Exhibit 99.1

                                                                  NEWS RELEASE

           Date:   July 6, 1999


        Contact:
                   For media inquiries:
                   Katherine Taylor
                   Investor Relations Manager
                   815-961-7164


                   For financial inquiries:
                   John Hecht
                   815-961-2787


                         AMCORE ANNOUNCES COST SAVINGS
                   EXPECTED FROM NEW ORGANIZATIONAL STRUCTURE

    ROCKFORD -- AMCORE Financial, Inc., a $4.2 billion regional financial
services company, announces it expects $7.3 million in annual pre-tax cost
savings from its new "Customer Focused Organizational Structure." The bulk of
the savings will be achieved through the consolidation of its nine banking
charters into one bank.

    "Our new structure will enhance our response to local markets, make us more
efficient and increase shareholder value," said Robert J. Meuleman, president
and chief executive officer.

    The projected cost savings are expected to meaningfully impact performance
beginning with the first quarter of 2000. The primary savings are expected to
come from reductions in staffing and regulatory costs. We also expect reduced
corporate support expenses due to the simpler structure.

    AMCORE announced its "Customer Focused Organizational Structure," in April
and has been undergoing a business process review to identify cost savings. The
next step in the three-phase plan is to begin centralizing or regionalizing
various operational functions. The third and final phase, which is expected to
be completed in the fourth quarter, is to collapse the nine charters into one
bank charter and convert the data processing records into one company.

    "I want to stress that implementing and completing our new organizational
structure will be our major focus," said Meuleman. " Our energies are committed
to completing our new structure, which we believe is the best use of our time
and resources at the present."

    Although the Company will be operating under one charter, it will not be
eliminating directors or bank presidents. Instead, their responsibilities will
change from a fiduciary role to focus more on business development, corporate
advocacy and community leadership.

    "Our directors and local presidents serve a vital role in all of our
communities," said Meuleman.  "They are a significant source of business
referrals and local competitive intelligence.  We have consulted them throughout
the process and have received valuable input."

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    The Company will take a pre-tax charge relating to the organizational
changes of $6.1 million in the second quarter. The largest component of the
charge is required for employee severance, professional fees, and other costs to
integrate systems.

    "This moves us in the right direction to becoming a stronger company," said
Meuleman.  "By removing inefficient structures and higher costs we will better
serve our customers and our shareholders."

    AMCORE Financial, Inc., headquartered in northern Illinois, is a financial
services company with banking assets of $4.2 billion operating in 66 locations
in Illinois and Wisconsin. The company also has four financial services
companies: AMCORE Investment Group, which provides trust and brokerage services,
and through Investors Management Group, provides capital management and mutual
fund administrative services, and is the investment advisor for the Vintage
family of mutual funds; AMCORE Mortgage, Inc.; AMCORE Consumer Finance Company,
Inc. and AMCORE Insurance Group, Inc.

    This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 with respect to the new
organizational structure and results of operations and businesses of AMCORE.
Forward-looking statements may include hopes, beliefs, expectations or
predictions of the future. These forward-looking statements involve certain
risks and uncertainties. Factors that may cause actual results to differ
materially from those contemplated, projected, forecasted or estimated in such
forward-looking statements include, among others, the following possibilities:
(I) heightened competition, including specifically the intensification of price
competition, the entry of new competitors and the formation of new products by
new and existing competitors; (II) adverse state and federal legislation and
regulation; (III) failure to obtain new customers and retain existing customers;
(IV) inability to carry out marketing and/or expansion plans; (V) loss of key
executives; (VI) changes in interest rates including the effect of prepayment;
(VII) general economic and business conditions which are less favorable than
expected; (VIII) unanticipated changes in industry trends; (IX) changes in
Federal Reserve Board monetary policies; (X) inability to realize cost savings
anticipated with the new organizational structure, mergers or data processing
outsourcing; and (XI) higher than expected costs or other difficulties
associated with merger integration, data processing conversion or Year 2000
compliance solutions, (XII) changes in the final organizational structure.

    AMCORE common stock is listed on The NASDAQ Stock Market under the symbol
"AMFI." Further information about AMCORE Financial Inc. can be found at our
website at http://www.AMCORE.com.