* Earnings per Diluted Share from Continuing Operations of $0.27 *
Strong Results for Commercial Finance and Banking * Stable Margins
and Good Credit Quality COLUMBUS, Ind., Aug. 2
/PRNewswire-FirstCall/ -- Irwin Financial Corporation (NYSE:IFC), a
bank holding company focusing on small business and consumer
mortgage lending, today announced net income from continuing
operations for the second quarter of 2006 of $8.1 million or $0.27
per diluted share. This compares with diluted earnings per share
from continuing operations of $0.29 and $0.18, in the first quarter
of 2006 and the second quarter of 2005, respectively. Return on
equity from continuing operations was 6.0 percent, compared to 6.6
percent and 4.3 percent in the first quarter and year-earlier
period, respectively. The Corporation has announced its intention
to seek the sale of its conventional mortgage business and as a
result this segment is now reported as "Discontinued Operations."
The core mortgage production and servicing operations were
profitable in the second quarter, but the total discontinued
operations recorded an after-tax loss of $5.2 million, reflecting
certain costs related to the planned sale of the segment and
mortgage servicing right (MSR) hedge losses. The MSR hedge losses
are greater than the GAAP-based MSR impairment reversal as the
segment continued to hedge the economic exposure, rather than the
accounting value of its servicing portfolio in anticipation of a
near-term sale of the asset. The results for mortgage banking
compare with an after-tax loss of $8.7 million in the year-earlier
period. Including the discontinued operations, the Corporation
recorded net income of $2.9 million or $0.09 per diluted share,
compared to a $3.4 million or $0.12 per share consolidated loss in
the year-earlier period. "Our commercial finance and banking
segments again recorded very solid earnings. While competitive
conditions are making loan and deposit growth difficult for
everyone, we continue to make solid gains in increasing our share
of market. Their on-going success reinforces the decision made
earlier this year to focus our resources and capital on the growth
of these lines of business," said Will Miller, Chairman of Irwin
Financial. "By reallocating our resources to these segments, we
believe we can create significant value. "While our origination
volumes and overall profitability in our home equity segment are
still below our desired levels, we believe we are on the path to
improved profitability. The results in the second quarter reflected
a significant restructuring charge we took in April that included
the cost of disposing of certain underperforming assets as we began
to focus our marketing more specifically on the broker and
correspondent channels. By June, the segment's core earnings had
reached a satisfactory level and we believe the new senior
management team can sustain the recent improvements we have seen,"
Miller continued. "We are making clear progress on the sale of our
conventional first mortgage segment and I hope we will be in a
position to announce definitive plans shortly. I applaud my
colleagues at the mortgage banking line of business for their
continued focus on running the business well during this time.
Absent the direct and indirect costs of the sales process,
underlying results for the mortgage segment have significantly
improved," Miller concluded. Financial highlights for continuing
operations (commercial bank, commercial finance, and home equity
lending) for the period include: Consolidated Results $ in
millions, except EPS 2Q 2Q Percent 1Q Percent 2006 2005 Change 2006
Change Net Interest Income After Provision for Losses $56 $47 20%
$52 8% Non-Interest Income 8 16 -51 13 -43 Total Consolidated Net
Revenues 64 63 3 66 -2 Non-Interest Expense 51 53 -4 52 -3 Net
Income 8 5 53 8 -5 Earnings per Share (diluted) 0.27 0.18 50 0.29
-7 Loans and Leases 4,910 4,063 21 4,706 4 Mortgage Loans Held for
Sale 149 323 -54 466 -68 Deposits 3,868 3,841 1 4,074 -5
Shareholders' Equity 530 491 8 528 1 Total Risk-Based Capital Ratio
13.1% 13.8% 12.9% Return on Average Equity 6.0 4.3 6.6 Consolidated
net revenues from continuing operations decreased modestly on a
sequential quarter basis, reflecting a decline in gain on sale of
loans. Non-interest operating expenses decreased three percent on a
sequential quarter basis. The consolidated loan and lease portfolio
was $4.9 billion as of June 30, a $0.2 billion or 19 percent
annualized increase as compared to the end of the first quarter.
This growth reflects increases in both commercial and consumer
portfolios. Home equity mortgage loans held for sale totaled $148
million, down from $464 million at the end of the first quarter.
