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IRWIN FINANCIAL CORPORATION ANNOUNCES RECORD SECOND QUARTER RESULTS

 COLUMBUS, Ind., July 19 /PRNewswire/ -- Irwin Financial Corporation (NASDAQ-NMS: IRWN) today announced that it earned net income of $3,764,575 or $1.28 per share for the three months ended June 30, 1993. On a per share basis, this was an increase of 48.8 percent over second quarter 1992 earnings of $2,458,542 or $0.86 per share. Return on average equity for the quarter was 24.82 percent. Year to date, the corporation has earned $7,322,877 or $2.50 per share, compared to $5,125,107 or $1.79 per share in the first six months of 1992, an increase of 39.7 percent.
 Total revenues in the second quarter of 1993, net of loan and lease loss provision, were $28.8 million, up 28.4 percent from $22.5 million in the second quarter of 1992. The areas of strongest revenue growth were mortgage servicing fees and mortgage origination income. In the second quarter, non-interest income contributed 74.5 percent of the corporation's revenues, up from 70.2 percent a year earlier.
 Interest rates and general market conditions continued to be favorable for the mortgage banking business. Net income at the corporation's mortgage banking subsidiary, Inland Mortgage Corporation, was $3.0 million in the second quarter of 1993, up 77.7 percent from the year earlier period.
 These favorable conditions have allowed Inland to increase the size of its mortgage servicing portfolio at a rapid pace in recent quarters. The servicing portfolio totaled $6.5 billion as of June 30, 1993, up $2.3 billion or 53.9 percent from the same date in 1992. Inland's servicing income during the quarter was $5.6 million, up 66.5 percent over the second quarter of 1992.
 Inland continued to produce strong mortgage loan origination income and marketing gains in the second quarter. Loan origination revenue was $13.2 million, an increase of 41.9 percent over the second quarter of 1992. Inland achieved record quarterly loan closings in the second quarter of $1.1 billion, up 38.6 percent from the same quarter in 1992. Included in origination income are "marketing gains" which totaled $3.4 million, 94.1 percent above the second quarter of 1992. Marketing gains are created when pools of mortgage loans produced by the company are sold into the secondary market at a profit. Refinances accounted for 37.5 percent of Inland's second quarter loan closings, which is estimated to be less than industry averages.
 Inland's income from the sale of servicing rights was $298.1 thousand in the second quarter of 1993, a decline of 70.0 percent from the second quarter of 1992. The company maintains the flexibility to enter into future servicing sale contracts as market conditions warrant.
 Irwin Union Bank's net income totaled $880.3 thousand, an increase of 0.5 percent as compared to the second quarter of 1992. Consumer and commercial loan and lease portfolios increased 16.6 percent year-over- year and the bank maintained strong net interest margins, which combined to produce a $705.8 thousand or 21.2 percent increase in net interest income after provision for loan and lease losses. Included in these numbers was an increase in the provision for loan and lease losses of 9.0 percent over the second quarter of 1992, reflecting growth in the loan portfolio. Growth in the bank's earnings due to these factors was offset by a $660.0 thousand (before tax) reserve established to cover a potential loss arising from a series of deposit transactions with a single customer, leaving results essentially flat compared to a year earlier. The bank has taken steps to reduce the potential for future losses of this nature.
 Irwin Financial's two smaller operating companies, Irwin Union Investor Services, Inc. and Affiliated Capital Corp., together comprise about 7.3 percent of total corporate revenues. Both companies improved their year-over-year results and continue to make investments for long- term growth.
 Net income at Irwin Union Investor Services, which offers investment management and securities brokerage services, was $108.7 thousand, an increase of 178.2 percent from the second quarter of 1992. Trust advisory revenues increased 13.9 percent during the second quarter of 1993, compared with the same period in 1992. Brokerage fees and commissions increased 6.4 percent year-over-year.
 Affiliated Capital Corp., which specializes in leasing small-ticket medical equipment, fell just short of break even for the quarter with a net loss of $7.9 thousand. Results improved in comparison with a loss of $26.4 thousand in the second quarter of 1992. Net interest income at Affiliated increased 49.5 percent over the level recorded in the second quarter of 1992. In the second quarter of 1993, lease volume was $6.3 million, up 29.8 percent from the same period a year earlier.
 The corporation's assets totaled $694.0 million as of June 30, 1993, up $52.8 million or 8.2 percent from a year earlier. Mortgage loans originated by Inland, which are held awaiting sale in the secondary markets, totaled $273.1 million on June 30, 1993, down $25.3 million from $298.4 million a year earlier. Improved funding techniques allowed Inland to reduce total loans held for sale in spite of increased volumes of loan closings. Other loans, predominantly consumer and commercial loans and leases at Irwin Union Bank, totaled $232.4 million on June 30, 1993, an increase of $34.5 million or 17.4 percent over June 30, 1992.
