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IRWIN FINANCIAL CORPORATION ANNOUNCES RECORD ANNUAL EARNINGS FOR 1992

 COLUMBUS, Ind., Jan. 20 /PRNewswire/ -- Irwin Financial Corporation (NASDAQ: IRWN) announced today that it earned net income of $12,866,399 or $4.46 per share in 1992, an increase of 93.4 percent over 1991 results of $6,651,213 or $2.35 per share. Earnings at each of the corporation's principal operating companies showed a year-over-year improvement in 1992. Consolidated profits reached a new annual record, driven by an exceptionally strong performance at Inland Mortgage Corporation combined with substantial improvements in results at Irwin Union Bank and Trust Company and Affiliated Capital Corp. The corporation's return on average equity was 26.51 percent and the return on average assets was 2.64 percent in 1992.
 The unusually favorable market conditions in the mortgage banking business, which led to strong consolidated performance earlier in the year, continued through the fourth quarter, enabling the corporation to set a new record for quarterly results. The corporation's net income for the fourth quarter was $4,263,690 or $1.49 per share, a 101.3 percent increase compared with $2,117,902 or $0.75 per share in the fourth quarter of 1991.
 Annual profits in 1992 were favorably affected by an interest rate environment in which both net interest income and non-interest income increased.
 -- Net interest income increased $9.8 million or 49.9 percent as a result of increased loan volume and improved interest rate spreads at both Inland Mortgage and Irwin Union Bank.
 -- Non-interest income was up $26.0 million or 62.7 percent over 1991 levels primarily due to strength in mortgage originations and increased revenue from servicing income at Inland Mortgage. Non- interest income accounted for 71.0 percent of the corporation's total revenues in 1992.
 -- Reflecting the corporation's increased activity in 1992, non- interest expense increased $24.6 million or 50.0 percent above 1991 levels. Personnel and related expenses comprised 75.9 percent of this increase.
 The volume of mortgage loan closings at Inland Mortgage in 1992 was $3.4 billion, up from $1.9 billion in 1991. Inland retained servicing rights on 87.7 percent of these loans which enabled it to increase its servicing portfolio 83.3 percent to $5.5 billion as of Dec. 31, 1992. In 1992, income from the sale of servicing rights declined 36.2 percent from 1991 levels. Virtually no servicing rights were sold in the fourth quarter. Growth in the servicing portfolio contributed to a 70.3 percent increase in servicing fees. Approximately 28 percent of Inland's 1992 mortgage origination volume resulted from refinancings, a figure well below recent national averages.
 In 1992, Inland experienced a 122.4 percent increase in mortgage loan origination income over 1991. Included in origination income are "marketing gains." Marketing gains are created when pools of mortgage loans produced by the company are sold into the secondary market at a profit. Increases in marketing gains in 1992 comprised 34.9 percent of the total improvement in Inland's loan origination income.
 Irwin Union Bank's after-tax net income increased 11.0 percent in 1992 over 1991. The bank's loan portfolio grew 11.9 percent in 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 increase net interest income 13.7 percent, after provision for loan losses. Late in the year, Irwin Union Bank announced plans to expand its operations by opening a new banking office in nearby Shelbyville, Ind.
 Irwin Financial's other principal operating companies, Irwin Union Investor Services, Inc. and Affiliated Capital Corp., also contributed to the year-to-year improvement in results. Affiliated Capital Corp., which specializes in leasing small-ticket medical equipment, recorded a substantial improvement in its operating performance for the entire year. Revenues doubled in 1992. Lease volumes were $19.1 million, up 27.3 percent from the 1991 level of $15.0 million. Irwin Union Investor Services, which offers investment management and securities brokerage services, increased revenue 14.3 percent in 1992. Brokerage fees and commissions increased 7.6 percent and trust revenue increased 30.5 percent during the year over 1991 levels.
 The corporation's assets averaged $651.5 million in 1992, an increase of $139.0 million over 1991. Total assets on Dec. 31, 1992, were $602.5 million compared to $598.0 million a year earlier. The decrease in assets at year-end, as compared to the average amount held during the year, reflected a reduced level of mortgage loans held for sale on Dec. 31, 1992.
