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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 June 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 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 subjectto 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 (§232.405of 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)     Smallreporting 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 July 31, 2009 |
| Common Stock, $1.00 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 368,114,578 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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TABLE OF CONTENTS

| PART I. FINANCIAL INFORMATION                                                                       |   |
|-----------------------------------------------------------------------------------------------------|--------|
| ITEM 1. FINANCIAL STATEMENTS                                                                        | 2      |
| CONSOLIDATED BALANCE SHEETS (Unaudited)                                                             | 2      |
| CONSOLIDATED STATEMENTS OF INCOME – THREE MONTHS ENDED (Unaudited)                            | 3      |
| CONSOLIDATED STATEMENTS OF INCOME – SIX MONTHS ENDED (Unaudited)                              | 4      |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)                                          | 5      |
| NOTES TO THE FINANCIAL STATEMENTS                                                                   | 6      |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 42     |
| OVERVIEW                                                                                            | 44     |
| OTHER NOTEWORTHY TRANSACTIONS AND EVENTS                                                            | 46     |
| NET INTEREST INCOME                                                                                 | 47     |
| CREDIT QUALITY AND ALLOWANCE FOR LOAN AND LEASE LOSSES                                              | 54     |
| OTHER INCOME                                                                                        | 61     |
| OTHER EXPENSE                                                                                       | 62     |
| INCOME TAXES                                                                                        | 65     |
| LIQUIDITY AND CAPITAL RESOURCES                                                                     | 65     |
| OFF-BALANCE SHEET ARRANGEMENTS                                                                      | 69     |
| CRITICAL ACCOUNTING POLICIES                                                                        | 70     |
| FORWARD-LOOKING STATEMENTS                                                                          | 76     |
| 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 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                         | 81     |
| ITEM 6. EXHIBITS                                                                                    | 83     |
| SIGNATURES                                                                                          | 84     |
| EXHIBIT INDEX                                                                                       | 85     |
| EX-11                                                                                               | 85     |
| EX-12                                                                                               | 86     |
| EX-31(i)                                                                                            | 87     |
| EX-31(ii)                                                                                           | 88     |
| EX-32(a)                                                                                            | 89     |
| EX-32(b)                                                                                            | 90     |

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Table of Contents

ITEM 1.  FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (Unaudited)

|                                                                                                                                                                                    |   | June 30, |       |   | December 31, |   |       | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|--------------|--------|------------|----------|--------|
|                                                                                                                                                                                    |   | 2009     |       |   | 2008         |   |       | 2008     |   |
| Assets:                                                                                                                                                                                 |   |     |       |   |         |   |       |     |   |
| Cash and cash equivalents:                                                                                                                                                              |   |     |       |   |         |   |       |     |   |
| Cash and due from banks                                                                                                                                                                 |   | $        | 796,981    |   |         | $      | 851,336    |     |   | $ | 1,316,397 |   |
| Federal funds sold and security resale agreements                                                                                                                                       |   |     | 27,670     |   |         |   | 101,069    |     |   |   | 519,819 |   |
| Money market funds                                                                                                                                                                      |   |     | 37,236     |   |         |   | 120,002    |     |   |   | 67,084 |   |
| Total cash and cash equivalents                                                                                                                                                         |   |     | 861,887    |   |         |   | 1,072,407  |     |   |   | 1,903,300 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Interest bearing deposits at other banks                                                                                                                                                |   |     | 850,704    |   |         |   | 9,684      |     |   |   | 8,944 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Trading assets, at fair value                                                                                                                                                           |   |     | 261,117    |   |         |   | 518,361    |     |   |   | 133,128 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Investment securities:                                                                                                                                                                  |   |     |       |   |         |   |       |     |   |   |   |   |
| Available for sale, at fair value                                                                                                                                                       |   |     | 5,981,003  |   |         |   | 7,430,552  |     |   |   | 7,412,592 |   |
| Held to maturity, fair value $148,029 ($243,395 at December 31, 2008 and $288,401 at June 30, 2008)                                                                                     |   |     | 144,282    |   |         |   | 238,009    |     |   |   | 282,396 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Loans held for sale                                                                                                                                                                     |   |     | 423,210    |   |         |   | 220,391    |     |   |   | 135,923 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Loans and leases                                                                                                                                                                        |   |     | 47,759,934 |   |         |   | 49,764,153 |     |   |   | 50,096,609 |   |
| Allowance for loan and lease losses                                                                                                                                                     |   |     | (1,367,782 | )      |         |   | (1,202,167 | )        |   |   | (1,028,809 | ) |
| Net loans and leases                                                                                                                                                                    |   |     | 46,392,152 |   |         |   | 48,561,986 |     |   |   | 49,067,800 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Premises and equipment, net                                                                                                                                                             |   |     | 572,720    |   |         |   | 564,789    |     |   |   | 524,284 |   |
| Goodwill                                                                                                                                                                                |   |     | 611,728    |   |         |   | 605,144    |     |   |   | 2,096,514 |   |
| Other intangible assets                                                                                                                                                                 |   |     | 145,580    |   |         |   | 158,305    |     |   |   | 145,299 |   |
| Bank-owned life insurance                                                                                                                                                               |   |     | 1,173,765  |   |         |   | 1,157,612  |     |   |   | 1,147,234 |   |
| Other real estate owned (OREO)                                                                                                                                                          |   |     | 356,790    |   |         |   | 320,908    |     |   |   | 207,102 |   |
| Accrued interest and other assets                                                                                                                                                       |   |     | 1,918,765  |   |         |   | 1,478,270  |     |   |   | 1,195,906 |   |
| Total Assets                                                                                                                                                                            |   | $        | 59,693,703 |   |         | $      | 62,336,418 |     |   | $ | 64,260,422 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Liabilities and Equity:                                                                                                                                                                 |   |     |       |   |         |   |       |     |   |   |   |   |
| Deposits:                                                                                                                                                                               |   |     |       |   |         |   |       |     |   |   |   |   |
| Noninterest bearing                                                                                                                                                                     |   | $        | 7,847,624  |   |         | $      | 6,879,994  |     |   | $ | 6,390,374 |   |
| Interest bearing                                                                                                                                                                        |   |     | 33,344,721 |   |         |   | 34,143,147 |     |   |   | 34,783,119 |   |
| Total deposits                                                                                                                                                                          |   |     | 41,192,345 |   |         |   | 41,023,141 |     |   |   | 41,173,493 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| Federal funds purchased and security repurchase agreements                                                                                                                              |   |     | 631,902    |   |         |   | 1,190,000  |     |   |   | 2,175,217 |   |
| Other short-term borrowings                                                                                                                                                             |   |     | 843,021    |   |         |   | 2,868,033  |     |   |   | 3,861,081 |   |
| Accrued expenses and other liabilities                                                                                                                                                  |   |     | 1,134,451  |   |         |   | 1,370,969  |     |   |   | 961,891 |   |
| Long-term borrowings                                                                                                                                                                    |   |     | 9,297,487  |   |         |   | 9,613,717  |     |   |   | 9,564,597 |   |
| Total Liabilities                                                                                                                                                                       |   |     | 53,099,206 |   |         |   | 56,065,860 |     |   |   | 57,736,279 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| 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      |     |   |   | - |   |
| Common stock, $1.00 par value; 373,764,081 shares issued (272,318,615 shares at December 31, 2008 and 267,455,394 shares at June 30, 2008)                                              |   |     | 373,764    |   |         |   | 272,319    |     |   |   | 267,455 |   |
| Additional paid-in capital                                                                                                                                                              |   |     | 4,287,733  |   |         |   | 3,838,867  |     |   |   | 2,062,289 |   |
| Retained earnings                                                                                                                                                                       |   |     | 2,182,808  |   |         |   | 2,538,989  |     |   |   | 4,513,019 |   |
| Treasury stock, at cost:  5,644,436 shares (6,977,434 shares at December 31, 2008 and 8,023,398 shares at June 30, 2008)                                                 |   |     | (155,914   | )      |         |   | (192,960   | )        |   |   | (222,026 | ) |
| Deferred compensation                                                                                                                                                                   |   |     | (36,945    | )      |         |   | (40,797    | )        |   |   | (37,913 | ) |
| Accumulated other comprehensive income, net of related taxes                                                                                                                            |   |     | (69,390    | )      |         |   | (157,952   | )        |   |   | (68,594 | ) |
| Total Marshall & Ilsley Corporation shareholders' equity                                                                                                                            |   |     | 6,583,771  |   |         |   | 6,260,181  |     |   |   | 6,514,230 |   |
| Noncontrolling interest in subsidiaries                                                                                                                                                 |   |     | 10,726     |   |         |   | 10,377     |     |   |   | 9,913 |   |
| Total Equity                                                                                                                                                                            |   |     | 6,594,497  |   |         |   | 6,270,558  |     |   |   | 6,524,143 |   |
| Total Liabilities and Equity                                                                                                                                                            |   | $        | 59,693,703 |   |         | $      | 62,336,418 |     |   | $ | 64,260,422 |   |
|                                                                                                                                                                                    |   |     |       |   |         |   |       |     |   |   |   |   |
| See notes to financial statements.                                                                                                                                                      |   |     |       |   |         |   |       |     |   |   |   |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

|                                                                             |   | Three Months Ended June 30, |     |
|----------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                             |   | 2009                        |     |   | 2008 |   |
| Interest and fee income                                                          |   |                        |     |   |   |   |
| Loans and leases                                                                 |   | $                           | 557,163  |   |   | $ | 726,621 |   |
| Investment securities:                                                           |   |                        |     |   |   |   |   |   |
| Taxable                                                                          |   |                        | 57,414   |   |   |   | 71,697 |   |
| Exempt from federal income taxes                                                 |   |                        | 11,542   |   |   |   | 13,733 |   |
| Trading securities                                                               |   |                        | 1,989    |   |   |   | 386 |   |
| Short-term investments                                                           |   |                        | 400      |   |   |   | 2,171 |   |
| Total interest and fee income                                                    |   |                        | 628,508  |   |   |   | 814,608 |   |
| Interest expense                                                                 |   |                        |     |   |   |   |   |   |
| Deposits                                                                         |   |                        | 138,273  |   |   |   | 219,205 |   |
| Short-term borrowings                                                            |   |                        | 2,881    |   |   |   | 37,972 |   |
| Long-term borrowings                                                             |   |                        | 95,530   |   |   |   | 109,793 |   |
| Total interest expense                                                           |   |                        | 236,684  |   |   |   | 366,970 |   |
| Net interest income                                                              |   |                        | 391,824  |   |   |   | 447,638 |   |
| Provision for loan and lease losses                                              |   |                        | 618,992  |   |   |   | 885,981 |   |
| Net interest income (loss) after provision for loan and lease losses             |   |                        | (227,168 | ) |   |   | (438,343 | ) |
| Other income                                                                     |   |                        |     |   |   |   |   |   |
| Wealth management                                                                |   |                        | 65,837   |   |   |   | 74,753 |   |
| Service charges on deposits                                                      |   |                        | 34,055   |   |   |   | 37,898 |   |
| Gain on sale of mortgage loans                                                   |   |                        | 16,754   |   |   |   | 5,614 |   |
| Other mortgage banking revenue                                                   |   |                        | 1,292    |   |   |   | 1,010 |   |
| Net investment securities gains                                                  |   |                        | 82,665   |   |   |   | 452 |   |
| Bank-owned life insurance revenue                                                |   |                        | 7,962    |   |   |   | 11,968 |   |
| Gain on termination of debt                                                      |   |                        | 9,242    |   |   |   | - |   |
| OREO income                                                                      |   |                        | 2,964    |   |   |   | 1,787 |   |
| Other                                                                            |   |                        | 46,430   |   |   |   | 53,515 |   |
| Total other income                                                               |   |                        | 267,201  |   |   |   | 186,997 |   |
| Other expense                                                                    |   |                        |     |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                        | 187,238  |   |   |   | 186,572 |   |
| Net occupancy and equipment                                                      |   |                        | 32,437   |   |   |   | 31,253 |   |
| Software expenses                                                                |   |                        | 7,015    |   |   |   | 6,349 |   |
| Processing charges                                                               |   |                        | 33,812   |   |   |   | 33,705 |   |
| Supplies, printing, postage and delivery                                         |   |                        | 8,930    |   |   |   | 11,552 |   |
| FDIC insurance                                                                   |   |                        | 49,233   |   |   |   | 2,153 |   |
| Professional services                                                            |   |                        | 21,997   |   |   |   | 18,168 |   |
| Amortization of intangibles                                                      |   |                        | 5,843    |   |   |   | 5,977 |   |
| OREO expenses                                                                    |   |                        | 35,778   |   |   |   | 20,263 |   |
| Other                                                                            |   |                        | 32,376   |   |   |   | 64,188 |   |
| Total other expense                                                              |   |                        | 414,659  |   |   |   | 380,180 |   |
| Loss before income taxes                                                         |   |                        | (374,626 | ) |   |   | (631,526 | ) |
| Benefit for income taxes                                                         |   |                        | (166,143 | ) |   |   | (237,950 | ) |
| Net loss                                                                         |   |                        | (208,483 | ) |   |   | (393,576 | ) |
| Less:  Net income attributable to noncontrolling interests             |   |                        | (472     | ) |   |   | (215 | ) |
| Net loss attributable to Marshall & Ilsley Corporation                       |   |                        | (208,955 | ) |   |   | (393,791 | ) |
| Preferred dividends                                                              |   |                        | (25,013  | ) |   |   | - |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders   |   | $                           | (233,968 | ) |   | $ | (393,791 | ) |
| Per share attributable to Marshall & Ilsley Corporation common shareholders: |   |                        |     |   |   |   |   |   |
| Basic                                                                            |   | $                           | (0.83    | ) |   | $ | (1.52 | ) |
| Diluted                                                                          |   | $                           | (0.83    | ) |   | $ | (1.52 | ) |
| Dividends paid per common share                                                  |   | $                           | 0.01     |   |   | $ | 0.32 |   |
| Weighted average common shares outstanding (000's):                              |   |                        |     |   |   |   |   |   |
| Basic                                                                            |   |                        | 280,836  |   |   |   | 258,592 |   |
| Diluted                                                                          |   |                        | 280,836  |   |   |   | 258,592 |   |
|                                                                             |   |                        |     |   |   |   |   |   |
| See notes to financial statements.                                               |   |                        |     |   |   |   |   |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

|                                                                             |   | Six Months Ended June 30, |      |
|----------------------------------------------------------------------------------|--------|---------------------------|-----------|
|                                                                             |   | 2009                      |      |   | 2008 |   |
| Interest and fee income                                                          |   |                      |      |   |   |   |
| Loans and leases                                                                 |   | $                         | 1,123,497 |   |   | $ | 1,510,149 |   |
| Investment securities:                                                           |   |                      |      |   |   |   |   |   |
| Taxable                                                                          |   |                      | 120,531   |   |   |   | 149,253 |   |
| Exempt from federal income taxes                                                 |   |                      | 23,797    |   |   |   | 28,136 |   |
| Trading securities                                                               |   |                      | 3,438     |   |   |   | 993 |   |
| Short-term investments                                                           |   |                      | 1,028     |   |   |   | 5,087 |   |
| Total interest and fee income                                                    |   |                      | 1,272,291 |   |   |   | 1,693,618 |   |
| Interest expense                                                                 |   |                      |      |   |   |   |   |   |
| Deposits                                                                         |   |                      | 276,362   |   |   |   | 491,979 |   |
| Short-term borrowings                                                            |   |                      | 6,873     |   |   |   | 91,562 |   |
| Long-term borrowings                                                             |   |                      | 195,486   |   |   |   | 232,055 |   |
| Total interest expense                                                           |   |                      | 478,721   |   |   |   | 815,596 |   |
| Net interest income                                                              |   |                      | 793,570   |   |   |   | 878,022 |   |
| Provision for loan and lease losses                                              |   |                      | 1,096,916 |   |   |   | 1,032,302 |   |
| Net interest income (loss) after provision for loan and lease losses             |   |                      | (303,346  | ) |   |   | (154,280 | ) |
| Other income                                                                     |   |                      |      |   |   |   |   |   |
| Wealth management                                                                |   |                      | 128,519   |   |   |   | 146,639 |   |
| Service charges on deposits                                                      |   |                      | 69,368    |   |   |   | 73,579 |   |
| Gain on sale of mortgage loans                                                   |   |                      | 26,568    |   |   |   | 14,066 |   |
| Other mortgage banking revenue                                                   |   |                      | 2,285     |   |   |   | 1,922 |   |
| Net investment securities gains                                                  |   |                      | 82,737    |   |   |   | 26,168 |   |
| Bank-owned life insurance revenue                                                |   |                      | 17,278    |   |   |   | 24,363 |   |
| Gain on termination of debt                                                      |   |                      | 12,298    |   |   |   | - |   |
| OREO income                                                                      |   |                      | 5,532     |   |   |   | 2,823 |   |
| Other                                                                            |   |                      | 99,322    |   |   |   | 108,670 |   |
| Total other income                                                               |   |                      | 443,907   |   |   |   | 398,230 |   |
| Other expense                                                                    |   |                      |      |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                      | 342,426   |   |   |   | 361,236 |   |
| Net occupancy and equipment                                                      |   |                      | 66,230    |   |   |   | 62,455 |   |
| Software expenses                                                                |   |                      | 13,613    |   |   |   | 12,582 |   |
| Processing charges                                                               |   |                      | 67,534    |   |   |   | 65,790 |   |
| Supplies, printing, postage and delivery                                         |   |                      | 18,024    |   |   |   | 23,320 |   |
| FDIC insurance                                                                   |   |                      | 64,337    |   |   |   | 4,017 |   |
| Professional services                                                            |   |                      | 41,178    |   |   |   | 31,647 |   |
| Amortization of intangibles                                                      |   |                      | 11,637    |   |   |   | 11,922 |   |
| OREO expenses                                                                    |   |                      | 68,401    |   |   |   | 35,212 |   |
| Other                                                                            |   |                      | 66,436    |   |   |   | 87,564 |   |
| Total other expense                                                              |   |                      | 759,816   |   |   |   | 695,745 |   |
| Loss before income taxes                                                         |   |                      | (619,255  | ) |   |   | (451,795 | ) |
| Benefit for income taxes                                                         |   |                      | (319,125  | ) |   |   | (204,650 | ) |
| Net loss                                                                         |   |                      | (300,130  | ) |   |   | (247,145 | ) |
| Less:  Net income attributable to noncontrolling interests             |   |                      | (791      | ) |   |   | (437 | ) |
| Net loss attributable to Marshall & Ilsley Corporation                       |   |                      | (300,921  | ) |   |   | (247,582 | ) |
| Preferred dividends                                                              |   |                      | (49,972   | ) |   |   | - |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders   |   | $                         | (350,893  | ) |   | $ | (247,582 | ) |
| Per share attributable to Marshall & Ilsley Corporation common shareholders: |   |                      |      |   |   |   |   |   |
| Basic                                                                            |   | $                         | (1.29     | ) |   | $ | (0.95 | ) |
| Diluted                                                                          |   | $                         | (1.29     | ) |   | $ | (0.95 | ) |
| Dividends paid per common share                                                  |   | $                         | 0.02      |   |   | $ | 0.63 |   |
| Weighted average common shares outstanding (000's):                              |   |                      |      |   |   |   |   |   |
| Basic                                                                            |   |                      | 272,735   |   |   |   | 259,282 |   |
| Diluted                                                                          |   |                      | 272,735   |   |   |   | 259,282 |   |
|                                                                             |   |                      |      |   |   |   |   |   |
| See notes to financial statements.                                               |   |                      |      |   |   |   |   |   |

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

|                                                                  |   | Six Months Ended June 30, |       |
|-----------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                  |   | 2009                      |       |   | 2008 |   |
| Net Cash Provided by Operating Activities                             |   | $                         | 481,863    |   |   | $ | 388,136 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Cash Flows from Investing Activities:                                 |   |                      |       |   |   |   |   |   |
| Proceeds from sales of securities available for sale                  |   |                      | 987,296    |   |   |   | 118,799 |   |
| Proceeds from maturities of securities available for sale             |   |                      | 873,109    |   |   |   | 701,106 |   |
| Proceeds from sales of securities held to maturity                    |   |                      | -          |   |   |   | 1,633 |   |
| Proceeds from maturities of securities held to maturity               |   |                      | 94,491     |   |   |   | 91,794 |   |
| Purchases of securities available for sale                            |   |                      | (1,317,626 | ) |   |   | (591,555 | ) |
| Net decrease/(increase) in loans and leases                           |   |                      | 755,822    |   |   |   | (3,041,220 | ) |
| Purchases of premises and equipment, net                              |   |                      | (31,530    | ) |   |   | (41,626 | ) |
| Cash paid for acquisitions, net of cash and cash equivalents acquired |   |                      | (479       | ) |   |   | (476,625 | ) |
| Proceeds from divestitures                                            |   |                      | -          |   |   |   | 2,485 |   |
| Net proceeds from sale of OREO                                        |   |                      | 118,687    |   |   |   | 41,677 |   |
| Net cash provided by/(used in) investing activities                   |   |                      | 1,479,770  |   |   |   | (3,193,532 | ) |
|                                                                  |   |                      |       |   |   |   |   |   |
| Cash Flows from Financing Activities:                                 |   |                      |       |   |   |   |   |   |
| Net increase in deposits                                              |   |                      | 169,954    |   |   |   | 4,387,544 |   |
| Net decrease in short-term borrowings                                 |   |                      | (2,579,826 | ) |   |   | (876,910 | ) |
| Proceeds from issuance of long-term borrowings                        |   |                      | 375        |   |   |   | 809,389 |   |
| Payments of long-term borrowings                                      |   |                      | (274,093   | ) |   |   | (1,155,118 | ) |
| Dividends paid on preferred stock                                     |   |                      | (43,113    | ) |   |   | - |   |
| Dividends paid on common stock                                        |   |                      | (5,288     | ) |   |   | (162,406 | ) |
| Proceeds from the issuance of common stock                            |   |                      | 560,223    |   |   |   | 14,555 |   |
| Purchases of common stock                                             |   |                      | -          |   |   |   | (130,870 | ) |
| Other                                                                 |   |                      | (385       | ) |   |   | - |   |
| Net cash provided by/(used in) financing activities                   |   |                      | (2,172,153 | ) |   |   | 2,886,184 |   |
| Net increase/(decrease) in cash and cash equivalents                  |   |                      | (210,520   | ) |   |   | 80,788 |   |
| Cash and cash equivalents, beginning of year                          |   |                      | 1,072,407  |   |   |   | 1,822,512 |   |
| Cash and cash equivalents, end of period                              |   | $                         | 861,887    |   |   | $ | 1,903,300 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Supplemental Cash Flow Information:                                   |   |                      |       |   |   |   |   |   |
| Cash paid/(received) during the period for:                           |   |                      |       |   |   |   |   |   |
| Interest                                                              |   | $                         | 492,771    |   |   | $ | 826,763 |   |
| Income taxes                                                          |   |                      | (118,747   | ) |   |   | 84,436 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| See notes to financial statements.                                    |   |                      |       |   |   |   |   |   |