 The corporation benefited from an 84.9 percent year-over-year increase in non-interest bearing deposits which totaled $194.3 million on June 30, 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. These escrow accounts totaled $140.6 million as of June 30, 1993, up 139.5 percent from $58.7 million a year earlier.
 Nonperforming assets (including other real estate owned of $0.8 million) were $3.8 million or 0.54 percent of total assets as of June 30, 1993, down from $4.6 million or 0.73 percent of total assets a year earlier. This figure remains well below peer averages. The total allowance for loan and lease losses at the end of the second quarter was $3.2 million, or 1.37 percent of total loans and leases, compared with 1.52 percent of total loans and leases a year earlier. The consolidated provision for possible loan and lease losses in the second quarter of 1993 was $0.5 million, an increase of 9.0 percent over the second quarter of 1992. This increase is reflective of the growth in consolidated loan and lease assets.
 The corporation had $62.3 million in shareholders' equity as of June 30, 1993, up 30.8 percent from the same date in 1992. As of June 30, 1993, the corporation's ratio of equity to assets was 8.97 percent compared to 7.43 percent a year earlier. At June 30, 1993, the corporation's total risk-based capital to assets ratio was 16.10 percent, up from 14.14 percent as of June 30, 1992.
 Irwin Financial Corporation is an interrelated group of financial services companies serving niche markets. The corporation, through its four principal operating subsidiaries -- Inland Mortgage Corporation, Irwin Union Bank and Trust Company, 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 56 offices in 15 states.
 IRWIN FINANCIAL CORPORATION
 Financial Highlights
 1993 1992 Pct. Change
 Second Quarter:
 Net Interest Income $7,880,555 $7,186,715 9.7
 Provision for Possible Loan
 and Lease Losses (534,000) (490,000) 9.0
 Noninterest Income 21,495,294 15,761,734 36.4
 Total Net Revenues 28,841,849 22,458,449 28.4
 Noninterest Expense 22,667,274 18,537,907 22.3
 Income before Income Taxes 6,174,575 3,920,542 57.5
 Income Taxes 2,410,000 1,462,000 64.8
 Net Income 3,764,575 2,458,542 53.1
 Dividends 432,220 284,789 51.8
 Per Share (A):
 Net Income $1.28 $0.86 48.8
 Dividends 0.15 0.10 50.0
 Market Stock Price (A):
 High $52.50 $24.75 112.1
 Low 41.25 23.25 77.4
 Performance Ratios - Quarter to Date:
 Return on Average Assets (pct) 2.16 1.44
 Return on Average Equity (pct) 24.82 21.27
 Year to Date:
 Net Interest Income $14,482,523 $13,201,505 9.7
 Provision for Possible Loan
 and Lease Losses (659,000) (910,000) (27.6)
 Noninterest Income 39,949,714 30,545,433 30.8
 Total Net Revenues 53,773,237 42,836,938 25.5
 Noninterest Expense 41,740,360 34,552,831 20.8
 Income before Income Taxes 12,032,877 8,284,107 45.3
 Income Taxes 4,710,000 3,159,000 49.1
 Net Income 7,322,877 5,125,107 42.9
 Dividends 863,416 568,625 51.8
 Per Share (A):
 Net Income $2.50 $1.79 39.7
 Dividends 0.30 0.20 50.0
 Market Stock Price (A):
 High $54.50 $24.75 120.2
 Low 41.25 16.00 157.8
 Performance Ratios - Year to Date:
 Return on Average Assets (pct) 2.33 1.58
 Return on Average Equity (pct) 24.89 22.74
 At June 30:
 Total Assets $693,967,697 $641,207,638 8.2
 Mortgage Loans Held for Sale 273,073,842 298,353,147 (8.5)
 Total Loans 232,375,422 197,871,579 17.4
 Allowance for Possible Loan
 and Lease Losses 3,189,333 3,014,989 5.8
 Shareholders' Equity 62,256,985 47,611,397 30.8
 Per Share (A):
 Shareholders' Equity $21.60 $16.71 29.3
 Market Stock Price 42.25 24.25 74.2
 Average Shares Outstanding YTD 2,933,314 2,869,378 2.2
 (A) -- 1992 amounts adjusted for 2-for-1 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. Certain 1992 amounts reclassified to conform to 1993 presentations.
 -0- 7/19/93
 /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

BM -- CL010 -- 6473 07/19/93 11:58 EDT
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