 Mortgage loans originated by Inland which are held awaiting sale in secondary markets totaled $218.1 million on Dec. 31, 1992, down from $264.7 million a year earlier. Longer-term loans, predominantly commercial and consumer loans and leases at Irwin Union Bank, totaled $210.4 million on Dec. 31, 1992, an increase of 16.4 percent over Dec. 31, 1991.
 The corporation benefited in 1992 from a 51.5 percent increase in non-interest bearing deposits which totaled $99.8 million on Dec. 31, 1992. These deposits at Irwin Union Bank are primarily associated with escrow accounts held on loans in the servicing portfolio of Inland Mortgage.
 Nonperforming assets increased to $4.6 million as of Dec. 31, 1992, up from $1.2 million at year-end 1991, but down from $5.1 million as of Sept. 30, 1992. The year-to-year increase was due to the deterioration of three commercial loans at Irwin Union Bank and a reclassification of foreclosed residential properties at Inland Mortgage to "other real estate owned." The combination of increases in nonperforming assets and other real estate owned brought nonperforming assets to 0.77 percent of total assets as of Dec. 31, 1992. This figure remains well below peer averages.
 The provision for possible loan losses in 1992 totaled $1.9 million, up 81.2 percent over 1991. The corporation's loan loss reserve was $3.2 million or 1.5 of loans on Dec. 31, 1992, compared with $2.3 million or 1.3 percent of loans a year earlier.
 During 1992, the corporation's ratio of average equity to average assets was 7.45 percent compared to 7.67 percent in 1991. As of Dec. 31, 1992, the corporation had $55.3 million of shareholders' equity, up 30.3 percent from the same date in 1991. At year-end, the ratio of equity to assets stood at 9.19 percent, up from 7.10 percent a year earlier. Similarly, the corporation's risk-based capital ratio improved from 13.95 percent on Dec. 31, 1991, to 16.46 percent on Dec. 31, 1992.
 Irwin Financial Corporation is an interrelated group of financial services companies serving niche markets, headquartered in Columbus, Ind. 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.
 IRWIN FINANCIAL CORPORATION
 Financial Highlights
 1992 1991 Pct. Change
 Fourth Quarter:
 Net Interest Income $8,573,243 $5,571,279 53.9
 Provision for Possible Loan
 Losses 495,000 380,000 30.3
 Noninterest Income 17,931,619 12,604,247 42.3
 Noninterest Expense 18,975,172 14,369,624 32.1
 Income before Income Taxes 7,034,690 3,425,902 105.3
 Income Taxes 2,771,000 1,038,000 167.0
 Net Income 4,263,690 2,117,902 101.3
 Dividends 287,042 225,733 27.2
 Per Share (A):
 Net Income $1.49 $0.75
 Dividends 0.10 0.08
 Market Stock Price (A):
 High $46.75 $16.17
 Low 36.00 12.42
 Year to Date:
 Net Interest Income $29,433,456 $19,633,491 49.9
 Provision for Possible Loan
 Losses 1,910,000 1,054,000 81.2
 Noninterest Income 67,410,204 41,425,794 62.7
 Noninterest Expense 73,811,261 49,216,071 50.0
 Income before Income Taxes 21,122,399 10,789,214 95.8
 Income Taxes 8,256,000 4,138,000 99.5
 Net Income 12,866,399 6,651,213 93.4
 Dividends 1,141,982 898,975 27.0
 Per Share (A):
 Net Income $4.46 $2.35
 Dividends 0.40 0.32
 Market Stock Price (A):
 High $46.75 $16.17
 Low 16.00 7.42
 Performance Ratios -- Year-to-Date:
 Return on Average Assets (pct) 2.64 1.30
 Return on Average Equity (pct) 26.51 16.93
 At Dec. 31:
 Total Assets $602,465,451 $598,023,582 0.7
 Mortgage Loans Held for Sale 218,079,607 264,739,870 (17.6)
 Total Loans 210,358,650 180,789,405 16.4
 Allowance for Possible Loan
 Losses 3,220,418 2,282,113 41.1
 Shareholders' Equity 55,343,324 42,477,504 30.3
 Per Share (A):
 Shareholders' Equity $19.27 $15.05
 Market Stock Price 46.00 16.00
 Average Shares Outstanding 2,883,282 2,834,964 1.7
 (A) -- 1991 amounts adjusted for three-for-two stock split effective Dec. 30, 1991, and two-for-one split effective Sept. 2, 1992. On Sept. 2, 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 11 offices in Bartholomew and Jackson counties, Ind. Its banking assets total $439 million, and it also provides insurance services.
 Inland Mortgage Corporation, Indianapolis, is a mortgage bank with 36 offices in 14 states throughout the country. As of Dec. 31, 1992, its 1992 mortgage volume was $3.4 billion, and its mortgage service 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.
 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- 1/29/93
 /CONTACT: Gregory F. Ehlinger, 812-376-1935; or Thomas D. Washburn, 812-376-1769; both of Irwin Financial Corporation/
 (IRWN)


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

KK -- CL012 -- 6962 01/20/93 14:13 EST
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