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AMCORE Financial, Inc. Reports 3rd Quarter Results.

Article Excerpt
ROCKFORD, Ill., Oct. 16 /PRNewswire-FirstCall/ -- AMCORE Financial, Inc. today announced financial results for the third quarter ended September 30, 2008.



(Numbers in Thousands, Except Per Share Data) 3rd quarter 2008 3rd quarter 2007 2nd quarter 2008 Net Revenues $52,507 $54,396 $55,542 Net Income (Loss) ($17,987) $1,889 ($20,234) Diluted Shares 22,647 23,316 22,614 Diluted EPS ($0.79) $0.08 ($0.89)

AMCORE reported a net loss of $18.0 million for third quarter 2008, compared to net income of $1.9 million in the prior-year period and a net loss of $20.2 million in the previous quarter. Loss per diluted share was ($0.79) for third quarter 2008, compared to earnings of $0.08 per diluted share in third quarter 2007, and an improvement from the loss of ($0.89) in the previous quarter.

"Unprecedented marketplace events this year have caused global financial confidence to drop sharply, which has negatively affected the entire U.S. financial services industry, including AMCORE," said William R. McManaman, Chairman and CEO of AMCORE. "We are confronting these economic challenges by setting aside adequate reserves for potential loan losses and actively managing capital to enhance our stability. Moving forward, we are confident that the strategy we have in place will help us to navigate through today's economic headwinds, maintain high levels of customer satisfaction, and position AMCORE for future success."

The following reflects some of the key strategic actions taken in the third quarter:

-- Reaffirmed the Bank's roots with the "one bank" focus to expand and grow our customer relationships across all lines of business. The objective is to leverage the combined, diverse expertise of our organization to offer clients a full range of specialized, targeted financial products specifically designed to help them achieve their unique financial goals.

-- Continued to actively manage the Bank's capital position to promote flexibility, expand our execution capabilities, and create long-term shareholder value. AMCORE continues to be above the well capitalized threshold and maintains nearly $450 million in regulatory capital.

-- Improved credit policies and practices and implemented more consistent controls and safeguards to assure continued financial strength.

-- Completed the third party review of the commercial credit portfolio. Results confirmed that the Company has successfully implemented its enhanced loan grading system and has an effective risk grading process.

-- Focused on building and growing our commercial and industrial lending relationships and reducing our commercial real estate concentration.

Headlines

-- Net interest income was $32.3 million, or 2.76 percent of average earning assets in third quarter 2008, compared to $40.4 million, or 3.35 percent, in third quarter 2007, and $36.0 million, or 3.07 percent of average earning assets in second quarter 2008.

-- Provision for loan losses was $48.0 million, a $32.7 million increase from $15.3 million in third quarter 2007 and an $8.0 million increase from $40.0 million in second quarter 2008.

-- Net charge-offs were $26.8 million compared to $4.5 million in third quarter 2007, and $3.3 million in...

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