ROCKFORD, Ill. (
shares surged Friday on roughly four times their average volume after the bank holding company amended a credit facility with a lender and said it is no longer "significantly undercapitalized."
Amcore Financial said it agreed with
to amend a covenant on its $12.5 million credit facility, and it also established a cash interest reserve account of $1.1 million with JPMorgan as part of the agreement. The amendment requires Amcore Financial to pay all accrued interest through the date of the amendment, and make monthly interest payments thereafter.
Amcore also said it is current with all its payments due under the facility. "We would expect that the bank will no longer be deemed significantly undercapitalized for regulatory purposes," Chairman and CEO William McManaman said in a statement.
Earlier this week, Amcore Financial completed a $135 million sale of non-strategic, non-relationship loans as part of the company's efforts to raise capital and improve liquidity.
Shares of Amcore Financial were jumping by 29 cents, or 42.1%, to 98 cents. Earlier in the session, the stock touched an intraday high of $1.01. More than 1.2 million shares changed hands by 3 p.m. EST Friday, compared to the stock's 50-day average daily volume of 299,000, according to the
Amcore Financial has a 22.7 million-share float with a short interest float of 13.4% as of Nov. 30, according to Yahoo! Finance. Insiders hold only 0.9% of the company's shares, with another 26.2% owned by institutions.
-- Written by Robert Holmes in Boston
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