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IRWIN FINANCIAL CORPORATION ANNOUNCES RECORD FIRST QUARTER RESULTS

 COLUMBUS, Ind., April 20 /PRNewswire/ -- Irwin Financial Corporation (NASDAQ-NMS: IRWN) today announced that it earned net income of $3,558,302 or $1.22 per share for the three months ended March 31, 1993, a 33.4 percent increase over first quarter 1992 earnings of $2,666,565 or $0.94 per share. The corporation's annualized return on average equity was 25.12 percent and the annualized return on average assets was 2.52 percent in the first quarter.
 Revenues in the first quarter of 1993, net of loan and lease loss provision, were $24.9 million, up 22.3 percent from $20.4 million in the first quarter of 1992. The areas of strongest revenue growth were in mortgage servicing fees, sales of mortgage servicing rights, brokerage fees and commissions, and interest income.
 The favorable market conditions in the mortgage banking business which led to strong consolidated performance in 1992 continued in the first quarter of 1993. The corporation's mortgage banking subsidiary, Inland Mortgage Corporation, realized record servicing income which was up 83.3 percent over the first quarter of 1992. The growth in servicing income is the result of recent increases in the corporation's mortgage servicing portfolio which totaled $5.7 billion as of March 31, 1993, up $2.2 billion or 62.5 percent from the same date in 1992.
 Inland continued to produce strong mortgage origination income and marketing gains. Mortgage loan origination income at Inland increased 4.4 percent over the first quarter of 1992, although total loan closings of $641 million were down 16.7 percent from the same quarter in 1992. This decline in mortgage loan closings resulted from an interest rate environment in late 1992 and early this year in which rates were more stable than those in late 1991 and early 1992. On the other hand, applications for new mortgage loans, which generally precede mortgage loan closings by 30 to 45 days, increased significantly beginning in late February following a 0.5 percent decrease in mortgage loan rates. As a result, applications reached a new record of $798 million in the first quarter. Refinances accounted for 29.7 percent of first quarter loan closings. Included in origination income are "marketing gains" at a level similar to that of the same period in 1992. Marketing gains are created when pools of mortgage loans produced by the company are sold into the secondary market at a profit.
 Inland also recorded after-tax income of $1.5 million from the sale of mortgage servicing rights, up 38.2 percent from the same quarter in 1992. These servicing rights were sold in fulfillment of a contractual commitment entered into in 1992. The company currently has no commitments to sell additional servicing, but maintains the flexibility to enter into such contracts if market conditions warrant.
 Irwin Union Bank's net income decreased 8.9 percent as compared to the first quarter of 1992 due largely to additions to the bank's loan loss reserve, reflecting growth in the loan portfolio. The bank's loan portfolio grew 18.5 percent from the first quarter of 1992, reflecting loan growth in its primary markets of Bartholomew and Jackson counties in Indiana. This loan growth and a favorable interest rate environment enabled Irwin Union Bank to record a 13.4 percent increase in net interest income before provision for loan and lease losses. On March 1, Irwin Union Bank expanded its operations by opening a new banking office in nearby Shelbyville, Indiana.
 Irwin Financial's two smaller principal operating companies, Irwin Union Investor Services, Inc. and Affiliated Capital Corp., together comprised about 8 percent of total corporate revenues.
 First quarter net income at Irwin Union Investor Services, which offers investment management and securities brokerage services, increased 44.4 percent from the first quarter of 1992. This performance was in part the result of a 32.7 percent year-over-year increase in brokerage fees and commissions, largely attributable to improved conditions in the certificate of deposit placement market. Trust advisory revenues increased 19.2 percent during the first quarter of 1993, compared with the same period in 1992.
 Affiliated Capital Corp., which specializes in leasing small-ticket medical equipment, fell just short of break even for the quarter. Compared with the losses in the first quarter of 1992, this was a substantial improvement in its operating performance. Net interest income increased 62.6 percent over the level recorded in the first quarter of 1992. Lease volume in the first three months of 1993 was $5.2 million, up 13.4 percent from the same period a year earlier.
