Exhibit 99.1
AMCORE FINANCIAL, INC. REPORTS 4TH QUARTER EARNINGS
(Numbers in Thousands, Except Per Share Data)
Results From Continuing Operations
4th quarter 4th quarter
2005 YTD 2005 2004 YTD 2004
------------ ------------ ------------ ------------
Net Revenues $ 60,128 $ 228,803 $ 57,698 $ 218,584
Net Income $ 11,990 $ 47,987 $ 13,039 $ 46,031
Diluted Shares 25,109 25,087 25,145 25,251
Diluted EPS $ 0.48 $ 1.91 $ 0.52 $ 1.82
Results Including Discontinued Operations
4th quarter 4th quarter
2005 YTD 2005 2004 YTD 2004
------------ ------------ ------------ ------------
Net Income $ 8,151 $ 44,941 $ 12,923 $ 45,696
Diluted EPS $ 0.32 $ 1.79 $ 0.51 $ 1.81
ROCKFORD, Ill., Jan. 19 /PRNewswire-FirstCall/ -- AMCORE Financial, Inc.
(Nasdaq: AMFI).
Results From Continuing Operations
The Company reported diluted earnings per share from continuing operations
of $0.48 for fourth quarter 2005, an eight percent decrease, compared to $0.52
per diluted share in fourth quarter 2004. Net income from continuing operations
in the fourth quarter of 2005 was $12.0 million, an eight percent decrease from
the $13.0 million in the prior-year period. Full year 2005 diluted earnings per
share from continuing operations was $1.91, an increase of $0.09, or five
percent, from $1.82 per diluted share in 2004. AMCORE's net income from
continuing operations for the full year 2005 increased $2.0 million, or four
percent, to $48.0 million from $46.0 million in 2004.
Discontinued Operations
On December 30, 2005, AMCORE completed the sale of Investors Management
Group, Ltd. ("IMG"), West Des Moines, IA, to West Bancorporation, Inc., also
headquartered in West Des Moines. Therefore, the results of IMG for the current
and prior periods have been presented in discontinued operations.
Loss from discontinued operations was $3.8 million in fourth quarter 2005
compared to a loss of $116,000 in fourth quarter 2004. The increased loss is
attributed to an after-tax loss of $3.8 million in connection with disposition
of IMG. The amount of the loss is primarily due to a tax charge of $3.2 million,
resulting from the Company's tax basis in IMG. This one-time tax event will not
have an impact on financial performance going forward.
"Now that the sale of IMG is complete, we have successfully shifted our
focus to become a provider of high-quality investment products rather than a
developer of proprietary investment products," said Kenneth E. Edge, Chairman,
President and CEO of AMCORE. "Our strength is our ability to provide our clients
with a comprehensive financial relationship, integrating their investment goals
with their private banking, trust, insurance, and financial planning needs."
Results Including Discontinued Operations
Diluted earnings per share including discontinued operations was $0.32 for
fourth quarter 2005, compared to $0.51 per diluted share in fourth quarter 2004.
Net income including discontinued operations for fourth quarter 2005 was $8.2
million, compared to $12.9 million in the prior-year period. Full year 2005
diluted earnings per share including discontinued operations was $1.79 compared
to $1.81 per diluted share in 2004. AMCORE's net income including discontinued
operations for the full year 2005 was $44.9 million compared to $45.7 million in
2004.
Highlights
-- Loss from discontinued operations was $3.8 million in fourth quarter
2005 compared to a loss of $116,000 in fourth quarter 2004. The
increased loss is attributed to an after-tax loss of $3.8 million in
connection with the Company's previously announced disposition of IMG.
-- Average bank issued deposits grew 14 percent, or $436 million, compared
to fourth quarter 2004.
-- Average loan balances grew 13 percent, or $422 million, compared to
fourth quarter 2004.
-- Average assets increased seven percent to $5.3 billion in the fourth
quarter 2005 compared to $4.9 billion in fourth quarter 2004.
-- Net interest income increased six percent, or $2.3 million, to $41.9
million in the fourth quarter 2005 from $39.6 million during the same
quarter a year ago.
