commercial loans & leases         |   | $                       | 12,315 |   |                                     |   | 28.9 | % |   | $ | 252.7 |   |   |   | 2.05 | % |   | $ | 12,950 |   |   |   | 29.3 | % |   | $ | 350.5 |   |   |   | 2.71 | % |
| Real estate:                          |   |                    |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                |   |                    | 13,532 |   |                                     |   | 31.7 |   |   |   | 657.1 |   |   |   | 4.86 |   |   |   | 13,646 |   |   |   | 30.9 |   |   |   | 584.9 |   |   |   | 4.29 |   |
| Residential real estate               |   |                    | 4,824  |   |                                     |   | 11.3 |   |   |   | 269.6 |   |   |   | 5.59 |   |   |   | 4,969 |   |   |   | 11.2 |   |   |   | 206.1 |   |   |   | 4.15 |   |
| Construction and development:         |   |                    |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction               |   |                    | 2,305  |   |                                     |   | 5.4 |   |   |   | 231.4 |   |   |   | 10.04 |   |   |   | 2,414 |   |   |   | 5.5 |   |   |   | 227.3 |   |   |   | 9.42 |   |
| Commercial land                       |   |                    | 829    |   |                                     |   | 2.0 |   |   |   | 110.5 |   |   |   | 13.35 |   |   |   | 843 |   |   |   | 1.9 |   |   |   | 122.9 |   |   |   | 14.59 |   |
| Construction by developers            |   |                    | 361    |   |                                     |   | 0.9 |   |   |   | 64.9 |   |   |   | 17.96 |   |   |   | 408 |   |   |   | 0.9 |   |   |   | 100.1 |   |   |   | 24.53 |   |
| Residential land                      |   |                    | 1,425  |   |                                     |   | 3.3 |   |   |   | 223.9 |   |   |   | 15.72 |   |   |   | 1,574 |   |   |   | 3.5 |   |   |   | 273.4 |   |   |   | 17.37 |   |
| Construction by individuals           |   |                    | 186    |   |                                     |   | 0.4 |   |   |   | 50.8 |   |   |   | 27.29 |   |   |   | 300 |   |   |   | 0.7 |   |   |   | 83.7 |   |   |   | 27.92 |   |
| Total construction and development    |   |                    | 5,106  |   |                                     |   | 12.0 |   |   |   | 681.5 |   |   |   | 13.35 |   |   |   | 5,539 |   |   |   | 12.5 |   |   |   | 807.4 |   |   |   | 14.58 |   |
| Total real estate                     |   |                    | 23,462 |   |                                     |   | 55.0 |   |   |   | 1,608.2 |   |   |   | 6.85 |   |   |   | 24,154 |   |   |   | 54.6 |   |   |   | 1,598.4 |   |   |   | 6.62 |   |
| Consumer loans & leases:          |   |                    |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit |   |                    | 4,590  |   |                                     |   | 10.8 |   |   |   | 80.0 |   |   |   | 1.74 |   |   |   | 4,715 |   |   |   | 10.7 |   |   |   | 84.9 |   |   |   | 1.80 |   |
| Other consumer loans and leases       |   |                    | 2,282  |   |                                     |   | 5.3 |   |   |   | 12.9 |   |   |   | 0.57 |   |   |   | 2,399 |   |   |   | 5.4 |   |   |   | 11.0 |   |   |   | 0.46 |   |
| Total consumer loans & leases     |   |                    | 6,872  |   |                                     |   | 16.1 |   |   |   | 92.9 |   |   |   | 1.35 |   |   |   | 7,114 |   |   |   | 16.1 |   |   |   | 95.9 |   |   |   | 1.35 |   |
| Total loans & leases              |   | $                       | 42,649 |   |                                     |   | 100.0 | % |   | $ | 1,953.8 |   |   |   | 4.58 | % |   | $ | 44,218 |   |   |   | 100.0 | % |   | $ | 2,044.8 |   |   |   | 4.62 | % |
|                                  |   |                    |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|      |   | March 31, 2010     |   |   | December 31, 2009                   |   |
|-----------|--------|--------------------|--------|--------|-------------------------------------|--------|
|      |   | Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease by State |   |   | Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease by State |   |
| Wisconsin |   | $                  | 16,025 |   |                                |   | 37.6 | % |   | $ | 328.4 |   |   |   | 2.05 | % |   | $ | 16,551 |   |   |   | 37.4 | % |   | $ | 401.7 |   |   |   | 2.43 | % |
| Arizona   |   |               | 4,995  |   |                                |   | 11.7 |   |   |   | 407.2 |   |   |   | 8.15 |   |   |   | 5,338 |   |   |   | 12.1 |   |   |   | 431.4 |   |   |   | 8.08 |   |
| Minnesota |   |               | 4,618  |   |                                |   | 10.8 |   |   |   | 140.1 |   |   |   | 3.03 |   |   |   | 4,724 |   |   |   | 10.7 |   |   |   | 148.5 |   |   |   | 3.14 |   |
| Missouri  |   |               | 3,132  |   |                                |   | 7.3 |   |   |   | 168.5 |   |   |   | 5.38 |   |   |   | 3,232 |   |   |   | 7.3 |   |   |   | 158.7 |   |   |   | 4.91 |   |
| Florida   |   |               | 2,586  |   |                                |   | 6.1 |   |   |   | 276.9 |   |   |   | 10.71 |   |   |   | 2,719 |   |   |   | 6.1 |   |   |   | 307.5 |   |   |   | 11.31 |   |
| Indiana   |   |               | 1,587  |   |                                |   | 3.7 |   |   |   | 43.1 |   |   |   | 2.72 |   |   |   | 1,610 |   |   |   | 3.6 |   |   |   | 35.9 |   |   |   | 2.23 |   |
| Kansas    |   |               | 1,037  |   |                                |   | 2.4 |   |   |   | 68.4 |   |   |   | 6.60 |   |   |   | 1,084 |   |   |   | 2.5 |   |   |   | 47.5 |   |   |   | 4.38 |   |
| Others    |   |               | 8,669  |   |                                |   | 20.4 |   |   |   | 521.2 |   |   |   | 6.01 |   |   |   | 8,960 |   |   |   | 20.3 |   |   |   | 513.6 |   |   |   | 5.73 |   |
| Total     |   | $                  | 42,649 |   |                                |   | 100.0 | % |   | $ | 1,953.8 |   |   |   | 4.58 | % |   | $ | 44,218 |   |   |   | 100.0 | % |   | $ | 2,044.8 |   |   |   | 4.62 | % |
|      |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                  |   | Three Months Ended March 31, |   |
|---------------------------------------|--------|------------------------------|--------|
|                                  |   | ($ in millions)              |   |
|                                  |   | 2010                         |   |   | 2009 |   |
| Other Real Estate Owned (OREO):       |   |                         |   |   |   |   |
| Beginning Balance                     |   | $                            | 430.8  |   |   | $ | 320.9 |   |
| Additions, net of initial write-downs |   |                         | 149.1  |   |   |   | 95.8 |   |
| Dispositions                          |   |                         | (105.9 | ) |   |   | (52.7 | ) |
| Capitalized costs                     |   |                         | 0.7    |   |   |   | 1.1 |   |
| Valuation adjustments                 |   |                         | (20.4  | ) |   |   | (20.8 | ) |
| Ending Balance                        |   | $                            | 454.3  |   |   | $ | 344.3 |   |
|                                  |   |                         |   |   |   |   |   |   |