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Notes to Financial Statements

| 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, 2008.  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 thefinancial position and results of operations as of and for the three and six months ended June 30, 2009 and 2008.  The results of operations for the three and six months ended June 30, 2009 and 2008 are not necessarily indicative of results to be expected for the entire year.  The Corporation issued its consolidated financial statements by filing them with the Securities and Exchange Commission (the "SEC") on August 10, 2009 and has evaluated subsequent events up to the time the consolidated financialstatements were filed. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | In June 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards CodificationTMandthe Hierarchy of Generally Accepted Accounting Principles – a replacement of FASB Statement No. 162  (“SFAS 168”). SFAS 168 provides for the FASB Accounting Standards CodificationTM (the “Codification”) to become the single official source of authoritative, nongovernmental U.S. Generally Accepted Accounting Principles (“GAAP”), except for rules and interpretive releases ofthe SEC, which are also sources of authoritative GAAP for SEC registrants. The Codification did not change GAAP but reorganizes the literature using a consistent structure. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. As the Codification was not intended to change or alter existing GAAP, it is not expected to impact the consolidated financial statements, however the Corporation will cease using prior GAAP references and begin to use thenew Codification when referring to GAAP in the Notes to the Consolidated Financial Statements in its quarterly report on Form 10-Q for the third quarter ending September 30, 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In June 2009, the FASB issued SFAS No. 166, Accounting for Transfers of Financial Assets – an amendment of FASB Statement No. 140 (“SFAS 166”) and SFAS No. 167, Amendments to FASB Interpretation No. 46(R) (“SFAS 167”). SFAS No. 166 eliminatesthe concept of a “qualifying special-purpose entity,” changes the requirements for derecognizing financial assets, and requires additional disclosures regarding an entity’s continuing involvement in and exposure to risks related to transferred financial assets. SFAS 167, which amends FASB Interpretation No. 46 (revised December 2003), replaces the quantitative approach previously required for determining which enterprise should consolidate a variable interest entity with a consolidation approachfocused on which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. SFAS 167 also requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity, and eliminates an exception indicating a troubled debt restructuring, as defined in paragraph 2 of FASB Statement No. 15,Accounting by Debtors and Creditors for Troubled Debt Restructurings, was 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.  SFAS No. 166 and 167 are effective for the Corporation on January 1, 2010. The Corporation is evaluating the impact that adoption of SFAS 166 and 167 will have on the consolidated financial statements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In May 2009, the FASB issued SFAS No. 165, Subsequent Events (“SFAS 165”), which sets forth general standards for potential recognition or disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 became effective in the second quarter of 2009and did not have a material impact on the consolidated financial statements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | In April 2009, the Financial Accounting Standards Board (“FASB”) issued the following three FASB Staff Positions intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of investment securities: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FASB Staff Position (“FSP”) FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP FAS 157-4”), provides additional guidance for estimating fair value in accordance with SFAS No. 157, FairValue Measurements, when the volume and level of activity for the asset or liability have decreased significantly.  FSP FAS 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“FSP FAS 115-2”), amends current other-than-temporary impairment guidance in GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt andequity securities in the financial statements.  This FSP does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As permitted, the Corporation elected to early adopt the provisions of FSP FAS 157-4 and FSP FAS 115-2 as of January 1, 2009.  See Note 7 – Investment Securities in Notes to Financial Statements for information regarding the impact of adopting FSP FAS 157-4 and FSP FAS 115-2. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FSP FAS 107-1 and Accounting Principles Board (“APB”) 28-1, Interim Disclosures about Fair Value of Financial Instruments (“FSP FAS 107-1 and APB 28-1”), requires disclosures about the fair value of financial instruments in interim reporting periods of publicly traded companies as well as in annual financial statements.  Theprovisions of FSP FAS 107-1 and APB 28-1 are effective for the Corporation’s interim period ending on June 30, 2009.  FSP FAS 107-1 and APB 28-1 amends only the Corporation’s disclosure requirements. See Note 3 – Fair Value Measurements and Note 14 – Fair Value of Financial Instruments in Notes to Financial Statements for information regarding the fair value of financial instruments at June 30, 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On January 1, 2009, the Corporation adopted the provisions of Statement of Financial Accounting Standard No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51 (“SFAS 160”).  The provisions of SFAS 160 establish accounting and reporting standards forownership interests in consolidated subsidiaries held by parties other than the parent, previously known as minority interests and now known as noncontrolling interests, including the accounting treatment upon the deconsolidation of a subsidiary.  This statement clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a separate component within total equity in the consolidated financial statements.  Additionally,consolidated net income is to be reported with separate disclosure of the amounts attributable to the parent and to the noncontrolling interests. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SFAS 160 was applied prospectively, except for the provisions related to the presentation of noncontrolling interests.  As of June 30, 2009, December 31, 2008 and June 30, 2008, noncontrolling interests of $10.7 million, $10.4 million and $9.9 million, respectively, have been reclassified from Accrued Expenses and Other Liabilities to Total Equity in the Consolidated Balance Sheets.  For the threemonths ended June 30, 2009 and 2008, net income attributable to noncontrolling interests of $0.5 million and $0.2 million, respectively, is included in net income.  For the six months ended June 30, 2009 and 2008, net income attributable to noncontrolling interests of $0.8 million and $0.4 million, respectively, is included in net income.  Prior to the adoption of SFAS 160, noncontrolling interests were a deduction to determine net income.  Under SFAS 160, noncontrolling interestsare a deduction from net income used to arrive at net income attributable to the Corporation.  Earnings per common share was not affected as a result of the adoption of the provisions of SAS 160. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The Corporation adopted Statement of Financial Accounting Standard No. 157, Fair Value Measurements (“SFAS 157”).  SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities.  The standard generally applies whenever other standards require or permit assets or liabilities to bemeasured at fair value.  Under the standard, 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 standard does not expand the use of fair value in any new circumstances. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All changes resulting from the application of SFAS 157 were applied prospectively.  The effect of adoption has been recognized in either earnings or other comprehensive income, depending on the applicable accounting requirements for the particular asset or liability being measured. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | SFAS 157 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.  Thethree 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 discountedcash 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 |
|--------|-----------------------------|

|   | 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.  Thesemodels 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.  Fairvalues 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 carryingvalue 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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-partydealers 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 riskmanagement 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 unforseen 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.  Basedon 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 June 30, 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 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 variesand 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 June 30, 2009.  While not significant, theCorporation did factor the estimated amount of expected loss due to customer default in the reported fair value of its customer derivative assets at June 30, 2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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 June 30, 2009 ($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                             |   | $                                                                                  | -      |   |                                               | $      | 18,484    |                                           |   | $ | - |   |
| Derivative assets                              |   |                                                                               | 121    |   |                                               |   | 242,512   |                                           |   |   | - |   |
| Total trading assets                           |   | $                                                                                  | 121    |   |                                               | $      | 260,996   |                                           |   | $ | - |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities available for sale (2)   |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities                          |   | $                                                                                  | 106    |   |                                               | $      | 5,280,838 |                                           |   | $ | 184,559 |   |
| Private equity investments                     |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 70,517 |   |
| Other assets                                   |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 4,945 |   |
| Total investment securities available for sale |   | $                                                                                  | 106    |   |                                               | $      | 5,280,838 |                                           |   | $ | 260,021 |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Liabilities (1)                                |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Other short-term borrowings                    |   | $                                                                                  | -      |   |                                               | $      | 210       |                                           |   | $ | - |   |
| Accrued expenses and other liabilities:        |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Derivative liabilities                         |   | $                                                                                  | -      |   |                                               | $      | 200,875   |                                           |   | $ | 14,743 |   |

| (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 inputsand are categorized as Level 2.  See Note 13 – 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 17  – Guarantees in Notes to Financial Statements for additionalinformation regarding Visa. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The investment securities included in Level 3 are primarily senior tranche asset-backed securities.  The amounts presented are exclusive of $386,036 of investments in Federal Reserve Bank and FHLB stock, which are bought and sold at par and are carried at cost, and $54,002 in affordable housing partnerships, which are generally carried on theequity method. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | Level 3 Gains and Losses |
|--------|--------------------------|

|   | 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 six months ended June 30, 2009 ($000’s): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                              |   | Investment Securities (1) |    |   | Private Equity Investments (2) |   |   | Other Assets |   |   | Total  |   |   | Derivative Liabilities |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|--------------------------------|--------|--------|--------------|--------|--------|--------|--------|--------|------------------------|---------|
| 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 |   |   | $ | - |   |
| Net payments, purchases and sales                                                                                                                                 |   |                      | (1,048  | )      |                           |   | 426    |         |   |   | (194   | )      |   |                   | (816    | ) |   |   | - |   |
| Discount accretion                                                                                                                                                |   |                      | 41      |   |                           |   | -      |         |   |   | 148    |   |   |                   | 189     |   |   |   | - |   |
| Net transfers in and/or out of Level 3                                                                                                                            |   |                      | -       |   |                           |   | -      |         |   |   | -      |   |   |                   | -       |   |   |   | - |   |
| Total gains or losses (realized or unrealized):                                                                                                                   |   |                      |    |   |                           |   |   |         |   |   |   |   |   |                   |    |   |   |   |   |   |
| Included in earnings                                                                                                                                              |   |                      | -       |   |                           |   | 3,869  |         |   |   | 10     |   |   |                   | 3,879   |   |   |   | 14,743 |   |
| Included in other comprehensive income                                                                                                                            |   |                      | 18,439  |   |                           |   | -      |         |   |   | (273   | )      |   |                   | 18,166  |   |   |   | - |   |
| Balance at June 30, 2009                                                                                                                                          |   | $                         | 184,559 |   |                           | $      | 70,517 |         |   | $      | 4,945  |   |   | $                      | 260,021 |   |   | $ | 14,743 |   |
|                                                                                                                                                              |   |                      |    |   |                           |   |   |         |   |   |   |   |   |                   |    |   |   |   |   |   |
| Unrealized gains or (losses) for the period included in earnings attributable to unrealized gains or losses for financial instruments still held at June 30, 2009 |   | $                         | -       |   |                           | $      | 3,865  |         |   | $      | -      |   |   | $                      | 3,865   |   |   | $ | (14,743 | ) |

| (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 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 in the Consolidated Statements of Income. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | 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 June 30, 2008 ($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                             |   | $                                                                                  | -      |   |                                               | $      | 38,119    |                                           |   | $ | - |   |
| Derivative assets                              |   |                                                                               | 303    |   |                                               |   | 94,706    |                                           |   |   | - |   |
| Total trading assets                           |   | $                                                                                  | 303    |   |                                               | $      | 132,825   |                                           |   | $ | - |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities available for sale (2)   |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Investment securities                          |   | $                                                                                  | 235    |   |                                               | $      | 6,905,554 |                                           |   | $ | 72,392 |   |
| Private equity investments                     |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 61,559 |   |
| Other assets                                   |   |                                                                               | -      |   |                                               |   | -         |                                           |   |   | 6,195 |   |
| Total investment securities available for sale |   | $                                                                                  | 235    |   |                                               | $      | 6,905,554 |                                           |   | $ | 140,146 |   |
|                                           |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Liabilities (1)                                |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Other short-term borrowings                    |   | $                                                                                  | -      |   |                                               | $      | 6,394     |                                           |   | $ | - |   |
| Accrued expenses and other liabilities:        |   |                                                                               |   |   |                                               |   |      |                                           |   |   |   |   |
| Derivative liabilities                         |   | $                                                                                  | 40     |   |                                               | $      | 72,082    |                                           |   | $ | - |   |

| (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 inputsand are categorized as Level 2.  See Note 13 in Notes to Financial Statements for further information. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The amounts presented are exclusive of $327,815 of investments in Federal Reserve Bank and FHLB stock, which are bought and sold at par and are carried at cost, and $38,842 in affordable housing partnerships, which are generally carried on the equity method. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | Level 3 Gains and Losses |
|--------|--------------------------|

|   | 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 six months ended June 30, 2008 ($000’s): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                            |   | Investment Securities (1) |   |   | Private Equity Investments (2) |   |   | Other Assets |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------|--------|--------|--------------|--------|--------|--------|--------|
| Balance at January 1, 2008                                                                                                                                      |   | $                         | 2,066  |   |                           | $      | 54,121 |         |   | $      | 9,030  |   |   | $ | 65,217 |   |
| Net payments, purchases and sales                                                                                                                               |   |                      | 14,319 |   |                           |   | 2,682  |         |   |   | (977   | )      |   |   | 16,024 |   |
| Discount accretion                                                                                                                                              |   |                      | 5      |   |                           |   | -      |         |   |   | 209    |   |   |   | 214 |   |
| Total gains or losses (realized or unrealized):                                                                                                                 |   |                      |   |   |                           |   |   |         |   |   |   |   |   |   |   |   |
| Included in earnings                                                                                                                                            |   |                      | -      |   |                           |   | 1,051  |         |   |   | (2,020 | )      |   |   | (969 | ) |
| Included in other comprehensive income                                                                                                                          |   |                      | -      |   |                           |   | -      |         |   |   | (29    | )      |   |   | (29 | ) |
| Balance at March 31, 2008                                                                                                                                       |   | $                         | 16,390 |   |                           | $      | 57,854 |         |   | $      | 6,213  |   |   | $ | 80,457 |   |
| Net payments, purchases and sales                                                                                                                               |   |                      | (3     | )      |                           |   | 3,092  |         |   |   | (965   | )      |   |   | 2,124 |   |
| Discount accretion/(premium amortization)                                                                                                                       |   |                      | (2     | )      |                           |   | -      |         |   |   | 183    |   |   |   | 181 |   |
| Net transfers in and/or out of Level 3                                                                                                                          |   |                      | 56,007 |   |                           |   | -      |         |   |   | -      |   |   |   | 56,007 |   |
| Total gains or losses (realized or unrealized):                                                                                                                 |   |                      |   |   |                           |   |   |         |   |   |   |   |   |   |   |   |
| Included in earnings                                                                                                                                            |   |                      | -      |   |                           |   | 613    |         |   |   | -      |   |   |   | 613 |   |
| Included in other comprehensive income                                                                                                                          |   |                      | -      |   |                           |   | -      |         |   |   | 764    |   |   |   | 764 |   |
| Balance at June 30, 2008                                                                                                                                        |   | $                         | 72,392 |   |                           | $      | 61,559 |         |   | $      | 6,195  |   |   | $ | 140,146 |   |
|                                                                                                                                                            |   |                      |   |   |                           |   |   |         |   |   |   |   |   |   |   |   |
| Unrealized gains or losses for the period included in earnings attributable to unrealized gains or losses for financial instruments still held at June 30, 2008 |   | $                         | -      |   |                           | $      | 293    |         |   | $      | (2,020 | )      |   | $ | (1,727 | ) |

| (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 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 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.  Nonaccrual loans greater than an established threshold are individually evaluated for impairment.  Impairment is measured based on the fair value of the collateral less estimatedselling costs or the fair value of the loan (“collateral value method”).  All consumer-related renegotiated loans are evaluated for impairment based on the present value of the estimated cash flows discounted at the loan’s original effective interest rate (“discounted cash flow method”).  A valuation allowance is recorded for the excess of the loan’s recorded investment over the amount determined by either the collateral value method or the discounted cashflow method.  This valuation allowance is a component of the Allowance for loan and lease losses.  The discounted cash flow method is not a fair value measure.  For the collateral value method, the Corporation generally obtains appraisals to support the fair value of collateral underlying loans.  Appraisals incorporate measures such as recent sales prices for comparable properties and costs of construction.  The Corporation considers these fair values Level 3.  Forthose loans individually evaluated for impairment using the collateral value method, a valuation allowance of $247,958 and $17,426 was recorded for loans with a recorded investment of $980,553 and $102,744 at June 30, 2009 and June 30, 2008, respectively.  See Note 9 – Allowance for Loan and Lease Losses in Notes to Financial Statements for more information. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | 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.  AtJune 30, 2009 and 2008, the estimated fair value of OREO, less estimated selling costs amounted to $356,790 and $207,102, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Corporation has adopted Statement of Financial Accounting Standard No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, Including an Amendment of FASB Statement No. 115 (“SFAS 159”).  SFAS 159 permits entities to choose to measure many financial instruments and certain other items generallyon an instrument-by-instrument basis at fair value that are not currently required to be measured at fair value.  SFAS 159 is intended to provide entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions.  SFAS 159 does not change requirements for recognizing and measuring dividend income, interest income, or interest expense.  The Corporationdid not elect to measure any existing financial instruments at fair value.  However, the Corporation may elect to measure newly acquired financial instruments at fair value in the future. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

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

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

|                                                                                                             |   | Three Months Ended June 30, 2009 |    |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                             |   | Before-Tax Amount                |    | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss                                                                                                         |   |                             |    |   |   |   |   | $ | (208,483 | ) |
| Other comprehensive income (loss):                                                                               |   |                             |    |   |   |   |   |   |   |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |                             |    |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                                | 26,536  |   |   | $ | (9,307 | ) |   | $ | 17,229 |   |
| Reclassification for securities transactions included in net income                                              |   |                             | (43,622 | ) |   |   | 15,268 |   |   |   | (28,354 | ) |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                                | (17,086 | ) |   | $ | 5,961 |   |   | $ | (11,125 | ) |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                                | 10,112  |   |   | $ | (3,539 | ) |   | $ | 6,573 |   |
| Reclassification adjustments for hedging activities included in net income                                       |   |                             | 17,000  |   |   |   | (5,950 | ) |   |   | 11,050 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                                | 27,112  |   |   | $ | (9,489 | ) |   | $ | 17,623 |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
| 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    | ) |   |   | 68 |   |   |   | (282 | ) |
| Total unrealized gains (losses) on funded status of defined benefit postretirement plan                          |   | $                                | (350    | ) |   | $ | 68 |   |   | $ | (282 | ) |
| Other comprehensive income, net of tax                                                                           |   |                             |    |   |   |   |   |   |   |   | 6,216 |   |
| Total comprehensive income (loss)                                                                                |   |                             |    |   |   |   |   |   |   |   | (202,267 | ) |
| Less:  Comprehensive income attributable to the noncontrolling interest                                |   |                             |    |   |   |   |   |   |   |   | (472 | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                                    |   |                             |    |   |   |   |   |   |   | $ | (202,739 | ) |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   | Three Months Ended June 30, 2008 |    |
|                                                                                                             |   | Before-Tax Amount                |    | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss                                                                                                         |   |                             |    |   |   |   |   |   |   | $ | (393,576 | ) |
| Other comprehensive income (loss):                                                                               |   |                             |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |                             |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                                | (62,728 | ) |   | $ | 22,249 |   |   | $ | (40,479 | ) |
| Reclassification for securities transactions included in net income                                              |   |                             | (39     | ) |   |   | 14 |   |   |   | (25 | ) |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                                | (62,767 | ) |   | $ | 22,263 |   |   | $ | (40,504 | ) |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                                | 48,984  |   |   | $ | (17,144 | ) |   | $ | 31,840 |   |
| Reclassification adjustments for hedging activities included in net income                                       |   |                             | 12,247  |   |   |   | (4,287 | ) |   |   | 7,960 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                                | 61,231  |   |   | $ | (21,431 | ) |   | $ | 39,800 |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
| 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 |   |                             | (528    | ) |   |   | 196 |   |   |   | (332 | ) |
| Total unrealized gains (losses) on funded status of defined benefit postretirement plan                          |   | $                                | (528    | ) |   | $ | 196 |   |   | $ | (332 | ) |
| Other comprehensive income (loss), net of tax                                                                    |   |                             |    |   |   |   |   |   |   |   | (1,036 | ) |
| Total comprehensive income (loss)                                                                                |   |                             |    |   |   |   |   |   |   |   | (394,612 | ) |
| Less:  Comprehensive income attributable to the noncontrolling interest                                |   |                             |    |   |   |   |   |   |   |   | (215 | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                                    |   |                             |    |   |   |   |   |   |   | $ | (394,827 | ) |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                             |    |   |   |   |   |   |   |   |   |   |

