April 23, 1998
Investor Relations Manager AMCORE
815-961-7164 FINANCIAL, INC.
Chief Financial Officer 815-961-2787
AMCORE FINANCIAL, INC. REPORTS FIRST QUARTER EARNINGS
OPERATING EARNINGS UP 14 PERCENT
ROCKFORD - Solid growth in core businesses resulted in record operating earnings for the first quarter ending
March 31, 1998. Significant increases in mortgage revenues and trust and asset management income, along with
continued loan growth, were primary factors contributing to the increase.
"This is a great start for 1998 and reflects the strength of our core businesses and the recent sales of non-strategic
business lines," said Robert J. Meuleman, president and chief executive officer.
* First quarter operating earnings were $9.4 million, an increase of 14 percent over the same period last year.
This represents a $0.04 per share increase in diluted earnings per share to $0.34.
* Net interest income, on a fully taxable equivalent basis, rose 7 percent or $2.1 million from the first quarter of
1997 and was driven by an 11 percent increase in average earning assets including $175 million in average loans.
* AMCORE bolstered loan loss reserves during first quarter 1998 in response to strong loan growth. Since year-
end 1997, nonperforming loans decreased nearly 4 percent. As a result, the ratio of loan loss reserves to non-
performing loans is now 124 percent.
* Lower mortgage interest rates has led to a refinancing boom, resulting in record originations. This resulted in a
96 percent or $1.4 million increase in mortgage revenues.
* Strong sales efforts, robust stock market performance and the acquisition of Investors Management Group
(IMG) in February contributed to a 36 percent or $1.4 million increase in trust and asset management income.
* AMCORE completed the acquisition of Midwest Federal Financial Corp., Baraboo, Wisconsin on March 27,
1998 and recorded a $3.3 million after tax merger charge at the time of the acquisi