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|                                  |   | March 31, 2010     |   |   | December 31, 2009                   |   |
|---------------------------------------|--------|--------------------|--------|--------|-------------------------------------|--------|
|                                  |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |
| Commercial                            |   | $                  | 64.3   |   |                                |   | 8.8 | % |   | $ | 46.3 |   |   |   | 5.8 | % |
| Real estate:                          |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                |   |               | 118.1  |   |                                |   | 16.1 |   |   |   | 90.9 |   |   |   | 11.5 |   |
| Residential real estate               |   |               | 282.0  |   |                                |   | 38.5 |   |   |   | 397.0 |   |   |   | 50.0 |   |
| Construction and development:         |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction               |   |               | 100.4  |   |                                |   | 13.7 |   |   |   | - |   |   |   | - |   |
| Commercial land                       |   |               | 0.5    |   |                                |   | 0.1 |   |   |   | 1.3 |   |   |   | 0.2 |   |
| Construction by developers            |   |               | 3.3    |   |                                |   | 0.5 |   |   |   | 3.5 |   |   |   | 0.4 |   |
| Residential land                      |   |               | 110.8  |   |                                |   | 15.1 |   |   |   | 125.6 |   |   |   | 15.8 |   |
| Construction by individuals           |   |               | 8.2    |   |                                |   | 1.1 |   |   |   | 17.5 |   |   |   | 2.2 |   |
| Total construction and development    |   |               | 223.2  |   |                                |   | 30.5 |   |   |   | 147.9 |   |   |   | 18.6 |   |
| Total real estate                     |   |               | 623.3  |   |                                |   | 85.1 |   |   |   | 635.8 |   |   |   | 80.1 |   |
| Consumer                              |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit |   |               | 39.9   |   |                                |   | 5.5 |   |   |   | 106.5 |   |   |   | 13.5 |   |
| Other consumer                        |   |               | 4.3    |   |                                |   | 0.6 |   |   |   | 4.9 |   |   |   | 0.6 |   |
| Total consumer                        |   |               | 44.2   |   |                                |   | 6.1 |   |   |   | 111.4 |   |   |   | 14.1 |   |
| Total renegotiated loans              |   | $                  | 731.8  |   |                                |   | 100.0 | % |   | $ | 793.5 |   |   |   | 100.0 | % |
|                                  |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |

|      |   | March 31, 2010     |   |   | December 31, 2009                   |   |
|-----------|--------|--------------------|--------|--------|-------------------------------------|--------|
|      |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |
| Wisconsin |   | $                  | 40.5   |   |                                |   | 5.5 | % |   | $ | 54.2 |   |   |   | 6.8 | % |
| Arizona   |   |               | 368.2  |   |                                |   | 50.3 |   |   |   | 454.8 |   |   |   | 57.3 |   |
| Minnesota |   |               | 30.6   |   |                                |   | 4.2 |   |   |   | 30.5 |   |   |   | 3.8 |   |
| Missouri  |   |               | 10.0   |   |                                |   | 1.4 |   |   |   | 12.2 |   |   |   | 1.5 |   |
| Florida   |   |               | 17.4   |   |                                |   | 2.4 |   |   |   | 25.5 |   |   |   | 3.2 |   |
| Indiana   |   |               | 2.7    |   |                                |   | 0.4 |   |   |   | 7.5 |   |   |   | 0.9 |   |
| Kansas    |   |               | 1.0    |   |                                |   | 0.1 |   |   |   | 2.1 |   |   |   | 0.3 |   |
| Others    |   |               | 261.4  |   |                                |   | 35.7 |   |   |   | 206.7 |   |   |   | 26.2 |   |
| Total     |   | $                  | 731.8  |   |                                |   | 100.0 | % |   | $ | 793.5 |   |   |   | 100.0 | % |
|      |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |

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|                                |   | 2010               |      |   | 2009           |   |
|-------------------------------------|--------|--------------------|-----------|--------|----------------|--------|
|                                |   | First Quarter |      |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |   | First Quarter |   |
| Beginning balance                   |   | $                  | 1,480,470 |   |           | $      | 1,413,743 |   |   | $ | 1,367,782 |   |   | $ | 1,352,117 |   |   | $ | 1,202,167 |   |
| Provision for loan and lease losses |   |               | 458,112   |   |           |   | 639,032 |   |   |   | 578,701 |   |   |   | 618,992 |   |   |   | 477,924 |   |
| Loans and leases charged-off:       |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   |               | 137,103   |   |           |   | 99,307 |   |   |   | 206,254 |   |   |   | 68,653 |   |   |   | 62,346 |   |
| Real estate                         |   |               | 287,310   |   |           |   | 468,352 |   |   |   | 323,245 |   |   |   | 534,264 |   |   |   | 264,987 |   |
| Personal                            |   |               | 11,662    |   |           |   | 29,040 |   |   |   | 11,260 |   |   |   | 9,144 |   |   |   | 10,570 |   |
| Leases                              |   |               | 384       |   |           |   | 1,464 |   |   |   | 834 |   |   |   | 1,054 |   |   |   | 2,320 |   |
| Total charge-offs                   |   |               | 436,459   |   |           |   | 598,163 |   |   |   | 541,593 |   |   |   | 613,115 |   |   |   | 340,223 |   |
|                                |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries on loans and leases:     |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   |               | 2,821     |   |           |   | 14,050 |   |   |   | 1,309 |   |   |   | 2,491 |   |   |   | 1,891 |   |
| Real estate                         |   |               | 7,700     |   |           |   | 9,714 |   |   |   | 5,844 |   |   |   | 5,727 |   |   |   | 7,413 |   |
| Personal                            |   |               | 2,108     |   |           |   | 1,660 |   |   |   | 1,599 |   |   |   | 1,273 |   |   |   | 1,296 |   |
| Leases                              |   |               | 402       |   |           |   | 434 |   |   |   | 101 |   |   |   | 297 |   |   |   | 1,649 |   |
| Total recoveries                    |   |               | 13,031    |   |           |   | 25,858 |   |   |   | 8,853 |   |   |   | 9,788 |   |   |   | 12,249 |   |
| Net loans and leases charged-off    |   |               | 423,428   |   |           |   | 572,305 |   |   |   | 532,740 |   |   |   | 603,327 |   |   |   | 327,974 |   |
| Ending balance                      |   | $                  | 1,515,154 |   |           | $      | 1,480,470 |   |   | $ | 1,413,743 |   |   | $ | 1,367,782 |   |   | $ | 1,352,117 |   |
|                                |   |               |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                  |   | 2010               |    |   | 2009           |   |
|---------------------------------------|--------|--------------------|---------|--------|----------------|--------|
|                                  |   | First Quarter |    |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |   | First Quarter |   |
| Net charge-offs:                      |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases           |   | $                  | 134,093 |   |           | $      | 86,010 |   |   | $ | 205,477 |   |   | $ | 66,769 |   |   | $ | 60,722 |   |
| Commercial real estate                |   |               | 53,363  |   |           |   | 78,380 |   |   |   | 69,558 |   |   |   | 55,306 |   |   |   | 34,007 |   |
| Residential real estate               |   |               | 32,450  |   |           |   | 75,317 |   |   |   | 47,227 |   |   |   | 204,497 |   |   |   | 27,767 |   |
| Construction and development          |   |               | 159,664 |   |           |   | 270,310 |   |   |   | 171,457 |   |   |   | 235,296 |   |   |   | 176,447 |   |
| Home equity loans and lines of credit |   |               | 34,133  |   |           |   | 34,631 |   |   |   | 29,159 |   |   |   | 33,438 |   |   |   | 19,353 |   |
| Personal loans and leases             |   |               | 9,725   |   |           |   | 27,657 |   |   |   | 9,862 |   |   |   | 8,021 |   |   |   | 9,678 |   |
| Net charge-offs                       |   | $                  | 423,428 |   |           | $      | 572,305 |   |   | $ | 532,740 |   |   | $ | 603,327 |   |   | $ | 327,974 |   |
|                                  |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                 |   | Commercial ($ in millions) |     |
|--------------------------------------|--------|----------------------------|----------|
|                                 |   | March 31, 2010             |     |   | % of Consolidated Total |   |   | December 31, 2009 |   |   | % of Consolidated Total |   |
| Loans and leases                     |   | $                          | 12,315.5 |   |   |   | 28.9 | % |   | $ | 12,949.9 |   |   |   | 29.3 | % |
| Nonaccrual loans and leases          |   |                       | 252.7    |   |   |   | 12.9 |   |   |   | 350.5 |   |   |   | 17.2 |   |
| Renegotiated loans                   |   |                       | 64.3     |   |   |   | 8.8 |   |   |   | 46.3 |   |   |   | 5.8 |   |
| Loans and leases past due 30-89 days |   |                       | 71.7     |   |   |   | 10.2 |   |   |   | 56.9 |   |   |   | 8.0 |   |
| Quarter-to-date net charge-offs      |   |                       | 134.1    |   |   |   | 31.7 |   |   |   | 86.0 |   |   |   | 15.0 |   |

