Amcore Financial Inc. in Rockford, Ill., said Thursday that its third-quarter earnings fell 85% from the year earlier, to $1.9 million, due to problem loans and a pending loss on the sale of mortgage-backed bonds.
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The $5.4 billion-asset Amcore said that it had increased its loan-loss provision to $15.3 million, from $2.9 million the year earlier. Net chargeoffs were $4.5 million, or 0.45% of average loans, compared to $2.8 million, or 0.28% the year before. Nonperforming loans increased 9%, to $41.2 million. In addition, Amcore took a $5.6 million impairment charge on the pending sale of $205 million of mortgage-backed bonds.