 The corporation's assets totaled $706.1 million as of March 31, 1993, down $5.3 million or 0.7 percent from a year earlier. Mortgage loans originated by Inland, which are held awaiting sale in the secondary markets, totaled $301.2 million on March 31, 1993, down $57.9 million from $359.1 million a year earlier. Other loans, predominantly commercial and consumer loans and leases at Irwin Union Bank, totaled $223.4 million on March 31, 1993, an increase of 22.7 percent over March 31, 1992.
 The corporation benefited from a 43.8 percent year-over-year increase in non-interest bearing deposits which totaled $156.6 million on March 31, 1993. Much of the increase is related to deposits at Irwin Union Bank which are associated with escrow accounts held on loans in the servicing portfolio of Inland Mortgage.
 Nonperforming assets were $4.3 million or 0.61 percent of total assets as of March 31, 1993, up from $1.4 million or 0.19 percent a year earlier, but down from $4.6 million as of December 31, 1992. This figure remains well below peer averages. The year-to-year increase was due to the previously reported deterioration in 1992 of three commercial loans at Irwin Union Bank and a 1992 reclassification of foreclosed residential properties at Inland Mortgage to "other real estate owned."
 The consolidated provision for possible loan and lease losses in the first quarter of 1993 was $125,000, down from $420,000 in the first quarter of 1992. This decrease was the result of the reversal of a reserve established in 1992 for a specific credit which has paid in full. The corporation's loan loss reserve was $3.2 million or 1.5 percent of loans on March 31, 1993, compared with $2.6 million or 1.4 percent of loans a year earlier.
 As of March 31, 1993, the corporation's ratio of equity to assets was 8.31 percent compared to 6.36 percent a year earlier. The corporation had $58.7 million of shareholders' equity as of March 31, 1993, up 29.8 percent from the same date in 1992. At March 31, 1993, the corporation's risk-based capital to assets ratio was 15.45 percent, up from 12.80 percent as of March 31, 1992.
 Irwin Financial Corporation is an interrelated group of financial services companies serving niche markets. The corporation, through its four principal operating subsidiaries -- Irwin Union Bank and Trust Company, Inland Mortgage Corporation, Irwin Union Investor Services, Inc. and Affiliated Capital Corp. -- provides a broad range of commercial, retail and mortgage banking services as well as trust, investment, leasing, and insurance services through 57 offices in 15 states.
 IRWIN FINANCIAL CORPORATION
 Financial Highlights
 1993 1992 Pct. Change
 First Quarter:
 Net Interest Income $6,601,968 $6,014,790 9.8
 Provision for Possible Loan
 Losses 125,000 420,000 (70.2)
 Noninterest Income 18,454,420 14,783,699 24.8
 Noninterest Expense 19,073,086 16,014,924 19.1
 Income before Income Taxes 5,858,302 4,363,565 34.3
 Income Taxes 2,300,000 1,697,000 35.5
 Net Income 3,558,302 2,666,565 33.4
 Dividends 431,196 283,836 51.9
 Per Share (A):
 Net Income $1.22 $0.94
 Dividends 0.15 0.10
 Market Stock Price (A):
 High $54.50 $23.25
 Low 42.75 16.00
 Performance Ratios -- Year-to-Date:
 Return on Average Assets (pct) 2.52 1.77
 Return on Average Equity (pct) 25.12 24.76
 At March 31:
 Total Assets $706,110,816 $711,368,645 (0.7)
 Mortgage Loans Held for Sale 301,187,397 359,128,678 (16.1)
 Total Loans 223,435,471 182,165,649 22.7
 Allowance for Possible Loan
 Losses 3,249,916 2,623,774 23.9
 Shareholders' Equity 58,676,563 45,215,218 29.8
 Per Share (A):
 Shareholders' Equity $20.40 $15.92
 Market Stock Price 52.00 23.25
 Average Shares Outstanding 2,913,481 2,849,192 2.3
 (A) -- 1992 amounts adjusted for two-for-one stock split effective Sept. 2, 1992. On Sept. 15, 1992, Irwin Financial began trading on the NASDAQ National Market System and began reporting stock prices at the closing transaction. Prices quoted prior to that date are reported at the bid price.
 The major businesses of Irwin Financial Corporation are as follows:
 Irwin Union Bank & Trust Company, Columbus, Ind., is a commercial bank with 12 offices in Bartholomew, Jackson, and Shelby counties, Ind. Its 1992 banking assets total $439 million, and it also provides insurance services.
 Inland Mortgage Corporation, Indianapolis, is a mortgage bank with 39 offices in 14 states throughout the country. Its 1992 mortgage volume was $3.4 billion, and its 1992 mortgage servicing portfolio was $5.5 billion.
 Irwin Union Investor Services, Columbus, Ind., provides investment related services, including asset management, securities brokerage and personal financial counseling, through four offices in three states. The market value of client asset positions is $1.2 billion.
 Affiliated Capital Corp., Northbrook, Ill., provides small ticket medical equipment leasing and nationwide sales from its Illinois office. Its 1992 lease volume was $19.1 million.
 -0- 4/20/93
 /CONTACT: Thomas D. Washburn, 812-376-1769; or Gregory F. Ehlinger, 812-376-1935; both of Irwin Financial Corporation/
 (IRWN)


CO: Irwin Financial Corporation ST: Indiana IN: FIN SU: ERN

LC -- CL027 -- 8266 04/20/93 16:23 EDT
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