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Previous: DST SYSTEMS INC, DEF 14A, 1997-03-31 |
Next: NATIONAL MERCANTILE BANCORP, 10-K405, 1997-03-31 |
<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, 1996
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)
Index of Exhibits on Page 3
Page 1 of 26
<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. On August 23,
1996, the Plan was amended to provide for: (a) the daily valuation of account
balances therein, and (b) full and immediate vesting for all participants
terminating employment on or after January 1, 1996.
ITEM 2. CHANGES IN INVESTMENT POLICY
There has been no change in the investment policy during 1996.
ITEM 3. CONTRIBUTIONS UNDER THE PLAN
Employer contributions made from 1992 through 1996 were $2,212,586, $2,351,233,
$2,030,820, $2,232,782 and $3,234,114, respectively.
ITEM 4. PARTICIPATING EMPLOYEES
There was a total of 1,460 employees participating in the Plan at December 31,
1996.
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 Plan
Administrative Committee (Committee), which reports annually to the
Company's Board of Directors.
(b) Members of the 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 Investment Group, N.A. (AIG), f/k/a AMCORE Trust
Company, as Trustee of the Plan and, in that capacity, AIG has custody of
the Plan assets. AIG, a non-depository banking 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 AIG as trustee during
1996.
(c) AIG is named insured under the Company's Financial Institution Bond in
the amount of $30,000,000, 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
AIG'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 AIG, 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.
<TABLE>
<S> <C>
ITEM 9. FINANCIAL STATEMENTS AND EXHIBITS
Page
-----
INDEPENDENT AUDITOR'S REPORT F-1
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits F-2 to F-5
Statements of Changes in Net Assets Available for Benefits F-6 to F-10
Notes to Financial Statements F-11 to F-16
SCHEDULES
Schedule of Investments Owned - Combined Funds F-17 to F-19
ACCOUNTANT'S CONSENT F-20
</TABLE>
3
<PAGE> 4
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
_________________________________________
John R. Hecht
Senior Vice President and Chief Financial Officer
for AMCORE Financial, Inc. Plan Administrator
Date: March 31, 1997
4
<PAGE> 5
AMCORE FINANCIAL SECURITY PLAN
FINANCIAL REPORT
DECEMBER 31, 1996
<PAGE> 6
C O N T E N T S
INDEPENDENT AUDITOR'S REPORT F-1
FINANCIAL STATEMENTS
Statements of net assets available for benefits (with
fund information) F-2 to F-5
Statements of changes in net assets available for
benefits (with fund information) F-6 to F-10
Notes to financial statements F-11 to F-16
SCHEDULE
Schedule of investments owned - combined funds F-17 to F-19
ACCOUNTANT'S CONSENT F-20
<PAGE> 7
[McGladrey & Pullen 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, 1996 and 1995, and the related statements of changes in net assets
available for benefits (with fund information) for each of the three years
ended December 31, 1996, 1995 and 1994. 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, 1996 and 1995, and the changes in
net assets available for benefits for each of the three years ended December
31, 1996, 1995 and 1994, 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.
[<SIGNATURE]
Rockford, Illinois
March 24, 1997
F-1
<PAGE> 8
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Participant Directed Funds
---------------------------------------------------------------------
Current Return Fund Bond Fund Common Stock Fund
---------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value:
Common stock of AMCORE
Financial, Inc.
420,035 shares, cost $6,554,968 $ - $ - $ -
AMCORE Bank N.A., Rockford Common
Trust Fund - - -
U.S. Government obligations - 295,645 -
Money market deposits 4,557,978 160,238 386,803
Mutual funds 7,960,275 24,194,392
Participants' notes 21,420 - -
--------------------------------------------------------------
TOTAL INVESTMENTS 4,579,398 8,416,158 24,581,195
--------------------------------------------------------------
Receivables:
Employer contributions 239,618 418,679 1,194,607
Accrued interest and dividends 19,050 7,023 7,113
Other 4,083 8,698 26,072
--------------------------------------------------------------
TOTAL RECEIVABLES 262,751 434,400 1,227,792
--------------------------------------------------------------
TOTAL ASSETS 4,842,149 8,850,558 25,808,987
LIABILITIES
Accrued expenses 4,175 1,264 3,220
--------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 4,837,974 $ 8,849,294 $ 25,805,767
==============================================================
</TABLE>
See Notes to Financial Statements.
