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August 1, 2007
Irwin Commercial Finance Reports 13% Increase in Q2/07 Net Income
Irwin Financial Corporation reported that its consolidated loan and lease portfolio grew to $5.5 billion as of June 30, up 7% on an annualized basis from the end of the first quarter, mainly attributable to growth in the company's commercial finance portfolio
Irwin Commercial Finance earned $2.9 million in the second quarter of 2007, up 13% from $2.6 million in the first quarter. The results principally reflect an increase in net interest income due to portfolio growth.
The commercial finance loan and lease portfolio totaled $1.2 billion as of June 30, reflecting originations of $175 million, compared to originations of $129 million during the first quarter. Net interest margin increased to 4.69%, up modestly from 4.64% during the first quarter.
Credit quality in the portfolio remains good, Irwin said. Thirty-day and greater delinquencies were 0.68% at quarter-end, compared to 0.64% at March 31. Non-performing assets were unchanged from the prior quarter at $5.8 million.
ICF's loan and lease loss provision totaled $3.1 million during the quarter and net charge-offs were $2.1 million.
Company-wide, Irwin reported earnings from continuing operations for the second quarter of 2007 of $5.5 million, compared to a loss of $6 million in the first quarter, but executives said the company remains pressured by events in the subprime market.
"The second quarter, while better than the first, was a challenge for us," said Will Miller, chairman and CEO of Irwin Financial. "We saw loan credit quality in our commercial portfolios returning to our historic pattern of low delinquency and loss rates, as well as pockets of good commercial loan growth. However, we continue to be confronted with the negative effects of the mortgage market correction.
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