Second quarter loan sales were undertaken to reduce the leverage of
the consolidated balance sheet at the time of the IFC Capital Trust
IV call and to dispose of loans which were unlikely to meet
profitability targets. Deposits totaled $3.9 billion at June 30,
2006, down $0.2 billion from March 31, 2006, as certain higher cost
wholesale deposits ran off. Core deposit balances averaged $2.5
billion during the quarter. The Corporation had $530 million or
$17.80 per share in common shareholders' equity as of June 30,
2006. At quarter end, Tier 1 Leverage Ratio and Total Risk-based
Capital Ratio were 10.3 percent and 13.1 percent, respectively,
compared to 10.5 percent and 12.9 percent as of March 31, 2006.
During the quarter, the Corporation announced the call of $15
million of trust preferred stock (IFC Capital Trust IV) and, due to
the call, this capital is not included in quarter-end capital
ratios. Pursuant to the call, these securities were redeemed in
July. Nonperforming assets (including other real estate owned of
$18 million) were $61 million or 0.94 percent of total assets as of
June 30, 2006, up from $55 million or 0.80 percent of total assets
at the end of March. The bulk of the increase relates to a single
credit in the commercial banking segment, discussed in more detail
below. The on-balance sheet allowance for loan and lease losses
totaled $67 million as of June 30, up $3 million from the end of
the first quarter. The ratio of on-balance sheet allowance for loan
and lease losses to nonperforming loans and leases was 167 percent
at June 30, compared to 177 percent at March 31. The consolidated
loan and lease loss provision totaled $6.8 million, down $2.4
million from the first quarter of 2006, driven by improved credit
performance in the home equity segment. Quarterly net charge-offs
totaled $4.0 million, down from $4.5 million during the first
quarter. Thirty-day and greater delinquencies, the ratio of
charge-offs to average loans and leases, and the allowance for loan
and lease losses to total loans and leases for principal
credit-related portfolios are shown in the next table. Commercial
Home Equity Commercial Banking Lending On- Finance Balance Sheet(1)
June 30, 2006 Portfolio (in $Billions) $2.8 $1.2 $1.0 30-Day and
Greater Delinquencies - June 30, 2006 0.31% 2.61% 0.42% - March 31,
2006 0.10 1.90 0.47 - December 31, 2005 0.13 2.23 0.66 - September
30, 2005 0.12 2.01 0.59 - June 30, 2005 0.15 1.70 0.54 Annualized
Net Charge-offs - 2Q06 0.10% 0.68% 0.38% - 1Q06 0.09 0.84 0.35 -
4Q05 0.16 0.26 0.47 - 3Q05 0.09 0.36 0.58 - 2Q05 0.13 0.43 0.88
Allowance to Loans and Leases (1) - June 30, 2006 0.94% 2.44% 1.29%
- March 31, 2006 0.92 2.49 1.31 - December 31, 2005 0.92 2.40 1.32
- September 30, 2005 0.93 2.89 1.37 - June 30, 2005 0.96 1.84 1.42
(1) Home Equity on balance sheet Allowance to Loans and Leases
relates to Loans Held for Investment portfolio only. Segment
Results Net income (loss) by line of business is shown below, with
additional detail available in the segment summary tables at the
end of this release and in the Corporation's Form 10Q for the
period ended June 30, 2006. Net Income(loss) 2Q 2Q Percent 1Q
Percent ($ in millions) 2006 2005 Change 2006 Change Commercial
Banking $7.9 $5.6 40% $6.8 16% Commercial Finance 2.9 1.4 105 2.9 0
Home Equity (0.4) (0.5) 29 1.0 NM Other Segments, Including Parent
(2.3) (1.2) (92) (2.2) (5) Net Income From Continuing Operations
8.1 5.3 53 8.5 (5) Loss From Discontinued Operations - Mortgage
Banking (5.2) (8.7) 40 (10.3) 53 Consolidated Net Income (Loss) 2.9
(3.4) NM (1.9) NM Commercial banking earned income of $7.9 million,
$1.1 million and $2.2 million increases over the first quarter of
2006 and the second quarter of 2005, respectively. The comparative
improvements reflect increases in net interest income, principally
from loan portfolio growth. The commercial banking segment's loans
grew at an annualized rate of five percent during the quarter and
are up 13 percent on a year-over-year basis. Loans outstanding as
of June 30, 2006 totaled $2.8 billion. Net interest margin was 3.98
percent during the quarter, unchanged from the first quarter and up
from 3.80 percent a year ago as excess liquidity that was used to
purchase inter-company investments during 2005 has been redeployed
into higher yielding loan assets in this segment. During the
quarter, certain higher cost wholesale deposits ran off, which
should improve net interest margin in the third quarter. Credit
quality continues to be positive for this segment, although as
noted in the table above, thirty-day and greater delinquencies
increased to 0.31 percent from 0.10 percent as of March 31. The
segment had a $7 million credit become delinquent and
non-performing as of June 30. Management believes this credit will
be successfully resolved in the near future and has not allocated a
specific reserve for it. The commercial banking segment's loan and
lease loss provision of $1.3 million during the quarter compared
favorably to net charge-offs of $0.7 million. The commercial
finance line of business earned $2.9 million in the second quarter
of 2006, unchanged compared to the first quarter and a $1.5 million
increase as compared to the second quarter of 2005. Net income was
a quarterly record for this segment. Loan and lease fundings
totaled $164 million during the quarter compared to $110 million in