-- The net interest margin decreased seven basis points to 3.51 percent in
fourth quarter 2005 from 3.58 percent in fourth quarter 2004, and
increased one basis point when compared to third quarter 2005.
-- Non-interest income increased one percent, or $172,000, to $18.3
million in the fourth quarter 2005 from $18.1 million in the fourth
quarter 2004 as a result of lower mortgage banking income and lower
security gains.
-- Total non-performing assets decreased $6.9 million, or 18 percent, to
$31.0 million from December 31, 2004, but increased $3.1 million, or 11
percent, from September 30, 2005.
Fourth Quarter Results
During 2005, several successes contributed to continued AMCORE asset growth
and built additional value for shareholders. "Our branch expansion program
exceeded all expectations, adding significantly to the value of our business,"
said Edge. "We achieved double digit growth in both average loans and deposits.
For the third consecutive quarter, deposit growth out-paced our loan growth, a
significant indicator that we continue to build franchise value by finding lower
cost funding for loans."
Net interest income in fourth quarter 2005 grew six percent, or $2.3
million, to $41.9 million compared to the same quarter in 2004 due to continued
strong loan growth. The net interest margin decreased seven basis points to 3.51
percent in fourth quarter 2005 from 3.58 percent in fourth quarter 2004, but
increased one basis point when compared to third quarter 2005. For the full year
2005, the net interest margin decreased six basis points to 3.53 percent from
3.59 percent in 2004. "Our margin recovered modestly in the fourth quarter
compared to the previous quarter and was in line with our expectations," said
Edge.
Return on average equity from continuing operations was 11.89 percent in
fourth quarter 2005 compared to 13.44 percent in fourth quarter 2004, and
increased 25 basis points compared to the previous quarter. For the full year
2005, return on average equity from continuing operations increased three basis
points to 12.18 percent from 12.15 percent in 2004. Return on average assets
from continuing operations decreased to 0.90 percent in fourth quarter 2005
compared to 1.05 percent in fourth quarter 2004, but increased one basis point
from the previous quarter. For the full year 2005, return on average assets from
continuing operations was 0.94 percent compared to 0.97 percent in 2004.
Average loans rose $422 million to $3.6 billion, a 13 percent increase from
fourth quarter 2004, despite the sale of $159 million in indirect auto loans in
the second half of 2004. The growth came from average increases of $397 million,
or 16 percent, in commercial lending driven by AMCORE's branch expansion in
Chicago suburban and Madison markets. Consumer loan balances decreased six
percent compared to the same quarter a year ago primarily due to lower volumes
of indirect automobile lending and the loan securitization in 2004.
Average loan yields rose 111 basis points to 6.98 percent in fourth quarter
2005 compared to the same period a year ago, and were up 34 basis points from
third quarter 2005. This was due to increasing loan volumes in a rising interest
rate environment.
Average bank issued deposits grew to $3.5 billion, an increase of 14
percent, or $436 million, compared to a year ago. The total cost of bank issued
deposits increased 102 basis points from fourth quarter 2004, and 27 basis
points from third quarter 2005, primarily due to deposit attraction strategies
and short-term rate increases. "We are making significant progress in increasing
deposits, particularly checking and transaction accounts," said Edge. "These
products are important in attracting new households and building stronger
customer relationships, which improves the value of our franchise and allows us
to rely less on wholesale deposits to fund our loan growth. Because of our
stronger core deposit growth, we reduced our average wholesale funding by $103
million in 2005 compared to a year ago." At year-end wholesale sources funded 24
percent of total assets, compared to 28 percent at the end of 2004. Over this
same time frame, bank issued deposits rose from 63 percent to 67 percent of
total assets.
Average non-interest bearing deposits increased six percent to $495 million
in fourth quarter 2005 from $469 million in fourth quarter 2004. Average
interest-bearing demand and savings deposits grew 23 percent to $1.8 billion in
fourth quarter 2005 compared to $1.5 billion during the same period a year ago.
Average time deposits increased five percent to $1.2 billion in fourth quarter
2005 compared to $1.1 billion during the same period a year ago. "We have been
very strategic in executing our deposit strategy," said Edge. "While we use an
attraction rate strategy in our expansion markets, we are able to retain these
customers and build on the relationship with additional product sales, thereby
increasing the profitability of the relationship."