F-2
<PAGE> 9
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Participant Directed Funds
------------------------------------------------------------------------
AMCORE Aggressive
Stable Asset Common Stock Loan Growth Stock
Fund Fund Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value:
Common stock of AMCORE
Financial, Inc.
420,035 shares, cost $6,554,968 $ - $ 2,216,666 $ - $ -
AMCORE Bank N.A., Rockford Common
Trust Fund 6,700,934 - - -
U.S. Government obligations - - - -
Money market deposits 66,138 12,611 6,388 18,713
Mutual funds - - - 1,961,680
Participants' notes - - 127,506 -
--------------------------------------------------------------------------
TOTAL INVESTMENTS 6,767,072 2,229,277 133,894 1,980,393
--------------------------------------------------------------------------
Receivables:
Employer contributions 273,451 117,952 - 152,851
Accrued interest and dividends 3,962 49 25 553
Other 6,017 2,755 - 6,336
--------------------------------------------------------------------------
TOTAL RECEIVABLES 283,430 120,756 25 159,740
--------------------------------------------------------------------------
TOTAL ASSETS 7,050,502 2,350,033 133,919 2,140,133
LIABILITIES
Accrued expenses 1,332 5,058 6,413 728
--------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 7,049,170 $ 2,344,975 $ 127,506 2,139,405
===========================================================================
<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.
420,035 shares, cost $6,554,968 $ 9,019,271 $ 11,235,937
AMCORE Bank N.A., Rockford Common
Trust Fund - 6,700,934
U.S. Government obligations - 295,645
Money market deposits 237,151 5,446,020
Mutual funds - 34,116,347
Participants' notes - 148,926
-------------- ---------------
TOTAL INVESTMENTS 9,256,422 57,943,809
-------------- ---------------
Receivables:
Employer contributions 35,160 2,432,318
Accrued interest and dividends 720 38,495
Other - 53,961
-------------- ---------------
TOTAL RECEIVABLES 35,880 2,524,774
-------------- ---------------
TOTAL ASSETS 9,292,302 60,468,583
LIABILITIES
Accrued expenses 7,368 29,558
-------------- ---------------
NET ASSETS AVAILABLE FOR BENEFITS $ 9,284,934 $ 60,439,025
=============== ===============
</TABLE>
F-3
<PAGE> 10
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Participant Directed Funds
-------------------------------------------------------------------------
Current Return Common Stock
Fund Bond 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-4
<PAGE> 11
<TABLE>
<CAPTION>
Participant Directed Funds
-----------------------------------------------------
AMCORE
Common
Stable Asset Stock Loan
Fund Fund Fund
-----------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value:
Common Stock of AMCORE Financial, Inc.
363,624 shares, cost $5,241,497 $ - $1,220,953 $ -
AMCORE Bank N.A., Rockford Common
Trust Funds 6,698,257 - -
Corporate bonds and notes - - -
Money market deposits 15,361 27,590 2,262
Mutual funds - - -
Participants' notes - - 16,689
-------------------------------------------------
TOTAL INVESTMENTS 6,713,618 1,248,543 18,951
-------------------------------------------------
Receivables:
Employer contributions 211,145 62,393 -
Accrued interest and dividends 3,762 39 7
Other 9,116 3,264 -
TOTAL RECEIVABLES 224,023 65,696 7
TOTAL ASSETS 6,937,641 1,314,239 18,958
-------------------------------------------------
LIABILITIES
Accrued expenses 2,907 - 2,269
-------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $6,934,734 $1,314,239 $16,689
=================================================
</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.