the year earlier period. The segment's loan and lease portfolio now
totals slightly less than $1.0 billion, representing a 37 percent
increase over the past year. Net interest income totaled $10.1
million, a $0.4 million sequential quarter increase. Net interest
margin decreased modestly to 4.50 percent, as compared to 4.67
percent in the prior quarter, primarily reflecting narrowing
margins in the Canadian-based portion of the portfolio. The loan
and lease loss provision in this segment totaled $1.8 million
during the quarter, up from $1.2 million during the prior quarter,
reflecting an increase in loss coverage in the segment's US-based
small ticket and franchise finance portfolios. Net charge-offs
increased to $0.9 million, as compared to $0.7 million in the prior
quarter and $1.4 million a year earlier. The thirty-day and greater
delinquency ratio in this segment declined to 0.42 percent at June
30, from 0.47 percent at March 31. The home equity segment lost
$0.4 million during the second quarter, compared to net income of
$1.0 million during the first quarter and a loss of $0.5 million
during the second quarter of 2005. The loss in the current period
was principally the result of two factors: i) $3.9 million in
severance and related charges to significantly reduce the segment's
presence in retail loan originations and ii) a loss on the
securitization of high credit quality, but low-coupon loans which
had insufficient yield to provide adequate profitability if held to
maturity. Partially offsetting these factors was improved servicing
fee income due to incentive servicing fees which totaled $4.3
million during the second quarter. Credit quality continues to meet
management's expectations. Loan originations totaled $211 million
in the second quarter, down from $284 million in the first quarter,
reflecting a reduction in retail channel originations following the
restructuring of operations. Thirty-day and greater delinquencies
on the segment's on balance sheet portfolio increased to 2.61
percent from 1.90 percent at March 31 and 1.70 percent as of June
30, 2005. Loan loss provision totaled $3.7 million, down from $6.6
million in the first quarter which was elevated due to the
acquisition of seasoned loans in conjunction with clean-up calls of
previous asset-backed securitizations. Net charge-offs were
approximately $2.4 million during the second quarter, compared to
$3.2 during the first quarter. The parent and other consolidating
entities lost $2.3 million during the second quarter, compared to
losses of $2.2 million in the first quarter of 2006 and $1.2
million in the second quarter of 2005. The increased year-over-
year loss related principally to increased interest expense due to
reduced allocation of total consolidated capital to non-parent
segments. Discontinued Operations - Conventional Mortgage Segment
In the first quarter of 2006, the Corporation announced that it
intended to exit its mortgage banking line of business. Although
final disposition plans have not been concluded, in conformity with
SFAS 144 these operations are now being reported as "Discontinued
Operations." Mortgage banking discontinued operations recorded a
net loss of $5.2 million, compared to a net loss of $10.3 million
and $8.7 million in the first quarter of 2006 and second quarter of
2005, respectively. Loan production of $2.2 billion was unchanged
as compared to originations in the first quarter. The ratio of
gains on sale of loans to loans sold in the secondary market
improved modestly to 0.75 percent, from 0.68 percent during the
first quarter. The segment had no bulk MSR sales in the quarter and
its servicing portfolio totaled $19.2 billion at June 30, up from
$18.4 billion at March 31, 2006. Thirty-day and greater
delinquencies on the portfolio increased to 4.58 percent, from 4.02
percent at the end of March. The loss in the current period
reflects $7.5 million of net MSR hedge losses in excess of
accounting based impairment reversal and an increase in other
expenses incurred related to the intention to sell the segment. The
hedge structures employed during the first half of 2006, designed
in the context of the decision to exit the segment, are intended to
hedge the economic rather than accounting value of the portfolio in
order to stabilize potential sale proceeds. On an economic basis,
the hedges performed as expected during the second quarter, with
the hedge losses slightly less than the modeled market value change
in the servicing operation assets. About Irwin Financial Irwin(R)
Financial Corporation (http://www.irwinfinancial.com/ ) is a bank
holding company with a history tracing to 1871. The Corporation,
through its principal lines of business provides a broad range of
financial services to consumers and small businesses in selected
markets in the United States and Canada. About Forward-Looking
Statements This press release contains forward-looking statements
and estimates that are based on management's expectations,
estimates, projections, and assumptions. These statements and
estimates include but are not limited to earnings estimates and
projections of financial performance and profitability, and
projections of business strategies and future activities. These
statements involve inherent risks and uncertainties that are
difficult to predict and are not guarantees of future performance.
