Amcore Financial down on 84% plunge in Q3 profit
Amcore Financial, Inc. (Nasdaq: AMFI) are down after the bank holding company reported an 84% plunge in third-quarter net income—falling to $1.9 million, or $0.08 per share, far below analyst expectations of $0.47 per share and compared with $12.5 million, or $0.51 per share, a year earlier. The Rockford, Ill.-based company said rising loan-loss provisions and expenses related to mortgage-backed bonds caused the income decline.
The firm recorded a $5.6 million impairment loss on the $205 million sale of mortgage-backed bonds from its investment portfolio.
"The sale of the bonds relates to a balance sheet restructuring that reduces longer-term interest rate and liquidity risk in our investment portfolio," CEO Kenneth Edge said in a statement. "By addressing this issue at this time, we are expecting to improve our ability to weather changes in interest rates."
In afternoon trading, AMFI shares are down 2.6%, or $0.64, at $24.01. Over the last 52 weeks, shares have ranged from $22.48 to $34.58.