363,624 shares, cost $5,241,497 $6,142,433 $ 7,363,386
AMCORE Bank N.A., Rockford Common 6,698,257
Trust Funds - 82,487
Corporate bonds and notes -
Money market deposits 234,501 5,516,800
Mutual funds - 25,377,967
Participants' notes - 56,740
-----------------------------
TOTAL INVESTMENTS 6,376,934 45,095,637
-----------------------------
Receivables:
Employer contributions - 1,478,005
Accrued interest and dividends 749 39,250
Other 39 39,188
---------- -----------
TOTAL RECEIVABLES 788 1,556,443
---------- -----------
TOTAL ASSETS 6,377,722 46,652,080
---------- -----------
LIABILITIES
Accrued expenses - 6,974
-----------------------------
NET ASSETS AVAILABLE FOR BENEFITS $6,377,722 $46,645,106
=============================
</TABLE>
See Notes to Financial Statements
F-5
<PAGE> 12
<TABLE>
<CAPTION>
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1996
Participant Directed Funds
-------------------------------------------------------
Current Return Common Stock
Fund Bond Fund Fund
-------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ - $ (13,489) $ 978,306
Appreciation (depreciation) in fair value
of investments - (280,122) 2,822,864
Interest 213,393 36,301 12,096
Dividends:
AMCORE Financial, Inc. - - -
Other - 415,560 433,149
Contributions:
Employer 235,568 417,415 1,192,112
Participants:
Payroll withholding 75,238 155,209 441,572
Rollovers 201,486 1,099,259 1,817,963
Other - 15,815 45,999
-------------------------------------------------------
TOTAL ADDITIONS 725,685 1,845,948 7,744,061
------------------------------------------------------
Benefits paid 307,092 239,423 813,565
Other 1,389 2,494 6,389
------------------------------------------------------
TOTAL DEDUCTIONS 308,481 241,917 819,954
------------------------------------------------------
NET INCREASE PRIOR TO
INTERFUND TRANSFERS 417,204 1,604,031 6,924,107
Interfund transfers (866,885) (268,918) (318,226)
------------------------------------------------------
NET INCREASE (DECREASE) (449,681) 1,335,113 6,605,881
Net assets available for benefits:
Beginning of year 5,287,655 7,514,181 19,199,886
------------------------------------------------------
End of year $ 4,837,974 $ 8,849,294 $ 25,805,767
======================================================
</TABLE>
See Notes to Financial Statements.
F-6
<PAGE> 13
<TABLE>
<CAPTION>
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BEN
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1996
Paticipant Directed Funds
-------------------------------------------------------------------------
AMCORE Agressive
Stable Asset Common Loan Growth
Fund Stock Fund Fund Stock Fund
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ 128,821 $ 2,444 $ - $ 1,271
Appreciation (depreciation) in fair value
of investments 208,625 512,470 - 156,680
Interest 7,459 970 4,631 719
Dividends:
AMCORE Financial, Inc. - 49,506 -
Other - - - 232
Contributions:
Employer 272,227 117,930 - 152,851
Participants:
Payroll withholding 99,531 42,601 - 39,227
Rollovers 340,726 126,785 - 100,182
Other 42,567 - - 2,738
-------------------------------------------------------------------------
TOTAL ADDITIONS 1,099,956 852,706 4,631 453,900
-------------------------------------------------------------------------
Benefits paid 414,159 38,043 3,037 11,849
Other 1,930 473 9 328
-------------------------------------------------------------------------
TOTAL DEDUCTIONS 416,089 38,516 3,046 12,177
-------------------------------------------------------------------------
NET INCREASE PRIOR TO
INTERFUND TRANSFERS 683,867 814,190 1,585 441,723
Interfund transfers (569,431) 216,546 109,232 1,697,682
-------------------------------------------------------------------------
NET INCREASE (DECREASE) 114,436 1,030,736 110,817 2,139,405
Net assets available for benefits:
Beginning of year 6,934,734 1,314,239 16,689 -
-------------------------------------------------------------------------
End of year $ 7,049,170 $2,344,975 $127,506 $2,139,405
=========================================================================
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
-----------------
Employer
Matching
Contribution
Stock Fund Total
-------------- --------------
<S> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ 88,296 $ 1,185,649
Appreciation (depreciation) in fair value
of investments 2,041,575 5,462,092
Interest 5,799 281,368
Dividends:
AMCORE Financial, Inc. 210,604 260,110
Other - 848,941
Contributions:
Employer 846,011 3,234,114
Participants:
Payroll withholding - 853,378
Rollovers - 3,686,401
Other - 107,119
------------ -------------
TOTAL ADDITIONS 3,192,285 15,919,172
------------ -------------
Benefits paid 283,085 2,110,253
Other 1,988 15,000
------------ -------------
TOTAL DEDUCTIONS 285,073 2,125,253
------------ -------------
NET INCREASE PRIOR TO
INTERFUND TRANSFERS 2,907,212 13,793,919
Interfund transfers - -
------------ -------------
NET INCREASE (DECREASE) 2,907,212 13,793,919
Net assets available for benefits:
Beginning of year 6,377,722 46,645,106
------------ -------------
End of year $ 9,284,934 $ 60,439,025
============ =============
</TABLE>
See Notes to Financial Statements.
