Amid concerns about its future, Amcore Financial Inc. in Rockford, Ill., said it had sold 12 branches and two stand-alone drive-up sites of its main subsidiary, Amcore Bank.
The $3.8 billion-asset company sold the sites in central Illinois to Midland States Bank in Effingham, Ill., it said on Monday. The deal included up to $430 million in loans, $495 million in deposits and sweep accounts and up to $400 million in trusts and brokerage account relationships. In connection with the sale, Amcore got a 1.5% deposit premium and a $1.5 million trust account premium, according to a press release.
Amcore Financial lost $321.5 million in 2008 and 2009. In a note attached to its annual report, filed March 22, the company's accountants said, "Significant levels of criticized assets and low levels of capital raise substantial doubt about the company's ability to continue as a going concern."
