Prepared by R.R. Donnelley Financial -- Form 425
Filed by Marshall & Ilsley Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Mississippi Valley Bancshares, Inc.
Exchange Act File No.: 0-22008
 
Marshall & Ilsley Corporation
 
merger with
 
Mississippi Valley
Bancshares, Inc.
(Southwest Bank in St. Louis)
 
All financial data herein reflects M&I’s
two-for-one stock split effective today
 
June 17, 2002

Forward looking statement
 
This presentation contains forward-looking statements about the future financial results of Marshall & Ilsley Corporation and the combined company. Such statements are subject to important factors which could cause actual results to differ materially from those anticipated by such forward-looking statements. These factors include those referenced in the press release issued earlier today, M&I’s Annual Report on Form 10-K, and as may be described from time to time in M&I’s subsequent SEC filings and such factors are incorporated herein by reference.
 
This presentation does not constitute an offer of any securities for sale. Investors and security holders are advised to read the proxy statement/prospectus regarding the transaction described in this presentation when it becomes available, because it will contain important information. The proxy statement/prospectus will be filed with the Securities and Exchange Commission by M&I. Security holders may receive a free copy of the proxy statement/prospectus (when available) and other related documents filed by M&I at the Commission’s website at http:\\www.sec.gov or from M&I.
 

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Why Mississippi Valley?
 
 
n
Unique opportunity for first class franchise
 
n
St. Louis identified as attractive market
 
n
Committed top leadership after integration
 
n
Superior customer relationship focus
 
n
Credit discipline aligned with M&I
 
n
Historical earnings growth last five years exceeds 14%
 

3

Mississippi Valley Highlights
 
 
n
Strong middle-market commercial lender with eight banking offices in St. Louis and Phoenix markets
 
n
Preferred lender to owner-operated businesses
 
n
Five-year loan growth over 15%
 
n
Five-year deposit growth over 13%
 
n
Five-year EPS growth over 15%
 
n
Five-year average net charge-off ratio .31%
 

4

Maintain market presence
 
 
n
Retain Name
 
n
Retain local boards of directors
 
n
Retain customer relationship leaders
 
n
Retain high quality credit discipline
 
n
Steve Marsh, President, Commercial Banking
 
n
Andrew Baur, President, Community Banking
 
n
Drew Baur, Director, M&I Board
 
 

5

Enhance market presence
 
 
n
Additional commercial lending sectors
 
n
Correspondent banking
 
n
Enhanced cash management capability
 
n
Wealth management products
 
n
Consumer lending, credit/debit cards
 
n
Enhance M&I’s Phoenix franchise
 

6

Transaction Terms
 
 
n
Price $502 million
 
n
Approximately 50% cash, 50% stock
 
n
Collar +/- $3 from $30.94
 
n
Additional shares if M&I falls between $23.44–$27.93
 
n
Less shares if M&I rises between $33.94–$38.43
 
n
Mississippi Valley walkaway if M&I falls below $21.44 (decline 30%)
 
n
Mississippi Valley shareholders may elect all stock, all cash, or a mix of 50% stock/50% cash
 

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Transaction assumptions
 
 
n       Earnings growth
     
Ø     5-year historical
   
14%
Ø     Expected
   
12%
n       Cost savings estimate
   
10%
n       Transaction costs estimate, net tax
   
$18-20 million
n       Internal rate of return expected
   
15%
n       Revenue enhancements assumed
   
None
n       Accretive to earnings in 2003
     
 

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Transaction multiples
 
 
      
Mississippi
Valley
     
Comparables
n       Last twelve months
     
17.8X
     
16.5X
n       Next twelve months
     
15.3X
     
15.4X
n       2003
     
14.4X
     
—
n       PEG ratio (on NTM)*
     
1.15
     
1.53
n       Tangible book value
     
303%
     
233%
n       Tangible premium to deposits
     
20.1%
     
15.0%
n       Premium to market
     
24.4%
     
30.1%
*
PE paid/estimated growth
 

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Ratio comparison to M&I
(As of March 31, 2002)
 
 
    
Mississippi Valley
   
M & I
Loans/deposits
   
89%
   
112%
NPL/loans
   
0.65%
   
0.84%
LLR/loans
   
1.77%
   
1.40%
Chargeoffs
   
0.08%
   
0.23%
Net interest margin
   
3.78%
   
4.09%
Total
   
40.2%
   
61.8%
Bank only
   
40.2%
   
50.7%
ROA
   
1.50%
   
1.72%
ROE
   
18.96%
   
18.04%
Tangible equity/Total assets
   
7.94%
   
7.33%
 

10

Improving diversity of earnings
 
 
n       Minneapolis/St. Paul
   
6%
n       St. Louis
   
6%
n       Phoenix/Tucson
   
4%
n       Metavante
   
9%
n       Wisconsin
     
         —Trust        4%
     
         —Banking 71%
   
75%
 
Consistent with strategy to diversify growth opportunities
 

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Projected Timeline
 
 
n       Transaction announcement
   
June 17
n       Customary regulatory approvals
   
3-4 months
n       Shareholder meeting for Mississippi Valley
   
Fourth quarter, 2002
n       Transaction closing
   
Fourth quarter, 2002
n       Systems integration
   
First quarter, 2003
 

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Status of 2001 acquisitions
 
 
n       Three Minneapolis franchises
    
         —Leadership team announced
  
January
         —Systems integration complete
  
June
n       Growth achieved in Minneapolis
    
         —Closed National City August 1, 2001
    
         —Growth as of May 2002 (annualized)
    
                   ØLoans, excluding residential
  
+14%
                   ØTransactional deposits
  
+  9%
                   ØExpense savings
    
                            —Target
  
   25%
                            —Actual
  
   28%
n       Arizona growth since September 2001 (annualized)
    
         —Loans, excluding residential
  
+23%
         —Transactional deposits
  
+  2%
 

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Transaction Goals
 
 
n
Build shareholder value
 
n
Buy a great franchise
 
n
Retain all customer relationship teams
 
n
Consolidate operations, procedures and risk management to a common environment
 
n
Provide additional deposit, lending and wealth management products to expand in-market capabilities
 

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