Shares of Amcore Financial Inc. fell 6.4% Thursday after the Rockford, Ill., reported its third consecutive quarterly loss.
The $4.7 billion-asset company lost $18 million in the third quarter, compared with a $1.9 million profit a year earlier, as losses on commercial real estate and construction loans continued to increase.
Net chargeoffs increased 712% from the second quarter, to $26.8 million, and nonperforming assets rose 11.4%, to $191.4 million. The ratio of nonperformers to total assets increased 53 basis points from the second quarter and 314 basis points from a year earlier, to 4.03%.
The shares closed at $5.99.
Amcore, which has lost nearly $66 million this year, has been steadily shrinking its real estate loan portfolio.
It said it is focused on building its commercial and industrial business. Residential real estate loans declined 9% from a year earlier, and commercial real estate loans decreased 6%.
Despite the heavy loan losses, Amcore says it remains well capitalized.
