Amcore Financial posts Q1 loss; cuts 9 pct jobs
* Posts fifth straight quarterly loss
* Q1 loss $1.34/shr
* Cuts 9 pct jobs
* Eliminates COO position
April 28 (Reuters) - Amcore Financial Inc (AMFI.O) posted a fifth straight quarterly loss on Monday and said it will reduce its workforce by 9 percent and cut executive pay.
The company said it will eliminate 116 positions, including that of chief operating officer, which was held by Donald Wilson.
The holding company for Amcore Bank had cut staff positions by 11 percent in the fourth quarter.
The company also cut executive salaries by 5 percent, suspended employee merit increases and decreased its contribution to the 401(k) plan.
It expects to record a charge of $2 million related to restructuring in the second quarter.
Amcore expects to save $20 million annually from the restructuring and said the total annual cost reductions from actions taken during the last five quarters were about $26 million, or about 15 percent of its 2008 operating expense run rate.
The company, which classified itself being adequately capitalized, said its funding costs and insurance premiums will increase and its access to certain wholesale funding will be limited.
Net interest income stood at $22.5 million, reflecting a consecutive drop for the last five quarters.
Rockford, Illinois-based Amcore said first-quarter net loss was $30.4 million, or $1.34 a share, compared with a loss of $27.5 million, or $1.21 a share, last year.
Two analysts expected the company to post a loss of $1.10, before items, according to Reuters Estimates.
Shares of the company closed at $1.35 Monday on Nasdaq. (Reporting by Supantha Mukherjee in Bangalore; Editing by Anil D'Silva)
