BankFailFriday(sm)

AMCORE has until Dec. 4 to submit an acceptable Capital Restoration Plan or it could be forced to sell the bank or have the bank seized by regulators.
“AMCORE is undercapitalized or significantly undercapitalized under some regulatory capital standards at the consolidated and bank levels; however the bank’s Tier 1 capital remains adequately capitalized,” according to the company’s third quarter report on Oct. 27.
These developments aren’t expected to affect the bank’s customers.

“All of our customers are fully covered by (Federal Deposit Insurance Corporation) insurance,” an AMCORE spokesman said Thursday.
Last week AMCORE announced it sold two of its branches in Wisconsin to First National Bank and Trust Company of Beloit and there are plans to complete the sale of the bank’s New Glarus and Belleville branches on Nov. 19 in order to raise capital.

AMCORE is keeping a positive public outlook, finding good news in the signing of the Unemployment Compensation Extension Act of 2009 into law by President Barack Obama on Nov. 6.

“This new legislation allows AMCORE to apply recent tax losses to offset taxes paid in the prior five years. This is very significant, as it is estimated that this new law will result in AMCORE being entitled to a refund of approximately $25 million to $30 million in tax refunds.
“As a result, AMCORE’s capital will also increase by $25 million to $30 million,” according to a press release issued by AMCORE on Thursday.

In April, AMCORE reduced its workforce by 9 percent or 116 positions, including a total of five jobs locally, as well as Donald H. Wilson, president and chief operating officer, and Richard E. Stiles, executive vice president of the commercial banking group.

Since 2007, AMCORE’s stock price has dropped from more than $30 per share to an opening price of 40-cents on Thursday morning.
AMCORE has banking assets of $4.4 billion with 69 locations in Illinois and Wisconsin, according to its press materials.