<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 1995
AMCORE FINANCIAL SECURITY PLAN
(Full title of the plan)
AMCORE FINANCIAL, INC.
(Name of issuer of the securities held pursuant to the plan)
501 Seventh Street, P.O. Box 1537
Rockford, Illinois 61110-0037
(address of principal executive office)
<PAGE> 2
AMCORE FINANCIAL SECURITY PLAN
ITEM 1. CHANGES IN THE PLAN
Forms S-8 Registration Statement under the Securities Act of 1933 filed with
the Securities and Exchange Commission on November 26, 1986, contained detailed
information concerning the AMCORE Financial Security Plan (Plan). On November
16, 1994, the Plan was amended to comply with certain provisions of the
Unemployment Compensation Act of 1992 and the Revenue Reconciliation Act of
1993. The Plan was also amended to eliminate the minimum hour requirement
necessary to share in employer contributions, update the hardship loan
provisions, and add the option for participants to invest their contributions
in AMCORE Financial, Inc. Common Stock, among other things.
ITEM 2. CHANGES IN INVESTMENT POLICY
There has been no change in the investment policy during 1995.
ITEM 3. CONTRIBUTIONS UNDER THE PLAN
Employer contributions made from 1991 through 1995 were $1,425,076, $2,212,586,
$2,351,233, $2,030,820 and $2,232,782, respectively.
ITEM 4. PARTICIPATING EMPLOYEES
There was a total of 1,265 employees eligible to participate in the Plan at
December 31, 1995.
ITEM 5. ADMINISTRATION OF THE PLAN
(a) The Plan is administered by AMCORE Financial, Inc. (Company). The
Company's duties as Plan Administrator are overseen by the AMCORE
Financial Security Plan Advisory Committee (Advisory Committee).
(b) Members of the Advisory Committee receive no compensation from the Plan.
ITEM 6. CUSTODIAN OF INVESTMENTS
(a) The amounts deposited by participants and contributed by the Company are
invested by AMCORE Trust Company (ATC) as Trustee of the Plan and, in that
capacity, ATC has custody of the Plan assets. ATC, a trust institution,
is located at 501 Seventh Street, P.O. Box 1537, Rockford, Illinois
61110-0037.
(b) There was no compensation paid by the Plan to ATC as trustee during 1995.
(c) ATC is named insured under the Company's Financial Institution Bond in
the amount of $15,000,000, which covers, among other things, loss through
dishonest or fraudulent acts of employees and loss of property through
robbery, theft or forgery. It also maintains a Fiduciary Responsibility
Insurance Policy in the amount of $3,000,000, which specifically covers
ATC's fiduciary responsibility as Trustee and Custodian of the Plan.
ITEM 7. REPORTS TO PARTICIPATING EMPLOYEES
Each of the Plan's participants receive a written report of the amount of their
deposit account and their respective company's contribution account as of the
close of each quarterly valuation period. These reports show the participant's
opening balance, their deposits, the Company's contribution on their behalf,
2
<PAGE> 3
changes in value resulting from income, investment gains and losses, transfers,
withdrawals, and the balance as of the end of the period with respect to their
interest in each of the investment funds. In the report for the quarter ended
December 31st of each year, the participant is advised of the amount of the
Company's discretionary profit sharing contribution paid for that year, if any.
ITEM 8. INVESTMENT OF FUNDS
(a) All of the securities and mutual fund units purchased by ATC, as trustee
of the Plan, are traded net of commissions. Consequently, total brokerage
commissions attributable to the Plan are not determinable.
(b) The Plan's trustee from time to time selects brokers and dealers to
execute transactions because of research services provided. Other
factors, such as obtaining the best price for a particular transaction and
the overall quality and reliability of the brokerage services made
available, also affect the selection of brokers and dealers. Since
commissions paid by the Plan trustee are individually negotiated in
accordance with these several variables, with only an indeterminate
portion allocable to Plan securities, the amount of transactions and
related commissions attributable to research services on behalf of the
Plan are not determinable.
ITEM 9. FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Page
----
<S> <C>
INDEPENDENT AUDITOR'S REPORT F-1
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits F-2 to F-4
Statements of Changes in Net Assets Available for Benefits F-5 to F-8
Notes to Financial Statements F-9 to F-14
SCHEDULES
Schedule of Investments Owned - Combined Funds F-15 to F-17
ACCOUNTANT'S CONSENT F-18
</TABLE>
3
<PAGE> 4
[MCGLADREY & PULLEN, LLP LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT
To the Trustee and Participants
AMCORE Financial Security Plan
Rockford, Illinois
We have audited the accompanying statements of net assets available for
benefits (with fund information) of AMCORE Financial Security Plan as of
December 31, 1995 and 1994, and the related statements of changes in net assets
available for benefits (with fund information) for each of the three years
ended December 31, 1995, 1994 and 1993. These financial statements are the
responsibility of the Plan's trustees. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of AMCORE
Financial Security Plan as of December 31, 1995 and 1994, and the changes in
net assets available for benefits for each of the three years ended December
31, 1995, 1994 and 1993, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of
investments owned-combined funds is presented for the purpose of additional
analysis and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statements of net assets
available for benefits and the statements of changes in net assets available
for benefits are presented for purposes of additional analysis rather than to
present the net assets available for benefits and changes in net assets
available for benefits of each fund. The supplemental schedule and fund
information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
Rockford, Illinois
March 8, 1996
F-1
<PAGE> 5
AMCORE FINANCIAL SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Participant Directed Funds
----------------------------------------------
Current Bond Fund Common Stock
Return Fund Fund
----------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value:
Common stock of AMCORE Financial, Inc.
363,624 shares, cost $5,241,497 $ - $ - $ -
AMCORE Bank N.A., Rockford Common
Trust Funds - -
Corporate bonds and notes - 82,487 -
Money market deposits 5,035,046 33,336 168,704
Mutual funds - 7,110,525 18,267,442
Participants' notes 40,051 - -
----------------------------------------------
TOTAL INVESTMENTS 5,075,097 7,226,348 18,436,146
----------------------------------------------
Receivables:
Employer contributions 187,073 282,266 735,128
Accrued interest and dividends 24,984 681 9,028
Other 1,957 4,886 19,926
----------------------------------------------
TOTAL RECEIVABLES 214,014 287,833 764,082
----------------------------------------------
TOTAL ASSETS 5,289,111 7,514,181 19,200,228
----------------------------------------------
LIABILITIES
Accrued expenses 1,456 - 342
----------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $5,287,655 $7,514,181 $19,199,886
==============================================
</TABLE>
See Notes to Financial Statements.
F-2
<PAGE> 6
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
--------------------------------------- ----------
Employer
AMCORE Matching
Stable Asset Common Stock Loan Contribution
Fund Fund Fund Stock Fund Total
--------------------------------------- ---------- -----------
<S> <C> <C> <C> <C>
$ - $1,220,953 $ - $6,142,433 $ 7,363,386
6,698,257 - - - 6,698,257
- - - - 82,487
15,361 27,590 2,262 234,501 5,516,800
- - - 25,377,967
- - 16,689 - 56,740
--------------------------------------- ---------- -----------
6,713,618 1,248,543 18,951 6,376,934 45,095,637
--------------------------------------- ---------- -----------
211,145 62,393 - - 1,478,005
3,762 39 7 749 39,250
9,116 3,264 - 39 39,188
--------------------------------------- ---------- -----------
224,023 65,696 7 788 1,556,443
--------------------------------------- ---------- -----------
6,937,641 1,314,239 18,958 6,377,722 46,652,080
--------------------------------------- ---------- -----------
2,907 - 2,269 - 6,974
--------------------------------------- ---------- -----------
$6,934,734 $1,314,239 $16,689 $6,377,722 $46,645,106
======================================= ========== ===========
</TABLE>
F-3
<PAGE> 7
AMCORE FINANCIAL SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Participant Directed Funds
---------------------------
Current Common Stock Stable Asset
Return Fund Bond Fund Fund Fund
------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
Common stock of AMCORE Financial, Inc.
272,228 shares, cost $3,241,076 $ - $ - $ - $ -
AMCORE Bank N.A., Rockford Common
Trust Funds - - - 5,683,200
Convertible securities - 96,750 - -
Corporate bonds and notes - 84,116 - -
Corporate stocks - common - - 136,000 -
Money market deposits 3,795,579 1,147,433 1,797,534 36,035
Mutual funds - 5,723,767 12,240,170 -
Participants' notes 96,643 - - -
------------------------------------------------------------
TOTAL INVESTMENTS 3,892,222 7,052,066 14,173,704 5,719,235
------------------------------------------------------------
Receivables:
Employer contributions 168,437 316,174 698,804 195,231
Accrued interest and dividends 20,404 6,709 9,339 135
Other 7,109 19,512 42,331 23,741
------------------------------------------------------------
TOTAL RECEIVABLES 195,950 342,395 750,474 219,107
------------------------------------------------------------
TOTAL ASSETS 4,088,172 7,394,461 14,924,178 5,938,342
------------------------------------------------------------
LIABILITIES
Accrued expenses 6,312 4,397 5,390 1,986
------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $4,081,860 $7,390,064 $14,918,788 $5,936,356
============================================================
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
-----------------
Employer
Matching
Contribution
Stock Fund Total
-------------- -----------
<S> <C> <C>
ASSETS
Investments, at fair value:
Common stock of AMCORE Financial, Inc.
272,228 shares, cost $3,241,076 $5,104,275 $ 5,104,275
AMCORE Bank N.A., Rockford Common
Trust Funds - 5,683,200
Convertible securities - 96,750
Corporate bonds and notes - 84,116
Corporate stocks - common - 136,000
Money market deposits 210,378 6,986,959
Mutual funds - 17,963,937
Participants' notes - 96,643
-------------- -----------
TOTAL INVESTMENTS 5,314,653 36,151,880
-------------- -----------
Receivables:
Employer contributions - 1,378,646
Accrued interest and dividends 636 37,223
Other 65 92,758
-------------- -----------
TOTAL RECEIVABLES 701 1,508,627
-------------- -----------
TOTAL ASSETS 5,315,354 37,660,507
-------------- -----------
LIABILITIES
Accrued expenses 85 18,170
-------------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $5,315,269 $37,642,337
============== ===========
</TABLE>
See Notes to Financial Statements.
F-4
<PAGE> 8
AMCORE FINANCIAL SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Participant Directed Funds
----------------------------------------------
Current Common Stock
Return Fund Bond Fund Fund
----------------------------------------------
<S> <C> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ - $ (70,654) $ 103,365
Appreciation (depreciation) in fair value
of investments - 632,378 4,069,355
Interest 270,677 12,183 7,069
Dividends:
AMCORE Financial, Inc. - - -
Other - 361,479 485,038
Contributions:
Employer 187,073 282,266 735,128
Participants:
Payroll withholding 87,377 147,981 379,357
Rollovers 293,542 230,322 476,729
Other 1,777 1,100 1,238
----------------------------------------------
TOTAL ADDITIONS 840,446 1,597,055 6,257,279
----------------------------------------------
Benefits paid 537,467 299,330 595,598
Other 1,456 - -
----------------------------------------------
TOTAL DEDUCTIONS 538,923 299,330 595,598
----------------------------------------------
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 301,523 1,297,725 5,661,681
Interfund transfers 904,272 (1,173,608) (1,380,583)
----------------------------------------------
NET INCREASE 1,205,795 124,117 4,281,098
Net assets available for benefits:
Beginning of year 4,081,860 7,390,064 14,918,788
----------------------------------------------
End of year $5,287,655 $ 7,514,181 $19,199,886
==============================================
</TABLE>
See Notes to Financial Statements.
F-5
<PAGE> 9
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
--------------------------------------- --------------
Employer
AMCORE Matching
Stable Asset Common Stock Loan Contribution
Fund Fund Fund Stock Fund Total
--------------------------------------- ------------ -----
<S> <C> <C> <C> <C>
$ 415,346 $ 10,100 $ - $ 149,346 $ 607,503
25,771 (8,989) - 267,680 4,986,195
15,129 3,042 1,178 6,478 315,756
- 35,838 - 177,355 213,193
- - - - 846,517
211,144 62,393 - 754,778 2,232,782
107,828 32,235 - - 754,778
297,003 79,535 - - 1,377,131
25,939 342 - - 30,396
--------------------------------------- ---------- -----------
1,098,160 214,496 1,178 1,355,637 11,364,251
--------------------------------------- ---------- -----------
628,838 5,303 - 293,158 2,359,694
306 - - 26 1,788
--------------------------------------- ---------- -----------
629,144 5,303 - 293,184 2,361,482
--------------------------------------- ---------- -----------
469,016 209,193 1,178 1,062,453 9,002,769
529,362 1,105,046 15,511 - -
--------------------------------------- ---------- -----------
998,378 1,314,239 16,689 1,062,453 9,002,769
5,936,356 - - 5,315,269 37,642,337
--------------------------------------- ---------- -----------
$6,934,734 $1,314,239 $16,689 $6,377,722 $46,645,106
======================================= ========== ===========
</TABLE>
F-6
<PAGE> 10
AMCORE FINANCIAL SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Non-Participant
Participant Directed Funds Directed Funds
------------------------------------------------------------------ --------------
Employer
Matching
Current Return Common Stock Stable Asset Contribution
Fund Bond Fund Fund Fund Stock Fund Total
- -------------------- ------------------------------------------------------------------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Realized gain (loss) on
sale of investments $ - $ (106,616) $ 80,427 $ 3,901 $ 92,142 $ 69,894
Appreciation (depreciation) in
fair value of investments - (554,355) (56,836) 241,154 (305,443) (675,480)
Interest 156,503 15,912 4,330 3,473 3,761 183,979
Dividends:
AMCORE Financial, Inc. - - - - 153,606 153,606
Other - 393,366 211,547 - - 604,913
Contributions:
Employer 168,437 316,174 698,804 195,231 652,174 2,030,820
Participants:
Payroll withholding 73,247 154,833 341,692 82,402 - 652,174
Rollovers 10,984 28,613 73,545 31,671 - 144,813
Other 5,492 44,673 103,813 2,063 208 156,249
------------------------------------------------------------------------ ----------- ----------
TOTAL ADDITIONS 414,663 292,600 1,457,322 559,895 596,448 3,320,928
------------------------------------------------------------------------ ----------- ----------
Benefits paid 480,958 585,998 709,074 87,745 330,599 2,194,374
Trust fees paid 2,411 4,397 5,390 1,986 - 14,184
Other 3,948 119 - - - 4,067
------------------------------------------------------------------------ ---------- ----------
TOTAL DEDUCTIONS 487,317 590,514 714,464 89,731 330,599 2,212,625
------------------------------------------------------------------------ ---------- ----------
NET INCREASE (DECREASE)
PRIOR TO
INTERFUND TRANSFERS (72,654) (297,914) 742,858 470,164 265,849 1,108,303
Interfund transfers (471,259) (432,838) 276,556 627,541 - -
----------------------------------------------------------------------- ---------- ----------
NET INCREASE (DECREASE) (543,913) (730,752) 1,019,414 1,097,705 265,849 1,108,303
Net assets available for
benefits:
Beginning of year 4,625,773 8,120,816 13,899,374 4,838,651 5,049,420 36,534,034
------------------------------------------------------------------------ ----------- -----------
End of year $ 4,081,860 $ 7,390,064 $ 14,918,788 $ 5,936,356 $ 5,315,269 $37,642,337
==================================================================================================
</TABLE>
See Notes to Financial Statements.
F-7
<PAGE> 11
AMCORE FINANCIAL SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND
INFORMATION)
YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Participant Directed Funds
-------------------------------------------------------------
Current Common Stock Stable Asset
Return Fund Bond Fund Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Realized gain on sale of investments $ 3,638 $ 31,664 $ 215,091 $ 467
Appreciation in fair value of investments - 38,464 307,892 169,048
Interest 111,942 403,324 7,521 7,549
Dividends:
AMCORE Financial, Inc. - - - -
Other - - 288,958 -
Contributions:
Employer 254,411 396,371 850,008 223,854
Participants:
Payroll withholding 98,210 149,055 310,425 68,899
Rollovers 399,232 2,354,070 1,889,790 1,413,425
Other 11,004 15,633 9,477 2,532
-------------------------------------------------------------
TOTAL ADDITIONS 878,437 3,388,581 3,879,162 1,885,774
Benefits paid 396,137 123,993 258,129 114,461
-------------------------------------------------------------
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 482,300 3,264,588 3,621,033 1,771,313
Interfund transfers (669,004) 111,996 438,210 118,798
-------------------------------------------------------------
NET INCREASE (DECREASE) (186,704) 3,376,584 4,059,243 1,890,111
Net assets available for benefits:
Beginning of year 4,812,477 4,744,232 9,840,131 2,948,540
-------------------------------------------------------------
End of year $4,625,773 $8,120,816 $13,899,374 $4,838,651
=============================================================
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
----------------
Employer
Matching
Contribution
Stock Fund Total
---------------- -------
<S> <C> <C>
Investment income:
Realized gain on sale of investments $ 11,603 $ 262,463
Appreciation in fair value of investments 1,157,812 1,673,216
Interest 3,015 533,351
Dividends:
AMCORE Financial, Inc. 111,017 111,017
Other - 288,958
Contributions:
Employer 626,589 2,351,233
Participants:
Payroll withholding - 626,589
Rollovers - 6,056,517
Other 157 38,803
----------------------------
TOTAL ADDITIONS 1,910,193 11,942,147
Benefits paid 123,577 1,016,297
----------------------------
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 1,786,616 10,925,850
Interfund transfers - 0
----------------------------
NET INCREASE (DECREASE) 1,786,616 10,925,850
Net assets available for benefits:
Beginning of year 3,262,804 25,608,184
----------------------------
End of year $5,049,420 $36,534,034
============================
</TABLE>
See Notes to Financial Statements.
F-8
<PAGE> 12
AMCORE FINANCIAL SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Valuation of investments: If available, quoted market prices are used to value
investments. The amounts shown in Note 3 for securities that have no quoted
market price represent estimated fair value. Participants' notes are valued at
face value. Investments in AMCORE Bank N.A., Rockford common trust funds are
valued at net asset value which is determined based on the fair value of the
underlying investments.
Security transactions are accounted for on a trade date basis. Realized gains
and losses are computed based on the first-in, first-out cost of securities
sold. Dividend income is recorded on the ex-dividend date. Interest income is
accounted for on the accrual basis.
Payment of benefits: Benefits are recorded when paid.
Accounting estimates: The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
NOTE 2. PLAN DESCRIPTION
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
General: The Plan is a defined contribution plan covering substantially all
employees of AMCORE Financial, Inc. and participating subsidiaries who have
completed one year of service and have reached the age of 18. It is subject to
the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions: Participants may contribute up to three percent of their annual
wages on a pre-tax basis. The employer will match the participants'
contributions with cash which is to be used to purchase AMCORE Financial, Inc.
common stock.
The employer contributes three percent of the participant's annual wages each
year to a basic retirement account; these funds are set aside for retirement
and, therefore, are not available for participant loans. At the discretion of
the Board of Directors, the employer may make additional contributions to the
plan; this contribution may not exceed six percent of the participants' annual
wages.
Participant accounts: Each participant's account is credited with the
participant's contributions and an allocation of (a) the Employer's
contribution, (b) Plan earnings, and (c) forfeitures of terminated
participants' nonvested accounts. Allocations are based on participant
earnings, as defined. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's account. The plan provides
for a maximum contribution to a participant's account in any plan year of the
lesser of $30,000 or 25% of the participant's compensation.
Payment of benefits: On termination of service, a participant may select one
of several payment options. Withdrawals by a participant are fully taxable,
except for the return of after tax contributions, if any.
F-9
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
NOTE 2. PLAN DESCRIPTION (CONTINUED)
Vesting: Participants are immediately vested in their employee deferred
(401(k)), rollover, and voluntary (after tax) contributions plus actual
earnings thereon. Vesting in the employer's matching basic retirement and
discretionary contribution portion of their accounts plus actual earnings
thereon is based on years of credited service. A participant is 100 percent
vested after four years of credited service.
Investment funds: The assets of the Plan are segregated and maintained in
seven separate fund accounts consisting of the Current Return Fund, Bond Fund,
Common Stock Fund, Stable Asset Fund, AMCORE Common Stock Fund, Loan Fund, and
Employer Matching Contribution Stock Fund. Participants have the option to
invest their account balance and contributions to their respective account in
all of these funds except the Loan Fund and the Employer Matching Contribution
Stock Fund, in increments of five percent of their participating balance.
Participants also have the option to change the allocation of their individual
participant's balance quarterly.
The Plan provides that fund assets be invested as follows:
Current Return Fund investments consist of U.S. government obligations,
bonds, debentures, commercial paper, bankers' acceptances, bank
certificates of deposit, savings instruments and mutual funds that invest
in all of the aforementioned securities.
Bond Fund investments consist of U.S. government obligations, bonds,
debentures, commercial paper, bankers' acceptances, mortgages, savings
instruments which mature beyond one year, and mutual funds that invest in
all of the aforementioned securities.
Common Stock Fund investments consist primarily of equity securities
and mutual funds that invest primarily in equity securities.
Stable Asset Fund investments consist primarily of high quality fixed
and variable rate insurance company contracts and common trust funds, as
well as short term investments. The Plan provides that a minimum of fifty
percent of assets of this fund can be liquidated in 30 days and the
remainder within 12 months.
AMCORE Common Stock Fund (which was started during 1995) consists
solely of AMCORE Financial, Inc. common stock. The employees have voting
rights in all shares. Assets are held in a money market fund until the
stock is purchased.
Employer Matching Contribution Stock Fund consists solely of AMCORE
Financial, Inc. common stock. The employees have voting rights in all
shares. Assets are held in a money market fund until the stock is
purchased. The employer contributes to this fund in an amount equal to the
pre-tax contributions made each pay period since the preceding accounting
date by participants in the Plan.
F-10
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 2. PLAN DESCRIPTION (CONTINUED)
The number of participants in each fund is as follows:
<TABLE>
<CAPTION>
December 31,
-------------------
1995 1994
-------------------
<S> <C> <C>
Current Return Fund 480 398
Bond Fund 789 715
Common Stock Fund 1,059 878
Stable Asset Fund 493 327
AMCORE Common Stock Fund 468 -
Employer Matching Contribution Stock Fund 1,232 1,000
Loan Fund 7 -
-------------------
Total Plan participants 1,265 1,067
===================
</TABLE>
The total number of participants in the Plan was less than the sum of the
number of participants shown above because many were participating in more than
one fund.
NOTE 3. INVESTMENTS
The Plan's investments are stated at fair value at December 31, 1995 and 1994.
Individual investments that represent five percent or more of the Plan's net
assets are separately identified.
<TABLE>
<CAPTION>
1995 1994
---------------------------
<S> <C> <C>
Investments at fair value as determined by quoted
market price:
AMCORE Financial, Inc. common stock $ 7,363,386 $ 5,104,275
Convertible securities - 96,750
Corporate bonds and notes 82,487 84,116
Corporate stocks - common - 136,000
Mutual Funds:
AMCORE Vintage Fixed Total Return Fund 7,110,525 -
AMCORE Vintage Fixed Income Fund - 5,723,767
AMCORE Vintage Equity Fund 18,267,442 12,240,170
Money Market deposits:
AMCORE Vintage United States Government Obligations 5,516,800 6,986,959
---------------------------
38,340,640 30,372,037
---------------------------
Investments at estimated fair value:
Common Trust Funds of AMCORE Bank N.A., Rockford:
AMCORE Stable Asset Fund 6,698,257 5,683,200
Participants' notes at principal amount 56,740 96,643
---------------------------
6,754,997 5,779,843
---------------------------
TOTAL INVESTMENTS $45,095,637 $36,151,880
===========================
</TABLE>
F-11
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
NOTE 3. INVESTMENTS (CONTINUED)
The net realized gain (loss) on disposition of investments was computed as
follows:
<TABLE>
<CAPTION>
Employer
AMCORE Matching
Current Common Stable Asset Common Loan Contribution Combined
Return Fund Bond Fund Stock Fund Fund Stock Fund Fund Stock Fund Funds
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year ended
December 31, 1995
Proceeds $ 664,280 $9,030,990 $ 4,019,666 $4,876,947 $1,434,962 $17,063 $1,434,190 $21,478,098
Cost* 664,280 9,101,644 3,916,301 4,461,601 1,424,862 17,063 1,284,844 20,870,595
------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ - $ (70,654) $ 103,365 $ 415,346 $ 10,100 $ - $ 149,346 $ 607,503
======================================================================================================
Year ended
December 31, 1994
Proceeds $ 3,365,557 $3,425,696 $ 5,070,940 $1,589,818 - - $1,096,687 $14,548,698
Cost* 3,365,557 3,532,312 4,990,513 1,585,917 - - 1,004,545 14,478,844
------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ - $ (106,616) $ 80,427 $ 3,901 - - $ 92,142 $ 69,854
======================================================================================================
Year ended
December 31, 1993
Proceeds $11,958,630 $5,186,131 $11,310,937 $2,854,558 - - $ 930,526 $32,240,782
Cost* 11,954,992 5,154,467 11,095,846 2,854,091 - - 918,923 31,978,319
------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ 3,638 31,664 215,091 467 - - 11,603 262,463
======================================================================================================
</TABLE>
The gain realized on sale of AMCORE Financial, Inc.'s common stock for the years
ended December 31, 1995, 1994 and 1993 was $159,446, $92,142 and $11,603,
respectively. Proceeds on the sales totalled $423,272, $194,963, and $126,585,
repectively, and the cost basis of the stock sold was $263,826, $102,821, and
$114,982, repectively.
*Cost represents historical cost on a first-in, first-out basis.
F-12
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
NOTE 3. INVESTMENTS (CONTINUED)
Plan investments are valued at fair value or estimated fair value. The net
unrealized appreciation (depreciation) of investments is as follows:
<TABLE>
<CAPTION>
Employer
AMCORE Matching
Current Common Stable Asset Common Loan Contribution Combined
Return Fund Bond Fund Stock Fund Fund Stock Fund Fund Stock Fund Funds
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year ended December 31, 1995:
Balance at beginning of year $ $(501,391) $ 327,056 $774,477 $ $1,863,198 $ 2,463,340
Change for the year 632,378 4,069,355 25,771 (8,989) 267,680 4,986,195
-------------------------------------------------------------------------------------------------
Balance at end of year $ $ 130,987 $ 4,396,411 $800,248 $ (8,989) $ $2,130,878 $ 7,449,535
=================================================================================================
Year ended December 31, 1994:
Balance at beginning of year $ $ 52,964 $ 383,892 $533,323 $2,168,641 $ 3,138,820
Change for the year (554,355) (56,836) 241,154 (305,443) (675,480)
-------------------------------------------------------------------------------------------------
Balance at end of year $ $(501,391) $ 327,056 $774,477 $1,863,198 $ 2,463,340
=================================================================================================
Year ended December 31, 1993:
Balance at beginning of year $ 265,957 $ 125,294 $ 2,900,451 $377,538 $1,058,438 $ 4,727,678
Realized on conversion of assets (265,957) (110,794) (2,824,451) (13,263) (47,609) (3,262,074)
Change for the year 38,464 307,892 169,048 1,157,812 1,673,216
-------------------------------------------------------------------------------------------------
Balance at end of year $ $ 52,964 $ 383,892 $533,323 $ $ $2,168,641 $ 3,138,820
=================================================================================================
</TABLE>
F-13
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Employer has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan termination,
the net income or loss to the date of termination, less any distribution
expenses and liquidation costs, shall be distributed proportionately to the
participants' accounts and participants will be entitled to receive the value
of their accounts.
NOTE 5. PARTICIPANT LOANS
Participants are eligible to obtain loans from the Plan in the event of
financial hardship as defined by the Plan. The loans are limited to the lesser
of $50,000 or 50% of the nonforfeitable accrued benefit of the participant
under the plan, excluding the participant's accrued benefit attributable to the
basic retirement account. Interest on loans in the Current Return Fund is
charged at the prime rate of interest of AMCORE Bank N.A., Rockford in effect
as of the first day of each calendar quarter. Participants loans in the Loan
Fund are charged interest at a rate which is based on prime at loan date and is
fixed for the life of the loan. The loans are collateralized by the
participants' vested interest in the plan. All new loans to participants are
accounted for in the Loan Fund.
NOTE 6. ROLLOVERS
A subsidiary of AMCORE Financial, Inc. AMCORE Bank, Aledo, began participating
in the Plan during the year ended December 31, 1995. Plan assets of $714,210
from the bank's prior retirement plans were rolled into the Plan. Certain
other subsidiaries of AMCORE Financial, Inc. also began participating in the
Plan during the years ended December 31, 1995, 1994, and 1993. New employees
may also roll over a distribution from a plan of a previous employer.
NOTE 7. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Employer by letter
dated April 28, 1995, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). The
Plan administrator believes that the Plan is designed and currently being
operated in compliance with the applicable requirements of the IRC.
NOTE 8. FORFEITED ACCOUNTS
As of December 31, 1995 and 1994, forfeited nonvested accounts totalled $13,170
and $22,589, respectively. These amounts have been reallocated to remaining
participants based on eligible compensation.
NOTE 9. EXPENSES
Trust fees of $14,184 were paid by the Plan for the year ended December 31,
1994. During 1995, these fees were refunded to the Plan. All costs of
administering the plan were borne by the employer.
F-14
<PAGE> 18
AMCORE FINANCIAL SECURITY PLAN
COMBINED FUNDS
SCHEDULE OF INVESTMENTS OWNED
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fair Value Cost
-----------------------------
CORPORATE STOCKS - COMMON
-------------------------
Units
---------
EMPLOYER MATCHING CONTRIBUTION
------------------------------
STOCK FUND
----------
<S> <C> <C> <C>
303,330 AMCORE Financial, Inc. $6,142,433 $4,011,555
AMCORE COMMON STOCK FUND
------------------------
60,294 AMCORE Financial, Inc. 1,220,953 1,229,942
-----------------------------
$7,363,386 $5,241,497
=============================
AMCORE BANK N.A., ROCKFORD-
---------------------------
COMMON TRUST FUNDS
------------------
Units
-----------
STABLE ASSET FUND
-----------------
413,984 AMCORE Stable Asset Fund $6,698,257 $5,898,009
=============================
CORPORATE BONDS AND NOTES
-------------------------
Principal Amount
----------------
BOND FUND
---------
80,000 Dixon, Illinois Central Business District Tax
Increment, 9.625%, due December 1, 1996 $ 82,487 $ 81,741
=============================
</TABLE>
F-15
<PAGE> 19
p
AMCORE FINANCIAL SECURITY PLAN
COMBINED FUNDS
SCHEDULE OF INVESTMENTS OWNED
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Units Fair Value Cost
------------ ---------------------------------
MONEY MARKET DEPOSITS
---------------------
<S> <C> <C> <C>
CURRENT RETURN FUND
-------------------
5,035,046 AMCORE Vintage United States $ 5,035,046 $ 5,035,046
Government Obligations ---------------------------------
BOND FUND
---------
33,336 AMCORE Vintage United States
Government Obligations 33,336 33,336
-----------------------------
COMMON STOCK FUND
-----------------
168,704 AMCORE Vintage United States
Government Obligations 168,704 168,704
------------------------------
STABLE ASSET FUND
-----------------
15,361 AMCORE Vintage United States
Government Obligations 15,361 15,361
-----------------------------
AMCORE COMMON STOCK FUND
------------------------
27,590 AMCORE Vintage United States 27,590 27,590
Goverment Obligations -----------------------------
EMPLOYER MATCHING CONTRIBUTION
-------------------------------
STOCK FUND
----------
234,501 AMCORE Vintage United States
Government Obligations 234,501 234,501
-----------------------------
LOAN FUND
---------
2,262 AMCORE Vintage United States
Government Obligations 2,262 2,262
-----------------------------
$ 5,516,800 $ 5,516,800
===============================
</TABLE>
F-16
<PAGE> 20
AMCORE FINANCIAL SECURITY PLAN
COMBINED FUNDS
SCHEDULE OF INVESTMENTS OWNED
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fair Value Cost
------------------------------
MUTUAL FUNDS
------------
Units
--------
BOND FUND
---------
<S> <C> <C> <C>
697,794 AMCORE Vintage Fixed Total Return Fund
($10.19 per unit) 7,110,525 6,980,284
------------------------------
STOCK FUND
----------
1,325,649 AMCORE Vintage Equity Fund
($13.78 per unit) 18,267,442 13,871,031
-------------------------------
$ 25,377,967 $ 20,851,315
===============================
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT NOTES
-----------------
Number of
Loans
--------
CURRENT RETURN FUND
-------------------
<S> <C> <C> <C>
10 Participants, variable rate $ 40,051 $ 40,051
-------------------------------
LOAN FUND
---------
7 Participants, fixed rate 16,689 16,689
-------------------------------
$ 56,740 $ 56,740
=================================
</TABLE>
F-17
<PAGE> 21
ACCOUNTANT'S CONSENT
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (File No. 33-10446) under the Securities Act of 1933 of AMCORE
Financial, Inc. of our report dated March 8, 1996 on our audits of the
financial statements of AMCORE Financial Security Plan as of December 31, 1995
and 1994, and for each of the three years up to the period ended December 31,
1995, and supporting schedule as of December 31, 1995, which is included in the
annual report on Form 11-K for the year ended December 31, 1995.
/s/McGadrey & Pullen, LLP
Rockford, Illinois
March 25, 1996
F-18
<PAGE> 22
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
trustee (or other persons who administer the plan) have duly caused this annual
report to be signed by the undersigned thereunto duly authorized.
AMCORE FINANCIAL SECURITY PLAN
/s/ John R. Hecht
------------------
John R. Hecht
Senior Vice President and Chief Financial Officer
for AMCORE Financial, Inc., Plan Administrator
Date: March 29, 1996