Words that convey our beliefs, views, expectations, assumptions,
estimates, forecasts, outlook and projections or similar language,
or that indicate events we believe could, would, should, may or
will occur (or might not occur) or are likely (or unlikely) to
occur, and similar expressions, are intended to identify forward-
looking statements, which may include, among other things: *
statements and assumptions relating to projected growth in our
earnings, projected loan originations, net interest and margins,
and the relative performance of our lines of business; * statements
and assumptions relating to projected trends or potential changes
in our asset quality, loan delinquencies, charge-offs, reserves and
asset valuations, including valuations of our servicing and
residual portfolios and incentive servicing fees; * statements
about our estimated expenses; * statements about the discontinued
operations and efforts to sell our conventional mortgage banking
segment; and * any other statements that are not historical facts.
We qualify any forward-looking statements entirely by these
cautionary factors. Actual future results may differ materially
from what is projected due to a variety of factors including:
potential changes in direction, volatility and relative movement
(basis risk) of interest rates, which may affect consumer demand
for our products and the success of our interest rate risk
management strategies; staffing fluctuations in response to product
demand or the implementation of corporate strategies that affect
our work force; the relative profitability of our lending
operations; the valuation and management of our residual, servicing
and derivatives portfolios, including assumptions we embed in the
valuation and short-term swings in the valuation of such portfolios
due to a quarter-end movements in secondary market interest rates,
which are inherently volatile; borrowers' refinancing
opportunities, which may affect the prepayment assumptions used in
our valuation estimates and which may affect loan demand;
unanticipated deterioration in the credit quality of our loan and
lease assets, including deterioration resulting from the effects of
recent natural disasters; unanticipated deterioration or changes in
estimates of the carrying value of our other assets, including
securities; difficulties in delivering products to the secondary
market as planned; difficulties in expanding our business and
obtaining funding as needed; competition from other financial
service providers for experienced managers as well as for
customers; changes in the value of companies in which we invest;
changes in variable compensation plans related to the performance
and valuation of lines of business where we tie compensation
systems to line of business performance; unanticipated outcomes in
litigation; legislative or regulatory changes, including changes in
tax laws or regulations, changes in the interpretation of
regulatory capital rules, changes in consumer or commercial lending
rules, disclosure rules or rules affecting corporate governance,
and the availability of resources to address these rules; changes
in applicable accounting policies or principles or their
application to our businesses or final audit adjustments;
additional guidance and interpretation on accounting issues and
details of the implementation of new accounting methods; the final
outcome and implications of our intention to sell our conventional
mortgage banking segment; or governmental changes in monetary or
fiscal policies. We undertake no obligation to update publicly any
of these statements in light of future events, except as required
in subsequent reports we file with the Securities and Exchange
Commission. The Corporation will host a conference call to review
results on Wednesday, August 2, at 1:00 p.m. EDT. Greg Ehlinger,
Senior Vice President and CFO, Will Miller, CEO, and Jody Littrell,
First Vice President and Controller, of Irwin Financial
Corporation, will be the speakers on the call. The toll-free number
for the call is (800) 640-9765; please tell the operator you would
like to join the Irwin Financial call, confirmation #15342686. A
replay of the call will be available on the Irwin Financial
Corporation website at http://www.irwinfinancial.com/ir-set.html .
