Illinois-based Amcore Financial, the holding company of Amcore Bank, has announced that the holding company and its subsidiary have entered into agreements with regulators designed to raise capital and maintain a liquidity risk management program. The bank had said that as per the written agreement with the Federal Reserve Bank of Chicago it has agreed to the issuance of a Consent Order with the Office of the Comptroller of the Currency.
As a result of the agreement and order, Amcore Financial, the parent company, is in default under its credit agreement with JPMorgan Chase Bank, related to a $20 million credit facility.
It also said that Amcore’s ability to serve its customers will not be impacted by these actions and customer deposits remain fully insured to the highest limits set by the FDIC. Management will continue to coordinate with their primary regulator and work to achieve the designated capital ratios and maintain a comprehensive liquidity risk management program.
William McManaman, Chairman and CEO of Amcore, said: “The regulatory agreement and order announced today support the continued execution of our strategy and establish a framework against which we will work to make further improvements. From an operational perspective, we believe growth of non-performing loans this quarter has decreased from recent quarters and we expect a significantly lower provision for loan loss reserves in the second quarter.”
“We believe the regulators have seen the considerable progress that management has achieved in addressing the problems it faces and remain supportive of our continued efforts. We are committed to delivering the highest quality service to our customers and leveraging our expertise across our organization,” he added.
