News Release

        Date:
                   Aug. 18, 1997

        Contact:
                   Katherine Taylor
                   Investor Relations Manager
                   815-961-7164

                   John Hecht
                   Chief Financial Officer
                   815-961-7003


                    AMCORE FINANCIAL SPLITS STOCK 3-FOR-2;
                    INCREASES DIVIDEND 12.5 % TO 18 CENTS

        ROCKFORD, IL - Expressing confidence in the future, AMCORE's Board of
Directors announced a three-for-two stock split and declared a 12.5 percent
increase in its quarterly dividend to 18 cents.

        "This is a strong message we are sending to the investment community
about the confidence we have in our company and our future growth strategies,"
said Robert J. Meuleman, president and chief executive officer.

        "We are especially pleased with the progress of our Wisconsin
acquisitions and we look forward to the completion of the previously announced
merger with Investors Management Group, Iowa's largest independent asset
manager," Meuleman said. "Both of these transactions represent important
additions to AMCORE's markets and financial services offered. Each is expected
to make positive contributions to our future performance."

        The cash dividend will be paid to shareholders of record on Sept. 5,
1997, and is payable Sept. 12, 1997 on the pre-split shares. The previous
quarterly dividend was 16 cents per share.

        The stock split will be issued to shareholders of record on Sept. 5,
1997, and will be distributed on Sept. 17, 1997. Shareholders will receive one
new share of AMCORE common stock for each two shares of AMCORE common stock
owned as of the record date. Cash will be distributed to shareholders in lieu
of fractional shares.

        "In addition to returning a greater yield to our shareholders, this
will keep our stock trading in a price range that may broaden our shareholder
base," said Meuleman.





AMCORE Financial, Inc.
501 Seventh Street, Post Office Box 1537, Rockford, Illinois 61110-0037
Telephone 8155 968-2241



        This news release, other than historical financial and other
information, may consist of forward looking statements that involve risks and
uncertainties, including the risks detailed from time-to-time in the company's
SEC reports, including its Annual Report on Form 10-K for the year ended Dec.
31, 1996. Actual results may vary materially.

        AMCORE Financial, Inc., headquartered in northern Illinois, is a
financial services company with assets of over $3.6 billion operating in 41
locations in Illinois and 13 in Wisconsin. The company has five financial
services companies: AMCORE Investment Group, N.A., including trust services, a
capital management company, a brokerage company and the AMCORE Vintage family
of mutual funds; AMCORE Mortgage, Inc.; AMCORE Consumer Finance Company, Inc.;
AMCORE Insurance Group, Inc.; and Rockford Mercantile Agency, Inc., a bill
collection service.

        AMCORE common stock is listed on NASDAQ under the symbol "AMFI."
Further information about AMCORE Financial Inc. can be found on the Internet
at http://www.AMCORE.com.