AMCORE closes one branch with plans to open three

Northwestern Financial Review, Jan 15, 2002

[chronicle]

AMCORE Financial, Inc. will close its Huntley, Ill. branch March 31. Limitations of the particular location are preventing the branch from achieving growth targets set by AMCORE. "Huntley is a community with good long-term growth prospects. Unfortunately we did not have a location that was suitable to meet the needs of our customers," said Robert J. Meuleman, AMCORE chairman and CEO.

The Huntley branch has approximately 400 customers who will be directed to other AMCORE branches. The branch's three employees will be offered positions at other AMCORE locations.

The closing stands in contrast to the company's expansion as AMCORE continues to pursue its growth strategy along the I-90 corridor. Currently AMCORE has Illinois locations in Elgin, Crystal Lake, Woodstock, McHenry, Geneva and Carpentersville. Plans are underway to open two more Illinois offices in St. Charles and McHenry in fall 2002 and in Madison, Wis., this month. "Our decision to close or open branches is based on where we can realize the greatest growth potential and most effectively use our capital," said Meuleman.

The Madison branch is a part of the company's plan to expand from the northwestern Chicago suburbs, through Rockford, Ill., to Madison, Wis.

"The I-90 corridor from Elgin, Ill., through Rockford, to Madison, truly operates as an inter-connected region with common economic and community goals," said Meuleman. "This linear city has experienced some of the highest growth in both Illinois and Wisconsin. We're fortunate that this corridor also matches our market footprint and is a strategic growth area for our company."

The 7,000-square-foot AMCORE office will be in an economically booming area of Madison. According to a recent census, the immediate area has seen a population increase of 50 percent and household growth of nearly 20 percent since 1990. More than 100,000 residents within five miles will have access to the branch. Additionally, neighboring businesses will provide a potential customer base of nearly 73,000 people in this same five-mile radius.

"This is an important market for us," said James Hartlieb, Madison market president of AMCORE Bank, N.A. "There is incredible potential in this area for loan, deposit and asset management growth."

The four-floor, 75,000-square-foot building, in which the branch will reside, will be named the AMCORE Bank building. It will feature financial-oriented companies such as brokerage, insurance and law firms.

The $4 billion AMCORE currently has two branches in Madison. The forthcoming branch to be constructed in June will feature 16 employees, two drive-up lanes, and an ATM.