Irwin Financial narrows losses, continues restructuring

Back to TopCommentsE-mailPrintBookmark and Share
Irwin Financial Corp. narrowed its losses in the second quarter, as the company continued to restructure or face the possible suspension of its business.

The Columbus-based parent of Irwin Union Bank FSB said today that losses in the latest quarter declined to $57 million, or $1.92 per share, from $107 million, or $3.64 per share, in the same period a year ago.

The smaller loss in the second quarter was due to credit provisions but also reflects the bank's restructuring efforts, Irwin Chairman and CEO Will Miller said in a prepared statement.

"In the second quarter, we saw a meaningful slowdown in new problem credits," Miller said. "This encouraging sign suggests that our focus on credit management is having a positive effect."

The company's loan-loss provision has fallen from $158 million in the second quarter of 2008 to $64 million in the first quarter of 2009 to $45 million in the most recent quarter, Irwin Financial said.

Regulators told Irwin Union Bank late last month that it must boost its capital or face the possible suspension of its business.

"We continue to pursue the only remaining step in our restructuring-raising additional capital," Miller said today in the statement. "We have been advised that Treasury is working on what they call 'Plan C,' which includes discussions with other banking agencies of a new application of the TARP capital program to assist community banks."

Irwin Financial has commitments of $34 million in private investments, Miller said.

Also, as part of its restructuring, the company in early July agreed to sell three bank branches and $200 million in loans to Cincinnati-based First Financial Bancorp.

First Financial, the parent of First Financial Bank, is buying branches in Carmel, Greensburg and Shelbyville. The acquisition includes about $143 million in deposits and $50 million in commercial and consumer loans. The deal is expected to close in the third quarter.

In a separate transaction that already closed, First Financial bought $150 million in commercial loans from Irwin branches in Avon, Carmel, Columbus, Franklin, Greensburg, Indianapolis and Shelbyville.

Irwin Union retains bank branches in Avon, Columbus, Franklin and Indianapolis.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............