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|                            |   | Commercial Real Estate ($ in millions) |     |
|---------------------------------|--------|----------------------------------------|----------|
|                            |   | March 31, 2010                         |     |   | % of Consolidated Total |   |   | December 31, 2009 |   |   | % of Consolidated Total |   |
| Loans                           |   | $                                      | 13,532.0 |   |   |   | 31.7 | % |   | $ | 13,645.9 |   |   |   | 30.9 | % |
| Nonaccrual loans                |   |                                   | 657.1    |   |   |   | 33.6 |   |   |   | 584.9 |   |   |   | 28.6 |   |
| Renegotiated loans              |   |                                   | 118.1    |   |   |   | 16.1 |   |   |   | 90.9 |   |   |   | 11.5 |   |
| Loans past due 30-89 days       |   |                                   | 159.2    |   |   |   | 22.6 |   |   |   | 135.0 |   |   |   | 19.0 |   |
| Quarter-to-date net charge-offs |   |                                   | 53.4     |   |   |   | 12.6 |   |   |   | 78.4 |   |   |   | 13.7 |   |

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|                            |   | Residential Real Estate ($ in millions) |    |
|---------------------------------|--------|-----------------------------------------|---------|
|                            |   | March 31, 2010                          |    |   | % of Consolidated Total |   |   | December 31, 2009 |   |   | % of Consolidated Total |   |
| Loans                           |   | $                                       | 4,823.8 |   |   |   | 11.3 | % |   | $ | 4,968.9 |   |   |   | 11.2 | % |
| Nonaccrual loans                |   |                                    | 269.6   |   |   |   | 13.8 |   |   |   | 206.1 |   |   |   | 10.1 |   |
| Renegotiated loans              |   |                                    | 282.0   |   |   |   | 38.5 |   |   |   | 397.0 |   |   |   | 50.0 |   |
| Loans past due 30-89 days       |   |                                    | 170.8   |   |   |   | 24.3 |   |   |   | 193.2 |   |   |   | 27.3 |   |
| Quarter-to-date net charge-offs |   |                                    | 32.4    |   |   |   | 7.7 |   |   |   | 75.3 |   |   |   | 13.2 |   |