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Table of Contents

|                                                                                                             |   | Six Months Ended June 30, 2009 |    |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                             |   | Before-Tax Amount              |    | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss                                                                                                         |   |                           |    |   |   |   |   | $ | (300,130 | ) |
| Other comprehensive income (loss):                                                                               |   |                           |    |   |   |   |   |   |   |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |                           |    |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                              | 138,802 |   |   | $ | (48,735 | ) |   | $ | 90,067 |   |
| Reclassification for securities transactions included in net income                                              |   |                           | (43,868 | ) |   |   | 15,354 |   |   |   | (28,514 | ) |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                              | 94,934  |   |   | $ | (33,381 | ) |   | $ | 61,553 |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |                           |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                              | 10,726  |   |   | $ | (3,754 | ) |   | $ | 6,972 |   |
| Reclassification adjustments for hedging activities included in net income                                       |   |                           | 31,555  |   |   |   | (11,044 | ) |   |   | 20,511 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                              | 42,281  |   |   | $ | (14,798 | ) |   | $ | 27,483 |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| 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 |   |                           | (700    | ) |   |   | 226 |   |   |   | (474 | ) |
| Total net gains (losses) on funded status of defined benefit postretirement plan                                 |   | $                              | (700    | ) |   | $ | 226 |   |   | $ | (474 | ) |
| Other comprehensive income, net of tax                                                                           |   |                           |    |   |   |   |   |   |   |   | 88,562 |   |
| Total comprehensive income (loss)                                                                                |   |                           |    |   |   |   |   |   |   |   | (211,568 | ) |
| Less:  Comprehensive income attributable to the noncontrolling interest                                |   |                           |    |   |   |   |   |   |   |   | (791 | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                                    |   |                           |    |   |   |   |   |   |   | $ | (212,359 | ) |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   | Six Months Ended June 30, 2008 |    |
|                                                                                                             |   | Before-Tax Amount              |    | Tax (Expense) Benefit |   | Net-of-Tax Amount |   |
| Net loss                                                                                                         |   |                           |    |   |   |   |   |   |   | $ | (247,145 | ) |
| Other comprehensive income (loss):                                                                               |   |                           |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on available for sale investment securities:                                           |   |                           |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                              | (31,532 | ) |   | $ | 11,016 |   |   | $ | (20,516 | ) |
| Reclassification for securities transactions included in net income                                              |   |                           | (133    | ) |   |   | 47 |   |   |   | (86 | ) |
| Total unrealized gains (losses) on available for sale investment securities                                      |   | $                              | (31,665 | ) |   | $ | 11,063 |   |   | $ | (20,602 | ) |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on derivatives hedging variability of cash flows:                                      |   |                           |    |   |   |   |   |   |   |   |   |   |
| Arising during the period                                                                                        |   | $                              | (8,163  | ) |   | $ | 2,857 |   |   | $ | (5,306 | ) |
| Reclassification adjustments for hedging activities included in net income                                       |   |                           | 17,977  |   |   |   | (6,292 | ) |   |   | 11,685 |   |
| Total net gains (losses) on derivatives hedging variability of cash flows                                        |   | $                              | 9,814   |   |   | $ | (3,435 | ) |   | $ | 6,379 |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| 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 |   |                           | (1,056  | ) |   |   | 392 |   |   |   | (664 | ) |
| Total net gains (losses) on funded status of defined benefit postretirement plan                                 |   | $                              | (1,056  | ) |   | $ | 392 |   |   | $ | (664 | ) |
| Other comprehensive income (loss), net of tax                                                                    |   |                           |    |   |   |   |   |   |   |   | (14,887 | ) |
| Total comprehensive income (loss)                                                                                |   |                           |    |   |   |   |   |   |   |   | (262,032 | ) |
| Less:  Comprehensive income attributable to the noncontrolling interest                                |   |                           |    |   |   |   |   |   |   |   | (437 | ) |
| Comprehensive income (loss) attributable to Marshall & Ilsley Corporation                                    |   |                           |    |   |   |   |   |   |   | $ | (262,469 | ) |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |

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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 June 30, 2009 |     |
|--------------------------------------------------------------------------------|--------|----------------------------------|----------|
|                                                                           |   | Income (Numerator)               |     | Average Shares (Denominator) |   | Per Share Amount |   |
| Basic:                                                                         |   |                             |     |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                | (208,955 | ) |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                             | (25,013  | ) |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                | (233,968 | ) |   |   | 280,836 |   |   | $ | (0.83 | ) |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                             |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                             |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                             |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                | (208,955 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                             | (25,013  | ) |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                | (233,968 | ) |   |   | 280,836 |   |   | $ | (0.83 | ) |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Three Months Ended June 30, 2008 |     |
|                                                                           |   | Income (Numerator)               |     | Average Shares (Denominator) |   | Per Share Amount |   |
| Basic:                                                                         |   |                             |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                | (393,791 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                             | -        |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                | (393,791 | ) |   |   | 258,592 |   |   | $ | (1.52 | ) |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                             |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                             |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                             |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                                | (393,791 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                             | -        |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                                | (393,791 | ) |   |   | 258,592 |   |   | $ | (1.52 | ) |
|                                                                           |   |                             |     |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                                                           |   | Six Months Ended June 30, 2009 |     |
|--------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                           |   | Income (Numerator)             |     | Average Shares (Denominator) |   | Per Share Amount |   |
| Basic:                                                                         |   |                           |     |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                              | (300,921 | ) |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                           | (49,972  | ) |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                              | (350,893 | ) |   |   | 272,735 |   |   | $ | (1.29 | ) |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                           |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                           |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                              | (300,921 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                           | (49,972  | ) |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                              | (350,893 | ) |   |   | 272,735 |   |   | $ | (1.29 | ) |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Six Months Ended June 30, 2008 |     |
|                                                                           |   | Income (Numerator)             |     | Average Shares (Denominator) |   | Per Share Amount |   |
| Basic:                                                                         |   |                           |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                              | (247,582 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                           | -        |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                              | (247,582 | ) |   |   | 259,282 |   |   | $ | (0.95 | ) |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Stock option, restricted stock and other plans                                 |   |                           |     |   |   |   | - |   |   |   |   |   |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                       |   |                           |     |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation                     |   | $                              | (247,582 | ) |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                      |   |                           | -        |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Marshall & Ilsley Corporation common shareholders |   | $                              | (247,582 | ) |   |   | 259,282 |   |   | $ | (0.95 | ) |
|                                                                           |   |                           |     |   |   |   |   |   |   |   |   |   |

|        |   | Three Months Ended June 30, |   | Six Months Ended June 30, |
|-------------|--------|-----------------------------|--------|---------------------------|
|        |   | 2009                        |   | 2008                      |   | 2009 |   | 2008 |
| Shares      |   | 32,570                      |   | 29,884                    |   | 32,570 |   | 29,884 |
|        |   |                        |   |                      |   |   |   |   |
| Price Range |   | $4.76 - $36.82              |   | $8.55 - $36.82            |   | $4.76 - $36.82 |   | $8.55 - $36.82 |

----

Table of Contents

|   | Effective January 1, 2009, the Corporation adopted FSP No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (“FSP EITF 03-6-1”).  Under FSP EITF 03-6-1, unvested share-based payment awards that provide nonforfeitable rights to dividends (such as restrictedstock units granted by the Corporation) are considered participating securities to be included in the computation of earnings per share pursuant to the “two-class method” described in FASB Statement No. 128, Earnings per Share.  There was no impact to the Corporation’s current or prior periods presented as a result of the adoption of FSP EITF 03-6-1. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Business Combinations |
|----------------|-----------------------|

| 7.   | Investment Securities |
|----------------|-----------------------|

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

|                                   |   | June 30, 2009  |      |   | December 31, 2008 |   |      | June 30, 2008  |   |
|----------------------------------------|--------|----------------|-----------|--------|-------------------|--------|-----------|----------------|--------|
|                                   |   | Amortized Cost |      |   | Fair Value   |   |      | Amortized Cost |   |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |
| Available for sale:                    |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |
| U.S. treasury and government agencies  |   | $              | 3,937,512 |   |              | $      | 3,992,153 |           |   | $ | 5,664,947 |   |   | $ | 5,679,970 |   |   | $ | 5,824,343 |   |   | $ | 5,803,940 |   |
| States and political subdivisions      |   |           | 887,211   |   |              |   | 893,973   |           |   |   | 874,183 |   |   |   | 880,497 |   |   |   | 865,007 |   |   |   | 861,797 |   |
| Residential mortgage backed securities |   |           | 265,691   |   |              |   | 257,888   |           |   |   | 175,740 |   |   |   | 165,757 |   |   |   | 108,638 |   |   |   | 104,873 |   |
|                                   |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate notes                        |   |           | 153,537   |   |              |   | 154,939   |           |   |   | 133,844 |   |   |   | 134,295 |   |   |   | 10,000 |   |   |   | 10,000 |   |
| Cash flow hedge - corporate notes      |   |           | 571       |   |              |   | 571       |           |   |   | 121 |   |   |   | 121 |   |   |   | - |   |   |   | - |   |
| Corporate notes                        |   |           | 154,108   |   |              |   | 155,510   |           |   |   | 133,965 |   |   |   | 134,416 |   |   |   | 10,000 |   |   |   | 10,000 |   |
|                                   |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset backed securities (1)            |   |           | 210,225   |   |              |   | 162,117   |           |   |   | 211,676 |   |   |   | 110,931 |   |   |   | 214,296 |   |   |   | 192,943 |   |
| Equity                                 |   |           | 115       |   |              |   | 106       |           |   |   | 115 |   |   |   | 127 |   |   |   | 115 |   |   |   | 235 |   |
| Private Equity investments             |   |           | 70,529    |   |              |   | 70,517    |           |   |   | 65,300 |   |   |   | 65,288 |   |   |   | 61,571 |   |   |   | 61,559 |   |
| Federal Reserve Bank & FHLB stock  |   |           | 386,036   |   |              |   | 386,036   |           |   |   | 339,779 |   |   |   | 339,779 |   |   |   | 327,815 |   |   |   | 327,815 |   |
| Affordable Housing Partnerships        |   |           | 54,002    |   |              |   | 54,002    |           |   |   | 43,481 |   |   |   | 43,481 |   |   |   | 38,842 |   |   |   | 38,842 |   |
| Foreign                                |   |           | 3,756     |   |              |   | 3,756     |           |   |   | 4,403 |   |   |   | 4,403 |   |   |   | 4,393 |   |   |   | 4,393 |   |
| Other                                  |   |           | 4,386     |   |              |   | 4,945     |           |   |   | 4,465 |   |   |   | 5,903 |   |   |   | 5,205 |   |   |   | 6,195 |   |
| Total                                  |   | $              | 5,973,571 |   |              | $      | 5,981,003 |           |   | $ | 7,518,054 |   |   | $ | 7,430,552 |   |   | $ | 7,460,225 |   |   | $ | 7,412,592 |   |
|                                   |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                      |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions      |   | $              | 143,282   |   |              | $      | 147,029   |           |   | $ | 237,009 |   |   | $ | 242,395 |   |   | $ | 281,396 |   |   | $ | 287,401 |   |
| Foreign                                |   |           | 1,000     |   |              |   | 1,000     |           |   |   | 1,000 |   |   |   | 1,000 |   |   |   | 1,000 |   |   |   | 1,000 |   |
| Total                                  |   | $              | 144,282   |   |              | $      | 148,029   |           |   | $ | 238,009 |   |   | $ | 243,395 |   |   | $ | 282,396 |   |   | $ | 288,401 |   |
|                                   |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Beginning in 2009, the Corporation incorporated a discounted cash flow valuation methodology, which involves an evaluation of the credit quality of the underlying collateral, cash flow structure and risk adjusted discount rates, with market or broker quotes for certain senior tranche asset backed securities that met the criteria of FSP FAS 157-4 for theuse of such a valuation methodology.  Primarily as a result of this change, the fair value of these securities increased, however, the amount was not material.  This change was accounted for as a change in estimate and included in the unrealized gain included in other comprehensive income for the six months ended June 30, 2009. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                   |   | June 30, 2009    |   |   | December 31, 2008 |   |   | June 30, 2008    |   |
|----------------------------------------|--------|------------------|--------|--------|-------------------|--------|--------|------------------|--------|
|                                   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Unrealized Gains |   |   | Unrealized Losses |   |
| Available for sale:                    |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| U.S. treasury and government agencies  |   | $                | 79,211 |   |              | $      | 24,570 |             |   | $ | 93,541 |   |   | $ | 78,518 |   |   | $ | 25,530 |   |   | $ | 45,933 |   |
| States and political subdivisions      |   |             | 16,467 |   |              |   | 9,705  |             |   |   | 19,387 |   |   |   | 13,073 |   |   |   | 10,345 |   |   |   | 13,555 |   |
| Residential mortgage backed securities |   |             | 689    |   |              |   | 8,492  |             |   |   | 214 |   |   |   | 10,197 |   |   |   | 1 |   |   |   | 3,766 |   |
|                                   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate notes                        |   |             | 1,411  |   |              |   | 9      |             |   |   | 464 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
| Cash flow hedge - corporate notes      |   |             | -      |   |              |   | -      |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Corporate notes                        |   |             | 1,411  |   |              |   | 9      |             |   |   | 464 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
|                                   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset backed securities                |   |             | -      |   |              |   | 48,108 |             |   |   | - |   |   |   | 100,745 |   |   |   | 30 |   |   |   | 21,383 |   |
| Equity                                 |   |             | -      |   |              |   | 9      |             |   |   | 12 |   |   |   | - |   |   |   | 120 |   |   |   | - |   |
| Private Equity investments             |   |             | 52     |   |              |   | 64     |             |   |   | 52 |   |   |   | 64 |   |   |   | 52 |   |   |   | 64 |   |
| Federal Reserve Bank & FHLB stock  |   |             | -      |   |              |   | -      |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Affordable Housing Partnerships        |   |             | -      |   |              |   | -      |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                                |   |             | -      |   |              |   | -      |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other                                  |   |             | 559    |   |              |   | -      |             |   |   | 1,438 |   |   |   | - |   |   |   | 990 |   |   |   | - |   |
| Total                                  |   | $                | 98,389 |   |              | $      | 90,957 |             |   | $ | 115,108 |   |   | $ | 202,610 |   |   | $ | 37,068 |   |   | $ | 84,701 |   |
|                                   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                      |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions      |   | $                | 3,926  |   |              | $      | 179    |             |   | $ | 5,562 |   |   | $ | 176 |   |   | $ | 6,099 |   |   | $ | 94 |   |
| Foreign                                |   |             | -      |   |              |   | -      |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                  |   | $                | 3,926  |   |              | $      | 179    |             |   | $ | 5,562 |   |   | $ | 176 |   |   | $ | 6,099 |   |   | $ | 94 |   |
|                                   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total           |   |
|----------------------------------------|--------|---------------------|---------|--------|-------------------|--------|--------|-----------------|--------|
|                                   |   | Fair Value     |    |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                                   |   |                |    |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |
| U.S. treasury and government agencies  |   | $                   | 162,124 |   |              | $      | 1,363  |            |   | $ | 1,152,943 |   |   | $ | 23,207 |   |   | $ | 1,315,067 |   |   | $ | 24,570 |   |
| States and political subdivisions      |   |                | 41,476  |   |              |   | 1,099  |            |   |   | 196,306 |   |   |   | 8,785 |   |   |   | 237,782 |   |   |   | 9,884 |   |
| Residential mortgage backed securities |   |                | 108,922 |   |              |   | 4,711  |            |   |   | 63,078 |   |   |   | 3,781 |   |   |   | 172,000 |   |   |   | 8,492 |   |
| Corporate notes                        |   |                | 12,942  |   |              |   | 9      |            |   |   | - |   |   |   | - |   |   |   | 12,942 |   |   |   | 9 |   |
| Asset backed securities                |   |                | -       |   |              |   | -      |            |   |   | 160,815 |   |   |   | 48,108 |   |   |   | 160,815 |   |   |   | 48,108 |   |
| Equity                                 |   |                | 106     |   |              |   | 9      |            |   |   | - |   |   |   | - |   |   |   | 106 |   |   |   | 9 |   |
| Private Equity investments             |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | 64 |   |   |   | - |   |   |   | 64 |   |
| Federal Reserve Bank & FHLB stock  |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Affordable Housing Partnerships        |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                                |   |                | 1,975   |   |              |   | -      |            |   |   | 400 |   |   |   | - |   |   |   | 2,375 |   |   |   | - |   |
| Other                                  |   |                | -       |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                  |   | $                   | 327,545 |   |              | $      | 7,191  |            |   | $ | 1,573,542 |   |   | $ | 83,945 |   |   | $ | 1,901,087 |   |   | $ | 91,136 |   |
|                                   |   |                |    |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

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 and government agencies  |   | $                   | 2,734,328 |   |              | $      | 30,129 |            |   | $ | 461,764 |   |   | $ | 15,804 |   |   | $ | 3,196,092 |   |   | $ | 45,933 |   |
| States and political subdivisions      |   |                | 366,006   |   |              |   | 8,040  |            |   |   | 98,919 |   |   |   | 5,609 |   |   |   | 464,925 |   |   |   | 13,649 |   |
| Residential mortgage backed securities |   |                | 49,637    |   |              |   | 1,855  |            |   |   | 54,961 |   |   |   | 1,911 |   |   |   | 104,598 |   |   |   | 3,766 |   |
| Corporate notes                        |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset backed securities                |   |                | 190,637   |   |              |   | 21,383 |            |   |   | - |   |   |   | - |   |   |   | 190,637 |   |   |   | 21,383 |   |
| Equity                                 |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Private Equity investments             |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | 64 |   |   |   | - |   |   |   | 64 |   |
| Federal Reserve Bank & FHLB stock  |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Affordable Housing Partnerships        |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                                |   |                | 825       |   |              |   | -      |            |   |   | 400 |   |   |   | - |   |   |   | 1,225 |   |   |   | - |   |
| Other                                  |   |                | -         |   |              |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                  |   | $                   | 3,341,433 |   |              | $      | 61,407 |            |   | $ | 616,044 |   |   | $ | 23,388 |   |   | $ | 3,957,477 |   |   | $ | 84,795 |   |
|                                   |   |                |      |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                        |   | Available for Sale |      |   | Held to Maturity |   |
|-----------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                        |   | Amortized Cost     |      |   | Fair Value       |   |   | Amortized Cost |   |   | Fair Value |   |
| Within one year             |   | $                  | 442,318   |   |             | $      | 449,046 |   |   | $ | 31,026 |   |   | $ | 31,266 |   |
| From one through five years |   |               | 3,936,852 |   |             |   | 3,981,155 |   |   |   | 51,167 |   |   |   | 52,966 |   |
| From five through ten years |   |               | 477,507   |   |             |   | 486,760 |   |   |   | 61,895 |   |   |   | 63,600 |   |
| After ten years             |   |               | 1,116,894 |   |             |   | 1,064,042 |   |   |   | 194 |   |   |   | 197 |   |
| Total                       |   | $                  | 5,973,571 |   |             | $      | 5,981,003 |   |   | $ | 144,282 |   |   | $ | 148,029 |   |
|                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

| 8.   | Loans and Leases |
|----------------|------------------|

|   | The Corporation's loan and lease portfolio, including loans held for sale, consisted of the following ($000's): |
|--------|-----------------------------------------------------------------------------------------------------------------|

|                                   |   | June 30, |       |   | December 31, |   |       | June 30, |   |
|----------------------------------------|--------|----------|------------|--------|--------------|--------|------------|----------|--------|
|                                   |   | 2009     |       |   | 2008         |   |       | 2008     |   |
| Commercial, financial and agricultural |   | $        | 14,282,828 |   |         | $      | 14,880,153 |     |   | $ | 15,328,358 |   |
| Cash flow hedge - variable rate loans  |   |     | -          |   |         |   | -          |     |   |   | 12 |   |
| Commercial, financial and agricultural |   |     | 14,282,828 |   |         |   | 14,880,153 |     |   |   | 15,328,370 |   |
|                                   |   |     |       |   |         |   |       |     |   |   |   |   |
| Real estate:                           |   |     |       |   |         |   |       |     |   |   |   |   |
| Commercial mortgage                    |   |     | 13,938,317 |   |         |   | 12,541,506 |     |   |   | 11,891,077 |   |
| Residential mortgage                   |   |     | 5,464,643  |   |         |   | 5,733,908  |     |   |   | 5,631,449 |   |
| Construction and development           |   |     | 6,829,293  |   |         |   | 9,043,263  |     |   |   | 9,968,878 |   |
| Home equity loans and lines of credit  |   |     | 4,911,314  |   |         |   | 5,082,046  |     |   |   | 4,991,510 |   |
| Total real estate                      |   |     | 31,143,567 |   |         |   | 32,400,723 |     |   |   | 32,482,914 |   |
|                                   |   |     |       |   |         |   |       |     |   |   |   |   |
| Personal                               |   |     | 2,068,277  |   |         |   | 1,929,374  |     |   |   | 1,713,919 |   |
| Lease financing                        |   |     | 688,472    |   |         |   | 774,294    |     |   |   | 707,329 |   |
| Total loans and leases                 |   | $        | 48,183,144 |   |         | $      | 49,984,544 |     |   | $ | 50,232,532 |   |
|                                   |   |     |       |   |         |   |       |     |   |   |   |   |

| 9.   | Allowance for Loan and Lease Losses |
|----------------|-------------------------------------|