IRWIN FINANCIAL CORPORATION Selected Consolidated Financial
Highlights ($'s in thousands, except per share data) Unaudited %
Q2-2006 Q2-2005 $ Change Change Q1-2006 Net Interest Income $63,215
$55,819 $7,396 13.2 $61,280 Provision for Loan and Lease Losses
(6,826) (8,966) 2,140 23.9 (9,193) Noninterest Income 7,705 15,669
(7,964) (50.8) 13,462 Total Net Revenues 64,094 62,522 1,572 2.5
65,549 Noninterest Expense 50,815 53,008 (2,193) (4.1) 52,339
Income from Continuing Operations before Income Taxes 13,279 9,514
3,765 39.6 13,210 Income Taxes on Continuing Operations 5,221 4,245
976 23.0 4,734 Net Income from Continuing Operations $8,058 $5,269
$2,789 52.9 $8,476 Loss from Discontinued Operations ($5,187)
($8,680) 3,493 40.2 ($10,334) Net Income $2,871 ($3,411) $6,282
184.1 ($1,858) Dividends on Common Stock $3,272 $2,855 $417 14.6
$3,268 Diluted Earnings Per Share (29,862 Weighted Average Shares
Outstanding) From Continuing Operations 0.27 $0.18 $0.09 50.0 $0.29
From All Operations 0.09 (0.12) 0.21 175.0 (0.07) Basic Earnings
Per Share (29,694 Weighted Average Shares Outstanding) From
Continuing Operations 0.27 0.18 0.09 50.0 0.29 From All Operations
0.10 (0.12) 0.22 183.3 (0.06) Dividends Per Common Share 0.11 0.10
0.01 10.0 0.11 Net Charge-Offs $3,972 $3,281 $691 21.1 $4,500
Performance Ratios - Quarter to Date: Return on Average Assets from
Continuing Operations 0.5% 0.4% 0.5% Return on Average Equity from
Continuing Operations 6.0% 4.3% 6.6% % YTD-2006 YTD-2005 $ Change
Change Net Interest Income $124,495 $108,310 $16,185 14.9 Provision
for Loan and Lease Losses (16,019) (12,447) (3,572) (28.7)
Noninterest Income 21,167 33,848 (12,681) (37.5) Total Net Revenues
129,643 129,711 (68) (0.1) Noninterest Expense 103,154 108,447
(5,293) (4.9) Income from Continuing Operations before Income Taxes
26,489 21,264 5,225 24.6 Income Taxes on Continuing Operations
9,955 8,764 1,191 13.6 Net Income from Continuing Operations
$16,534 $12,500 $4,034 32.3 Loss from Discontinued Operations
($15,521) ($18,457) 2,936 15.9 Net Income $1,013 ($5,957) $6,970
117.0 Dividends on Common Stock $6,541 $5,706 $835 14.6 Diluted
Earnings Per Share (29,508 Weighted Average Shares Outstanding)
From Continuing Operations 0.56 $0.43 0.13 30.2 From All Operations
0.03 (0.21) 0.24 114.3 Basic Earnings Per Share (29,318 Weighted
Average Shares Outstanding) From Continuing Operations 0.56 0.44
0.12 27.3 From All Operations 0.03 (0.21) 0.24 114.3 Dividends Per
Common Share 0.22 0.20 0.02 10.0 Net Charge-Offs $8,472 $5,396
$3,076 57.0 Performance Ratios - Year to Date: Return on Average
Assets from Continuing Operations 0.5% 0.5% Return on Average
Equity from Continuing Operations 6.4% 5.0% June 30, June 30, %
March 31, 2006 2005 $ Change Change 2006 Loans Held for Sale
$148,561 $323,242 ($174,681) (54.0) $465,812 Loans and Leases in
Portfolio 4,909,930 4,062,728 847,202 20.9 4,705,850 Allowance for
Loan and Lease Losses (66,921) (50,238) (16,683) (33.2) (63,923)
Assets Held for Sale IMC 957,701 1,045,265 (87,564) (8.4) 1,107,696
Total Assets 6,515,991 6,079,116 436,875 7.2 6,795,682 Total