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|                            |   | Construction and Development ($ in millions) |    |
|---------------------------------|--------|----------------------------------------------|---------|
|                            |   | March 31, 2010                               |    |   | % of Consolidated Total |   |   | December 31, 2009 |   |   | % of Consolidated Total |   |
| Loans                           |   | $                                            | 5,105.6 |   |   |   | 12.0 | % |   | $ | 5,538.9 |   |   |   | 12.5 | % |
| Nonaccrual loans                |   |                                         | 681.5   |   |   |   | 34.9 |   |   |   | 807.4 |   |   |   | 39.5 |   |
| Renegotiated loans              |   |                                         | 223.2   |   |   |   | 30.5 |   |   |   | 147.9 |   |   |   | 18.6 |   |
| Loans past due 30-89 days       |   |                                         | 218.0   |   |   |   | 30.9 |   |   |   | 228.1 |   |   |   | 32.2 |   |
| Quarter-to-date net charge-offs |   |                                         | 159.7   |   |   |   | 37.7 |   |   |   | 270.3 |   |   |   | 47.2 |   |

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|                                 |   | Consumer ($ in millions) |    |
|--------------------------------------|--------|--------------------------|---------|
|                                 |   | March 31, 2010           |    |   | % of Consolidated Total |   |   | December 31, 2009 |   |   | % of Consolidated Total |   |
| Loans and leases                     |   | $                        | 6,871.9 |   |   |   | 16.1 | % |   | $ | 7,114.0 |   |   |   | 16.1 | % |
| Nonaccrual loans and leases          |   |                     | 92.9    |   |   |   | 4.8 |   |   |   | 95.9 |   |   |   | 4.6 |   |
| Renegotiated loans                   |   |                     | 44.2    |   |   |   | 6.1 |   |   |   | 111.4 |   |   |   | 14.1 |   |
| Loans and leases past due 30-89 days |   |                     | 84.7    |   |   |   | 12.0 |   |   |   | 95.3 |   |   |   | 13.5 |   |
| Quarter-to-date net charge-offs      |   |                     | 43.8    |   |   |   | 10.3 |   |   |   | 62.3 |   |   |   | 10.9 |   |

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OTHER INCOME

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OTHER EXPENSE

|             |   | Three Months Ended March 31, |   |
|------------------|--------|------------------------------|--------|
|             |   | 2010                         |   |   | 2009 |   |
| Efficiency Ratio |   |                         | 58.4   | % |   |   | 59.0 | % |

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INCOME TAXES

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LIQUIDITY AND CAPITAL RESOURCES

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|                               |   | March 31, 2010 |   |   | December 31, 2009 |   |
|------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                               |   | Amount         |   |   | Ratio             |   |   | Amount |   |   | Ratio |   |
| Tier 1 Capital                     |   | $              | 5,173  |   |              |   | 11.09 | % |   | $ | 5,381 |   |   |   | 11.11 | % |
| Tier 1 Capital Minimum Requirement |   |           | 1,866  |   |              |   | 4.00 |   |   |   | 1,938 |   |   |   | 4.00 |   |
| Excess                             |   | $              | 3,307  |   |              |   | 7.09 | % |   | $ | 3,443 |   |   |   | 7.11 | % |
|                               |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital                      |   | $              | 6,750  |   |              |   | 14.47 | % |   | $ | 6,988 |   |   |   | 14.42 | % |
| Total Capital Minimum Requirement  |   |           | 3,732  |   |              |   | 8.00 |   |   |   | 3,876 |   |   |   | 8.00 |   |
| Excess                             |   | $              | 3,018  |   |              |   | 6.47 | % |   | $ | 3,112 |   |   |   | 6.42 | % |
|                               |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Risk-Adjusted Assets               |   | $              | 46,652 |   |              |   |   |   |   | $ | 48,457 |   |   |   |   |   |
|                               |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |

|                          |   | March 31, 2010 |                    |   | December 31, 2009 |   |
|-------------------------------|--------|----------------|-------------------------|--------|-------------------|--------|
|                          |   | Amount         |                    |   | Ratio             |   |   | Amount |   |   | Ratio |   |
| Tier 1 Capital                |   | $              | 5,173                   |   |              |   | 9.36 | % |   | $ | 5,381 |   |   |   | 9.48 | % |
| Minimum Leverage Requirement  |   |           | 1,658 - 2,764 |   |              |   | 3.00 - 5.00 |   |   |   | 1,702 - 2,837 |   |   |   | 3.00 - 5.00 |   |
| Excess                        |   | $              | 3,515 - $2,409     |   |              |   | 6.36 - 4.36 | % |   | $ | 3,679 - $2,544 |   |   |   | 6.48 - 4.48 | % |
|                          |   |           |                    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted Average Total Assets |   | $              | 55,293                  |   |              |   |   |   |   | $ | 56,754 |   |   |   |   |   |
|                          |   |           |                    |   |              |   |   |   |   |   |   |   |   |   |   |   |