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

|                                  |   | Three Months Ended June 30, |      |   | Six Months Ended June 30, |   |
|---------------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                                  |   | 2009                        |      |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Balance at beginning of period        |   | $                           | 1,352,117 |   |                      | $      | 543,539 |   |   | $ | 1,202,167 |   |   | $ | 496,191 |   |
| Allowance of banks and loans acquired |   |                        | -         |   |                      |   | - |   |   |   | - |   |   |   | 32,110 |   |
| Provision for loan and lease losses   |   |                        | 618,992   |   |                      |   | 885,981 |   |   |   | 1,096,916 |   |   |   | 1,032,302 |   |
| Charge-offs                           |   |                        | (613,115  | )      |                      |   | (408,819 | ) |   |   | (953,338 | ) |   |   | (544,648 | ) |
| Recoveries                            |   |                        | 9,788     |   |                      |   | 8,108 |   |   |   | 22,037 |   |   |   | 12,854 |   |
| Balance at end of period              |   | $                           | 1,367,782 |   |                      | $      | 1,028,809 |   |   | $ | 1,367,782 |   |   | $ | 1,028,809 |   |
|                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |

|   | For purposes of impairment testing, nonaccrual loans greater than one million dollars and all 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.  Therequired valuation allowance is included in the allowance for loan and lease losses in the Consolidated Balance Sheets. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                 |   | June 30, 2009 |      |   | June 30, 2008 |   |
|------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                 |   | Recorded      |      |   | Valuation     |   |   | Recorded |   |   | Valuation |   |
|                                                 |   | Investment    |      |   | Allowance     |   |   | Investment |   |   | Allowance |   |
| Total nonaccrual and renegotiated loans and leases   |   | $             | 3,234,686 |   |          |   |   |   | $ | 1,023,280 |   |   |   |   |
| Less:  nonaccrual loans held for sale      |   |          | (194,489  | )      |          |   |   |   |   | (22,485 | ) |   |   |   |
| Total impaired loans and leases                      |   | $             | 3,040,197 |   |          |   |   |   | $ | 1,000,795 |   |   |   |   |
| Loans and leases excluded from individual evaluation |   |          | (703,833  | )      |          |   |   |   |   | (691,002 | ) |   |   |   |
| Impaired loans evaluated                             |   | $             | 2,336,364 |   |          |   |   |   | $ | 309,793 |   |   |   |   |
|                                                 |   |          |      |   |          |   |   |   |   |   |   |   |   |   |
| Valuation allowance required                         |   | $             | 1,462,467 |   |          | $      | 324,633 |   |   | $ | 119,267 |   |   | $ | 20,596 |   |
| No valuation allowance required                      |   |          | 873,897   |   |          |   | - |   |   |   | 190,526 |   |   |   | - |   |
| Impaired loans evaluated                             |   | $             | 2,336,364 |   |          | $      | 324,633 |   |   | $ | 309,793 |   |   | $ | 20,596 |   |
|                                                 |   |          |      |   |          |   |   |   |   |   |   |   |   |   |   |   |

|   | The average recorded investment in total impaired loans and leases for the quarters ended June 30, 2009 and 2008 amounted to $3,139,492and $976,896 respectively.  For the six months ended June 30, 2009 and 2008, the average recorded investment in total impaired loans and leases amounted to $2,705,435and $897,021, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The amount of cumulative net charge-offs recorded on the Corporation’s impaired loans outstanding at June 30, 2009 was approximately $877,336. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Financial Asset Sales |
|-----------------|-----------------------|

|   | The Corporation discontinued, on a recurring basis, the sale and securitization of automobile loans into the secondary market.  The carrying values of the remaining retained interests associated with the securitizations are reviewed on a monthly basis to determine if there is a decline in value that is other than temporary.  The propriety of the assumptions used are reviewed periodically basedon current historical experience as well as the sensitivities of the carrying value of the retained interests to adverse changes in the key assumptions.  The Corporation believes that its estimates result in a reasonable carrying value of the retained interests. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Retained interests and other assets consisted of the following ($000’s): |
|--------|--------------------------------------------------------------------------------|

|                     |   | June 30, 2009 |   |
|--------------------------|--------|---------------|--------|
| Interest-only strips     |   | $             | 4,945  |   |
| Cash collateral accounts |   |          | 35,465 |   |
| Servicing advances       |   |          | 55     |   |
| Total retained interests |   | $             | 40,465 |   |
|                     |   |          |   |   |

|   | There were no impairment losses associated with the remaining retained interests held in the form of interest-only strips and cash collateral accounts in the second quarter and first half of 2009.  For the six months ended June 30, 2008, impairment losses amounted to $2.0 million.  There were no impairment losses in the second quarter of 2008.  The impairment in 2008 was primarily theresult of the differences between the actual credit losses experienced compared to the expected credit losses used in measuring the retained interests. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Net trading gains associated with the auto securitization-related interest rate swap amounted to $0.3 million and $0.7 million for the three and six months ended June 30, 2009, respectively.  For the three months ended June 30, 2008, net trading gains were immaterial.  For the six months ended June 30, 2008, net trading gains associated with the auto securitization-related interest rate swap amountedto $0.8 million. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | At June 30, 2009, securitized automobile loans and other automobile loans managed together with them, along with delinquency and credit loss information, consisted of the following ($000’s): |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | Securitized |    |   | Portfolio |   |    | Total Managed |   |
|-----------------------------------------------------|--------|-------------|---------|--------|-----------|--------|---------|---------------|--------|
| Loan balances                                       |   | $           | 240,918 |   |      | $      | 800,413 |          |   | $ | 1,041,331 |   |
| Principal amounts of loans 60 days or more past due |   |        | 1,891   |   |      |   | 1,196   |          |   |   | 3,087 |   |
| Net credit losses year to date                      |   |        | 2,650   |   |      |   | 1,344   |          |   |   | 3,994 |   |

|   | As a result of clean-up calls and other events, the Corporation expects to acquire the remaining loans from the auto securitization trusts in the third quarter of 2009.  The loans will be returned as portfolio loans at fair value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Goodwill and Other Intangibles |
|-----------------|--------------------------------|

|                                  |   | Commercial Banking |    |   | Wealth Management |   |    | Others |   |   | Total   |   |
|---------------------------------------|--------|--------------------|---------|--------|-------------------|--------|---------|--------|--------|--------|---------|--------|
| Goodwill balance at December 31, 2008 |   | $                  | 327,246 |   |              | $      | 157,121 |   |   | $      | 120,777 |   |   | $ | 605,144 |   |
| Goodwill acquired during the period   |   |               | -       |   |              |   | 3,770   |   |   |   | -       |   |   |   | 3,770 |   |
| Purchase accounting adjustments       |   |               | -       |   |              |   | 2,814   |   |   |   | -       |   |   |   | 2,814 |   |
| Goodwill balance at June 30, 2009     |   | $                  | 327,246 |   |              | $      | 163,705 |   |   | $      | 120,777 |   |   | $ | 611,728 |   |
|                                  |   |               |    |   |              |   |    |   |   |   |    |   |   |   |   |   |

|   | Goodwill acquired during the second quarter of 2009 includes initial goodwill of $3.8 million for the acquisition of Delta.  See Note 6 – Business Combinations in Notes to Financial Statements for additional information regarding this acquisition.  Purchase accounting adjustments for Wealth Management represent adjustments made to the initial estimates of fair value associated with the acquisitionof Taplin, Canida & Habacht (“TCH”). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The changes in the carrying amount of goodwill for the six months ended June 30, 2008 were as follows ($000’s): |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|                                  |   | Commercial Banking |      |   | Community Banking |   |    | Wealth Management |   |   | Others  |   |   | Total  |    |
|---------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|---------|-------------------|--------|--------|---------|--------|--------|--------|---------|
| Goodwill balance at December 31, 2007 |   | $                  | 922,264   |   |              | $      | 560,332 |              |   | $      | 114,572 |   |   | $      | 87,777  |   |   | $ | 1,684,945 |   |
| Goodwill acquired during the period   |   |               | 326,966   |   |              |   | 81,263  |              |   |   | -       |   |   |   | -       |   |   |   | 408,229 |   |
| Purchase accounting adjustments       |   |               | -         |   |              |   | -       |              |   |   | 3,340   |   |   |   | -       |   |   |   | 3,340 |   |
| Reallocation of goodwill              |   |               | -         |   |              |   | (33,000 | )                 |   |   | -       |   |   |   | 33,000  |   |   |   | - |   |
| Goodwill balance at June 30, 2008     |   | $                  | 1,249,230 |   |              | $      | 608,595 |              |   | $      | 117,912 |   |   | $      | 120,777 |   |   | $ | 2,096,514 |   |
|                                  |   |               |      |   |              |   |    |              |   |   |    |   |   |   |    |   |   |   |   |   |

|   | Goodwill acquired during 2008 included initial goodwill of $408.2 million for the acquisition of First Indiana Corporation.  Purchase accounting adjustments for Wealth Management represent adjustments made to the initial estimates of fair value associated with the acquisition of North Star Financial Corporation and a reduction due to the divestiture of a component of North Star Financial Corporation.  Duringthe second quarter of 2008, management consolidated certain lending activities and transferred the assets and the related goodwill from the Community Banking segment to the National Consumer Lending Division reporting unit, which is a component of Others. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | At June 30, 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 |   |                     | $      | (142,664 | )                   |   | $ | 111,565 |   |
| Trust customers                |   |                  | 29,354  |   |                     |   | (5,758   | )                   |   |   | 23,596 |   |
| Tradename                      |   |                  | 3,975   |   |                     |   | (750     | )                   |   |   | 3,225 |   |
| Other intangibles              |   |                  | 7,066   |   |                     |   | (2,012   | )                   |   |   | 5,054 |   |
|                           |   | $                     | 294,624 |   |                     | $      | (151,184 | )                   |   | $ | 143,440 |   |
| Mortgage loan servicing rights |   |                  |    |   |                     |   |     |                |   | $ | 2,140 |   |
|                           |   |                  |    |   |                     |   |     |                |   |   |   |   |

|   | At June 30, 2008, 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 |   |                     | $      | (123,811 | )                   |   | $ | 130,418 |   |
| Trust customers                |   |                  | 11,384  |   |                     |   | (3,484   | )                   |   |   | 7,900 |   |
| Tradename                      |   |                  | 1,335   |   |                     |   | (319     | )                   |   |   | 1,016 |   |
| Other intangibles              |   |                  | 4,146   |   |                     |   | (819     | )                   |   |   | 3,327 |   |
|                           |   | $                     | 271,094 |   |                     | $      | (128,433 | )                   |   | $ | 142,661 |   |
| Mortgage loan servicing rights |   |                  |    |   |                     |   |     |                |   | $ | 2,638 |   |
|                           |   |                  |    |   |                     |   |     |                |   |   |   |   |

|   | Amortization expense of other intangible assets for the three months ended June 30, 2009 and 2008 amounted to $5.6 million and $5.7 million, respectively.  For the six months ended June 30, 2009 and 2008, amortization expense of other intangible assets amounted to $11.1 million and $11.3 million, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Amortization of mortgage loan servicing rights amounted to $0.2 million and $0.3 million for the three months ended June 30, 2009 and 2008, respectively.  For the six month periods ended June 30, 2009 and 2008, amortization of mortgage loan servicing rights amounted to $0.5 million and $0.6 million, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2010 |   | $      | 21,900 |   |
|------|--------|--------|--------|--------|
| 2011 |   |   | 18,634 |   |
| 2012 |   |   | 16,095 |   |
| 2013 |   |   | 13,770 |   |
| 2014 |   |   | 11,867 |   |

|   | Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (“SFAS 142”), adopts an aggregate view of goodwill and bases the accounting for goodwill on the units of the combined entity into which an acquired entity is integrated (those units are referred to as Reporting Units).  A ReportingUnit is an operating segment as defined in Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information, or one level below an operating segment. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SFAS 142 provides guidance for impairment testing of goodwill and intangible assets that are not amortized.  Goodwill is tested for impairment using a two-step process that begins with an estimation of the fair value of a Reporting Unit.  The first step is a screen for potential impairment and the second step measures the amount of impairment, if any. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | The Corporation has elected to perform its annual test for goodwill as of June 30th.  Other than goodwill, the Corporation did not have any other intangible assets that are not amortized at June 30, 2009. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As a result of applying the first step of goodwill impairment testing to determine if potential goodwill impairment existed at  June 30, 2009, Trust, Private Banking, and Brokerage, the three Reporting Units that comprise the Wealth Management segment, and the Capital Markets reporting unit “passed” (fair value exceeded the carrying amount) the first step of the goodwill impairment test.  TheCommercial segment and the National Consumer Banking reporting unit “failed” (the carrying amount exceeded the fair value) the first step of the goodwill impairment test at June 30, 2009 and are being subjected to the second step of the goodwill impairment test. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The second step of the goodwill impairment test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill.  The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined.  The fair value of a reporting unit is allocated to all of the assets and liabilities of that unit(including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill.  The allocation process is performed solely for purposes of testing goodwill for impairment. Recognized assets and liabilities and previously unrecognizedintangible assets are not adjusted or recognized as a result of the allocation process. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Corporation is in the process of completing the second step of the process in order to determine if there is any goodwill impairment for the two Reporting Units that failed step one of the goodwill impairment tests and one reporting unit that marginally passed step one of the goodwill impairment test. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The implied fair value of a reporting unit’s goodwill will generally increase if the fair value of its loans and leases are less than the carrying value of the reporting unit’s loans and leases.  The fair value of loans and leases was derived from discounted cash flow analysis as described in Note 14 – Fair Value of Financial Instruments in Notes to Financial Statements (“Note 14”). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As shown in Note 14, the Corporation believes that the stress and deterioration in the national real estate markets, liquidity stress and current economic conditions have depressed prices buyers and sellers are paying and receiving for bank-related assets, especially loans and leases.  As a result, the Corporation believes that the allocation of the fair values to the assets and liabilities assigned tothe individual Reporting Units will be less than their reported carrying values and does not expect that it will be required to recognize any goodwill impairment upon completion of the second step of the goodwill impairment test. See Fair Value Measurements within Critical Accounting Policies in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion about goodwill impairment tests. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 12.   | Deposits |
|-----------------|----------|

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

|                                |   | June 30, |       |   | December 31, |   |       | June 30, |   |
|-------------------------------------|--------|----------|------------|--------|--------------|--------|------------|----------|--------|
|                                |   | 2009     |       |   | 2008         |   |       | 2008     |   |
| Noninterest bearing demand          |   | $        | 7,847,624  |   |         | $      | 6,879,994  |     |   | $ | 6,390,374 |   |
| Interest bearing:                   |   |     |       |   |         |   |       |     |   |   |   |   |
| Savings and NOW                     |   |     | 4,893,674  |   |         |   | 3,454,085  |     |   |   | 3,253,086 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| Money Market                        |   |     | 9,978,638  |   |         |   | 10,753,000 |     |   |   | 10,773,424 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| CD's $100,000 and over:             |   |     |       |   |         |   |       |     |   |   |   |   |
| CD's $100,000 and over              |   |     | 12,323,896 |   |         |   | 12,301,142 |     |   |   | 12,397,614 |   |
| Cash flow hedge - Institutional CDs |   |     | 18,442     |   |         |   | 27,737     |     |   |   | 15,681 |   |
| Total CD's $100,000 and over        |   |     | 12,342,338 |   |         |   | 12,328,879 |     |   |   | 12,413,295 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| Other time                          |   |     | 5,737,826  |   |         |   | 5,743,480  |     |   |   | 5,065,119 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| Foreign                             |   |     | 392,245    |   |         |   | 1,863,703  |     |   |   | 3,278,195 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| Total interest bearing              |   |     | 33,344,721 |   |         |   | 34,143,147 |     |   |   | 34,783,119 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |
| Total deposits                      |   | $        | 41,192,345 |   |         | $      | 41,023,141 |     |   | $ | 41,173,493 |   |
|                                |   |     |       |   |         |   |       |     |   |   |   |   |

| 13.   | 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, 2008.  There were no significant new hedging strategies employed during the six months ended June 30, 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 SFAS 133.  They are carried at fair valuewith 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 contractsgenerally have nearly identical notional values, terms and indices.  The Corporation uses interest rate futures to economically hedge the exposure to interest rate risk arising from the interest rate swap (designated as trading) entered into in conjunction with its auto securitization activities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 litigationmatters as described in Note 24 - Guarantees in Notes to Consolidated Financial Statements in Item 8 of the Corporation’s 2008 Annual Report on Form 10-K (“2008 10-K”).  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 makecash 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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|   | As explained in the 2008 10-K, 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 byinformation disclosed by Visa. As a result, the Corporation has determined that the estimated fair value should 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 responsibilty 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 will be required to make a $3.1 million payment to the counterparty in the third quarter of 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | The following tables summarize the balance sheet category and fair values of trading instruments and other free standing derivatives not designated as hedging instruments under SFAS 133: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                   |   |                                 |    |                   |                                   |
|--------------------------------------------------------|--------|--------------------------------------|---------|------------------------|----------------------------------------|
| June 30, 2009                                          |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                                   | Fair Value ($ in millions) |   |
| Assets:                                                |   |                                 |    |                   |                                   |   |   |
| Interest rate contracts - swaps                        |   | $                                    | 4,978.5 |                   | Trading assets                         |   | $ | 237.3 |   |
| Interest rate contracts - purchased interest rate caps |   |                                 | 133.2   |                   | Trading assets                         |   |   | 1.2 |   |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 66.1    |                   | Trading assets                         |   |   | 4.0 |   |
| Equity derivative contracts - warrants                 |   |                                 | 0.1     |                   | Trading assets                         |   |   | 0.1 |   |
| Total assets                                           |   |                                 |    |                   |                                   |   | $ | 242.6 |   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |
| Liabilities:                                           |   |                                 |    |                   |                                   |   |   |   |   |
| Interest rate contracts - swaps                        |   | $                                    | 4,844.2 |                   | Accrued expenses and other liabilities |   | $ | 196.0 |   |
| Interest rate contracts - sold interest rate caps      |   |                                 | 152.1   |                   | Accrued expenses and other liabilities |   |   | 1.0 |   |
| Interest rate contracts - interest rate futures        |   |                                 | 1,205.0 |                   | Accrued expenses and other liabilities |   |   | (0.1 | ) |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 65.9    |                   | Accrued expenses and other liabilities |   |   | 4.0 |   |
| Equity derivative contracts - Visa                     |   |                                 | 1.0     |                   | Accrued expenses and other liabilities |   |   | 14.7 |   |
| Total liabilities                                      |   |                                 |    |                   |                                   |   | $ | 215.6 |   |
| Net positive fair value impact                         |   |                                 |    |                   |                                   |   | $ | 27.0 |   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |
|                                                   |   |                                 |    |                   |                                   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |
| June 30, 2008                                          |   | Notional Amount ($ in millions) |    | Balance Sheet Category |                                   | Fair Value ($ in millions) |   |
| Assets:                                                |   |                                 |    |                   |                                   |   |   |   |   |
| Interest rate contracts - swaps                        |   | $                                    | 3,484.5 |                   | Trading assets                         |   | $ | 90.8 |   |
| Interest rate contracts - purchased interest rate caps |   |                                 | 119.4   |                   | Trading assets                         |   |   | 0.7 |   |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 55.1    |                   | Trading assets                         |   |   | 3.2 |   |
| Equity derivative contracts - warrants                 |   |                                 | 0.1     |                   | Trading assets                         |   |   | 0.3 |   |
| Total assets                                           |   |                                 |    |                   |                                   |   | $ | 95.0 |   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |
| Liabilities:                                           |   |                                 |    |                   |                                   |   |   |   |   |
| Interest rate contracts - swaps                        |   | $                                    | 3,158.5 |                   | Accrued expenses and other liabilities |   | $ | 68.2 |   |
| Interest rate contracts - sold interest rate caps      |   |                                 | 119.4   |                   | Accrued expenses and other liabilities |   |   | 0.7 |   |
| Interest rate contracts - interest rate futures        |   |                                 | 2,155.0 |                   | Accrued expenses and other liabilities |   |   | - |   |
| Equity derivative contracts - equity indexed CDs       |   |                                 | 55.1    |                   | Accrued expenses and other liabilities |   |   | 3.2 |   |
| Total liabilities                                      |   |                                 |    |                   |                                   |   | $ | 72.1 |   |
| Net positive fair value impact                         |   |                                 |    |                   |                                   |   | $ | 22.9 |   |
|                                                   |   |                                 |    |                   |                                   |   |   |   |   |

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Table of Contents

|                                                         |   |                                                          |   | Amount of Gain or (Loss) Recognized in Income on Derivative ($ in millions) |   |
|--------------------------------------------------------------|--------|---------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                         |   |                                                          |   | Three Months Ended June 30,                                                 |   |
| Contract                                                     |   | Category of Gain or (Loss) Recognized in Income on Derivative |   | 2009                                                                        |   |   | 2008 |   |
| Interest Rate Contracts – Swaps                        |   | Other income - Other                                          |   | $                                                                           | 0.4    |   |   | $ | (0.4 | ) |
| Interest Rate Contracts – Purchased Interest Rate Caps |   | Other income - Other                                          |   |                                                                        | 0.2    |   |   |   | (0.3 | ) |
| Interest Rate Contracts – Sold Interest Rate Caps      |   | Other income - Other                                          |   |                                                                        | -      |   |   |   | 0.3 |   |
| Interest Rate Contracts – Interest Rate Futures        |   | Other income - Other                                          |   |                                                                        | (0.2   | ) |   |   | 4.1 |   |
| Equity Derivative Contracts – Equity-Indexed CDs       |   | Other income - Other                                          |   |                                                                        | -      |   |   |   | - |   |
| Equity Derivative Contracts – Warrants                 |   | Other income - Other                                          |   |                                                                        | -      |   |   |   | - |   |
| Equity Derivative Contracts – Visa                     |   | Other income - Other                                          |   |                                                                        | (14.7  | ) |   |   | - |   |
|                                                         |   |                                                          |   |                                                                        |   |   |   |   |   |   |
|                                                         |   |                                                          |   |                                                                        |   |   |   |   |   |   |
|                                                         |   |                                                          |   |                                                                        |   |   |   |   |   |   |
|                                                         |   |                                                          |   | Amount of Gain or (Loss) Recognized in Income on Derivative ($ in millions) |   |
|                                                         |   |                                                          |   | Six Months Ended June 30,                                                   |   |
| Contract                                                     |   | Category of Gain or (Loss) Recognized in Income on Derivative |   |  2009                                                                  |   |   |  2008 |   |
| Interest Rate Contracts – Swaps                        |   | Other income - Other                                          |   | $                                                                           | 3.6    |   |   | $ | 10.9 |   |
| Interest Rate Contracts – Purchased Interest Rate Caps |   | Other income - Other                                          |   |                                                                        | 1.2    |   |   |   | 0.7 |   |
| Interest Rate Contracts – Sold Interest Rate Caps      |   | Other income - Other                                          |   |                                                                        | (1.0   | ) |   |   | (0.7 | ) |
| Interest Rate Contracts – Interest Rate Futures        |   | Other income - Other                                          |   |                                                                        | (0.7   | ) |   |   | (2.4 | ) |
| Equity Derivative Contracts – Equity-Indexed CDs       |   | Other income - Other                                          |   |                                                                        | -      |   |   |   | - |   |
| Equity Derivative Contracts – Warrants                 |   | Other income - Other                                          |   |                                                                        | -      |   |   |   | (0.2 | ) |
| Equity Derivative Contracts – Visa                     |   | Other income - Other                                          |   |                                                                        | (14.7  | ) |   |   | - |   |

|   | The Corporation uses various derivative instruments that qualify as hedging relationships under SFAS 133.  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 ValueMeasurements in Notes to Financial Statements for additional information. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | The following tables summarize the balance sheet category and fair values of derivatives designated as hedging instruments under SFAS 133: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| June 30, 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 |                            | $      | 0.6    |                                    |   |   | 1.1 |   |
| Total assets                   |   |            |   |                     |   |                                 |    |                   |                  |                            | $      | 0.6    |                                    |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Liabilities                    |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Interest rate contracts:       |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Institutional CDs        |   | $                                    | 300.0   |                   | Deposits              |                            | $      | 18.4   |                                    |   |   | 1.6 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Brokered Bullet CDs      |   |                                 | 209.3   |                   | Deposits              |                            |   | (8.2   | )                                       |   |   | 3.9 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Callable CDs             |   |                                 | 6,019.4 |                   | Deposits              |                            |   | 180.5  |                                    |   |   | 13.8 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Institutional CDs        |   |                                 | 25.0    |                   | Deposits              |                            |   | (2.3   | )                                       |   |   | 26.9 |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | FHLB advances            |   |                                 | 1,340.0 |                   | Long-term borrowings  |                            |   | 72.2   |                                    |   |   | 2.6 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Floating rate bank notes |   |                                 | 416.4   |                   | Long-term borrowings  |                            |   | 24.8   |                                    |   |   | 1.8 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Fixed rate bank notes    |   |                                 | 648.2   |                   | Long-term borrowings  |                            |   | (23.7  | )                                       |   |   | 5.8 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Medium term notes        |   |                                 | 6.6     |                   | Long-term borrowings  |                            |   | -      |                                    |   |   | 18.7 |   |
| Total liabilities              |   |            |   |                     |   |                                 |    |                   |                  |                            | $      | 261.7  |                                    |   |   |   |   |
| Net negative fair value impact |   |            |   |                     |   |                                 |    |                   |                  |                            | $      | (261.1 | )                                       |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                  |                            |   |   |                                    |   |   |   |   |

| June 30, 2008                  |   | 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       |   | Variable rate loans      |   | $                                    | 100.0   |                   | Loans and leases     |                            | $      | 0.0    |                                    |   |   | 0.0 |   |
| Total assets                   |   |            |   |                     |   |                                 |    |                   |                 |                            | $      | 0.0    |                                    |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |
| Liabilities                    |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |
| Interest rate contracts:       |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Institutional CDs        |   | $                                    | 725.0   |                   | Deposits             |                            | $      | 15.7   |                                    |   |   | 1.4 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Brokered Bullet CDs      |   |                                 | 210.7   |                   | Deposits             |                            |   | 5.1    |                                    |   |   | 4.9 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Callable CDs             |   |                                 | 4,810.2 |                   | Deposits             |                            |   | 129.6  |                                    |   |   | 12.9 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Institutional CDs        |   |                                 | 25.0    |                   | Deposits             |                            |   | (0.2   | )                                       |   |   | 27.9 |   |
|                           |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | FHLB advances            |   |                                 | 1,060.0 |                   | Long-term borrowings |                            |   | 34.2   |                                    |   |   | 3.5 |   |
| Pay fixed rate swaps           |   | Cash Flow       |   | Floating rate bank notes |   |                                 | 800.0   |                   | Long-term borrowings |                            |   | 10.8   |                                    |   |   | 1.8 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Fixed rate bank notes    |   |                                 | 100.0   |                   | Long-term borrowings |                            |   | 1.5    |                                    |   |   | 7.8 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Fixed rate bank notes    |   |                                 | 354.5   |                   | Long-term borrowings |                            |   | (3.8   | )                                       |   |   | 7.4 |   |
| Receive fixed rate swaps       |   | Fair Value      |   | Medium term notes        |   |                                 | 7.0     |                   | Long-term borrowings |                            |   | 0.2    |                                    |   |   | 19.7 |   |
| Total liabilities              |   |            |   |                     |   |                                 |    |                   |                 |                            | $      | 193.1  |                                    |   |   |   |   |
| Net negative fair value impact |   |            |   |                     |   |                                 |    |                   |                 |                            | $      | (193.1 | )                                       |   |   |   |   |
|                           |   |            |   |                     |   |                                 |    |                   |                 |                            |   |   |                                    |   |   |   |   |