Total non-interest income increased one percent, or $172,000, to $18.3
million over the fourth quarter of 2004 due to dividend income from investments
in private equity funds of $1.5 million in fourth quarter 2005, included in
other non-interest income. This was offset by decreases in mortgage banking
income and lower net security gains. Net security gains decreased 52 percent to
$592,000 in fourth quarter 2005 compared to $1.2 million in fourth quarter 2004.
Mortgage banking income decreased 70 percent to $605,000 in fourth quarter
2005 compared to $2.0 million in the same period a year ago. There was no
impairment activity in fourth quarter 2005, however, there was a mortgage
servicing rights impairment reversal of $684,000 in fourth quarter 2004. The
remaining decline was primarily due to reduced gains on secondary market loan
sales compared to the fourth quarter of 2004.
Mortgage closings decreased two percent to $110 million in fourth quarter
2005 from $112 million in fourth quarter 2004. New home-purchase mortgages
increased five percent in fourth quarter 2005 compared to the same period a
year ago. Refinancing volume, on the other hand, decreased 12 percent
compared to the same quarter a year ago. "We made solid progress in growing
our new home-purchase mortgages and expect to continue to increase this
business as we add mortgage originators in strong housing markets like the
Chicago suburbs," said Edge.
Trust and asset management revenues decreased $161,000, or four percent,
to $3.8 million in fourth quarter 2005 from the fourth quarter 2004 level.
Revenues related to IMG have been reclassified to discontinued operations.
Total operating expenses increased $3.7 million, or 11 percent, in fourth
quarter 2005 compared to the same quarter last year. This included $2.1
million due to branch expansion and $1.1 million of expense relating to
certain derivative instruments and occupancy increases.
Asset Quality & Reserves
Non-accrual loans totaled $21.7 million at December 31, 2005, a decrease
of 28 percent, or $8.5 million, from December 31, 2004, and a decrease of $2.1
million, or nine percent, from September 30, 2005. Loans 90 days past due and
still accruing interest totaled $8.5 million at December 31, 2005, an increase
of $6.7 million, from December 31, 2004, and an increase of $6.4 million, from
September 30, 2005. The percentage of total non-performing assets to total
assets was 0.58 percent at December 31, 2005 down from 0.77 percent at
December 31, 2004 and up from 0.53 percent at September 30, 2005. "The
increase in 90-days past due and still accruing is the result of credits that
are not related to any specific industry or trend. The credits are well-
secured, in the process of collection and deemed fully collectible," said
Edge.
Net charge-offs were $3.9 million, a decrease of 16 percent or $773,000,
from fourth quarter 2004 and a decrease of seven percent, or $299,000, from
third quarter 2005. Net charge-offs were 43 basis points of average loans on
an annualized basis during fourth quarter 2005, compared to 58 basis points
for fourth quarter 2004 and 47 basis points for third quarter 2005. "Net
charge-offs in 2005 were impacted by one large construction credit," said
Edge. "We believe there will be no further significant losses on this credit
and we expect 2006 to show improvement in our charge-off ratios."
The provision for loan losses was flat at $4.7 million for both fourth
quarter 2005 and fourth quarter 2004. Year-to-date 2005 loan loss provision
was $15.2 million, compared to $15.5 million for 2004.
Total non-accrual loans as a percentage of loans decreased to 0.58 percent
from 0.92 percent at December 31, 2004, and 0.66 percent at September 30,
2005. The allowance for loan losses, as a percentage of ending loans, was
1.10 percent at December 31, 2005 compared to 1.25 percent at December 31,
2004 and 1.11 percent at September 30, 2005. The allowance to non-accrual
loans ratio was 188 percent at December 31, 2005, compared to 136 percent at
December 31, 2004 and 168 percent at September 30, 2005.
Branching Update
"Our branching program consistently exceeded expectations, building a solid
track record of success," said Edge. "Over the past four years, our branching
strategy has resulted in profitable growth in our expansion markets. Our success
is really a credit to our entire AMCORE team, which remains fully committed to
growth and building long-term shareholder value."