Deposits 3,868,353 3,840,963 27,390 0.7 4,074,500 Shareholders'
Equity 529,581 490,576 39,005 8.0 527,693 Shareholders' Equity
available to Common Shareholders (per share) 17.80 17.18 0.62 3.6
17.76 Average Equity/Average Assets (YTD) 7.8% 9.0% 7.8% Tier I
Capital $702,457 $630,635 $71,822 11.4 $699,523 Tier I Leverage
Ratio 10.3% 11.1% 10.5% Total Risk-based Capital Ratio 13.1% 13.8%
12.9% Nonperforming Assets to Total Assets 0.94% 0.77% 0.80%
COMMERCIAL BANKING % Q2-2006 Q2-2005 $ Change Change Q1-2006 Net
Interest Income $31,411 $26,977 $4,434 16.4 $29,862 Provision for
Loan and Lease Losses (1,337) (1,575) 238 15.1 (1,476) Other
Revenues 4,593 3,806 787 20.7 4,268 Total Net Revenues 34,667
29,208 5,459 18.7 32,654 Salaries, Pension, and Other Employee
Expense 13,280 12,363 917 7.4 13,488 Other Expenses 8,305 7,481 824
11.0 7,983 Income Before Income Taxes 13,082 9,364 3,718 39.7
11,183 Income Taxes 5,230 3,750 1,480 39.5 4,421 Net Income $7,852
$5,614 $2,238 39.9 $6,762 Net Charge-offs $715 $743 ($28) (3.7)
$591 Net Interest Margin 3.98% 3.80% 3.98% % YTD-2006 YTD-2005 $
Change Change Net Interest Income $61,273 $51,537 $9,736 18.9
Provision for Loan and Lease Losses (2,813) (2,575) (238) (9.2)
Other Revenues 8,862 8,187 675 8.2 Total Net Revenues 67,322 57,149
10,173 17.8 Salaries, Pension, and Other Employee Expense 26,767
24,310 2,457 10.1 Other Expenses 16,289 14,289 2,000 14.0 Income
Before Income Taxes 24,266 18,550 5,716 30.8 Income Taxes 9,652
7,467 2,185 29.3 Net Income $14,614 $11,083 $3,531 31.9 Net
Charge-offs $1,307 $1,155 $152 13.2 Net Interest Margin 3.98% 3.78%
June 30, June 30, % March 31, 2006 2005 $ Change Change 2006
Securities and Short-Term Investments $54,188 $425,363 ($371,175)
(87.3) $282,665 Loans and Leases 2,797,872 2,473,621 324,251 13.1
2,766,534 Allowance for Loan and Lease Losses (26,176) (23,651)
(2,525) (10.7) (25,554) Interest-Bearing Deposits 2,299,431
2,340,284 (40,853) (1.7) 2,537,639 Noninterest-Bearing Deposits
397,661 387,371 10,290 2.7 365,688 Delinquency Ratio (30+ days):
0.31% 0.15% 0.10% COMMERCIAL FINANCE % Q2-2006 Q2-2005 $ Change
Change Q1-2006 Net Interest Income $10,107 $7,928 $2,179 27.5
$9,692 Provision for Loan and Lease Losses (1,785) (1,211) (574)
(47.4) (1,164) Gain on Sales of Loans 498 104 394 378.8 754
Derivative Losses, net (165) (159) (6) (3.8) (53) Other Revenues
1,666 1,406 260 18.5 1,449 Total Net Revenues 10,321 8,068 2,253
27.9 10,677 Salaries, Pension, and Other Employee Expense 5,362
4,409 953 21.6 5,166 Other Expenses 348 1,237 (889) (71.9) 771
Income Before Income Taxes 4,611 2,422 2,189 90.4 4,741 Income
Taxes 1,679 993 686 69.1 1,849 Net Income $2,932 $1,429 $1,503
105.2 $2,892 Net Charge-Offs $868 $1,448 ($580) (40.1) $747 Loans
Sold 10,789 2,028 8,761 432.0 12,074 Net Interest Margin 4.50%
4.77% 4.67% Total Fundings of Loans and Leases $164,399 $110,273
$54,126 49.1 $120,082 % YTD-2006 YTD-2005 $ Change Change Net
Interest Income $19,799 $15,541 $4,258 27.4 Provision for Loan and
Lease Losses (2,949) (3,321) 372 11.2 Gain on Sales of Loans 1,252
783 469 59.9 Derivative Losses, net (218) (306) 88 28.8 Other
