Aug. 29--Amcore Financial Inc., which reported an unexpected loss in the second quarter due to troubles in its real estate lending porfolio, is closing four branches and offices as the Rockford-based bank tries to reduce costs.

Amcore, which has assets of $5.2 billion and 79 branches in Illinois and Wisconsin, is closing: a limited-service branch in Morton Grove that'll be served by a new branch slated to open in Vernon Hills in November as well as existing locations in Deerfield and Mount Prospect; an administrative office for mortgage operations in Rockford; an older branch in Peru that's being consolidated with a nearby expanded drive-up facility and a branch built in 2004; and a drive-up facility in Portage, Wis., that will be served by a full-service branch nearby.

Spokeswoman Katherine Taylor confirmed the closings and said it's an effort to improve efficiencies at the company, which has been expanding into the Chicago market. Some of the locations were acquired through deals that Amcore made in the 1980s and 1990s, she said.

At a Howe Barnes Hoefer & Arnett banking conference on Aug. 19, Amcore said it remains well-capitalized.

Amcore stock was trading at $8.35 a share late Friday morning, down 2.6 percent. Its 52 week trading range is $3.09 to $27.63.

byerak@tribune.com

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