Regulators want Amcore to raise capital - Boston Business Journal:

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Specifically, the Rockford, Ill.-based holdint company has entered into a writtebn agreement with the Federal Reservre Bank of Chicago and the bank has agreed to the issuance of a consenft order with the Office of the Comptrollerf ofthe Currency. In general, the agreementr and order contain requirements to develop plans to raiswe capital and to revise and maintain a liquidith riskmanagement program. As a result of the agreement and Amcore Financial is in default unde r its credit agreement with relatec toa $20 million credit facility. JPMorgan has told the company that it does not expec t to pursue any remedie atthis time. Both partiez are working cooperatively.
"Thre Amcore management team is taking appropriate actions thataddress today's economic challenges," said William McManaman, chairmanb and CEO of Amcore. "Over the last several we have taken steps to reduce operating rebuild the creditmanagement practices, strengtheh the lending function and reducer our concentration in construction and development loans. The regulatoryt agreement and order announced todat support the continued execution of our strategt and establish a framework againsgt which we will work to make further McManaman said the bank believes growthof non-performing loans has declined, which will result in a significantlt lower loan loss provisioh for the second quarter.
Amcore AMFI) has banking assets of $5.3 billioj with 74 locations in Illinoisand Wisconsin, includinfg a branch in Wauwatosa.