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Table of Contents

| Interest rate contracts  |   | Category of Gain (Loss) Recognized in Income on Derivative |   | Amount of Gain (Loss) Recognized in Income on Derivative |   | Category of Gain (Loss) Recognized in Income on Hedged Item |       | Amount of Gain (Loss) Recognized in Income on Hedged Item |              |
|--------------------------|--------|------------------------------------------------------------|--------|----------------------------------------------------------|--------|-------------------------------------------------------------|------------|----------------------------------------------------------------|-------------------|
|                     |   |                                                       |   | Three Months Ended June 30,                              |   |                                                        |       | Three Months Ended June 30,                                    |              |
|                     |   |                                                       |   | 2009                                                     |   |                                                        | 2008       |                                                           |              |   | 2009 |   |   | 2008 |   |
|                     |   | Interest expense:                                          |   |                                                     |   |                                                        |       |                                                           | Interest expense: |   |   |   |   |   |   |
|                     |   | Deposits:                                                  |   |                                                     |   |                                                        |       |                                                           | Deposits:         |   |   |   |   |   |   |
| Receive fixed rate swaps |   | Institutional CDs                                          |   | $                                                        | 0.1    |                                                        |       | $                                                              | (0.7              | ) | Institutional CDs |   | $ | 0.2 |   |   | $ | 1.1 |   |
| Receive fixed rate swaps |   | Callable CDs                                               |   |                                                     | (118.3 | )                                                           |       |                                                           | (103.6            | ) | Callable CDs |   |   | 177.5 |   |   |   | 124.4 |   |
| Receive fixed rate swaps |   | Brokered Bullet CDs                                        |   |                                                     | (3.5   | )                                                           |       |                                                           | (7.7              | ) | Brokered Bullet CDs |   |   | 5.2 |   |   |   | 8.2 |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |
|                     |   | Long-term borrowings:                                      |   |                                                     |   |                                                        |       |                                                           |              |   | Long-term borrowings: |   |   |   |   |   |   |   |   |
| Receive fixed rate swaps |   | Fixed rate bank notes                                      |   |                                                     | (16.7  | )                                                           |       |                                                           | (14.7             | ) | Fixed rate bank notes |   |   | 19.7 |   |   |   | 16.4 |   |
| Receive fixed rate swaps |   | Medium term notes                                          |   |                                                     | -      |                                                        |       |                                                           | (0.1              | ) | Medium term notes |   |   | - |   |   |   | 0.2 |   |
| Receive fixed rate swaps |   | Other                                                      |   |                                                     | -      |                                                        |       |                                                           | -                 |   | Other |   |   | 0.1 |   |   |   | 0.1 |   |
|                     |   | Total                                                      |   | $                                                        | (138.4 | )                                                           |       | $                                                              | (126.8            | ) | Total |   | $ | 202.7 |   |   | $ | 150.4 |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts  |   | Category of Gain (Loss) Recognized in Income on Derivative |   | Amount of Gain (Loss) Recognized in Income on Derivative |   | Category of Gain (Loss) Recognized in Income on Hedged Item |       | Amount of Gain (Loss) Recognized in Income on Hedged Item |              |
|                     |   |                                                       |   | Six Months Ended June 30,                                |   |                                                        |       | Six Months Ended June 30,                                      |              |
|                     |   |                                                       |   |  2009                                               |   |                                                        |  2008 |                                                           |              |   |  2009 |   |   |  2008 |   |
|                     |   | Interest expense:                                          |   |                                                     |   |                                                        |       |                                                           |              |   | Interest expense: |   |   |   |   |   |   |   |   |
|                     |   | Deposits:                                                  |   |                                                     |   |                                                        |       |                                                           |              |   | Deposits: |   |   |   |   |   |   |   |   |
| Receive fixed rate swaps |   | Institutional CDs                                          |   | $                                                        | 0.5    |                                                        |       | $                                                              | 0.6               |   | Institutional CDs |   | $ | 0.1 |   |   | $ | 0.1 |   |
| Receive fixed rate swaps |   | Callable CDs                                               |   |                                                     | (158.4 | )                                                           |       |                                                           | (102.6            | ) | Callable CDs |   |   | 280.9 |   |   |   | 127.6 |   |
| Receive fixed rate swaps |   | Brokered Bullet CDs                                        |   |                                                     | (3.0   | )                                                           |       |                                                           | (4.5              | ) | Brokered Bullet CDs |   |   | 6.3 |   |   |   | 5.1 |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |
|                     |   | Long-term borrowings:                                      |   |                                                     |   |                                                        |       |                                                           |              |   | Long-term borrowings: |   |   |   |   |   |   |   |   |
| Receive fixed rate swaps |   | Fixed rate bank notes                                      |   |                                                     | (25.1  | )                                                           |       |                                                           | 3.2               |   | Fixed rate bank notes |   |   | 30.3 |   |   |   | (1.0 | ) |
| Receive fixed rate swaps |   | Medium term notes                                          |   |                                                     | (0.1   | )                                                           |       |                                                           | (0.1              | ) | Medium term notes |   |   | 0.1 |   |   |   | 0.1 |   |
| Receive fixed rate swaps |   | Other                                                      |   |                                                     | -      |                                                        |       |                                                           | -                 |   | Other |   |   | 0.2 |   |   |   | 0.2 |   |
|                     |   | Total                                                      |   | $                                                        | (186.1 | )                                                           |       | $                                                              | (103.4            | ) | Total |   | $ | 317.9 |   |   | $ | 132.1 |   |
|                     |   |                                                       |   |                                                     |   |                                                        |       |                                                           |              |   |   |   |   |   |   |   |   |   |   |

|   | For the three and six months ended June 30, 2009 and 2008, respectively, the impact to net interest income due to ineffectiveness was not material. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The effect of cash flow hedges under SFAS 133 for the three months ended June 30, 2009 and 2008 ($ in millions): |
|--------|------------------------------------------------------------------------------------------------------------------|

| Three Months Ended June 30, 2009                                                                    |   | 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 |   |   |   |   |   |   |   |   |   |
| Investment securities - Corporate notes AFS                                                         |   | $                                                                              | 0.2    |                                                                                        |   | $                                                                          | (0.1   | ) |   | $ | 0.1 |   | Investment securities - Corporate notes AFS |   | $ | (0.1 | ) |   | $ | - |   |   | $ | (0.1 | ) |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                             |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                           |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                   |   |                                                                           | (0.5   | )                                                                                           |   |                                                                       | 0.2    |   |   |   | (0.3 | ) | Institutional CDs |   |   | 5.0 |   |   |   | (1.8 | ) |   |   | 3.2 |   |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                               |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                       |   |                                                                           | 10.0   |                                                                                        |   |                                                                       | (3.5   | ) |   |   | 6.5 |   | FHLB advances |   |   | 9.3 |   |   |   | (3.2 | ) |   |   | 6.1 |   |
| Floating rate bank notes                                                                            |   |                                                                           | 0.4    |                                                                                        |   |                                                                       | (0.1   | ) |   |   | 0.3 |   | Floating rate bank notes |   |   | 2.6 |   |   |   | (1.0 | ) |   |   | 1.6 |   |
| Other                                                                                               |   |                                                                           | -      |                                                                                        |   |                                                                       | -      |   |   |   | - |   | Other (1) |   |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |
|                                                                                                |   | $                                                                              | 10.1   |                                                                                        |   | $                                                                          | (3.5   | ) |   | $ | 6.6 |   |   |   | $ | 17.0 |   |   | $ | (6.0 | ) |   | $ | 11.0 |   |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |
| (1) Represents amortization for the three months ended June 30, 2009 from the termination of swaps. |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |

| Three Months Ended June 30, 2008                                                                    |   | 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                                                              |   | $                                                                              | -      |                                                                                        |   | $                                                                          | -      |   |   | $ | - |   | Loans and leases - Variable rate loans |   | $ | (0.1 | ) |   | $ | - |   |   | $ | (0.1 | ) |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                             |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                           |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                   |   |                                                                           | 10.2   |                                                                                        |   |                                                                       | (3.6   | ) |   |   | 6.6 |   | Institutional CDs |   |   | 4.6 |   |   |   | (1.6 | ) |   |   | 3.0 |   |
| Brokered Money Market                                                                               |   |                                                                           | 0.1    |                                                                                        |   |                                                                       | -      |   |   |   | 0.1 |   | Brokered Money Market |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                               |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                       |   |                                                                           | 29.2   |                                                                                        |   |                                                                       | (10.2  | ) |   |   | 19.0 |   | FHLB advances |   |   | 4.6 |   |   |   | (1.6 | ) |   |   | 3.0 |   |
| Floating rate bank notes                                                                            |   |                                                                           | 9.5    |                                                                                        |   |                                                                       | (3.3   | ) |   |   | 6.2 |   | Floating rate bank notes |   |   | 3.0 |   |   |   | (1.1 | ) |   |   | 1.9 |   |
| Other (1)                                                                                           |   |                                                                           | (0.1   | )                                                                                           |   |                                                                       | -      |   |   |   | (0.1 | ) | Other (1) |   |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |
|                                                                                                |   | $                                                                              | 48.9   |                                                                                        |   | $                                                                          | (17.1  | ) |   | $ | 31.8 |   |   |   | $ | 12.3 |   |   | $ | (4.3 | ) |   | $ | 8.0 |   |
|                                                                                                |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |
| (1) Represents amortization for the three months ended June 30, 2008 from the termination of swaps. |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |

----

Table of Contents

|   | The effect of cash flow hedges under SFAS 133 for the six months ended June 30, 2009 and 2008 ($ in millions): |
|--------|----------------------------------------------------------------------------------------------------------------|

| Six Months Ended June 30, 2009                                                                    |   | 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 |   |   |   |   |   |   |   |   |   |
| Investment securities - Corporate notes AFS                                                       |   | $                                                                              | 0.6    |                                                                                        |   | $                                                                          | (0.2   | ) |   | $ | 0.4 |   | Investment securities - Corporate notes AFS |   | $ | (0.1 | ) |   | $ | - |   |   | $ | (0.1 | ) |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                           |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                         |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                 |   |                                                                           | (0.3   | )                                                                                           |   |                                                                       | 0.1    |   |   |   | (0.2 | ) | Institutional CDs |   |   | 9.6 |   |   |   | (3.4 | ) |   |   | 6.2 |   |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                             |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                     |   |                                                                           | 9.3    |                                                                                        |   |                                                                       | (3.2   | ) |   |   | 6.1 |   | FHLB advances |   |   | 16.9 |   |   |   | (5.9 | ) |   |   | 11.0 |   |
| Floating rate bank notes                                                                          |   |                                                                           | 1.1    |                                                                                        |   |                                                                       | (0.4   | ) |   |   | 0.7 |   | Floating rate bank notes |   |   | 4.8 |   |   |   | (1.7 | ) |   |   | 3.1 |   |
| Other                                                                                             |   |                                                                           | -      |                                                                                        |   |                                                                       | -      |   |   |   | - |   | Other (1) |   |   | 0.4 |   |   |   | (0.1 | ) |   |   | 0.3 |   |
|                                                                                              |   | $                                                                              | 10.7   |                                                                                        |   | $                                                                          | (3.7   | ) |   | $ | 7.0 |   |   |   | $ | 31.6 |   |   | $ | (11.1 | ) |   | $ | 20.5 |   |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |
| (1) Represents amortization for the six months ended June 30, 2009 from the termination of swaps. |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |

| Six Months Ended June 30, 2008                                                                    |   | 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                                                            |   | $                                                                              | 0.5    |                                                                                        |   | $                                                                          | (0.2   | ) |   | $ | 0.3 |   | Loans and leases - Variable rate loans |   | $ | 0.2 |   |   | $ | (0.1 | ) |   | $ | 0.1 |   |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                           |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Interest expense |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                         |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Deposits: |   |   |   |   |   |   |   |   |   |   |   |   |
| Institutional CDs                                                                                 |   |                                                                           | (4.3   | )                                                                                           |   |                                                                       | 1.5    |   |   |   | (2.8 | ) | Institutional CDs |   |   | 6.6 |   |   |   | (2.3 | ) |   |   | 4.3 |   |
| Brokered Money Market                                                                             |   |                                                                           | 0.1    |                                                                                        |   |                                                                       | -      |   |   |   | 0.1 |   | Brokered Money Market |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term borrowings:                                                                             |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   | Long-term borrowings: |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                                                                     |   |                                                                           | (3.0   | )                                                                                           |   |                                                                       | 1.1    |   |   |   | (1.9 | ) | FHLB advances |   |   | 7.1 |   |   |   | (2.5 | ) |   |   | 4.6 |   |
| Floating rate bank notes                                                                          |   |                                                                           | (1.4   | )                                                                                           |   |                                                                       | 0.5    |   |   |   | (0.9 | ) | Floating rate bank notes |   |   | 3.7 |   |   |   | (1.3 | ) |   |   | 2.4 |   |
| Other                                                                                             |   |                                                                           | (0.1   | )                                                                                           |   |                                                                       | -      |   |   |   | (0.1 | ) | Other (1) |   |   | 0.4 |   |   |   | (0.1 | ) |   |   | 0.3 |   |
|                                                                                              |   | $                                                                              | (8.2   | )                                                                                           |   | $                                                                          | 2.9    |   |   | $ | (5.3 | ) |   |   | $ | 18.0 |   |   | $ | (6.3 | ) |   | $ | 11.7 |   |
|                                                                                              |   |                                                                           |   |                                                                                        |   |                                                                       |   |   |   |   |   |   |
| (1) Represents amortization for the six months ended June 30, 2008 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 and six months ended June 30, 2009 and 2008, respectively.  The estimated reclassification from accumulated other comprehensive income related to cash flow hedges in the next twelve months is approximately $72.6 million. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 14.   | Fair Value of Financial Instruments |
|-----------------|-------------------------------------|

|   | The carrying amount and estimated fair values for on and off-balance sheet financial instruments as of June 30, 2009 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 derivativesare included in Trading assets and Derivative liabilities.  See Note 3 – Fair Value Measurements and Note 13 – Derivative Financial Instruments and Hedging Activities in Notes to Financial Statements for additional information regarding trading and other free standing derivatives. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | June 30, 2009   |     |
|------------------------------------------|--------|-----------------|----------|
|                                     |   | Carrying Amount |     |   | Fair Value |   |
|                                     |   | ($ in millions) |     |
| Financial assets:                        |   |            |     |   |   |   |
| Cash and short term investments          |   | $               | 1,712.6  |   |   | $ | 1,712.6 |   |
| Trading assets                           |   |            | 261.1    |   |   |   | 261.1 |   |
| Investment securities available for sale |   |            | 5,981.0  |   |   |   | 5,981.0 |   |
| Investment securities held to maturity   |   |            | 144.3    |   |   |   | 148.0 |   |
| Net loans and leases                     |   |            | 46,815.4 |   |   |   | 42,203.5 |   |
| Interest receivable                      |   |            | 180.2    |   |   |   | 180.2 |   |
|                                     |   |            |     |   |   |   |   |   |
| Financial liabilities:                   |   |            |     |   |   |   |   |   |
| Deposits                                 |   | $               | 41,192.3 |   |   | $ | 41,584.0 |   |
| Short-term borrowings                    |   |            | 1,474.9  |   |   |   | 1,481.2 |   |
| Long-term borrowings                     |   |            | 9,297.5  |   |   |   | 8,662.3 |   |
| Derivative liabilities                   |   |            | 215.6    |   |   |   | 215.6 |   |
| Interest payable                         |   |            | 226.0    |   |   |   | 226.0 |   |

|   | Where readily available, quoted market prices are utilized by the Corporation.  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. |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | Trading assets and investment securities |
|--------|------------------------------------------|

|   | Fair value is based on market prices where available.  Estimated fair values for residual interests in the form of interest-only strips from automobile loan securitizations are based on discounted cash flow analysis.  The fair value of trading assets and investment securities are categorized as Level 1, Level 2 and Level 3, based on the inputs to the valuations.  See Note 3 – FairValue Measurements in Notes to Financial Statements for additional information. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | Net loans and leases |
|--------|----------------------|

|   | The fair value of loans and leases was derived from discounted cash flow analyses.  Loans and leases as of  June 30, 2009 were grouped into 1,900 pools based on similar characteristics such as maturity, payment type and payment frequency, rate type and underlying index, recent loan-to-value (LTV) measures and various types of credit indicators such as recent FICO scores and the Corporation’sinternal loan rating system.  Credit spreads were derived from observable information wherever possible.  In cases where observable information was not available because of inactive markets or the change in the loan characteristics such as declining collateral values, certain adjustments were judgmentally made to estimate credit spreads consistent with the manner the Corporation believes market participants would assess the fair value of the loan pool. The Corporation has estimated that increasingor decreasing the credit spreads by the equivalent of a 2 credit rating adjustment could affect the aggregate fair value of the loans and leases by approximately $0.8 billion or 1.8% of the net carrying value of total loans and leases at June 30, 2009. The fair value of loans held for sale is based on the expected sales price.  At June 30, 2009, the fair value of net loans and leases are considered Level 2 and Level 3 in the fair value hierarchy. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deposits |
|--------|----------|

|   | The fair value for demand deposits or any interest bearing deposits with no fixed maturity date is considered to approximate the carrying value.  Time deposits with defined maturity dates are considered to have a fair value which approximates the book value if the maturity date was within three months of June 30.  The remaining time deposits are assigned fair values based on a discounted cashflow analysis using discount rates that approximate interest rates currently being offered on time deposits with comparable maturities.  At June 30, 2009, the fair value of deposits is considered Level 2 in the Fair Value Hierarchy. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Borrowings |
|--------|------------|

|   | Short-term borrowings are generally carried at cost that approximates fair value. Long-term debt is valued using discounted cash flow analysis with discount curves developed using several methods. Wherever possible, the Corporation uses pricing from industry accepted services or  recently observed transactions in the Corporation’s long-term debt to develop the discounting curves. The observed transactionsare between unaffiliated parties where there has been sufficient transaction volume to conclude that the observed pricing is representative of the fair value of the long-term debt obligation. In the absence of representative observed transactions, the Corporation develops discount curves based on current incremental borrowing rates for similar types of arrangements. The fair value of borrowings are considered Level 2 in the Fair Value Hierarchy. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 June 30, 2009 ($ in millions): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | June 30, 2009 |   |
|------------------------------|--------|---------------|--------|
| Loan commitments             |   | $             | 14.2   |   |
| Commercial letters of credit |   |          | 0.5    |   |
| Capital support agreements   |   |          | 3.8    |   |
| Standby letters of credit    |   |          | 10.9   |   |

| 15.   | 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 employeeshired 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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | Net periodic postretirement benefit cost for the three and six months ended June 30, 2009 and 2008 included the following components ($000’s): |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                     |   | 2009                        |   |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Service cost                             |   | $                           | 235    |   |                      | $      | 238 |   |   | $ | 470 |   |   | $ | 476 |   |
| Interest cost on APBO                    |   |                        | 980    |   |                      |   | 984 |   |   |   | 1,960 |   |   |   | 1,968 |   |
| Expected return on plan assets           |   |                        | (396   | )      |                      |   | (435 | ) |   |   | (792 | ) |   |   | (870 | ) |
| Prior service amortization               |   |                        | (560   | )      |                      |   | (593 | ) |   |   | (1,119 | ) |   |   | (1,186 | ) |
| Actuarial loss amortization              |   |                        | 210    |   |                      |   | 75 |   |   |   | 419 |   |   |   | 150 |   |
| Net periodic postretirement benefit cost |   | $                           | 469    |   |                      | $      | 269 |   |   | $ | 938 |   |   | $ | 538 |   |
|                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |

|   | The funded status, which is the accumulated postretirement benefit obligation net of fair value of plan assets, as of June 30, 2009 is as follows ($000’s): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total funded status, December 31, 2008 |   | $      | (36,576 | )      |
|----------------------------------------|--------|--------|---------|--------|
| Service cost                           |   |   | (470    | )      |
| Interest cost on APBO                  |   |   | (1,960  | )      |
| Expected return on plan assets         |   |   | 792     |   |
| Employer contributions/payments        |   |   | 2,400   |   |
| Subsidy (Medicare Part D)              |   |   | (390    | )      |
| Total funded status, June 30, 2009     |   | $      | (36,204 | )      |
|                                   |   |   |    |   |

| 16.   | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the second quarter of 2008, management consolidated certain lending activities and transferred the related assets and goodwill from the Community Banking segment to the National Consumer Lending Division reporting unit, which is a component of Others.  Prior period segment information has been adjusted to reflect the transfer. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                               |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                               |   | 2009                        |   |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Capital Markets Division           |   | $                           | 13.2   |   |                      | $      | 11.9 |   |   | $ | 26.2 |   |   | $ | 26.4 |   |
| National Consumer Banking Division |   |                        | 40.1   |   |                      |   | 33.2 |   |   |   | 80.1 |   |   |   | 60.7 |   |
| Administrative & Other         |   |                        | 35.3   |   |                      |   | 11.8 |   |   |   | 49.0 |   |   |   | 53.8 |   |
| Other                              |   |                        | 69.5   |   |                      |   | 64.9 |   |   |   | 136.4 |   |   |   | 137.2 |   |
| Total                              |   | $                           | 158.1  |   |                      | $      | 121.8 |   |   | $ | 291.7 |   |   | $ | 278.1 |   |
|                               |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

|                                                          |   | Three Months Ended June 30, 2009 ($ in millions) |     |
|---------------------------------------------------------------|--------|--------------------------------------------------|----------|
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |   |
|                                                          |   | Commercial                                       |     | Community |   | Wealth |   |   |   |   |   |   |   | Corporate |   | Reclassifications |   |   |   |
|                                                          |   | Banking                                          |     | Banking |   | Management |   | Treasury |   | Others |   | Overhead |   | & Adjustments |   | Consolidated |   |
| Net interest income                                           |   | $                                                | 214.6    |   |   | $ | 166.1 |   |   | $ | 14.8 |   |   | $ | (33.5 | ) |   | $ | 56.0 |   |   | $ | (19.5 | ) |   | $ | (6.7 | ) |   | $ | 391.8 |   |
| Provision for loan and lease losses                           |   |                                             | 193.4    |   |   |   | 316.9 |   |   |   | 6.5 |   |   |   | - |   |   |   | 102.2 |   |   |   | - |   |   |   | - |   |   |   | 619.0 |   |
| Net interest income after provision for loan and lease losses |   |                                             | 21.2     |   |   |   | (150.8 | ) |   |   | 8.3 |   |   |   | (33.5 | ) |   |   | (46.2 | ) |   |   | (19.5 | ) |   |   | (6.7 | ) |   |   | (227.2 | ) |
| Other income                                                  |   |                                             | 14.8     |   |   |   | 55.8 |   |   |   | 68.5 |   |   |   | 59.4 |   |   |   | 102.1 |   |   |   | 52.9 |   |   |   | (86.3 | ) |   |   | 267.2 |   |
| Other expense                                                 |   |                                             | 69.6     |   |   |   | 211.4 |   |   |   | 68.9 |   |   |   | 18.2 |   |   |   | 102.6 |   |   |   | 30.7 |   |   |   | (86.8 | ) |   |   | 414.6 |   |
| Income before income taxes                                    |   |                                             | (33.6    | ) |   |   | (306.4 | ) |   |   | 7.9 |   |   |   | 7.7 |   |   |   | (46.7 | ) |   |   | 2.7 |   |   |   | (6.2 | ) |   |   | (374.6 | ) |
| Provision (benefit) for income taxes                          |   |                                             | (13.5    | ) |   |   | (122.6 | ) |   |   | 3.1 |   |   |   | 3.1 |   |   |   | (23.5 | ) |   |   | (6.0 | ) |   |   | (6.7 | ) |   |   | (166.1 | ) |
| Net income                                                    |   |                                             | (20.1    | ) |   |   | (183.8 | ) |   |   | 4.8 |   |   |   | 4.6 |   |   |   | (23.2 | ) |   |   | 8.7 |   |   |   | 0.5 |   |   |   | (208.5 | ) |
| Less:  Noncontrolling interest                      |   |                                             | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.5 | ) |   |   | (0.5 | ) |
| Segment income                                                |   | $                                                | (20.1    | ) |   | $ | (183.8 | ) |   | $ | 4.8 |   |   | $ | 4.6 |   |   | $ | (23.2 | ) |   | $ | 8.7 |   |   | $ | - |   |   | $ | (209.0 | ) |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                                | 24,944.8 |   |   | $ | 17,799.8 |   |   | $ | 1,690.6 |   |   | $ | 7,240.5 |   |   | $ | 8,290.4 |   |   | $ | 3,667.6 |   |   | $ | (3,940.0 | ) |   | $ | 59,693.7 |   |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Three Months Ended June 30, 2008 ($ in millions) |     |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |   |
|                                                          |   | Commercial                                       |     | Community |   | Wealth |   |   |   |   |   |   |   |   |   | Corporate |   | Reclassifications |   |   |   |
|                                                          |   | Banking                                          |     | Banking |   | Management |   | Treasury |   | Others |   | Overhead |   | & Adjustments |   | Consolidated |   |
| Net interest income                                           |   | $                                                | 194.6    |   |   | $ | 197.7 |   |   | $ | 14.6 |   |   | $ | 19.8 |   |   | $ | 41.9 |   |   | $ | (14.2 | ) |   | $ | (6.8 | ) |   | $ | 447.6 |   |
| Provision for loan and lease losses                           |   |                                             | 769.6    |   |   |   | 107.1 |   |   |   | 2.6 |   |   |   | - |   |   |   | 6.7 |   |   |   | - |   |   |   | - |   |   |   | 886.0 |   |
| Net interest income after provision for loan and lease losses |   |                                             | (575.0   | ) |   |   | 90.6 |   |   |   | 12.0 |   |   |   | 19.8 |   |   |   | 35.2 |   |   |   | (14.2 | ) |   |   | (6.8 | ) |   |   | (438.4 | ) |
| Other income                                                  |   |                                             | 26.2     |   |   |   | 48.0 |   |   |   | 77.8 |   |   |   | 11.2 |   |   |   | 79.9 |   |   |   | 29.4 |   |   |   | (85.5 | ) |   |   | 187.0 |   |
| Other expense                                                 |   |                                             | 81.6     |   |   |   | 177.6 |   |   |   | 65.8 |   |   |   | 4.4 |   |   |   | 103.7 |   |   |   | 32.8 |   |   |   | (85.7 | ) |   |   | 380.2 |   |
| Income before income taxes                                    |   |                                             | (630.4   | ) |   |   | (39.0 | ) |   |   | 24.0 |   |   |   | 26.6 |   |   |   | 11.4 |   |   |   | (17.6 | ) |   |   | (6.6 | ) |   |   | (631.6 | ) |
| Provision (benefit) for income taxes                          |   |                                             | (252.2   | ) |   |   | (15.6 | ) |   |   | 9.7 |   |   |   | 10.6 |   |   |   | 19.9 |   |   |   | (3.6 | ) |   |   | (6.8 | ) |   |   | (238.0 | ) |
| Net income                                                    |   |                                             | (378.2   | ) |   |   | (23.4 | ) |   |   | 14.3 |   |   |   | 16.0 |   |   |   | (8.5 | ) |   |   | (14.0 | ) |   |   | 0.2 |   |   |   | (393.6 | ) |
| Less:  Noncontrolling interest                      |   |                                             | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.2 | ) |   |   | (0.2 | ) |
| Segment income                                                |   | $                                                | (378.2   | ) |   | $ | (23.4 | ) |   | $ | 14.3 |   |   | $ | 16.0 |   |   | $ | (8.5 | ) |   | $ | (14.0 | ) |   | $ | - |   |   | $ | (393.8 | ) |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                                | 27,537.6 |   |   | $ | 19,373.0 |   |   | $ | 1,513.5 |   |   | $ | 8,802.2 |   |   | $ | 7,182.9 |   |   | $ | 2,464.9 |   |   | $ | (2,613.7 | ) |   | $ | 64,260.4 |   |
|                                                          |   |                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                                          |   | Six Months Ended June 30, 2009 ($ in millions) |     |
|---------------------------------------------------------------|--------|------------------------------------------------|----------|
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |   |
|                                                          |   | Commercial                                     |     | Community |   | Wealth |   |   |   |   |   |   |   | Corporate |   | Reclassifications |   |   |   |
|                                                          |   | Banking                                        |     | Banking |   | Management |   | Treasury |   | Others |   | Overhead |   | & Adjustments |   | Consolidated |   |
| Net interest income                                           |   | $                                              | 414.2    |   |   | $ | 339.5 |   |   | $ | 29.9 |   |   | $ | (48.2 | ) |   | $ | 110.9 |   |   | $ | (38.9 | ) |   | $ | (13.8 | ) |   | $ | 793.6 |   |
| Provision for loan and lease losses                           |   |                                           | 347.7    |   |   |   | 450.5 |   |   |   | 16.5 |   |   |   | - |   |   |   | 282.2 |   |   |   | - |   |   |   | - |   |   |   | 1,096.9 |   |
| Net interest income after provision for loan and lease losses |   |                                           | 66.5     |   |   |   | (111.0 | ) |   |   | 13.4 |   |   |   | (48.2 | ) |   |   | (171.3 | ) |   |   | (38.9 | ) |   |   | (13.8 | ) |   |   | (303.3 | ) |
| Other income                                                  |   |                                           | 41.4     |   |   |   | 103.6 |   |   |   | 133.4 |   |   |   | 71.4 |   |   |   | 180.8 |   |   |   | 85.9 |   |   |   | (172.6 | ) |   |   | 443.9 |   |
| All other expense                                             |   |                                           | 127.2    |   |   |   | 390.1 |   |   |   | 125.6 |   |   |   | 29.1 |   |   |   | 200.9 |   |   |   | 60.3 |   |   |   | (173.4 | ) |   |   | 759.8 |   |
| Income before income taxes                                    |   |                                           | (19.3    | ) |   |   | (397.5 | ) |   |   | 21.2 |   |   |   | (5.9 | ) |   |   | (191.4 | ) |   |   | (13.3 | ) |   |   | (13.0 | ) |   |   | (619.2 | ) |
| Provision (benefit) for income taxes                          |   |                                           | (7.7     | ) |   |   | (159.0 | ) |   |   | 8.8 |   |   |   | (2.4 | ) |   |   | (129.5 | ) |   |   | (15.5 | ) |   |   | (13.8 | ) |   |   | (319.1 | ) |
| Net income                                                    |   |                                           | (11.6    | ) |   |   | (238.5 | ) |   |   | 12.4 |   |   |   | (3.5 | ) |   |   | (61.9 | ) |   |   | 2.2 |   |   |   | 0.8 |   |   |   | (300.1 | ) |
| Less:  Noncontrolling interest                      |   |                                           | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.8 | ) |   |   | (0.8 | ) |
| Segment income                                                |   | $                                              | (11.6    | ) |   | $ | (238.5 | ) |   | $ | 12.4 |   |   | $ | (3.5 | ) |   | $ | (61.9 | ) |   | $ | 2.2 |   |   | $ | - |   |   | $ | (300.9 | ) |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                              | 24,944.8 |   |   | $ | 17,799.8 |   |   | $ | 1,690.6 |   |   | $ | 7,240.5 |   |   | $ | 8,290.4 |   |   | $ | 3,667.6 |   |   | $ | (3,940.0 | ) |   | $ | 59,693.7 |   |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Six Months Ended June 30, 2008 ($ in millions) |     |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Eliminations, |   |   |   |   |
|                                                          |   | Commercial                                     |     | Community |   | Wealth |   |   |   |   |   |   |   |   |   | Corporate |   | Reclassifications |   |   |   |
|                                                          |   | Banking                                        |     | Banking |   | Management |   | Treasury |   | Others |   | Overhead |   | & Adjustments |   | Consolidated |   |
| Net interest income                                           |   | $                                              | 383.5    |   |   | $ | 393.7 |   |   | $ | 29.1 |   |   | $ | 21.3 |   |   | $ | 86.7 |   |   | $ | (22.5 | ) |   | $ | (13.8 | ) |   | $ | 878.0 |   |
| Provision for loan and lease losses                           |   |                                           | 889.8    |   |   |   | 133.7 |   |   |   | 5.4 |   |   |   | - |   |   |   | 3.4 |   |   |   | - |   |   |   | - |   |   |   | 1,032.3 |   |
| Net interest income after provision for loan and lease losses |   |                                           | (506.3   | ) |   |   | 260.0 |   |   |   | 23.7 |   |   |   | 21.3 |   |   |   | 83.3 |   |   |   | (22.5 | ) |   |   | (13.8 | ) |   |   | (154.3 | ) |
| Other income                                                  |   |                                           | 50.9     |   |   |   | 91.8 |   |   |   | 152.0 |   |   |   | 22.2 |   |   |   | 191.4 |   |   |   | 59.1 |   |   |   | (169.2 | ) |   |   | 398.2 |   |
| Other expense                                                 |   |                                           | 145.8    |   |   |   | 336.8 |   |   |   | 126.5 |   |   |   | 8.3 |   |   |   | 200.5 |   |   |   | 47.5 |   |   |   | (169.7 | ) |   |   | 695.7 |   |
| Income before income taxes                                    |   |                                           | (601.2   | ) |   |   | 15.0 |   |   |   | 49.2 |   |   |   | 35.2 |   |   |   | 74.2 |   |   |   | (10.9 | ) |   |   | (13.3 | ) |   |   | (451.8 | ) |
| Provision (benefit) for income taxes                          |   |                                           | (240.5   | ) |   |   | 6.0 |   |   |   | 19.8 |   |   |   | 14.1 |   |   |   | 11.9 |   |   |   | (2.2 | ) |   |   | (13.8 | ) |   |   | (204.7 | ) |
| Net income                                                    |   |                                           | (360.7   | ) |   |   | 9.0 |   |   |   | 29.4 |   |   |   | 21.1 |   |   |   | 62.3 |   |   |   | (8.7 | ) |   |   | 0.5 |   |   |   | (247.1 | ) |
| Less:  Noncontrolling interest                      |   |                                           | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.5 | ) |   |   | (0.5 | ) |
| Segment income                                                |   | $                                              | (360.7   | ) |   | $ | 9.0 |   |   | $ | 29.4 |   |   | $ | 21.1 |   |   | $ | 62.3 |   |   | $ | (8.7 | ) |   | $ | - |   |   | $ | (247.6 | ) |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                           |   | $                                              | 27,537.6 |   |   | $ | 19,373.0 |   |   | $ | 1,513.5 |   |   | $ | 8,802.2 |   |   | $ | 7,182.9 |   |   | $ | 2,464.9 |   |   | $ | (2,613.7 | ) |   | $ | 64,260.4 |   |
|                                                          |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| 17.   | Guarantees |
|-----------------|------------|

|   | Securities Lending |
|--------|--------------------|

|   | As described in Note 24 – Guarantees, in Notes to Consolidated Financial Statements in Item 8 of the Corporation’s 2008 Annual Report on Form 10-K, as part of securities custody activities and at the direction of trust clients, the Corporation’s Wealth Management segment lends securities owned by its clients to borrowers who have been evaluated for credit risk in a manner similar to that employedin making lending decisions.  In connection with these activities, Marshall & Ilsley Trust Company N.A. (“M&I Trust”) has issued an indemnification against loss resulting from the default by a borrower under the master securities loan agreement due to the failure of the borrower to return loaned securities when due.  The borrowing party is required to fully collateralize securities received with cash or marketable securities.  As securities are loaned, collateralis maintained at a minimum of 100 percent of the fair value of the securities plus accrued interest and the collateral is revalued on a daily basis.  The amount of securities loaned subject to indemnification was $7.5 billion at June 30, 2009, $8.2 billion at December 31, 2008 and $9.6 billion at June 30, 2008.  Because of the requirement to fully collateralize the securities borrowed, management believes that the exposure to credit loss from this activity is remote and there are no liabilitiesreflected on the Consolidated Balance Sheets at June 30, 2009, December 31, 2008 and June 30, 2008, related to these indemnifications. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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”).  The SPF periodically participates in securities lending activities. Although not obligated to do so, during the first quarter of 2009, the Corporation entered into a capital support agreement with SPF that replaced all prior agreements.Under the terms of the current agreement, the Corporation would be required to contribute capital, under certain specific and defined circumstances and not to exceed $75.0 million in the aggregate and for no consideration, should certain asset loss events occur.  The agreement expires September 30, 2009 and contains terms that provide for three month renewals with all of the significant terms, including maximum contribution limits, remaining unchanged.  At June 30, 2009, the estimated fairvalue of the contingent liability under the agreement that is recorded within other liabilities in the Consolidated Balance Sheet amounted to $3.8 million.  As of August 10, 2009, no contributions have been made under the agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Visa Litigation Update |
|--------|------------------------|

|   | 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.  In conjunction with the sale, the Corporation re-affirmed its responsibilities to Visa under Visa’s retrospective responsibilty plan (“the plan”) which was discussed in Note 24 - Guarantees in Notes to Consolidated Financial Statements in Item8 of the Corporation’s 2008 Annual Report on Form 10-K. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On June 30, 2009, Visa announced that it had decided to deposit $700 million (“Loss Funds”) into the litigation escrow account previously established under the 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 conversionratio of Visa Class B common stock to Visa Class A common stock was revised to 0.5824. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Corporation continues to expect that the ultimate value of the shares of Visa Class B common stock will exceed the amount of the Corporation’s indemnification obligations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 18.   | Other Contingent Liabilities |
|-----------------|------------------------------|

----

Table of Contents

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

| MARSHALL & ILSLEY CORPORATION |
|-----------------------------------|

| CONSOLIDATED AVERAGE BALANCE SHEETS |
|-------------------------------------|

| ($000’s) |
|----------------|

|                                                       |   | Three Months Ended June 30, |       |
|------------------------------------------------------------|--------|-----------------------------|------------|
|                                                       |   | 2009                        |       |   | 2008 |   |
| Assets                                                     |   |                        |       |   |   |   |
| Cash and due from banks                                    |   | $                           | 747,773    |   |   | $ | 879,213 |   |
| Trading assets                                             |   |                        | 581,127    |   |   |   | 162,048 |   |
| Short-term investments                                     |   |                        | 458,650    |   |   |   | 370,650 |   |
| Investment securities:                                     |   |                        |       |   |   |   |   |   |
| Taxable                                                    |   |                        | 6,254,354  |   |   |   | 6,548,896 |   |
| Tax-exempt                                                 |   |                        | 1,059,464  |   |   |   | 1,185,827 |   |
| Total investment securities                                |   |                        | 7,313,818  |   |   |   | 7,734,723 |   |
| Loans and leases:                                          |   |                        |       |   |   |   |   |   |
| Loans and leases, net of unearned income                   |   |                        | 48,875,520 |   |   |   | 49,930,536 |   |
| Allowance for loan and lease losses                        |   |                        | (1,361,173 | ) |   |   | (681,983 | ) |
| Net loans and leases                                       |   |                        | 47,514,347 |   |   |   | 49,248,553 |   |
| Premises and equipment, net                                |   |                        | 572,193    |   |   |   | 521,284 |   |
| Accrued interest and other assets                          |   |                        | 3,755,832  |   |   |   | 4,573,140 |   |
| Total Assets                                               |   | $                           | 60,943,740 |   |   | $ | 63,489,611 |   |
|                                                       |   |                        |       |   |   |   |   |   |
| Liabilities and Equity                                     |   |                        |       |   |   |   |   |   |
| Deposits:                                                  |   |                        |       |   |   |   |   |   |
| Noninterest bearing                                        |   | $                           | 7,354,814  |   |   | $ | 5,827,732 |   |
| Interest bearing                                           |   |                        | 32,503,139 |   |   |   | 33,225,352 |   |
| Total deposits                                             |   |                        | 39,857,953 |   |   |   | 39,053,084 |   |
| Federal funds purchased and security repurchase agreements |   |                        | 1,735,291  |   |   |   | 3,002,304 |   |
| Other short-term borrowings                                |   |                        | 2,471,202  |   |   |   | 3,796,189 |   |
| Long-term borrowings                                       |   |                        | 9,439,766  |   |   |   | 9,638,628 |   |
| Accrued expenses and other liabilties                      |   |                        | 1,040,822  |   |   |   | 1,023,151 |   |
| Total Liabilities                                          |   |                        | 54,545,034 |   |   |   | 56,513,356 |   |
| Equity                                                     |   |                        |       |   |   |   |   |   |
| Marshall & Ilsley Corporation shareholders' equity     |   |                        | 6,388,188  |   |   |   | 6,966,343 |   |
| Noncontrolling interest in subsidiaries                    |   |                        | 10,518     |   |   |   | 9,912 |   |
| Total Equity                                               |   |                        | 6,398,706  |   |   |   | 6,976,255 |   |
| Total Liabilities and Equity                               |   | $                           | 60,943,740 |   |   | $ | 63,489,611 |   |
|                                                       |   |                        |       |   |   |   |   |   |