Revenues 3,115 2,782 333 12.0 Total Net Revenues 20,999 15,479
5,520 35.7 Salaries, Pension, and Other Employee Expense 10,528
8,357 2,171 26.0 Other Expenses 1,120 3,475 (2,355) (67.8) Income
Before Income Taxes 9,351 3,647 5,704 156.4 Income Taxes 3,528
1,522 2,006 131.8 Net Income $5,823 $2,125 $3,698 174.0 Net
Charge-Offs $1,615 $2,816 ($1,201) (42.6) Loans Sold 22,863 14,428
8,435 58.5 Net Interest Margin 4.58% 4.81% Total Fundings of Loans
and Leases $284,481 $193,635 $90,846 46.9 June 30, June 30, % March
31, 2006 2005 $ Change Change 2006 Investment in Loans and Leases
$952,449 $693,900 $258,549 37.3 $856,073 Allowance for Loan and
Lease Losses (12,241) (9,885) (2,356) (23.8) (11,180) Weighted
Average Coupon 9.06% 9.11% 8.89% Delinquency ratio (30+ days) 0.42%
0.54% 0.47% HOME EQUITY LENDING % Q2-2006 Q2-2005 $ Change Change
Q1-2006 Net Interest Income 22,924 21,193 1,731 8.2 23,669
Provision for Loan Losses (3,704) (6,181) 2,477 40.1 (6,553) Gain
on Sales of Loans, Including Points and Fees (4,470) 3,861 (8,331)
(215.8) 1,933 Servicing Income, net 5,121 3,074 2,046 66.6 2,061
Other Revenues 2,929 2,903 26 0.9 3,393 Total Net Revenues 22,800
24,850 (2,050) (8.2) 24,503 Salaries, Pension, and Other Employee
Expense 15,127 15,244 (117) (0.8) 13,600 Other Expense 8,292 10,484
(2,192) (20.9) 9,171 Income Before Income Taxes (619) (878) 259
29.5 1,732 Income Taxes (238) (341) 103 30.2 698 Net Income ($381)
($537) $156 29.1 $1,034 Loan Volume $211,334 $500,283 ($288,949)
(57.8) $284,375 Percent retail 14% 33% 25% Percent brokered 29% 22%
26% Percent correspondent 26% 15% 31% Percent other 31% 30% 18%
Loans Sold 336,404 111,288 225,116 202.3 140,243 Net Charge-offs
(Loans Held for Investment) 2,387 1,093 1,294 118.4 3,162 %
YTD-2006 YTD-2005 $ Change Change Net Interest Income 46,593 41,625
4,968 11.9 Provision for Loan Losses (10,258) (6,551) (3,707)
(56.6) Gain on Sales of Loans, Including Points and Fees (2,537)
12,129 (14,666) (120.9) Servicing Income, net 7,183 5,817 1,366
23.5 Other Revenues 6,322 4,417 1,905 43.1 Total Net Revenues
47,303 57,437 (10,134) (17.6) Salaries, Pension, and Other Employee
Expense 28,727 34,492 (5,765) (16.7) Other Expense 17,463 20,403
(2,940) (14.4) Income Before Income Taxes 1,113 2,542 (1,429)
(56.2) Income Taxes 460 1,034 (574) (55.5) Net Income $653 $1,508
($855) (56.7) Loan Volume $495,708 $929,897 ($434,189) (46.7)
Percent retail 20% 36% Percent brokered 27% 23% Percent
correspondent 29% 17% Percent other 24% 24% Loans Sold 476,646
433,342 43,304 10.0 Net Charge-offs (Loans Held for Investment)
5,548 1,428 4,120 288.5 June 30, June 30, % March 31, 2006 2005 $
Change Change 2006 Home Equity Loans Held for Sale $147,810
$322,837 ($175,028) (54.2) $464,490 Home Equity Loans Held for
Investment 1,159,309 895,033 264,276 29.5 1,083,273 Allowance for
Loan and Lease Losses (28,262) (16,452) (11,810) (71.8) (26,944)
Residual Asset 7,770 38,438 (30,668) (79.8) 7,900 Servicing Asset
29,451 44,575 (15,124) (33.9) 31,679 Managed Portfolio 1,600,288
1,434,108 166,180 11.6 1,621,286 Delinquency Ratio (30+ days) 2.67%