F-7
<PAGE> 14
<TABLE>
<CAPTION>
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1995
Participant Directed Funds
--------------------------------------------------------------------
Current Return Fund Bond Fund Common Stock 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-8
<PAGE> 15
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
------------------------------------------
AMCORE
Stable Asset Common Stock Loan
Fund Fund Fund
------------------------------------------
<S> <C> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ 415,346 $ 10,100 $
Appreciation (depreciation) in fair value
of investments 25,771 (8,989)
Interest 15,129 3,042 1,178
Dividends:
AMCORE Financial, Inc. 35,838
Other
Contributions:
Employer 211,144 62,393
Participants:
Payroll withholding 107,828 32,235
Rollovers 297,003 79,535
Other 25,939 342
--------- ------- -----
TOTAL ADDITIONS 1,098,160 214,496 1,178
--------- ------- -----
Benefits paid 628,838 5,303
Other 306
--------- ------- -----
TOTAL DEDUCTIONS 629,144 5,303
--------- ------- -----
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 469,016 209,193 1,178
Interfund transfers 529,362 1,105,046 15,511
--------- ------- -----
NET INCREASE 998,378 1,314,239 16,689
Net assets available for benefits:
Beginning of year 5,936,356
--------- ------- -----
End of year $ 6,934,734 $ 1,314,239 $ 16,689
========= ========= ======
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed Funds
-------------
Employer
Matching
Contribution
Stock Fund Total
------------- -----------
<S> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ 149,346 $ 607,503
Appreciation (depreciation) in fair value
of investments 267,680 4,986,195
Interest 6,478 315,756
Dividends:
AMCORE Financial, Inc. 177,355 213,193
Other - 846,517
Contributions:
Employer 754,778 2,232,782
Participants:
Payroll withholding - 754,778
Rollovers - 1,377,131
Other - 30,396
------------- --------------
TOTAL ADDITIONS 1,355,637 11,364,251
------------- --------------
Benefits paid 293,158 2,359,694
Other 26 1,788
------------- --------------
TOTAL DEDUCTIONS 293,184 2,361,482
------------- --------------
NET INCREASE PRIOR TO INTERFUND
TRANSFERS 1,062,453 9,002,769
Interfund transfers - -
------------- --------------
NET INCREASE 1,062,453 9,002,769
Net assets available for benefits:
Beginning of year 5,315,269 37,642,337
------------- --------------
End of year $ 6,377,722 $ 46,645,106
============ =============
</TABLE>
See Notes to Financial Statements.
F-9
<PAGE> 16
AMCORE FINANCIAL SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS (WITH FUND
INFORMATION)
YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Participant Non-Participant
Directed Funds Directed
Funds
---------------------------------------------------------- ---------------
Employer
Matching
Contribution
Stock
Current Return Bond Fund Common Stock Stable Asset Fund Total
Fund Fund Fund
--------------- ------------- -------------- ------------ -------- --------
<C> <C> <C> <C> <C> <C>
Investment income:
Realized gain (loss) on sale of investments $ $ (106,616) $ 80,427 $ 3,901 $ 92,142 69,854
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.
<PAGE> 17
AMCORE FINNCIAL 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. Investment in AMCORE Bank N.A., Rockford common trust fund is
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
in the financial statements and the accompanying notes. 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. (AFI) 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 the Employer's contribution,
Plan earnings, and prior to January 1, 1996, 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 vested 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.
<PAGE> 18
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. Prior to January 1, 1996, vesting in the employer's matching basic
retirement and discretionary contribution portion of their accounts plus actual
earnings thereon was based on years of credited service. After January 1,
1996, all participants are 100 percent vested.
Investment funds: The assets of the Plan are segregated and maintained in
eight separate fund accounts consisting of the Current Return Fund, Bond Fund,
Common Stock Fund, Stable Asset Fund, AMCORE Common Stock Fund, Loan Fund,
Aggressive Growth Stock 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 are limited to a maximum
contribution of ten percent to the AMCORE Common Stock Fund. 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 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.
Aggressive Growth Stock Fund (which was started in 1996) consists solely of
mutual funds, U.S. government obligations, bonds, debentures, commercial
paper, bankers' acceptances, bank certificates of deposit, and savings
instruments.
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.
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2. PLAN DESCRIPTION (CONTINUED)
The number of participants in each fund is as follows:
<TABLE>
<S> <C> <C>
December 31,
1996 1995
Current Return Fund 472 480
Bond Fund 839 789
Common Stock Fund 1,246 1,059
Stable Asset Fund 524 493
AMCORE Common Stock Fund 669 468
Loan Fund 17 7
Aggressive Growth Stock Fund 331
Employer Matching Contribution Stock Fund 1,419 1,232
Total Plan Participants 1,460 1,265
</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.
INVESTMENTS
The Plan's investments are stated at fair value at December 31, 1996 and 1995.
Individual investments that represent five percent or more of the Plan's net
assets are separately identified.
<TABLE>
<S> <C> <C> <C> <C>
1996 1995
Investments at fair value as determined by quoted
market price:
AMCORE Financial, Inc. common stock $ 11,235,937 $ 7,363,386
U.S. Government obligation 295,645
Corporate bonds and notes 82,487
Mutual Funds:
AMCORE Vintage Fixed Total Return Fund 7,960,275 7,110,525
AMCORE Vintage Equity Fund 24,194,392 18,267,442
AMCORE Vintage Aggressive Growth Stock Fund 1,961,680
Money Market deposits:
AMCORE Vintage United States Government Obligations 5,446,020 5,516,800
51,093,949 38,340,640
Investments at estimated fair value:
Common Trust Fund of AMCORE Bank N.A., Rockford:
AMCORE Stable Asset Fund 6,700,934 6,698,257
Participants' notes at principal amount 148,926 56,740
6,849,860 6,754,997
TOTAL INVESTMENTS $% 57,943,809 $ 45,095,637
</TABLE>
F-13
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENTS (CONTINUED)
The net realized gain (loss) on disposition of investments was computed as
follows:
<TABLE>
<CAPTION>
AMCORE Common Aggressive
Current Return Bond Common Stock Stable Asset Stock Growth Stock
Fund Fund Fund Fund Fund Fund
-------------- ----------- ---------- --------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Year ended
December 31, 1994
Proceeds $ 3,365,557 $ 3,425,696 $ 5,070,940 $ 1,589,818 $ $
Cost* 3,365,557 3,532,312 4,990,513 1,585,917
------------ ------------ ------------ ------------ -------------- -------------
Net realized gain (loss) $ $ (106,616) $ 80,427 $ 3,901 $ $
============ ============ ============ ============ ============== =============
Year ended
December 31, 1995
Proceeds $ 664,280 $ 9,030,990 $ 4,019,666 $ 4,876,947 $ 1,434,962 $
Cost* 664,280 9,101,644 3,916,301 4,461,601 1,424,862
------------ ------------ ------------ ------------ -------------- -------------
Net realized gain (loss) $ $ (70,654) $ 103,365 $ 415,346 $ 10,100 $
============ ============ ============ ============ ============== =============
Year ended
December 31, 1996
Proceeds $ 1,251,945 $ 3,281,928 $ 6,605,031 $ 2,140,245 $ 558,702 $ 1,836,197
Cost* 1,251,945 3,295,417 5,626,725 2,011,424 556,258 1,834,926
------------ ------------ ------------ ------------ -------------- -------------
Net realized gain (loss) $ $ (13,489) $ 978,306 $ 128,821 $ 2,444 $ 1,271
============ ============ ============ ============ ============== =============
</TABLE>
<TABLE>
<CAPTION>
Employer Matching
Contribution Stock
Fund Combined Funds
------------- --------------
<S> <C> <C>
Year ended
December 31, 1994
Proceeds $ 1,096,687 $ 14,548,698
Cost* 1,004,545 14,478,844
------------- -------------
Net realized gain (loss) $ 92,142 $ 69,854
============= =============
Year ended
December 31, 1995
Proceeds $ 1,434,190 $ 21,461,035
Cost* 1,284,844 20,853,532
------------- -------------
Net realized gain (loss) $ 149,346 $ 607,503
============= =============
Year ended
December 31, 1996
Proceeds $ 1,458,101 $ 17,132,149
Cost* 1,369,805 15,946,500
------------- -------------
Net realized gain (loss) $ 88,296 $ 1,185,649
============= =============
*Cost represents historical cost on a first-in, first-out basis.
</TABLE>
The gain realized on sale of AMCORE Financial, Inc.'s common stock for the
years ended December 31, 1996, 1995 and 1994 was $69,278, $159,446 and $92,142,
respectively. Proceeds on the sales totalled $132,715, $423,272, $194,963,
respectively, and the cost basis of the stock sold was $63,437, $263,826,
$102,821, respectively.
<PAGE> 21
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>
AMCORE
Current Return Common Stock
Fund Bond Fund Common Stock Fund Stable Asset Fund Fund
<S> <C> <C> <C> <C> <C>
Year ended December 31, 1994:
Balance at beginning of year $ - $ 52,964 $ 383,892 $ 533,323 $ -
Change for the year (554,355) (56,836) 241,154
Balance at end of year $ - $ (501,391) $ 327,056 $ 774,477 $ -
Year ended December 31, 1995:
Balance at beginning of year $ - $ (501,391) $ 327,056 $ 774,477 $ -
Change for the year 632,378 4,069,355 25,771 (8,989)
Balance at end of year $ - $ 130,987 $ 4,396,411 $ 800,248 $ (8,989)
Year ended December 31, 1996:
Balance at beginning of year $ - $ 130,987 $ 4,396,411 $ 800,248 $ (8,989)
Change for the year (280,122) 2,822,864 208,625 512,470
Balance at end of year $ - $ (149,135) $ 7,219,275 $ 1,008,873 $ 503,481
<CAPTION>
Aggressive Growth Employer Matching
ORE Common Stock Stock Contribution Stock
Fund Fund Combined Funds
<S> <S> <S> <S>
Year ended December 31, 1994:
Balance at beginning of year $ $ 2,168,641 $ 3,138,820
Change for the year (305,443) (675,480)
Balance at end of year $ $ 1,863,198 $ 2,463,340
Year ended December 31, 1995:
Balance at beginning of year $ $ 1,863,198 $ 2,463,340
Change for the year 267,680 4,986,195
Balance at end of year $ $ 2,130,878 $ 7,449,535
Year ended December 31, 1996:
Balance at beginning of year $ $ 2,130,878 $ 7,449,535
Change for the year 156,680 2,041,575 5,462,092
Balance at end of year $ 156,680 $ 4,172,453 $ 12,911,627
</TABLE>
F-15
<PAGE> 22
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
During 1996, AMCORE Bank, Mendota and AMCORE Bank, Peru, subsidiaries of AFI,
began participating in the Plan. Plan assets of $3,063,737 from the Banks'
prior retirement plans were rolled into the Plan. During 1995, another
subsidiary of AFI, AMCORE Bank, Aledo, began participating in the Plan. Plan
assets of $714,210 from the Bank's prior retirement plans were rolled into the
Plan. Certain other subsidiaries of AFI also began participating in the Plan
during the years ended December 31, 1996, 1995, and 1994. 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
During 1996, the Plan was amended to provide for full and immediate vesting for
all participants terminating employment on or after January 1, 1996. For those
participants terminating before January 1, 1996, nonvested amounts are
forfeited. The forfeited nonvested accounts relating to employees terminating
prior to January 1, 1996 of $16,423 were used to reduce the employer matching
contribution for the year ended December 31, 1996. The 1995 forfeited
nonvested accounts of $13,170 were reallocated to remaining participants based
on eligible compensation.
NOTE 9. EXPENSES
Trust fees of $14,814 were paid by the Plan for the year ended December
31, 1994. Effective January 1, 1995, all costs of administering the Plan were
paid by the Employer.
F-16
<PAGE> 23
AMCORE FINANCIAL SECURITY PLAN COMBINED FUNDS SCHEDULE OF INVESTMENTS OWNED
DECEMBER 31, 1996
<TABLE>
<S> <C> <C> <C>
Fair Value Cost
------------------------------
CORPORATE STOCKS - COMMON
---------------------------
Units
- --------------------
EMPLOYER MATCHING CONTRIBUTION STOCK FUND
-----------------------------------------
337,169 AMCORE Financial, Inc. $ 9,019,271 $ 4,846,819
------------------------------
AMCORE COMMON STOCK FUND
---------------------------
82,866 AMCORE Financial, Inc. 2,216,666 1,708,149
------------------------------
$ 11,235,937 $ 6,554,968
==============================
AMCORE BANK N.A., ROCKFORD-COMMON TRUST FUND
--------------------------------------------
Units
- --------------------
STABLE ASSET FUND
-----------------
393,247.33 AMCORE Stable Asset Fund $ 6,700,934 $ 5,692,061
==============================
U.S. GOVERNMENT OBLIGATIONS
---------------------------
Principal Amount
- --------------------
BOND FUND
---------
100,000 Federal Home Loan Bank, 99,985 100,000
5.44%, due 12/22/98
200,000 Federal Home Loan Bank, 195,660 200,000
5.27%, due 02/03/99
------------------------------
$ 295,645 $ 300,000
==============================
</TABLE>
(Continued)
F-17
<PAGE> 24
<TABLE>
<S> <C> <C> <C>
AMCORE FINANCIAL
SECURITY PLAN
COMBINED FUNDS
SCHEDULE OF
INVESTMENTS OWNED
(CONTINUED)
DECEMBER 31, 1996
Units Fair Value Cost
MONEY MARKET DEPOSITS
----------------------------
CURRENT RETURN FUND
----------------------------
4,557,978 AMCORE Vintage United States
Government Obligations $ 4,557,978 $ 4,557,978
BOND FUND
----------------------------
160,238 AMCORE Vintage United States
Government Obligations 160,238 160,238
COMMON STOCK FUND
----------------------------
386,803 AMCORE Vintage United States
Government Obligations 386,803 386,803
STABLE ASSET FUND
----------------------------
66,138 AMCORE Vintage United States
Government Obligations 66,138 66,138
AMCORE COMMON STOCK FUND
----------------------------
12,611 AMCORE Vintage United States
Government Obligations 12,611 12,611
LOAN FUND
----------------------------
6,388 AMCORE Vintage United States
Government Obligations 6,388 6,388
AGGRESSIVE GROWTH STOCK FUND
----------------------------
18,713 AMCORE Vintage United States
Government Obligations 18,713 18,713
EMPLOYER MATCHING
CONTRIBUTION STOCK FUND
----------------------------
237,151 AMCORE Vintage United States
Government Obligations 237,151 237,151
$ 5,446,020 $ 5,446,020
</TABLE>
(Continued)
F-18
<PAGE> 25
<TABLE>
<S> <C> <C> <C>
AMCORE FINANCIAL
SECURITY PLAN
COMBINED FUNDS
SCHEDULE OF
INVESTMENTS OWNED
(CONTINUED)
DECEMBER 31, 1996
Fair Value Cost
MUTUAL FUNDS
------------
Units
BOND FUND
--------------------------------------
808,971.09 AMCORE Vintage Fixed Total Return Fund
($9.84 per unit) 7,960,275 8,105,055
COMMON STOCK FUND
--------------------------------------
1,498,104.7 AMCORE Vintage Equity Fund
($16.15 per unit) 24,194,392 16,975,119
AGGRESSIVE GROWTH STOCK FUND
--------------------------------------
160,268.01 AMCORE Vintage Aggressive Growth
Stock Fund
($12.24 per unit) 1,961,680 1,805,000
$ 34,116,347 $ 26,885,174
PARTICIPANT NOTES
--------------------------------------
Number of
Loans
CURRENT RETURN FUND
--------------------------------------
5 Participants, variable rate $ 21,420 $ 21,420
LOAN FUND
--------------------------------------
17 Participants, fixed rate 127,506 127,506
$ 148,926 $ 148,926
TOTAL INVESTMENTS $ 57,943,809 $ 45,027,179
</TABLE>
F-19
<PAGE> 26
[MCGALDREY & PULLEN LETTERHEAD]
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 24, 1997 on our audits of the
financial statements of AMCORE Financial Security Plan as of December 31, 1996
and 1995, and for each of the three years ended December 31, 1996, and
supporting schedule as of December 31, 1996, which is included in the annual
report on Form 11-K for the year ended December 31, 1996.
Rockford, Illinois
March 24, 1997
[SIGNATURE]
F-20
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