----

Table of Contents

| CONSOLIDATED AVERAGE BALANCE SHEETS |
|-------------------------------------|

| ($000’s) |
|----------------|

|                                                       |   | Six Months Ended June 30, |       |
|------------------------------------------------------------|--------|---------------------------|------------|
|                                                       |   | 2009                      |       |   | 2008 |   |
| Assets                                                     |   |                      |       |   |   |   |
| Cash and due from banks                                    |   | $                         | 775,316    |   |   | $ | 916,090 |   |
| Trading assets                                             |   |                      | 583,045    |   |   |   | 170,178 |   |
| Short-term investments                                     |   |                      | 514,207    |   |   |   | 351,423 |   |
| Investment securities:                                     |   |                      |       |   |   |   |   |   |
| Taxable                                                    |   |                      | 6,429,895  |   |   |   | 6,608,841 |   |
| Tax-exempt                                                 |   |                      | 1,070,508  |   |   |   | 1,214,174 |   |
| Total investment securities                                |   |                      | 7,500,403  |   |   |   | 7,823,015 |   |
| Loans and leases:                                          |   |                      |       |   |   |   |   |   |
| Loans and leases, net of unearned income                   |   |                      | 49,343,013 |   |   |   | 49,270,264 |   |
| Allowance for loan and lease losses                        |   |                      | (1,303,627 | ) |   |   | (619,730 | ) |
| Net loans and leases                                       |   |                      | 48,039,386 |   |   |   | 48,650,534 |   |
| Premises and equipment, net                                |   |                      | 570,739    |   |   |   | 515,272 |   |
| Accrued interest and other assets                          |   |                      | 3,703,387  |   |   |   | 4,494,598 |   |
| Total Assets                                               |   | $                         | 61,686,483 |   |   | $ | 62,921,110 |   |
|                                                       |   |                      |       |   |   |   |   |   |
| Liabilities and Equity                                     |   |                      |       |   |   |   |   |   |
| Deposits:                                                  |   |                      |       |   |   |   |   |   |
| Noninterest bearing                                        |   | $                         | 6,920,679  |   |   | $ | 5,728,051 |   |
| Interest bearing                                           |   |                      | 32,842,406 |   |   |   | 32,662,390 |   |
| Total deposits                                             |   |                      | 39,763,085 |   |   |   | 38,390,441 |   |
| Federal funds purchased and security repurchase agreements |   |                      | 1,842,092  |   |   |   | 3,279,978 |   |
| Other short-term borrowings                                |   |                      | 3,119,008  |   |   |   | 3,327,055 |   |
| Long-term borrowings                                       |   |                      | 9,504,882  |   |   |   | 9,829,554 |   |
| Accrued expenses and other liabilties                      |   |                      | 1,081,435  |   |   |   | 1,087,268 |   |
| Total Liabilities                                          |   |                      | 55,310,502 |   |   |   | 55,914,296 |   |
| Equity                                                     |   |                      |       |   |   |   |   |   |
| Marshall & Ilsley Corporation shareholders' equity     |   |                      | 6,365,528  |   |   |   | 6,996,903 |   |
| Noncontrolling interest in subsidiaries                    |   |                      | 10,453     |   |   |   | 9,911 |   |
| Total Equity                                               |   |                      | 6,375,981  |   |   |   | 7,006,814 |   |
| Total Liabilities and Equity                               |   | $                         | 61,686,483 |   |   | $ | 62,921,110 |   |
|                                                       |   |                      |       |   |   |   |   |   |

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OVERVIEW

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Table of Contents

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Table of Contents

OTHER NOTEWORTHY TRANSACTIONS AND EVENTS

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Table of Contents

NET INTEREST INCOME

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Table of Contents

|                                                                                     |   | 2009           |         |   | 2008          |   |   | Growth Percent |   |
|------------------------------------------------------------------------------------------|--------|----------------|--------------|--------|---------------|--------|--------|----------------|--------|
|                                                                                     |   | Second Quarter |         |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |   | Annual |   |   | Prior Quarter |   |
| Commercial:                                                                              |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                               |   | $              | 14,404       |   |          | $      | 14,745 |           |   | $ | 14,888 |   |   | $ | 15,002 |   |   | $ | 15,086 |   |   |   | (4.5 | ) % |   |   | (2.3 | ) % |
| Commercial lease financing                                                               |   |           | 522          |   |          |   | 547    |           |   |   | 534 |   |   |   | 511 |   |   |   | 517 |   |   |   | 1.0 |   |   |   | (4.6 | ) |
| Total commercial loans and leases                                                        |   |           | 14,926       |   |          |   | 15,292 |           |   |   | 15,422 |   |   |   | 15,513 |   |   |   | 15,603 |   |   |   | (4.3 | ) |   |   | (2.4 | ) |
|                                                                                     |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                   |   |           | 13,549       |   |          |   | 12,872 |           |   |   | 12,203 |   |   |   | 11,942 |   |   |   | 11,703 |   |   |   | 15.8 |   |   |   | 5.3 |   |
|                                                                                     |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                  |   |           | 5,695        |   |          |   | 5,768  |           |   |   | 5,675 |   |   |   | 5,631 |   |   |   | 5,525 |   |   |   | 3.1 |   |   |   | (1.3 | ) |
|                                                                                     |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction and development:                                                            |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                               |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                                                             |   |           | 3,290        |   |          |   | 3,966  |           |   |   | 4,577 |   |   |   | 4,433 |   |   |   | 4,431 |   |   |   | (25.7 | ) |   |   | (17.0 | ) |
| Land                                                                                     |   |           | 898          |   |          |   | 854    |           |   |   | 913 |   |   |   | 986 |   |   |   | 992 |   |   |   | (9.5 | ) |   |   | 5.2 |   |
| Commercial construction and development                                                  |   |           | 4,188        |   |          |   | 4,820  |           |   |   | 5,490 |   |   |   | 5,419 |   |   |   | 5,423 |   |   |   | (22.8 | ) |   |   | (13.1 | ) |
| Residential                                                                              |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction by individuals                                                              |   |           | 690          |   |          |   | 834    |           |   |   | 938 |   |   |   | 1,009 |   |   |   | 1,013 |   |   |   | (31.9 | ) |   |   | (17.3 | ) |
| Land                                                                                     |   |           | 2,016        |   |          |   | 2,094  |           |   |   | 2,200 |   |   |   | 2,254 |   |   |   | 2,419 |   |   |   | (16.7 | ) |   |   | (3.8 | ) |
| Construction by developers                                                               |   |           | 693          |   |          |   | 923    |           |   |   | 1,158 |   |   |   | 1,275 |   |   |   | 1,518 |   |   |   | (54.4 | ) |   |   | (24.9 | ) |
| Residential construction and development                                                 |   |           | 3,399        |   |          |   | 3,851  |           |   |   | 4,296 |   |   |   | 4,538 |   |   |   | 4,950 |   |   |   | (31.3 | ) |   |   | (11.8 | ) |
| Total construction and development                                                       |   |           | 7,587        |   |          |   | 8,671  |           |   |   | 9,786 |   |   |   | 9,957 |   |   |   | 10,373 |   |   |   | (26.9 | ) |   |   | (12.5 | ) |
|                                                                                     |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Personal:                                                                                |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit                                                    |   |           | 4,969        |   |          |   | 5,064  |           |   |   | 5,071 |   |   |   | 5,027 |   |   |   | 4,835 |   |   |   | 2.8 |   |   |   | (1.9 | ) |
| Other personal loans                                                                     |   |           | 1,959        |   |          |   | 1,942  |           |   |   | 1,878 |   |   |   | 1,766 |   |   |   | 1,693 |   |   |   | 15.7 |   |   |   | 0.9 |   |
| Personal lease financing                                                                 |   |           | 190          |   |          |   | 207    |           |   |   | 211 |   |   |   | 196 |   |   |   | 199 |   |   |   | (4.9 | ) |   |   | (8.3 | ) |
| Total personal loans and leases                                                          |   |           | 7,118        |   |          |   | 7,213  |           |   |   | 7,160 |   |   |   | 6,989 |   |   |   | 6,727 |   |   |   | 5.8 |   |   |   | (1.3 | ) |
|                                                                                     |   |           |         |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total consolidated average loans and leases                                              |   | $              | 48,875       |   |          | $      | 49,816 |           |   | $ | 50,246 |   |   | $ | 50,032 |   |   | $ | 49,931 |   |   |   | (2.1 | ) % |   |   | (1.9 | ) % |
| Total consolidated average loans and leases excluding total construction and development |   | $              |  41,288 |   |          | $      | 41,145 |           |   | $ | 40,460 |   |   | $ | 40,075 |   |   | $ | 39,558 |   |   |   | 4.4 | % |   |   | 0.3 | % |

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|                                |   | 2009           |   |   | 2008          |   |   | Growth Percent |   |
|-------------------------------------|--------|----------------|--------|--------|---------------|--------|--------|----------------|--------|
|                                |   | Second Quarter |   |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |   | Annual |   |   | Prior Quarter |   |
| Noninterest bearing deposits        |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   | $              | 5,505  |   |          | $      | 4,849  |           |   | $ | 4,470 |   |   | $ | 4,305 |   |   | $ | 4,168 |   |   |   | 32.1 | % |   |   | 13.5 | % |
| Personal                            |   |           | 1,003  |   |          |   | 979    |           |   |   | 985 |   |   |   | 1,005 |   |   |   | 1,056 |   |   |   | (5.0 | ) |   |   | 2.5 |   |
| Other                               |   |           | 847    |   |          |   | 654    |           |   |   | 608 |   |   |   | 599 |   |   |   | 604 |   |   |   | 40.2 |   |   |   | 29.4 |   |
| Total noninterest bearing deposits  |   |           | 7,355  |   |          |   | 6,482  |           |   |   | 6,063 |   |   |   | 5,909 |   |   |   | 5,828 |   |   |   | 26.2 |   |   |   | 13.5 |   |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits           |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and NOW                     |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                             |   |           | 1,386  |   |          |   | 887    |           |   |   | 883 |   |   |   | 902 |   |   |   | 882 |   |   |   | 57.3 |   |   |   | 56.4 |   |
| NOW                                 |   |           | 2,746  |   |          |   | 2,624  |           |   |   | 2,340 |   |   |   | 2,391 |   |   |   | 2,391 |   |   |   | 14.8 |   |   |   | 4.6 |   |
| Brokered NOW                        |   |           | 43     |   |          |   | 19     |           |   |   | 5 |   |   |   | - |   |   |   | - |   |   | n.m. |   |   |   | 119.8 |   |
| Total savings and NOW               |   |           | 4,175  |   |          |   | 3,530  |           |   |   | 3,228 |   |   |   | 3,293 |   |   |   | 3,273 |   |   |   | 27.6 |   |   |   | 18.3 |   |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market                        |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market index                  |   |           | 6,185  |   |          |   | 6,541  |           |   |   | 7,085 |   |   |   | 7,848 |   |   |   | 8,335 |   |   |   | (25.8 | ) |   |   | (5.4 | ) |
| Money market savings                |   |           | 916    |   |          |   | 1,069  |           |   |   | 1,143 |   |   |   | 1,224 |   |   |   | 1,339 |   |   |   | (31.6 | ) |   |   | (14.3 | ) |
| Brokered money market               |   |           | 3,106  |   |          |   | 3,021  |           |   |   | 2,413 |   |   |   | 1,473 |   |   |   | 1,525 |   |   |   | 103.6 |   |   |   | 2.8 |   |
| Total money market                  |   |           | 10,207 |   |          |   | 10,631 |           |   |   | 10,641 |   |   |   | 10,545 |   |   |   | 11,199 |   |   |   | (8.9 | ) |   |   | (4.0 | ) |
| Time                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDs $100,000 and over               |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Large CDs                           |   |           | 4,461  |   |          |   | 4,152  |           |   |   | 3,714 |   |   |   | 3,881 |   |   |   | 4,074 |   |   |   | 9.5 |   |   |   | 7.4 |   |
| Brokered CDs                        |   |           | 7,485  |   |          |   | 7,888  |           |   |   | 9,059 |   |   |   | 8,295 |   |   |   | 7,090 |   |   |   | 5.6 |   |   |   | (5.1 | ) |
| Total CDs $100,000 and over         |   |           | 11,946 |   |          |   | 12,040 |           |   |   | 12,773 |   |   |   | 12,176 |   |   |   | 11,164 |   |   |   | 7.0 |   |   |   | (0.8 | ) |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other CDs and time                  |   |           | 5,706  |   |          |   | 5,861  |           |   |   | 5,499 |   |   |   | 5,152 |   |   |   | 4,813 |   |   |   | 18.6 |   |   |   | (2.7 | ) |
| Total time                          |   |           | 17,652 |   |          |   | 17,901 |           |   |   | 18,272 |   |   |   | 17,328 |   |   |   | 15,977 |   |   |   | 10.5 |   |   |   | (1.4 | ) |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                             |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign activity                    |   |           | 469    |   |          |   | 866    |           |   |   | 1,583 |   |   |   | 1,813 |   |   |   | 1,834 |   |   |   | (74.4 | ) |   |   | (45.8 | ) |
| Foreign time                        |   |           | -      |   |          |   | 257    |           |   |   | 823 |   |   |   | 800 |   |   |   | 942 |   |   |   | (100.0 | ) |   |   | (100.0 | ) |
| Total foreign                       |   |           | 469    |   |          |   | 1,123  |           |   |   | 2,406 |   |   |   | 2,613 |   |   |   | 2,776 |   |   |   | (83.1 | ) |   |   | (58.2 | ) |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest bearing deposits     |   |           | 32,503 |   |          |   | 33,185 |           |   |   | 34,547 |   |   |   | 33,779 |   |   |   | 33,225 |   |   |   | (2.2 | ) |   |   | (2.1 | ) |
| Total consolidated average deposits |   | $              | 39,858 |   |          | $      | 39,667 |           |   | $ | 40,610 |   |   | $ | 39,688 |   |   | $ | 39,053 |   |   |   | 2.1 | % |   |   | 0.5 | % |
|                                |   |           |   |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                               |   | Three Months Ended |     |   | Three Months Ended |   |
|------------------------------------|--------|--------------------|----------|--------|--------------------|--------|
|                               |   | June 30, 2009      |     |   | June 30, 2008      |   |
|                               |   | Average Balance    |     |   | Interest           |   |   | Average Yield or Cost (b) |   |   | Average Balance |   |   | Interest |   |   | Average Yield or Cost (b) |   |
| Loans and leases (a):              |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases        |   | $                  | 14,926.1 |   |               | $      | 149.2 |   |   |   | 4.01 | % |   | $ | 15,602.3 |   |   | $ | 208.3 |   |   |   | 5.37 | % |
| Commercial real estate loans       |   |               | 17,737.2 |   |               |   | 206.3 |   |   |   | 4.67 |   |   |   | 17,126.4 |   |   |   | 256.8 |   |   |   | 6.03 |   |
| Residential real estate loans      |   |               | 9,094.1  |   |               |   | 109.3 |   |   |   | 4.82 |   |   |   | 10,474.7 |   |   |   | 156.7 |   |   |   | 6.02 |   |
| Home equity loans and lines        |   |               | 4,969.5  |   |               |   | 62.7 |   |   |   | 5.06 |   |   |   | 4,834.5 |   |   |   | 75.4 |   |   |   | 6.27 |   |
| Personal loans and leases          |   |               | 2,148.6  |   |               |   | 30.2 |   |   |   | 5.64 |   |   |   | 1,892.6 |   |   |   | 30.0 |   |   |   | 6.38 |   |
| Total loans and leases             |   |               | 48,875.5 |   |               |   | 557.7 |   |   |   | 4.58 |   |   |   | 49,930.5 |   |   |   | 727.2 |   |   |   | 5.86 |   |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities (b):         |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                            |   |               | 6,254.3  |   |               |   | 57.4 |   |   |   | 3.70 |   |   |   | 6,548.9 |   |   |   | 71.7 |   |   |   | 4.39 |   |
| Tax exempt (a)                     |   |               | 1,059.5  |   |               |   | 17.2 |   |   |   | 6.60 |   |   |   | 1,185.8 |   |   |   | 20.1 |   |   |   | 6.92 |   |
| Total investment securities        |   |               | 7,313.8  |   |               |   | 74.6 |   |   |   | 4.11 |   |   |   | 7,734.7 |   |   |   | 91.8 |   |   |   | 4.77 |   |
| Trading assets (a)                 |   |               | 581.1    |   |               |   | 2.5 |   |   |   | 1.75 |   |   |   | 162.1 |   |   |   | 0.4 |   |   |   | 1.06 |   |
| Other short-term investments       |   |               | 458.7    |   |               |   | 0.4 |   |   |   | 0.35 |   |   |   | 370.7 |   |   |   | 2.2 |   |   |   | 2.36 |   |
| Total interest earning assets      |   | $                  | 57,229.1 |   |               | $      | 635.2 |   |   |   | 4.46 | % |   | $ | 58,198.0 |   |   | $ | 821.6 |   |   |   | 5.68 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits:         |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and NOW                    |   | $                  | 4,175.0  |   |               | $      | 3.0 |   |   |   | 0.29 | % |   | $ | 3,272.7 |   |   | $ | 4.3 |   |   |   | 0.52 | % |
| Money market                       |   |               | 10,206.9 |   |               |   | 18.5 |   |   |   | 0.72 |   |   |   | 11,199.6 |   |   |   | 50.0 |   |   |   | 1.80 |   |
| Time                               |   |               | 17,651.8 |   |               |   | 116.4 |   |   |   | 2.64 |   |   |   | 15,977.1 |   |   |   | 152.7 |   |   |   | 3.84 |   |
| Foreign                            |   |               | 469.4    |   |               |   | 0.4 |   |   |   | 0.36 |   |   |   | 2,776.0 |   |   |   | 12.2 |   |   |   | 1.76 |   |
| Total interest bearing deposits    |   |               | 32,503.1 |   |               |   | 138.3 |   |   |   | 1.71 |   |   |   | 33,225.4 |   |   |   | 219.2 |   |   |   | 2.65 |   |
| Short-term borrowings              |   |               | 4,206.5  |   |               |   | 2.9 |   |   |   | 0.27 |   |   |   | 6,798.5 |   |   |   | 38.0 |   |   |   | 2.25 |   |
| Long-term borrowings               |   |               | 9,439.8  |   |               |   | 95.5 |   |   |   | 4.06 |   |   |   | 9,638.6 |   |   |   | 109.8 |   |   |   | 4.58 |   |
| Total interest bearing liabilities |   | $                  | 46,149.4 |   |               | $      | 236.7 |   |   |   | 2.06 | % |   | $ | 49,662.5 |   |   | $ | 367.0 |   |   |   | 2.97 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin (FTE)          |   |               |     |   |               | $      | 398.5 |   |   |   | 2.79 | % |   |   |   |   |   | $ | 454.6 |   |   |   | 3.14 | % |
| Net interest spread (FTE)          |   |               |     |   |               |   |   |   |   |   | 2.40 | % |   |   |   |   |   |   |   |   |   |   | 2.71 | % |
|                               |   |               |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (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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|                               |   | Six Months Ended |     |   | Six Months Ended |   |
|------------------------------------|--------|------------------|----------|--------|------------------|--------|
|                               |   | June 30, 2009    |     |   | June 30, 2008    |   |
|                               |   | Average Balance  |     |   | Interest         |   |   | Average Yield or Cost (b) |   |   | Average Balance |   |   | Interest |   |   | Average Yield or Cost (b) |   |
| Loans and leases (a):              |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases        |   | $                | 15,108.2 |   |             | $      | 296.3 |   |   |   | 3.96 | % |   | $ | 15,256.2 |   |   | $ | 440.0 |   |   |   | 5.80 | % |
| Commercial real estate loans       |   |             | 17,714.6 |   |             |   | 411.5 |   |   |   | 4.68 |   |   |   | 17,034.9 |   |   |   | 533.3 |   |   |   | 6.30 |   |
| Residential real estate loans      |   |             | 9,355.3  |   |             |   | 229.8 |   |   |   | 4.95 |   |   |   | 10,386.1 |   |   |   | 321.4 |   |   |   | 6.22 |   |
| Home equity loans and lines        |   |             | 5,016.5  |   |             |   | 127.4 |   |   |   | 5.12 |   |   |   | 4,752.6 |   |   |   | 155.4 |   |   |   | 6.58 |   |
| Personal loans and leases          |   |             | 2,148.4  |   |             |   | 59.6 |   |   |   | 5.59 |   |   |   | 1,840.5 |   |   |   | 61.1 |   |   |   | 6.67 |   |
| Total loans and leases             |   |             | 49,343.0 |   |             |   | 1,124.6 |   |   |   | 4.60 |   |   |   | 49,270.3 |   |   |   | 1,511.2 |   |   |   | 6.17 |   |
|                               |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities (b):         |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                            |   |             | 6,429.9  |   |             |   | 120.5 |   |   |   | 3.77 |   |   |   | 6,608.8 |   |   |   | 149.2 |   |   |   | 4.54 |   |
| Tax exempt (a)                     |   |             | 1,070.5  |   |             |   | 35.5 |   |   |   | 6.77 |   |   |   | 1,214.2 |   |   |   | 41.1 |   |   |   | 6.88 |   |
| Total investment securities        |   |             | 7,500.4  |   |             |   | 156.0 |   |   |   | 4.19 |   |   |   | 7,823.0 |   |   |   | 190.3 |   |   |   | 4.90 |   |
| Trading assets (a)                 |   |             | 583.1    |   |             |   | 4.5 |   |   |   | 1.54 |   |   |   | 170.2 |   |   |   | 1.1 |   |   |   | 1.29 |   |
| Other short-term investments       |   |             | 514.2    |   |             |   | 1.0 |   |   |   | 0.40 |   |   |   | 351.4 |   |   |   | 5.1 |   |   |   | 2.91 |   |
| Total interest earning assets      |   | $                | 57,940.7 |   |             | $      | 1,286.1 |   |   |   | 4.48 | % |   | $ | 57,614.9 |   |   | $ | 1,707.7 |   |   |   | 5.96 | % |
|                               |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits:         |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and NOW                    |   | $                | 3,854.4  |   |             | $      | 4.1 |   |   |   | 0.22 | % |   | $ | 3,237.4 |   |   | $ | 11.9 |   |   |   | 0.74 | % |
| Money market                       |   |             | 10,417.8 |   |             |   | 34.8 |   |   |   | 0.67 |   |   |   | 11,443.4 |   |   |   | 136.0 |   |   |   | 2.39 |   |
| Time                               |   |             | 17,776.0 |   |             |   | 236.1 |   |   |   | 2.68 |   |   |   | 14,968.7 |   |   |   | 308.0 |   |   |   | 4.14 |   |
| Foreign                            |   |             | 794.2    |   |             |   | 1.3 |   |   |   | 0.34 |   |   |   | 3,012.9 |   |   |   | 36.1 |   |   |   | 2.41 |   |
| Total interest bearing deposits    |   |             | 32,842.4 |   |             |   | 276.3 |   |   |   | 1.70 |   |   |   | 32,662.4 |   |   |   | 492.0 |   |   |   | 3.03 |   |
| Short-term borrowings              |   |             | 4,961.1  |   |             |   | 6.9 |   |   |   | 0.28 |   |   |   | 6,607.0 |   |   |   | 91.6 |   |   |   | 2.79 |   |
| Long-term borrowings               |   |             | 9,504.9  |   |             |   | 195.5 |   |   |   | 4.15 |   |   |   | 9,829.6 |   |   |   | 232.0 |   |   |   | 4.75 |   |
| Total interest bearing liabilities |   | $                | 47,308.4 |   |             | $      | 478.7 |   |   |   | 2.04 | % |   | $ | 49,099.0 |   |   | $ | 815.6 |   |   |   | 3.34 | % |
|                               |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin (FTE)          |   |             |     |   |             | $      | 807.4 |   |   |   | 2.81 | % |   |   |   |   |   | $ | 892.1 |   |   |   | 3.11 | % |
| Net interest spread (FTE)          |   |             |     |   |             |   |   |   |   |   | 2.44 | % |   |   |   |   |   |   |   |   |   |   | 2.62 | % |
|                               |   |             |     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | 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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CREDIT QUALITY AND ALLOWANCE FOR LOAN AND LEASE LOSSES