3.14% 2.29% MORTGAGE BANKING - DISCONTINUED OPERATIONS % Q2-2006
Q2-2005 $ Change Change Q1-2006 Net Interest Income $8,082 $9,026
($944) (10.5) $7,281 Recovery of (Provision for) Loan Losses 18 94
(76) (80.9) (47) Gain on Sales of Loans 17,806 17,002 804 4.7
15,349 Gain on Sale of Servicing 21 5,471 (5,450) (99.6) (23) Loan
Servicing Fees, Net of Amortization Expense 3,020 5,515 (2,495)
(45.2) 4,120 Impairment of Servicing Assets, Net of Hedging (7,456)
(26,943) 19,487 72.3 (18,335) Other Revenues 1,660 1,699 (39) (2.3)
848 Total Net Revenues 23,151 11,864 11,287 95.1 9,193 Salaries,
Pension, and Other Employee Expense 14,768 16,043 (1,275) (7.9)
14,375 Other Expenses 17,017 11,667 5,350 45.9 12,035 Income (Loss)
Before Income Taxes (8,634) (15,846) 7,212 45.5 (17,217) Income
Taxes (3,447) (6,685) 3,238 48.4 (6,883) Net Income (Loss) ($5,187)
($9,161) $3,974 43.4 ($10,334) Total Mortgage Loan Originations:
$2,236,589 $2,643,669 ($407,080) (15.4) $2,245,676 Percent retail
6% 9% 5% Percent wholesale 55% 52% 57% Percent brokered 1% 2% 1%
Percent correspondent 38% 37% 37% Refinancings as a Percentage of
Total Originations 37% 44% 46% YTD-2006 YTD-2005 $ Change % Change
Net Interest Income $15,363 $16,749 ($1,386) (8.3) Recovery of
(Provision for) Loan Losses (29) 283 (312) (110.2) Gain on Sales of
Loans 33,155 41,976 (8,821) (21.0) Gain on Sale of Servicing (2)
6,656 (6,658) (100.0) Loan Servicing Fees, Net of Amortization
Expense 7,140 9,931 (2,791) (28.1) Impairment of Servicing Assets,
Net of Hedging (25,791) (41,840) 16,049 38.4 Other Revenues 2,507
3,883 (1,376) (35.4) Total Net Revenues 32,343 37,638 (5,295)
(14.1) Salaries, Pension, and Other Employee Expense 29,144 39,911
(10,767) (27.0) Other Expenses 29,050 30,277 (1,227) (4.1) Income
(Loss) Before Income Taxes (25,851) (32,550) 6,699 20.6 Income
Taxes (10,330) (13,130) 2,800 21.3 Net Income (Loss) ($15,521)
($19,420) $3,899 20.1 Total Mortgage Loan Originations: $4,482,265
$5,456,081 ($973,816) (17.8) Percent retail 6% 13% Percent
wholesale 56% 44% Percent brokered 1% 6% Percent correspondent 37%
37% Refinancings as a Percentage of Total Originations 42% 49% June
30, June 30, 2006 2005 Owned Servicing Portfolio Balance
$19,189,343 $20,754,361 Weighted average interest rate 5.93% 5.66%
Delinquency ratio (30+ days): 4.58% 3.88% Conventional 3.01% 2.49%
Government 7.63% 7.31% Loans Held for Sale $611,671 $724,204
Servicing Asset 285,591 239,238 March 31, $ Change % Change 2006
Owned Servicing Portfolio Balance ($1,565,018) (7.5) $18,388,160
Weighted average interest rate 5.84% Delinquency ratio (30+ days):
4.02% Conventional 2.78% Government 6.37% Loans Held for Sale
($112,533) (15.5) $766,502 Servicing Asset 46,353 19.4 266,955
DATASOURCE: Irwin Financial Corporation CONTACT: Suzie Singer,
Corporate Communications, +1-812-376-1917, or Greg Ehlinger, Chief
Financial Officer, +1-812-379-7603, both of Irwin Financial
Corporation Web site: http://www.irwinfinancial.com/
Copyright
Irwin Financial (NYSE:IFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Irwin Financial (NYSE:IFC)
Historical Stock Chart
From Jul 2023 to Jul 2024