In 2005, AMCORE opened three limited branches in the cities of Libertyville,
IL, Orland Park, IL and Wauwatosa, WI, a Milwaukee suburb. AMCORE expects to
open up to 12 branches in 2006 including seven limited branch offices and five
full service facilities primarily in the Chicago and Milwaukee suburban areas.
In first quarter 2006, AMCORE is expected to open a full service branch in
Belvidere, IL, and a limited branch in Joliet, IL. The 23 (net) new branches
opened since April 2001 contributed total loans of $1.5 billion and total
deposits of $649 million at December 31, 2005. Same-branch contributions, which
include new branches opened as of December 31, 2004, were $1.3 billion in loans
and $639 million in deposits.
By 2009, AMCORE expects to have added 34 (net) new offices since the
beginning of the initiative in 2001. "By the end of 2009, AMCORE is scheduled to
have 84 offices, two-thirds of which will be located in markets that we believe
exhibit strong growth characteristics," said Edge.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking
assets of $5.3 billion with 72 locations in Illinois and Wisconsin. AMCORE
provides a full range of consumer and commercial banking services, a variety of
mortgage lending products and investment services including trust, brokerage,
investment management and employee benefit plan record keeping.
This news release contains, and our periodic filings with the Securities and
Exchange Commission and written or oral statements made by the Company's
officers and directors to the press, potential investors, securities analysts
and others will contain, forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934, and the Company intends that such forward-looking statements be subject
to the safe harbors created thereby with respect to, among other things, the
financial condition, results of operations, plans, objectives, future
performance and business of AMCORE. Statements that are not historical facts,
including statements about beliefs and expectations, are forward- looking
statements. These statements are based upon beliefs and assumptions of AMCORE's
management and on information currently available to such management. The use of
the words "believe", "expect", "anticipate", "plan", "estimate", "should",
"may", "will" or similar expressions identify forward- looking statements.
Forward-looking statements speak only as of the date they are made, and AMCORE
undertakes no obligation to update publicly any forward- looking statements in
light of new information or future events.
Contemplated, projected, forecasted or estimated results in such forward-
looking statements involve certain inherent risks and uncertainties. A number of
factors - many of which are beyond the ability of the Company to control or
predict - could cause actual results to differ materially from those in its
forward-looking statements. These factors include, among others, the following
possibilities: (I) heightened competition, including specifically the
intensification of price competition, the entry of new competitors and the
formation of new products by new or existing competitors; (II) adverse state,
local and federal legislation and regulation; (III) failure to obtain new
customers and retain existing customers; (IV) inability to carry out marketing
and/or expansion plans; (V) ability to attract and retain key executives or
personnel; (VI) changes in interest rates including the effect of prepayment;
(VII) general economic and business conditions which are less favorable than
expected; (VIII) equity and fixed income market fluctuations; (IX) unanticipated
changes in industry trends; (X) unanticipated changes in credit quality and risk
factors; (XI) success in gaining regulatory approvals when required; (XII)
changes in Federal Reserve Board monetary policies; (XIII) unexpected outcomes
on existing or new litigation in which AMCORE, its subsidiaries, officers,
directors or employees are named defendants; (XIV) technological changes; (XV)
changes in U.S. generally accepted accounting principles; (XVI) changes in
assumptions or conditions affecting the application of "critical accounting
estimates"; (XVII) inability of third- party vendors to perform critical
services for the Company or its customers; (XVIII) disruption of operations
caused by the conversion and installation of data processing systems, and (XIX)
zoning restrictions or other limitations at the local level, which could prevent
limited branch offices from transitioning to full-service facilities.
AMCORE common stock is listed on The NASDAQ Stock Market under the symbol
"AMFI." Further information about AMCORE Financial, Inc. can be found at the
Company's website at http://www.AMCORE.com.