|                                              |   | 2009           |      |   | 2008          |   |
|---------------------------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                                              |   | Second Quarter |      |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |
| Nonperforming assets (a):                         |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans and leases                       |   | $              | 2,221,659 |   |          | $      | 1,960,816 |   |   | $ | 1,457,811 |   |   | $ | 1,226,387 |   |   | $ | 984,272 |   |
| Nonaccrual loans held for sale                    |   |           | 194,489   |   |          |   | 113,737 |   |   |   | 69,139 |   |   |   | 34,255 |   |   |   | 22,485 |   |
| Total nonperforming loans and leases              |   | $              | 2,416,148 |   |          | $      | 2,074,553 |   |   | $ | 1,526,950 |   |   | $ | 1,260,642 |   |   | $ | 1,006,757 |   |
| Other real estate owned (OREO)                    |   |           | 356,790   |   |          |   | 344,271 |   |   |   | 320,908 |   |   |   | 267,224 |   |   |   | 207,102 |   |
| Total nonperforming assets                        |   | $              | 2,772,938 |   |          | $      | 2,418,824 |   |   | $ | 1,847,858 |   |   | $ | 1,527,866 |   |   | $ | 1,213,859 |   |
|                                              |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing impaired loans:                        |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Renegotiated                                      |   | $              | 818,538   |   |          | $      | 445,995 |   |   | $ | 270,357 |   |   | $ | 89,486 |   |   | $ | 16,523 |   |
|                                              |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractually past due credits:                   |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans past due 90 days or more and still accruing |   | $              | 15,060    |   |          | $      | 16,099 |   |   | $ | 14,528 |   |   | $ | 12,070 |   |   | $ | 17,676 |   |

| (a) | Beginning with the second quarter of 2009, the Corporation modified its definition of nonperforming assets to exclude renegotiated loans and loans past due 90 days or more and still accruing because these loans were performing in accordance with their current terms.  Prior periods presented have been adjusted for this reclassification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                          |   | 2009           |   |   | 2008          |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                                                          |   | Second Quarter |   |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |
| Net charge-offs (annualized) to average loans and leases                                                      |   |           | 4.95   | %      |          |   | 2.67 | % |   |   | 5.38 | % |   |   | 1.21 | % |   |   | 3.23 | % |
| Total nonperforming loans and leases to total loans and leases                                                |   |           | 5.01   |   |          |   | 4.21 |   |   |   | 3.05 |   |   |   | 2.50 |   |   |   | 2.00 |   |
| Total nonperforming assets to total loans and leases and OREO                                                 |   |           | 5.71   |   |          |   | 4.88 |   |   |   | 3.67 |   |   |   | 3.01 |   |   |   | 2.41 |   |
| Allowance for loan and lease losses to total loans and leases                                                 |   |           | 2.84   |   |          |   | 2.75 |   |   |   | 2.41 |   |   |   | 2.05 |   |   |   | 2.05 |   |
| Allowance for loan and lease losses to nonaccrual loans and leases (excluding nonaccrual loans held for sale) |   |           | 62     |   |          |   | 69 |   |   |   | 82 |   |   |   | 84 |   |   |   | 105 |   |

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Table of Contents

|                                            |   | June 30, 2009            |   |   | March 31, 2009                      |   |
|-------------------------------------------------|--------|--------------------------|--------|--------|-------------------------------------|--------|
|                                            |   | Total Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |   | Total Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |
| Commercial loans & leases                   |   | $                        | 14,792 |   |                                |   | 30.7 | % |   | $ | 431.7 |   |   |   | 2.92 | % |   | $ | 15,108 |   |   |   | 30.7 | % |   | $ | 336.4 |   |   |   | 2.23 | % |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                                    |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                          |   |                     | 13,938 |   |                                |   | 28.9 |   |   |   | 559.2 |   |   |   | 4.01 |   |   |   | 12,999 |   |   |   | 26.4 |   |   |   | 286.6 |   |   |   | 2.20 |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                         |   |                     | 5,465  |   |                                |   | 11.3 |   |   |   | 285.7 |   |   |   | 5.23 |   |   |   | 5,711 |   |   |   | 11.6 |   |   |   | 291.9 |   |   |   | 5.11 |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction and development:                   |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial land and construction                |   |                     | 3,790  |   |                                |   | 7.9 |   |   |   | 410.1 |   |   |   | 10.82 |   |   |   | 4,643 |   |   |   | 9.5 |   |   |   | 377.7 |   |   |   | 8.13 |   |
| Residential construction by individuals         |   |                     | 599    |   |                                |   | 1.2 |   |   |   | 84.4 |   |   |   | 14.09 |   |   |   | 752 |   |   |   | 1.5 |   |   |   | 101.3 |   |   |   | 13.47 |   |
| Residential land and construction by developers |   |                     | 2,440  |   |                                |   | 5.1 |   |   |   | 548.9 |   |   |   | 22.50 |   |   |   | 2,856 |   |   |   | 5.8 |   |   |   | 591.5 |   |   |   | 20.71 |   |
| Total construction and development              |   |                     | 6,829  |   |                                |   | 14.2 |   |   |   | 1,043.4 |   |   |   | 15.28 |   |   |   | 8,251 |   |   |   | 16.8 |   |   |   | 1,070.5 |   |   |   | 12.97 |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total real estate                               |   |                     | 26,232 |   |                                |   | 54.4 |   |   |   | 1,888.3 |   |   |   | 7.20 |   |   |   | 26,961 |   |   |   | 54.8 |   |   |   | 1,649.0 |   |   |   | 6.12 |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer loans & leases:                    |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit           |   |                     | 4,912  |   |                                |   | 10.2 |   |   |   | 86.4 |   |   |   | 1.76 |   |   |   | 5,025 |   |   |   | 10.2 |   |   |   | 83.5 |   |   |   | 1.66 |   |
| Other consumer loans and leases                 |   |                     | 2,247  |   |                                |   | 4.7 |   |   |   | 9.7 |   |   |   | 0.43 |   |   |   | 2,151 |   |   |   | 4.3 |   |   |   | 5.7 |   |   |   | 0.26 |   |
| Total consumer loans & leases               |   |                     | 7,159  |   |                                |   | 14.9 |   |   |   | 96.1 |   |   |   | 1.34 |   |   |   | 7,176 |   |   |   | 14.5 |   |   |   | 89.2 |   |   |   | 1.24 |   |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans & leases                        |   | $                        | 48,183 |   |                                |   | 100.0 | % |   | $ | 2,416.1 |   |   |   | 5.01 | % |   | $ | 49,245 |   |   |   | 100.0 | % |   | $ | 2,074.6 |   |   |   | 4.21 | % |
|                                            |   |                     |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|      |   | June 30, 2009                 |   |   | March 31, 2009                      |   |
|-----------|--------|-------------------------------|--------|--------|-------------------------------------|--------|
|      |   | Total Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperforming Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |   | Total Loans & Leases |   |   | Percent of Total Loans & Leases |   |   | Nonperform-ing Loans & Leases |   |   | % Nonperform-ing to Loan & Lease Type |   |
| Wisconsin |   | $                             | 17,668 |   |                                |   | 36.7 | % |   | $ | 421.9 |   |   |   | 2.39 | % |   | $ | 18,040 |   |   |   | 36.6 | % |   | $ | 282.0 |   |   |   | 1.56 | % |
| Arizona   |   |                          | 6,427  |   |                                |   | 13.3 |   |   |   | 756.7 |   |   |   | 11.77 |   |   |   | 7,043 |   |   |   | 14.3 |   |   |   | 760.4 |   |   |   | 10.80 |   |
| Minnesota |   |                          | 5,123  |   |                                |   | 10.6 |   |   |   | 188.0 |   |   |   | 3.67 |   |   |   | 5,186 |   |   |   | 10.5 |   |   |   | 204.0 |   |   |   | 3.93 |   |
| Missouri  |   |                          | 3,520  |   |                                |   | 7.3 |   |   |   | 125.0 |   |   |   | 3.55 |   |   |   | 3,532 |   |   |   | 7.2 |   |   |   | 65.9 |   |   |   | 1.86 |   |
| Florida   |   |                          | 2,973  |   |                                |   | 6.2 |   |   |   | 241.8 |   |   |   | 8.14 |   |   |   | 3,071 |   |   |   | 6.3 |   |   |   | 232.2 |   |   |   | 7.56 |   |
| Indiana   |   |                          | 1,618  |   |                                |   | 3.4 |   |   |   | 72.2 |   |   |   | 4.46 |   |   |   | 1,581 |   |   |   | 3.2 |   |   |   | 73.6 |   |   |   | 4.65 |   |
| Kansas    |   |                          | 1,124  |   |                                |   | 2.3 |   |   |   | 41.7 |   |   |   | 3.71 |   |   |   | 1,135 |   |   |   | 2.3 |   |   |   | 26.1 |   |   |   | 2.30 |   |
| Others    |   |                          | 9,730  |   |                                |   | 20.2 |   |   |   | 568.8 |   |   |   | 5.85 |   |   |   | 9,657 |   |   |   | 19.6 |   |   |   | 430.4 |   |   |   | 4.46 |   |
| Total     |   | $                             | 48,183 |   |                                |   | 100.0 | % |   | $ | 2,416.1 |   |   |   | 5.01 | % |   | $ | 49,245 |   |   |   | 100.0 | % |   | $ | 2,074.6 |   |   |   | 4.21 | % |
|      |   |                          |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                            |   | June 30, 2009      |   |   | March 31, 2009                      |   |
|-------------------------------------------------|--------|--------------------|--------|--------|-------------------------------------|--------|
|                                            |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |   | Renegotiated Loans |   |   | Percent of Total Renegotiated Loans |   |
| Commercial                                      |   | $                  | 54.7   |   |                                |   | 6.7 | % |   | $ | 64.3 |   |   |   | 14.4 | % |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                                    |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                          |   |               | 210.8  |   |                                |   | 25.7 |   |   |   | 8.4 |   |   |   | 1.9 |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                         |   |               | 274.9  |   |                                |   | 33.6 |   |   |   | 184.8 |   |   |   | 41.4 |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Construction and development:                   |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Commercial land and construction                |   |               | 50.2   |   |                                |   | 6.1 |   |   |   | 0.6 |   |   |   | 0.1 |   |
| Residential construction by individuals         |   |               | 22.9   |   |                                |   | 2.8 |   |   |   | 23.7 |   |   |   | 5.3 |   |
| Residential land and construction by developers |   |               | 132.2  |   |                                |   | 16.2 |   |   |   | 131.9 |   |   |   | 29.6 |   |
| Total construction and development              |   |               | 205.3  |   |                                |   | 25.1 |   |   |   | 156.2 |   |   |   | 35.0 |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Total real estate                               |   |               | 691.0  |   |                                |   | 84.4 |   |   |   | 349.4 |   |   |   | 78.3 |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                        |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit           |   |               | 69.0   |   |                                |   | 8.4 |   |   |   | 32.2 |   |   |   | 7.3 |   |
| Other consumer                                  |   |               | 3.8    |   |                                |   | 0.5 |   |   |   | 0.1 |   |   |   | - |   |
| Total consumer                                  |   |               | 72.8   |   |                                |   | 8.9 |   |   |   | 32.3 |   |   |   | 7.3 |   |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Total renegotiated loans                        |   | $                  | 818.5  |   |                                |   | 100.0 | % |   | $ | 446.0 |   |   |   | 100.0 | % |
|                                            |   |               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |

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|                                |   | 2009           |      |   | 2008          |   |
|-------------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                                |   | Second Quarter |      |   | First Quarter |   |   | Fourth Quarter |   |   | Third Quarter |   |   | Second Quarter |   |
| Beginning balance                   |   | $              | 1,352,117 |   |          | $      | 1,202,167 |   |   | $ | 1,031,494 |   |   | $ | 1,028,809 |   |   | $ | 543,539 |   |
| Provision for loan and lease losses |   |           | 618,992   |   |          |   | 477,924 |   |   |   | 850,443 |   |   |   | 154,962 |   |   |   | 885,981 |   |
| Loans and leases charged-off:       |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   |           | (68,990   | )      |          |   | (65,481 | ) |   |   | (101,223 | ) |   |   | (32,850 | ) |   |   | (39,892 | ) |
| Real estate                         |   |           | (534,264  | )      |          |   | (264,989 | ) |   |   | (576,017 | ) |   |   | (123,990 | ) |   |   | (362,625 | ) |
| Personal                            |   |           | (8,807    | )      |          |   | (7,433 | ) |   |   | (8,591 | ) |   |   | (6,263 | ) |   |   | (5,643 | ) |
| Leases                              |   |           | (1,054    | )      |          |   | (2,320 | ) |   |   | (655 | ) |   |   | (192 | ) |   |   | (659 | ) |
| Total charge-offs                   |   |           | (613,115  | )      |          |   | (340,223 | ) |   |   | (686,486 | ) |   |   | (163,295 | ) |   |   | (408,819 | ) |
|                                |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries on loans and leases:     |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                          |   |           | 2,599     |   |          |   | 2,003 |   |   |   | 2,059 |   |   |   | 2,277 |   |   |   | 2,295 |   |
| Real estate                         |   |           | 5,724     |   |          |   | 7,412 |   |   |   | 2,953 |   |   |   | 6,938 |   |   |   | 4,269 |   |
| Personal                            |   |           | 1,168     |   |          |   | 1,185 |   |   |   | 1,078 |   |   |   | 1,439 |   |   |   | 1,172 |   |
| Leases                              |   |           | 297       |   |          |   | 1,649 |   |   |   | 626 |   |   |   | 364 |   |   |   | 372 |   |
| Total recoveries                    |   |           | 9,788     |   |          |   | 12,249 |   |   |   | 6,716 |   |   |   | 11,018 |   |   |   | 8,108 |   |
| Net loans and leases charged-off    |   |           | (603,327  | )      |          |   | (327,974 | ) |   |   | (679,770 | ) |   |   | (152,277 | ) |   |   | (400,711 | ) |
| Ending balance                      |   | $              | 1,367,782 |   |          | $      | 1,352,117 |   |   | $ | 1,202,167 |   |   | $ | 1,031,494 |   |   | $ | 1,028,809 |   |
|                                |   |           |      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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OTHER INCOME

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OTHER EXPENSE

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|             |   | Three Months Ended June 30, |   |
|------------------|--------|-----------------------------|--------|
|             |   | 2009                        |   |   | 2008 |   |
| Efficiency Ratio |   |                        | 70.7   | % |   |   | 59.3 | % |
|             |   |                        |   |   |   |   |   |   |

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INCOME TAXES

LIQUIDITY AND CAPITAL RESOURCES

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|                               |   | June 30, 2009 |   |   | December 31, 2008 |   |
|------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                               |   | Amount        |   |   | Ratio             |   |   | Amount |   |   | Ratio |   |
| Tier 1 Capital                     |   | $             | 5,297  |   |              |   | 9.88 | % |   | $ | 5,357 |   |   |   | 9.49 | % |
| Tier 1 Capital Minimum Requirement |   |          | 2,145  |   |              |   | 4.00 |   |   |   | 2,257 |   |   |   | 4.00 |   |
| Excess                             |   | $             | 3,152  |   |              |   | 5.88 | % |   | $ | 3,100 |   |   |   | 5.49 | % |
|                               |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital                      |   | $             | 7,307  |   |              |   | 13.62 | % |   | $ | 7,445 |   |   |   | 13.19 | % |
| Total Capital Minimum Requirement  |   |          | 4,291  |   |              |   | 8.00 |   |   |   | 4,514 |   |   |   | 8.00 |   |
| Excess                             |   | $             | 3,016  |   |              |   | 5.62 | % |   | $ | 2,931 |   |   |   | 5.19 | % |
|                               |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Risk-Adjusted Assets               |   | $             | 53,632 |   |              |   |   |   |   | $ | 56,428 |   |   |   |   |   |
|                               |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |

|                          |   | June 30, 2009 |                           |   | December 31, 2008 |   |
|-------------------------------|--------|---------------|--------------------------------|--------|-------------------|--------|
|                          |   | Amount        |                           |   | Ratio             |   |   | Amount |   |   | Ratio |   |
| Tier 1 Capital                |   | $             | 5,297                          |   |              |   | 8.90 | % |   | $ | 5,357 |   |   |   | 8.56 | % |
| Minimum Leverage Requirement  |   |          | 1,785 -   2,975 |   |              |   | 3.00 - 5.00 |   |   |   | 1,877 -   3,129 |   |   |   | 3.00 - 5.00 |   |
| Excess                        |   | $             | 3,512 - $2,322       |   |              |   | 5.90 - 3.90 | % |   | $ | 3,480 - $2,228 |   |   |   | 5.56 - 3.56 | % |
|                          |   |          |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted Average Total Assets |   | $             | 59,488                         |   |              |   |   |   |   | $ | 62,587 |   |   |   |   |   |
|                          |   |          |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |

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OFF-BALANCE SHEET ARRANGEMENTS

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CRITICAL ACCOUNTING POLICIES

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FORWARD-LOOKING STATEMENTS

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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       |   |                | 0.2    | % |
| 100 basis point gradual decline in rates    |   |                | (2.9   | ) % |

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ITEM 4.                      CONTROLS AND PROCEDURES

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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     |   |            | Maximum Number |   |
|---------------------------|--------|---------------|--------|--------|------------|--------|--------|------------------|--------|-----------------|----------------|--------|
|                      |   |          |   |   |       |   |   | of Shares        |   |            | of Shares that |   |
|                      |   |          |   |   |       |   |   | Purchased as     |   |            | May Yet Be     |   |
|                      |   | Total Number  |   |   | Average    |   |   | Part of Publicly |   |            | Be Purchased   |   |
|                      |   | of Shares     |   |   | Price Paid |   |   | Announced Plans  |   | Under the Plans |           |
|                      |   | Purchased (1) |   |   | per Share  |   |   | or Programs      |   |            | or Programs    |   |
| April 1 to April 30, 2009 |   |          | 37,900 |   |       | $      | 5.26   |             |   |            | N/A            |   |   |   | N/A |   |
| May 1 to May 31, 2009     |   |          | 20,721 |   |       |   | 6.36   |             |   |            | N/A            |   |   |   | N/A |   |
| June 1 to June 30, 2009   |   |          | 15,987 |   |       |   | 5.82   |             |   |            | N/A            |   |   |   | N/A |   |
| Total                     |   |          | 74,608 |   |       | $      | 5.68   |             |   |            | N/A            |   |   |   |   |   |
|                      |   |          |   |   |       |   |   |             |   |            |           |   |   |   |   |   |

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

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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

|   | (a)   | The Corporation held its Annual Meeting of Shareholders on April 28, 2009. |
|--------|-----------------|----------------------------------------------------------------------------|

|   | (b)   | Votes cast for the election of 15 directors to serve until the 2010 Annual Meeting of Shareholders are as follows: |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------|

| Director              |   | For                                             |   | Withheld                                                   |
|-----------------------|--------|-------------------------------------------------|--------|------------------------------------------------------------|
| Andrew N. Baur        |   |       201,877,553 |   |         27,333,220 |
| Jon F. Chait          |   |       211,306,254 |   |         17,904,519 |
| John W. Daniels, Jr.  |   |       155,823,642 |   |         73,387,131 |
| Mark F. Furlong       |   |       204,305,249 |   |         24,905,524 |
| Ted D. Kellner        |   |       212,320,011 |   |         16,890,762 |
| Dennis J. Kuester     |   |       202,672,282 |   |         26,538,491 |
| David J. Lubar        |   |       211,640,593 |   |         17,570,180 |
| Katharine C. Lyall    |   |       209,942,640 |   |         19,268,133 |
| John A. Mellowes      |   |       207,858,675 |   |         21,352,098 |
| San W. Orr, Jr.       |   |       211,377,066 |   |         17,833,707 |
| Robert J. O'Toole     |   |       211,467,591 |   |         17,743,182 |
| Peter M. Platten, III |   |       200,862,480 |   |         28,348,293 |
| John S. Shiely        |   |       210,871,680 |   |         18,339,093 |
| George E. Wardeberg   |   |       207,595,484 |   |         21,615,289 |
| James B. Wigdale      |   |       205,599,619 |   |         23,611,154 |

|   | (c)   | Votes cast to approve the Corporation’s 2009 Employee Stock Purchase Plan are as follows: |
|--------|-----------------|-------------------------------------------------------------------------------------------------|

| For         |   | Against    |   | Abstentions |   | Not Voted  |
|-------------|--------|------------|--------|-------------|--------|------------|
| 166,495,485 |   | 14,218,670 |   | 1,767,267   |   | 46,729,351 |

| For         |   | Against    |   | Abstentions |   | Not Voted  |
|-------------|--------|------------|--------|-------------|--------|------------|
| 115,723,900 |   | 64,036,702 |   | 2,720,820   |   | 46,729,351 |

| For         |   | Against   |   | Abstentions |   |   |
|-------------|--------|-----------|--------|-------------|--------|--------|
| 222,268,493 |   | 5,769,308 |   | 1,172,972   |   |   |

| For         |   | Against    |   | Abstentions |   |   |
|-------------|--------|------------|--------|-------------|--------|--------|
| 164,817,191 |   | 61,145,665 |   | 3,247,917   |   |   |

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| For        |   | Against     |   | Abstentions |   | Not Voted  |
|------------|--------|-------------|--------|-------------|--------|------------|
| 68,563,709 |   | 110,177,565 |   | 3,740,148   |   | 46,729,351 |

|   | (d)   | Not applicable. |
|--------|-----------------|-----------------|

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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(a)  |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                |
| Exhibit 32(b)  |   | 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(a)          |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                |
| 32(b)          |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                        |