Amcore Financial Inc., a $5.1 billion-asset company in Rockford, Ill., reported a loss of $10.7 million in the second quarter, its sixth consecutive loss.
However, the second-quarter results showed the loss narrowed by half from a year earlier and was one-third the first-quarter loss.
The loss was driven by a provision for loan losses of $17 million, down 58% from a year earlier. The company, which has worked aggressively to rein in credit-quality issues, reported total nonperforming assets of $416 million, or 12.4% of total loans. The amount of nonperforming assets jumped 142% from a year earlier and was up 3% from the first quarter, the slowest rate of growth in problem loans the company has had since the third quarter of 2007, it said.
Net chargeoffs totaled $20.7 million, down 38% from the first quarter.