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
4Q
($ in 000's, except per '05/'04
share data) 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. Incr
SHARE DATA 2005 2005 2005 2005 2004 (Decr)
- -------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Diluted earnings per
share:
Income from
continuing
operations $ 0.48 $ 0.47 $ 0.49 $ 0.48 $ 0.52 (8)%
Net income $ 0.32 $ 0.50 $ 0.49 $ 0.48 $ 0.51 (37)%
Cash dividends $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0%
Book value $ 16.06 $ 16.09 $ 16.08 $ 15.38 $ 15.57 3%
Average diluted shares
outstanding 25,109 25,138 25,020 25,061 25,145 (0)%
INCOME STATEMENT
- --------------------------------
Net interest income $ 41,871 $ 41,104 $ 40,220 $ 39,481 $ 39,613 6%
Provision for loan
losses 4,730 4,462 3,502 2,500 4,743 (0)%
Non-interest income:
Trust & asset
management 3,750 3,638 3,746 3,961 3,911 (4)%
Service charges on
deposits 6,101 6,410 5,871 5,163 5,293 15%
Mortgage banking
income 605 1,588 321 1,271 2,029 (70)%
Company owned life
insurance 1,468 1,479 1,560 908 1,684 (13)%
Brokerage commission
income 767 575 744 733 749 2%
Bankcard fee income 1,285 1,261 1,211 1,125 1,108 16%
Gain on sale of
loans 406 162 185 111 636 (36)%
Net security gain
(loss) 592 (1) 455 (51) 1,221 (52)%
Other 3,283 1,639 1,735 2,070 1,454 126%
----------- ----------- ----------- ----------- ----------- -----------
Total non-interest
income 18,257 16,751 15,828 15,291 18,085 1%
Operating expenses:
Personnel costs 22,239 21,853 21,064 21,143 21,391 4%
Net occupancy and
equipment expense 6,122 5,604 4,972 5,119 4,732 29%
Data processing
expense 660 587 508 605 473 40%
Professional fees 932 1,040 1,055 975 956 (3)%
Advertising &
business
development 1,638 1,614 1,579 1,699 1,543 6%
Communication
expense 1,235 1,218 1,181 1,082 1,153 7%
Other 5,685 5,125 5,276 4,311 4,571 24%
----------- ----------- ----------- ----------- ----------- -----------
Total operating
expenses 38,511 37,041 35,635 34,934 34,819 11%
----------- ----------- ----------- ----------- ----------- -----------
Income from continuing
operations before
income taxes 16,887 16,352 16,911 17,338 18,136 (7)%
Income taxes 4,897 4,646 4,748 5,210 5,097 (4)%
----------- ----------- ----------- ----------- ----------- -----------
Income from continuing
operations 11,990 11,706 12,163 12,128 13,039 (8)%
----------- ----------- ----------- ----------- ----------- -----------
Discontinued
operations:
Income(loss) from
discontinued
operations (677) 1,476 5 (97) (254) 167%
Income tax expense 3,162 599 11 (19) (138) N/M
----------- ----------- ----------- ----------- ----------- -----------
Income(loss) from
discontinued
operations(1) (3,839) 877 (6) (78) (116) N/M
----------- ----------- ----------- ----------- ----------- -----------
Net Income $ 8,151 $ 12,583 $ 12,157 $ 12,050 $ 12,923 (37)%
=========== =========== =========== =========== =========== ===========
Year to Date
($ in 000's, except per share data) ------------------------ 2005/2004
SHARE DATA 2005 2004 Incr(Decr)
- ------------------------------------- ---------- ---------- ----------
Diluted earnings per share:
Income from continuing operations $ 1.91 $ 1.82 5%
Net income $ 1.79 $ 1.81 (1)%
Cash dividends $ 0.68 $ 0.68 0%
Book value $ 16.06 $ 15.57 3%
Average diluted shares outstanding 25,087 25,251 (1)%
INCOME STATEMENT
Net interest income $ 162,676 $ 152,972 6%
Provision for loan losses 15,194 15,530 (2)%
Non-interest income:
Trust & asset management 15,095 16,062 (6)%
Service charges on deposits 23,545 20,050 17%
Mortgage banking income 3,785 4,800 (21)%
Company owned life insurance 5,415 5,739 (6)%
Brokerage commission income 2,819 3,112 (9)%
Bankcard fee income 4,882 4,128 18%
Gain on sale of loans 864 2,462 (65)%
Net security gain (loss) 995 3,385 (71)%
Other 8,727 5,874 49%
---------- ---------- ----------
Total non-interest income 66,127 65,612 1%
Operating expenses:
Personnel costs 86,299 83,414 3%
Net occupancy and equipment
expense 21,817 18,863 16%
Data processing expense 2,360 1,929 22%
Professional fees 4,002 3,840 4%
Advertising & business development 6,530 5,990 9%
Communication expense 4,716 4,511 5%
Other 20,397 19,844 3%
---------- ---------- ----------
Total operating expenses 146,121 138,391 6%
---------- ---------- ----------
Income from continuing operations
before income taxes 67,488 64,663 4%
Income taxes 19,501 18,632 5%
---------- ---------- ----------
Income from continuing operations 47,987 46,031 4%
---------- ---------- ----------
Discontinued operations:
Income(loss) from discontinued
operations 707 (629) (212)%
Income tax expense 3,753 (294) N/M
---------- ---------- ----------
Income(loss) from discontinued
operations(1) (3,046) (335) N/M
---------- ---------- ----------
Net Income $ 44,941 $ 45,696 (2)%
========== ========== ==========
Basis
4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. Point
KEY RATIOS AND DATA 2005 2005 2005 2005 2004 Change
- -------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Net interest margin
(FTE) 3.51% 3.50% 3.54% 3.59% 3.58% (7)
Return on average
assets (2) 0.90% 0.89% 0.96% 0.99% 1.05% (15)
Return on average
equity (2) 11.89% 11.64% 12.52% 12.69% 13.44% (155)
Efficiency ratio (2) 64.05% 64.02% 63.58% 63.78% 60.35% 370
Equity/assets (end of
period) 7.46% 7.61% 7.73% 7.64% 7.82% (36)
Allowance to loans (end
of period) 1.10% 1.11% 1.16% 1.22% 1.25% (15)
Allowance to non-
accrual loans 187.93% 168.27% 178.89% 138.71% 135.81% 52
Non-accrual loans to
loans 0.58% 0.66% 0.65% 0.88% 0.92% (34)
Non-performing assets
to total assets 0.58% 0.53% 0.56% 0.73% 0.77% (19)
(in millions)
Total assets under
administration $ 2,570 $ 4,576 $ 4,539 $ 4,439 $ 4,430 (42)%
Mortgage loans closed $ 110 $ 146 $ 122 $ 85 $ 112 (2)%
Mortgage servicing
rights, net $ 13.3 $ 13.2 $ 12.4 $ 12.8 $ 12.5 6%
Percentage of mortgage
loans serviced 0.97% 0.98% 0.94% 0.98% 0.97% 0%
Year to Date Basis
------------------------ Point
KEY RATIOS AND DATA 2005 2004 Change
- ------------------------------------- ---------- ---------- ----------
Net interest margin (FTE) 3.53% 3.59% (6)
Return on average assets (2) 0.94% 0.97% (3)
Return on average equity (2) 12.18% 12.15% 3
Efficiency ratio (2) 63.86% 63.31% 55
Equity/assets (end of period)
N/M = not meaningful
(1) 4th Quarter 2005 includes loss on disposal of IMG of $3.814 million
3rd Quarter 2005 includes gain on sale of Vintage Equity Funds advisory
rights of $824,000
(2) Ratios from continuing operations
AMCORE Financial, Inc.
(Unaudited)
4th Qtr. 3rd Qtr. 2nd Qtr.
($ in 000's) 2005 2005 2005
- ----------------------------------- ------------- ------------- -------------
AVERAGE BALANCE SHEET
Assets:
Investment securities $ 1,212,248 $ 1,207,262 $ 1,234,262
Short-term investments 10,869 10,411 9,127
Loans held for sale 28,916 35,833 24,457
Loans: Commercial 814,865 804,314 755,104
Commercial real estate 2,046,238 1,986,672 1,913,179
Residential real estate 461,417 445,192 432,613
Consumer 314,594 316,777 316,595
------------- ------------- -------------
Total loans $ 3,637,114 $ 3,552,955 $ 3,417,491
Allowance for loan losses (42,136) (42,598) (41,620)
Other non-earning assets 420,275 427,874 419,579
------------- ------------- -------------
Total assets $ 5,267,286 $ 5,191,737 $ 5,063,296
============= ============= =============
Liabilities and Stockholders'
Equity:
Non-interest bearing deposits $ 494,805 $ 495,683 $ 485,796
Interest-bearing demand and savings 1,848,342 1,814,734 1,725,678
Time deposits 1,189,046 1,140,835 1,107,470
------------- ------------- -------------
Total Bank issued deposits $ 3,532,193 $ 3,451,252 $ 3,318,944
------------- ------------- -------------
Wholesale deposits 613,530 593,889 624,886
Short-term borrowings 484,465 516,470 505,468
Long-term borrowings 172,117 164,094 164,223
------------- ------------- -------------
Total Wholesale funding $ 1,270,112 $ 1,274,453 $ 1,294,577
------------- ------------- -------------
Other liabilities 64,893 67,078 60,129
------------- ------------- -------------
Total liabilities $ 4,867,198 $ 4,792,783 $ 4,673,650
------------- ------------- -------------
Stockholders' equity 411,583 404,159 395,607
Other comprehensive income (11,495) (5,205) (5,961)
------------- ------------- -------------
Total stockholders' equity 400,088 398,954 389,646
------------- ------------- -------------
Total liabilities &
stockholders' equity $ 5,267,286 $ 5,191,737 $ 5,063,296
============= ============= =============
CREDIT QUALITY
Ending allowance for
loan losses $ 40,756 $ 39,975 $ 40,475
Net charge-offs 3,949 4,248 3,981
Net charge-offs to
avg loans (annualized) 0.43% 0.47% 0.47%
Non-performing
assets:
Non-accrual loans $ 21,687 $ 23,757 $ 22,626
Loans 90 days past
due & still accruing 8,533 2,164 4,008
------------- ------------- -------------
Total non-performing loans 30,220 25,921 26,634
Foreclosed real estate 621 1,879 1,959
Other foreclosed assets 151 54 357
------------- ------------- -------------
Total non-performing assets $ 30,992 $ 27,854 $ 28,950
============= ============= =============
YIELD AND RATE ANALYSIS
Assets:
Investment securities (FTE) 4.57% 4.54% 4.59%
Short-term investments 4.15% 3.43% 3.04%
Loans held for sale 7.40% 8.33% 10.62%
Loans: Commercial 7.11% 6.73% 6.38%
Commercial real estate 7.09% 6.72% 6.44%
Residential real estate 6.43% 6.22% 6.03%
Consumer 6.78% 6.52% 6.63%
------------- ------------- -------------
Total loans (FTE) 6.98% 6.64% 6.39%
------------- ------------- -------------
Total interest-earning
assets (FTE) 6.38% 6.12% 5.93%
============= ============= =============
Liabilities:
Interest-bearing demand and
savings 2.41% 2.13% 1.81%
Time deposits 3.35% 3.12% 2.93%
------------- ------------- -------------
Total Bank issued deposits 2.78% 2.51% 2.25%
------------- ------------- -------------
Wholesale deposits 4.16% 3.91% 3.65%
Short-term borrowings 4.05% 3.50% 3.05%
Long-term borrowings 6.44% 6.27% 6.05%
------------- ------------- -------------
Total Wholesale funding 4.42% 4.02% 3.68%
------------- ------------- -------------
Total interest-bearing
liabilities 3.26% 2.98% 2.71%
============= ============= =============
Net interest spread 3.12% 3.14% 3.22%
Net interest margin (FTE) 3.51% 3.50% 3.54%
============= ============= =============
FTE adjustment (000's) $ 1,181 $ 1,166 $ 1,232
AMCORE Financial, Inc.