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OFF-BALANCE SHEET ARRANGEMENTS

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CRITICAL ACCOUNTING POLICIES

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

| Hypothetical Change in Interest Rates    |   |  Annual Impact |   |
|------------------------------------------|--------|---------------------|--------|
| 100 basis point gradual rise in rates    |   |                | (0.1   | ) % |
| 100 basis point gradual decline in rates |   |                | (2.4   | ) % |

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ITEM 4.  CONTROLS AND PROCEDURES

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|   | PART II - OTHER INFORMATION |
|--------|-----------------------------|

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

|   | The following table reflects the purchases of Marshall & Ilsley Corporation stock for the specified period: |
|--------|-----------------------------------------------------------------------------------------------------------------|

|                            |   | Total Number of Shares Purchased (1) |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet BePurchased Under the Plans or Programs |   |
|---------------------------------|--------|--------------------------------------|--------|--------|------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
| January 1 to January 31, 2010   |   |                                 | 6,824  |   |                         | $      | 5.85   |                                                                             |   |   | N/A                                                                           |   |   |   | N/A |   |
| February 1 to February 28, 2010 |   |                                 | 9,606  |   |                         |   | 5.72   |                                                                             |   |   | N/A                                                                           |   |   |   | N/A |   |
| March 1 to March 31, 2010       |   |                                 | 11,416 |   |                         |   | 6.90   |                                                                             |   |   | N/A                                                                           |   |   |   | N/A |   |
| Total                           |   |                                 | 27,846 |   |                         | $      | 6.23   |                                                                             |   |   | N/A                                                                           |   |   |   |   |   |
|                            |   |                                 |   |   |                         |   |   |                                                                             |   |   |                                                                          |   |   |   |   |   |

| (1) | Includes shares purchased by rabbi trusts pursuant to nonqualified deferred compensation plans. |
|-----|-------------------------------------------------------------------------------------------------|

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ITEM 6.  EXHIBITS

| Exhibit 11     |   | Statement Regarding Computation of Earnings Per Common Share, Incorporated by Reference to Note 5 of Notes to Financial Statements contained in Item 1 - Financial Statements (Unaudited) of Part I - Financial Information herein. |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                |
| Exhibit 12     |   | Statement Regarding Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                              |
|           |   |                                                                                                                                                                                                                                |
| Exhibit 31(i)  |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                           |
|           |   |                                                                                                                                                                                                                                |
| Exhibit 31(ii) |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                           |
|           |   |                                                                                                                                                                                                                                |
| Exhibit 32(i)  |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                |
| Exhibit 32(ii) |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |

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SIGNATURES

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EXHIBIT INDEX

| Exhibit Number |   | Description of Exhibit                                                                                                                                                                                                              |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                |
| 11             |   | Statement Regarding Computation of Earnings Per Common Share, Incorporated by Reference to Note 5 of Notes to Financial Statements contained in Item 1 - Financial Statements (Unaudited) of Part I - Financial Information herein. |
|           |   |                                                                                                                                                                                                                                |
| 12             |   | Statement Regarding Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                              |
|           |   |                                                                                                                                                                                                                                |
| 31(i)          |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                           |
|           |   |                                                                                                                                                                                                                                |
| 31(ii)         |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                           |
|           |   |                                                                                                                                                                                                                                |
| 32(i)          |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                |
| 32(ii)         |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |