Exhibit 99.1
AMCORE FINANCIAL, INC. REPORTS 1ST QUARTER EARNINGS
(Numbers in Thousands, Except Per Share Data, Income from Continuing Operations)
1st quarter 2007 1st quarter 2006 4th quarter 2006
---------------- ---------------- ----------------
Net Revenues $ 59,776 $ 57,129 $ 62,322
Net Income $ 8,219 $ 10,459 $ 12,629
Diluted Shares 23,804 24,956 24,052
Diluted EPS $ 0.35 $ 0.42 $ 0.53
ROCKFORD, Ill., April 18 /PRNewswire-FirstCall/ -- AMCORE Financial, Inc.
(Nasdaq: AMFI) reported diluted earnings per share from continuing operations of
$0.35 for first quarter 2007, a 16 percent decrease, compared to $0.42 per
diluted share in first quarter 2006, and a 34 percent decrease from $0.53 in the
previous quarter. Net income from continuing operations in the first quarter of
2007 was $8.2 million, a 21 percent decrease from $10.5 million in the
prior-year period, and a 35 percent decrease from $12.6 million in the previous
quarter.
"During the first quarter, we took several important actions that we believe
will improve performance and reduce risk in the future, however, some of these
actions added to current period expenses," said Kenneth E. Edge, Chairman,
President and CEO of AMCORE. "Going forward, we expect that these actions, and
the additions to senior management over the past eighteen months, will provide
direct bottom-line improvements."
Highlights
----------
-- Nonrecurring items in first quarter 2007 included:
-- $2.3 million debt extinguishment expense from the redemption of
$40 million Trust Preferred Capital Securities;
-- $1.3 million in employment related expenses including separation
costs for mortgage servicing employees, a previously announced
executive officer resignation and costs associated with closing
out a legacy supplemental retirement plan for directors;
-- $443,000 in costs for external consulting work to improve
compliance programs, and
-- $2.4 million net gain on the sale of the Originated Mortgage
Servicing Rights portfolio.
-- Non-interest income increased 23 percent or $3.7 million compared to
first quarter 2006 and decreased nine percent or $1.9 million compared
to fourth quarter 2006. First quarter included the $2.4 million gain on
the sale of the Originated Mortgage Servicing Rights portfolio. The
fourth quarter 2006 included a $1.5 million non-taxable net insurance
claim on company-owned life insurance and $1.9 million in earnings from
private equity investments.
-- Operating expenses increased 11 percent, or $4.6 million, compared to
first quarter 2006, and increased six percent, or $2.7 million, compared
to fourth quarter 2006. Operating expenses included the $2.3 million in
debt extinguishment expenses, the $1.3 million in employment related
expenses and a $1.4 million increase in net occupancy and equipment
costs.
-- Average loan balances grew five percent, or $204 million, compared to
first quarter 2006, while average bank issued deposits decreased one
percent compared to first quarter 2006.
-- The net interest margin decreased six basis points to 3.38 percent in
first quarter 2007 from 3.44 percent in first quarter 2006, and
increased four basis points compared to fourth quarter 2006.
-- Non-performing loans increased $10.2 million, or 40 percent, from March
31, 2006 and increased $3.5 million, or 11 percent, from December 31,
2006. Net charge-offs increased $761,000 or 38 percent compared to the
same period a year ago and increased $64,000 or two percent compared to
fourth quarter 2006.
Revenues
--------
Net revenues increased five percent, or $2.6 million, to $59.8 million in
first quarter 2007 from $57.1 million during the same quarter a year ago, but
decreased four percent, or $2.5 million, from $62.3 million in the previous
quarter.
Net interest income decreased two percent, or $1.0 million, to $40.4 million
in first quarter 2007 from $41.4 million during the same quarter a year ago, and
decreased two percent, or $662,000, from $41.1 million in the previous quarter.
The net interest margin decreased six basis points to 3.38 percent in first
quarter 2007 from 3.44 percent in first quarter 2006, and increased four basis
points compared to fourth quarter 2006.
Average loan balances grew five percent, or $204 million, compared to first
quarter 2006 and were essentially flat compared to the previous quarter. Loan
yields rose 54 basis points to 7.77 percent compared to the same period a year
ago and were up three basis points compared to the previous quarter.
Average bank issued deposits totaled $3.5 billion, which decreased one
percent compared to a year ago and were essentially flat compared to the
previous quarter. The total cost of bank issued deposits increased 79 basis
points from first quarter 2006, and seven basis points from fourth quarter 2006.
Total non-interest income increased 23 percent or $3.7 million compared to
first quarter 2006 and decreased nine percent or $1.9 million compared to fourth
quarter 2006. The first quarter 2007 non-interest revenues included the $2.4
million gain on the sale of the Originated Mortgage Servicing Rights portfolio
and fourth quarter 2006 included the $1.5 million non-taxable net insurance
claim on company-owned life insurance and the $1.9 million in earnings from
private equity investments.
Investment management and trust revenues increased $415,000, or 11 percent,
from first quarter 2006 but decreased $303,000, or seven percent, from fourth
quarter 2006.
Deposit-related fees and bankcard fees increased $779,000 and $503,000 or 14
percent and 37 percent respectively, when compared to first quarter 2006. When
compared to the previous quarter, deposit related fees decreased $207,000, or
three percent, and bankcard fees increased $197,000, or 12 percent.
Income from company-owned life insurance increased $25,000, or three
percent, when compared to first quarter 2006, and decreased $2.0 million, or 68
percent, when compared to fourth quarter 2006, which included net insurance
claims that did not occur in the first quarter.
Net mortgage revenues decreased 25 percent, or $306,000, in first quarter
2007 compared to the same period a year ago, and increased seven percent, or
$64,000, from fourth quarter 2006. In January, AMCORE entered into a strategic
arrangement with a leading national mortgage services company to provide
private-label loan processing and servicing support, including the sale of its
servicing portfolio. This relationship is expected to better position the
Company for future mortgage origination growth and provide more stability to
mortgage earnings through economic and interest rate cycles.
Other non-interest income increased $2.4 million from first quarter 2006 and
increased $263,000 from fourth quarter 2006. First quarter 2007 included the
$2.4 million gain from the sale of the Originated Mortgage Servicing Rights
portfolio. Fourth quarter 2006 included earnings from private equity fund
investments of $1.9 million.
Operating Expenses
------------------
Total operating expenses increased 11 percent, or $4.6 million, compared to
first quarter 2006, and increased six percent, or $2.7 million, compared to
fourth quarter 2006. The increase over the prior-year period was primarily due
to higher personnel costs of $1.4 million, including separation costs for
mortgage servicing employees, the previously announced executive officer
resignation, the director's supplemental retirement plan close out, the $2.3
million debt extinguishment expenses from the trust preferred securities
redemption and $1.4 million increase in net occupancy and equipment costs. The
increase in net occupancy and equipment costs was primarily due to higher lease
costs associated with branch expansion, utility rate increases and increased
snow removal costs.
Professional fees increased $224,000, or 13 percent, compared to the same
quarter a year ago, but decreased 13 percent, or $285,000 from fourth quarter
2006. The increase in professional fees from first quarter 2006 was primarily
from continued efforts to improve compliance processes. The decrease from the
prior quarter is due to a decline in professional fees related to compliance
matters and lower outsourced internal audit costs.
In the first quarter of 2007, $40 million of 9.35 percent coupon Trust
Preferred Securities (TRUPs) became callable. AMCORE exercised the call
provision for these securities in March and replaced them with a new lower cost
trust preferred issuance of $50 million at a rate of 6.45 percent. The cost of
extinguishing the $40 million issuance was $2.3 million. AMCORE will benefit
from a lower interest rate on the new issuance and expects to recover the cost
of terminating the old TRUPs over the next two years.
The efficiency ratio was 75.25 percent in the first quarter 2007, compared
to 70.70 percent for the same period in 2006 and 67.79 percent in the prior
quarter.
Income Taxes
------------
Income taxes, as a percentage of pre-tax income from continuing operations,
were 29.2 percent in the first quarter 2007, compared to 29.0 percent in the
first quarter 2006 and 26.0 percent in the fourth quarter of 2006. The increase
in percent in the first quarter 2007, compared to fourth quarter 2006, was due
to a lower proportion of non-taxable income, primarily from net insurance claims
on company-owned life insurance.
Other Key Performance Ratios
----------------------------
Other key ratios include a 16 basis point decrease in return on average
assets to 0.63 percent in first quarter 2007 compared to 0.79 percent during the
prior-year period and a 30 basis point decrease from 0.93 percent in the
previous quarter. Return on average equity decreased 226 basis points to 8.34
percent in first quarter 2007 compared to 10.60 percent in first quarter 2006
and decreased 417 basis points from 12.51 percent in fourth quarter 2006.
Asset Quality & Loan Loss
-------------------------
The percentage of total non-performing assets to total assets was 0.71
percent at March 31, 2007, up from 0.49 percent at March 31, 2006 and 0.64
percent at December 31, 2006. Net charge-offs were $2.8 million, an increase of
$761,000 from first quarter 2006 and an increase of $64,000 from fourth quarter
2006. Net charge-offs were 28 basis points of average loans on an annualized
basis during first quarter 2007, compared to 22 basis points for first quarter
2006 and 27 basis points for fourth quarter 2006.
Provision for loan losses of $3.2 million in first quarter 2007 increased
$1.2 million, or 59 percent, from the $2.0 million in first quarter 2006 and
increased six percent, or $172,000, from fourth quarter 2006.
Buy-back Update
---------------
During first quarter 2007, 440,000 shares were repurchased at an average
price of $32.97 in connection with the Company's stock buy-back program.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking
assets of $5.3 billion with 78 locations in Illinois and Wisconsin. AMCORE
provides a full range of consumer and commercial banking services, a variety of
mortgage lending products and wealth management services including trust,
brokerage, private banking, financial planning, investment management, insurance
and comprehensive retirement plan services.
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 or adverse findings or rulings made
by local, state or federal regulators or agencies regarding AMCORE and its
operations; (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)
1st Qtr. 4th Qtr. 3rd Qtr.
($ in 000's except per share data) 2007 2006 2006
- ---------------------------------------- ---------- ---------- ----------
SHARE DATA
Diluted earnings per share:
Income from continuing operations $ 0.35 $ 0.53 $ 0.51
Net income $ 0.35 $ 0.54 $ 0.51
Cash dividends $ 0.185 $ 0.185 $ 0.185
Book value $ 16.89 $ 16.81 $ 16.73
Average diluted shares outstanding 23,804 24,052 24,477
Ending shares outstanding 23,507 23,792 24,277
INCOME STATEMENT
Total Interest Income $ 85,742 $ 88,090 $ 87,525
Total Interest Expense 45,346 47,032 46,375
---------- ---------- ----------
Net interest income 40,396 41,058 41,150
Provision for loan losses 3,179 3,007 2,863
Non-interest income:
Investment management & trust 4,080 4,383 4,182
Service charges on deposits 6,329 6,536 6,931
Net mortgage revenues 926 862 762
Company owned life insurance 954 2,943 2,870
Brokerage commission 863 821 700
Bankcard fee income 1,860 1,663 1,690
Gain on sale of loans 241 150 116
Net security gain - 42 -
Other 4,127 3,864 3,909
---------- ---------- ----------
Total non-interest income 19,380 21,264 21,160
Operating expenses:
Personnel costs 26,460 25,245 23,274
Net occupancy & equipment 6,316 5,581 5,533
Data processing 687 779 674
Professional fees 1,929 2,214 2,743
Communication 1,323 1,231 1,379
Advertising & business development 1,137 2,059 1,789
Other 7,130 5,140 7,076
---------- ---------- ----------
Total operating expenses 44,982 42,249 42,468
---------- ---------- ----------
Income from continuing operations
before income taxes 11,615 17,066 16,979
Income taxes 3,396 4,437 4,474
---------- ---------- ----------
Income from continuing operations 8,219 12,629 12,505
---------- ---------- ----------
Discontinued operations:
Loss from discontinued operations - - -
Income tax (benefit) expense - (328) -
---------- ---------- ----------
Income(loss) from discontinued
operations - 328 -
---------- ---------- ----------
Net Income $ 8,219 $ 12,957 $ 12,505
========== ========== ==========
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
2nd Qtr. 1st Qtr. 1Q/4Q 1Q 07/06
($ in 000's except per share data) 2006 2006 Inc(Dec) Inc(Dec)
- ------------------------------------- ---------- ---------- ---------- ----------
SHARE DATA
Diluted earnings per share:
Income from continuing operations $ 0.46 $ 0.42 (34)% (16)%
Net income $ 0.46 $ 0.42 (35)% (17)%
Cash dividends $ 0.185 $ 0.185 0% 0%
Book value $ 16.06 $ 16.14 0% 5%
Average diluted shares outstanding 24,758 24,956 (1)% (5)%
Ending shares outstanding 24,581 24,826 (1)% (5)%
INCOME STATEMENT
Total Interest Income $ 83,567 $ 79,994 (3)% 7%
Total Interest Expense 42,247 38,564 (4)% 18%
---------- ---------- ---------- ----------
Net interest income 41,320 41,430 (2)% (2)%
Provision for loan losses 2,250 2,000 6% 59%
Non-interest income:
Investment management & trust 3,970 3,665 (7)% 11%
Service charges on deposits 6,605 5,550 (3)% 14%
Net mortgage revenues 1,061 1,232 7% (25)%
Company owned life insurance 1,149 929 (68)% 3%
Brokerage commission 744 881 5% (2)%
Bankcard fee income 1,515 1,357 12% 37%
Gain on sale of loans 149 161 61% 50%
Net security gain - 225 (100)% (100)%
Other 2,273 1,699 7% 143%
---------- ---------- ---------- ----------
Total non-interest income 17,466 15,699 (9)% 23%
Operating expenses:
Personnel costs 24,315 25,056 5% 6%
Net occupancy & equipment 4,892 4,885 13% 29%
Data processing 790 755 (12)% (9)%
Professional fees 2,655 1,705 (13)% 13%
Communication 1,220 1,258 7% 5%
Advertising & business development 1,838 1,723 (45)% (34)%
Other 4,548 5,008 39% 42%
---------- ---------- ---------- ----------
Total operating expenses 40,258 40,390 6% 11%
---------- ---------- ---------- ----------
Income from continuing operations
before income taxes 16,278 14,739 (32)% (21)%
Income taxes 4,844 4,280 (23)% (21)%
---------- ---------- ---------- ----------
Income from continuing operations 11,434 10,459 (35)% (21)%
---------- ---------- ---------- ----------
Discontinued operations:
Loss from discontinued operations (18) (113) N/M N/M
Income tax (benefit) expense (7) (44) N/M N/M
---------- ---------- ---------- ----------
Income(loss) from discontinued
operations (11) (69) N/M N/M
---------- ---------- ---------- ----------
Net Income $ 11,423 $ 10,390 (37)% (21)%
========== ========== ========== ==========
1st Qtr. 4th Qtr. 3rd Qtr.
KEY RATIOS AND DATA 2007 2006 2006
- ---------------------------------------- ---------- ---------- ----------
Net interest margin (FTE) 3.38% 3.34% 3.33%
Return on average assets (1) 0.63% 0.93% 0.92%
Return on average equity (1) 8.34% 12.51% 12.38%
Efficiency ratio (1) 75.25% 67.79% 68.16%
Equity/assets (end of period) 7.54% 7.56% 7.46%
Allowance to loans (end of period) 1.04% 1.04% 1.03%
Allowance to non-accrual loans 141.24% 136.16% 140.36%
Allowance to non-performing loans 115.20% 126.42% 134.93%
Non-accrual loans to loans 0.73% 0.76% 0.73%
Non-performing assets to total assets 0.71% 0.64% 0.59%
(in millions)
Total assets under administration $ 2,711 $ 2,671 $ 2,627
Mortgage loans closed $ 74 $ 84 $ 111
Mortgage servicing rights, net $ 0.7 $ 14.3 $ 14.2
Percentage of mortgage loans serviced 1.07% 0.97% 0.98%
N/M = not meaningful
(1) Ratios from continuing operations
Basis Basis
2nd Qtr. 1st Qtr. Point Point
KEY RATIOS AND DATA 2006 2006 Change Change
- ------------------------------------- ---------- ---------- ---------- ----------
Net interest margin (FTE) 3.40% 3.44% 4 (6)
Return on average assets (1) 0.86% 0.79% (30) (16)
Return on average equity (1) 11.52% 10.60% (417) (226)
Efficiency ratio (1) 68.48% 70.70% 746 455
Equity/assets (end of period) 7.28% 7.49% (2) 5
Allowance to loans (end of period) 1.05% 1.08% 0 (4)
Allowance to non-accrual loans 165.29% 181.28% 5 (40)
Allowance to non-performing loans 139.79% 158.69% (11) (43)
Non-accrual loans to loans 0.63% 0.60% (3) 13
Non-performing assets to total assets 0.57% 0.49% 7 22
(in millions)
Total assets under administration $ 2,532 $ 2,651 1% 2%
Mortgage loans closed $ 120 $ 80 (12)% (8)%
Mortgage servicing rights, net $ 13.9 $ 13.5 (95)% (95)%
Percentage of mortgage loans serviced 0.98% 0.91% 10 16
N/M = not meaningful
(1) Ratios from continuing operations
AMCORE Financial, Inc.
(Unaudited)
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
($ in 000's) 2007 2006 2006 2006
- ---------------------------------------- ------------ ------------ ------------ ------------
AVERAGE BALANCE SHEET
Assets:
Investment securities $ 897,511 $ 1,037,355 $ 1,105,999 $ 1,145,757
Short-term investments 19,127 7,672 6,005 6,570
Loans held for sale 12,305 14,983 27,036 26,420
Loans: Commercial 803,570 806,679 820,647 832,541
Commercial real estate 2,354,882 2,322,050 2,269,703 2,190,746
Residential real estate 498,427 506,514 495,917 479,585
Consumer 306,268 311,643 317,455 317,362
------------ ------------ ------------ ------------
Total loans $ 3,963,147 $ 3,946,886 $ 3,903,722 $ 3,820,234
------------ ------------ ------------ ------------
Total earning assets $ 4,892,090 $ 5,006,896 $ 5,042,762 $ 4,998,981
Allowance for loan losses (41,653) (41,917) (41,503) (41,532)
Other non-earning assets 405,283 409,788 403,450 398,946
------------ ------------ ------------ ------------
Total assets $ 5,255,720 $ 5,374,767 $ 5,404,709 $ 5,356,395
============ ============ ============ ============
Liabilities and Stockholders' Equity:
Non interest bearing deposits $ 492,766 $ 504,960 $ 484,502 $ 486,103
Interest bearing deposits 1,784,489 1,760,241 1,716,174 1,779,003
Time deposits 1,199,365 1,217,385 1,246,157 1,237,080
------------ ------------ ------------ ------------
Total bank issued deposits $ 3,476,620 $ 3,482,586 $ 3,446,833 $ 3,502,186
------------ ------------ ------------ ------------
Wholesale deposits 746,629 807,470 790,629 703,222
Short-term borrowings 157,511 286,422 327,337 349,648
Long-term borrowings 406,936 328,591 372,472 340,833
------------ ------------ ------------ ------------
Total wholesale funding $ 1,311,076 $ 1,422,483 $ 1,490,438 $ 1,393,703
------------ ------------ ------------ ------------
Total interest bearing liabilities 4,294,930 4,400,109 4,452,769 4,409,786
------------ ------------ ------------ ------------
Other liabilities 68,126 69,290 66,608 62,286
------------ ------------ ------------ ------------
Total liabilities $ 4,855,822 $ 4,974,359 $ 5,003,879 $ 4,958,175
------------ ------------ ------------ ------------
Stockholders' equity 411,131 412,003 420,177 418,307
Other comprehensive loss (11,233) (11,595) (19,347) (20,087)
------------ ------------ ------------ ------------
Total stockholders' equity 399,898 400,408 400,830 398,220
------------ ------------ ------------ ------------
Total liabilities & stockholders'
equity $ 5,255,720 $ 5,374,767 $ 5,404,709 $ 5,356,395
============ ============ ============ ============
CREDIT QUALITY
Ending allowance for loan losses $ 41,308 $ 40,913 $ 40,626 $ 40,560
Net charge-offs 2,784 2,720 2,797 2,423
Net charge-offs to avg loans
(annualized) 0.28% 0.27% 0.28% 0.25%
Non-performing assets:
Non-accrual loans $ 29,247 $ 30,048 $ 28,945 $ 24,539
Loans 90 days past due & still
accruing 6,610 2,315 1,164 4,476
------------ ------------ ------------ ------------
Total non-performing loans 35,857 32,363 30,109 29,015
Foreclosed real estate 1,205 1,247 1,540 1,025
Other foreclosed assets 231 317 483 681
------------ ------------ ------------ ------------
Total non-performing assets $ 37,293 $ 33,927 $ 32,132 $ 30,721
============ ============ ============ ============
YIELD AND RATE ANALYSIS
Assets:
Investment securities (FTE) 4.43% 4.54% 4.55% 4.52%
Short-term investments 5.64% 5.66% 5.73% 5.31%
Loans held for sale 4.86% 5.61% 5.70% 5.16%
Loans: Commercial 8.23% 8.08% 8.12% 7.87%
Commercial real estate 7.80% 7.83% 7.75% 7.56%
Residential real estate 7.05% 7.00% 6.97% 6.78%
Consumer 7.53% 7.41% 7.16% 6.95%
------------ ------------ ------------ ------------
Total loans (FTE) 7.77% 7.74% 7.68% 7.48%
------------ ------------ ------------ ------------
Total interest earning assets (FTE) 7.14% 7.07% 6.98% 6.79%
============ ============ ============ ============
Liabilities:
Interest bearing deposits 3.25% 3.18% 3.05% 2.82%
Time deposits 4.65% 4.57% 4.31% 3.98%
------------ ------------ ------------ ------------
Total bank issued deposits 3.82% 3.75% 3.58% 3.30%
------------ ------------ ------------ ------------
Wholesale deposits 5.16% 5.10% 4.98% 4.70%
Short-term borrowings 4.85% 5.10% 4.92% 4.72%
Long-term borrowings 5.85% 5.86% 6.04% 6.03%
------------ ------------ ------------ ------------
Total wholesale funding 5.34% 5.27% 5.23% 5.03%
------------ ------------ ------------ ------------
Total interest bearing liabilities 4.28% 4.24% 4.13% 3.84%
============ ============ ============ ============
Net interest spread 2.86% 2.83% 2.85% 2.95%
Net interest margin (FTE) 3.38% 3.34% 3.33% 3.40%
============ ============ ============ ============
FTE adjustment (000's) $ 608 $ 974 $ 1,054 $ 1,070
AMCORE Financial, Inc.
(Unaudited)
1Q
1st Qtr. 1Q/4Q 07/06 Ending
($ in 000's) 2006 Inc(Dec) Inc(Dec) Balances
- ---------------------------------------- ------------ ------------ ------------ ------------
AVERAGE BALANCE SHEET
Assets:
Investment securities $ 1,196,106 (13)% (25)% $ 862,143
Short-term investments 8,054 149% 137% 1,537
Loans held for sale 22,969 (18)% (46)% 16,306
Loans: Commercial 811,689 (0)% (1)% 802,577
Commercial real estate 2,160,772 1% 9% 2,391,523
Residential real estate 473,992 (2)% 5% 484,821
Consumer 312,801 (2)% (2)% 306,227
------------ ------------ ------------ ------------
Total loans $ 3,759,254 0% 5% $ 3,985,148
------------ ------------ ------------ ------------
Total earning assets $ 4,986,383 (2)% (2)% $ 4,865,134
Allowance for loan losses (42,710) (1)% (2)% (41,308)
Other non-earning assets 396,763 (1)% 2% 446,076
------------ ------------ ------------ ------------
Total assets $ 5,340,436 (2)% (2)% $ 5,269,902
============ ============ ============ ============
Liabilities and Stockholders' Equity:
Non interest bearing deposits $ 473,174 (2)% 4% $ 477,974
Interest bearing deposits 1,831,169 1% (3)% 1,854,832
Time deposits 1,200,419 (1)% (0)% 1,197,619
------------ ------------ ------------ ------------
Total bank issued deposits $ 3,504,762 (0)% (1)% $ 3,530,425
------------ ------------ ------------ ------------
Wholesale deposits 660,102 (8)% 13% 662,965
Short-term borrowings 530,751 (45)% (70)% 219,260
Long-term borrowings 175,999 24% 131% 391,425
------------ ------------ ------------ ------------
Total wholesale funding $ 1,366,852 (8)% (4)% $ 1,273,650
------------ ------------ ------------ ------------
Total interest bearing liabilities 4,398,440 (2)% (2)% 4,326,101
------------ ------------ ------------ ------------
Other liabilities 68,629 (2)% (1)% 68,720
------------ ------------ ------------ ------------
Total liabilities $ 4,940,243 (2)% (2)% $ 4,872,795
------------ ------------ ------------ ------------
Stockholders' equity 414,482 (0)% (1)% 405,421
Other comprehensive loss (14,289) (3)% (21)% (8,314)
------------ ------------ ------------ ------------
Total stockholders' equity 400,193 (0)% (0)% 397,107
------------ ------------ ------------ ------------
Total liabilities & stockholders'
equity $ 5,340,436 (2)% (2)% $ 5,269,902
============ ============ ============ ============
CREDIT QUALITY
Ending allowance for loan losses $ 40,733 1% 1%
Net charge-offs 2,023 2% 38%
Net charge-offs to avg loans
(annualized) 0.22% 4% 27%
Non-performing assets:
Non-accrual loans $ 22,470 (3)% 30%
Loans 90 days past due & still
accruing 3,198 186% 107%
------------ ------------ ------------
Total non-performing loans 25,668 11% 40%
Foreclosed real estate 341 (3)% 253%
Other foreclosed assets 166 (27)% 39%
------------ ------------ ------------
Total non-performing assets $ 26,175 10% 42%
============ ============ ============
YIELD AND RATE ANALYSIS
Assets:
Investment securities (FTE) 4.56%
Short-term investments 4.87%
Loans held for sale 4.93%
Loans: Commercial 7.59%
Commercial real estate 7.30%
Residential real estate 6.57%
Consumer 6.79%
------------
Total loans (FTE) 7.23%
------------
Total interest earning assets (FTE) 6.58%
============
Liabilities:
Interest bearing deposits 2.64%
Time deposits 3.62%
------------
Total bank issued deposits 3.03%
------------
Wholesale deposits 4.43%
Short-term borrowings 4.46%
Long-term borrowings 6.64%
------------
Total wholesale funding 4.73%
------------
Total interest bearing liabilities 3.56%
============
Net interest spread 3.02%
Net interest margin (FTE) 3.44%
============
FTE adjustment (000's) $ 1,092
SOURCE AMCORE Financial, Inc.
-0- 04/18/2007
/CONTACT: media, Katherine Taylor, Investor Relations Manager,
+1-815-961-7164, or financial, Don Wilson, Chief Financial Officer,
+1-815-961-2721, both of AMCORE Financial, Inc./
/Web site: http://www.AMCORE.com /
(AMFI)