(Unaudited)
4Q
'05/'04
1st Qtr. 4th Qtr. Incr Ending
($ in 000's) 2005 2004 (Decr) Balances
- ----------------------------------------- ------------- ------------- ------------- -------------
AVERAGE BALANCE SHEET
Assets:
Investment securities $ 1,231,746 $ 1,221,676 (1)% $ 1,183,384
Short-term investments 4,871 19,753 (45)% 5,713
Loans held for sale 21,074 80,666 (64)% 24,138
Loans: Commercial 719,194 731,376 11% 818,670
Commercial real estate 1,848,867 1,733,023 18% 2,131,874
Residential real estate 424,095 415,927 11% 459,823
Consumer 319,705 335,005 (6)% 311,497
------------- ------------- ------------- -------------
Total loans $ 3,311,861 $ 3,215,331 13% 3,721,864
Allowance for loan losses (42,072) (42,537) (1)% (40,756)
Other non-earning assets 416,449 427,681 (2)% 450,559
------------- ------------- ------------- -------------
Total assets $ 4,943,929 $ 4,922,570 7% $ 5,344,902
============= ============= ============= =============
Liabilities and Stockholders'
Equity:
Non-interest bearing deposits $ 464,452 $ 468,962 6% $ 524,875
Interest-bearing demand and
savings 1,563,000 1,497,778 23% 1,873,274
Time deposits 1,101,194 1,129,816 5% 1,188,337
------------- ------------- ------------- -------------
Total Bank issued deposits $ 3,128,646 $ 3,096,556 14% 3,586,486
------------- ------------- ------------- -------------
Wholesale deposits 644,732 646,833 (5)% 626,730
Short-term borrowings 553,176 559,979 (13)% 489,334
Long-term borrowings 166,889 166,074 4% 169,730
------------- ------------- ------------- -------------
Total Wholesale funding $ 1,364,797 $ 1,372,886 (7)% $ 1,285,794
------------- ------------- ------------- -------------
Other liabilities 62,899 67,094 (3)% 74,105
------------- ------------- ------------- -------------
Total liabilities $ 4,556,342 $ 4,536,536 7% 4,946,385
------------- ------------- ------------- -------------
Stockholders' equity 387,509 380,152 8% 411,341
Other comprehensive income 78 5,882 N/M (12,824)
------------- ------------- ------------- -------------
Total stockholders' equity 387,587 386,034 4% 398,517
------------- ------------- ------------- -------------
Total liabilities &
stockholders' equity $ 4,943,929 $ 4,922,570 7% $ 5,344,902
============= ============= ============= =============
CREDIT QUALITY
Ending allowance for
loan losses $ 40,954 $ 40,945 (0)%
Net charge-offs 2,491 4,722 (16)%
Net charge-offs to
avg loans (annualized) 0.31% 0.58% (26)%
Non-performing
assets:
Non-accrual loans $ 29,525 $ 30,148 (28)%
Loans 90 days past
due & still accruing 1,900 1,848 362%
------------- ------------- -------------
Total non-performing
loans 31,425 31,996 (6)%
Foreclosed real estate 4,129 4,940 (87)%
Other foreclosed assets 818 923 (84)%
------------- ------------- -------------
Total non-performing
assets $ 36,372 $ 37,859 (18)%
============= ============= =============
YIELD AND RATE ANALYSIS
Assets:
Investment securities (FTE) 4.62% 4.60%
Short-term investments 2.58% 2.02%
Loans held for sale 7.64% 7.59%
Loans: Commercial 6.05% 5.77%
Commercial real estate 6.14% 5.81%
Residential real estate 5.83% 5.73%
Consumer 6.47% 6.57%
------------- -------------
Total loans (FTE) 6.11% 5.87%
------------- -------------
Total interest-earning
assets (FTE) 5.71% 5.54%
============= =============
Liabilities:
Interest-bearing demand and
savings 1.38% 1.14%
Time deposits 2.69% 2.58%
------------- -------------
Total Bank issued deposits 1.95% 1.76%
------------- -------------
Wholesale deposits 3.36% 3.08%
Short-term borrowings 2.59% 2.39%
Long-term borrowings 5.88% 5.62%
------------- -------------
Total Wholesale funding 3.30% 3.05%
------------- -------------
Total interest-bearing
liabilities 2.41% 2.22%
============= =============
Net interest spread 3.30% 3.32%
Net interest margin (FTE) 3.59% 3.58%
============= =============
FTE adjustment (000's) $ 1,195 $ 1,170
SOURCE AMCORE Financial, Inc.
-0- 01/19/2006
/CONTACT: Media: Katherine Taylor, Investor Relations Manager,
+1-815-961-7164, or financial inquiries: John Hecht, Chief Financial Officer,
+1-815-961-4974/
/Web site: http://www.AMCORE.com /
(AMFI)