Irwin Financial Corporation Announces Sales of Assets and Managerial Changes
02 Juli 2009 - 12:00AM
PR Newswire (US)
COLUMBUS, Ind., July 1 /PRNewswire-FirstCall/ -- Irwin Financial
Corporation (NYSE:IFC), today announced the sale of approximately
$190 million of commercial loans in the second quarter and an
agreement to sell three branch locations in Indiana, pending
regulatory approval, in the third quarter. Approximately $150
million of commercial banking loans were sold to First Financial
Bank, National Association. Approximately $40 million other
commercial banking and franchise finance loans were sold to other
purchasers. In aggregate, the loans were sold at 99.8 percent of
par. In addition, Irwin agreed to sell the offices of Irwin Union
Bank & Trust Company located in Carmel, Greensburg, and
Shelbyville, Indiana to First Financial. "We continue to pursue our
conversations with the U.S. Treasury to complete our public-private
partnership recapitalization plan for Irwin Financial, Irwin Union
Bank and Trust and Irwin Union Bank, F.S.B.," said Will Miller,
Chairman and CEO of Irwin Financial Corporation. "In the meantime,
we have taken action intended to help keep our banks adequately
capitalized at the end of the second quarter in order to retain
access to sources of liquidity that are important to us. While we
finalize our second quarter results and await approval for our
capital infusion, reducing our balance sheet with loan sales at or
near par value is the best way to help keep our banks adequately
capitalized. "The sale of the three branch locations north and east
of Indianapolis allows us to preserve our core South Central
Indiana markets. These transactions are designed to give us the
time necessary to complete our work with the Treasury and private
investors who have committed to make equity investments as part of
our recapitalization plan," concluded Miller. Additionally, Irwin
announced a reorganization of managerial responsibilities in the
commercial banking segment. John Wilcox will assume the role of
President of the commercial banking division of Irwin Union Bank
and Trust. Brad Kime, the current President of commercial banking,
has decided to focus exclusively on loan portfolio credit quality,
where management believes the company is making good progress. Rick
Hagan will become the President of Irwin Union Bank, F.S.B. Mr.
Wilcox and Mr. Hagan's appointments are pending regulatory
approval. These changes are designed to align managerial
responsibilities with the most critical tasks facing the company as
it completes its restructuring. About Irwin Financial Irwin(R)
Financial Corporation (http://www.irwinfinancial.com/) is a bank
holding company with a history tracing to 1871. The Corporation
provides a broad range of banking services to small businesses and
consumers in our branches in the Midwest and Southwest and to
restaurant franchisees nationwide. About Forward-looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. We are including this
statement for purposes of invoking these safe harbor provisions.
Forward-looking statements are based on management's expectations,
estimates, projections, and assumptions. 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 will
not or might not occur) or are likely (or unlikely) to occur, and
similar expressions, are intended to identify forward-looking
statements. These may include, among other things, statements and
assumptions about: -- our expected results of operations during the
second quarter and our expected financial condition as of June 30,
2009, including our expected regulatory capital levels; --
transactions involved in our strategic restructuring, including the
sale of branches and reorganization of managerial responsibilities;
-- the outcome of our proposal for a public-private partnership in
raising capital, as well as other aspects of our capital-raising
plans, including the possible exchange of trust preferred
securities for equity or other method of increasing equity; and --
any other projections or expressions that are not historical facts.
We qualify any forward-looking statements entirely by these and the
following cautionary factors. Actual future results may differ
materially from our forward-looking statements and we qualify all
forward looking statements by various risks and uncertainties we
face, as well as the assumptions underlying the statements,
including, but not limited to, the following cautionary factors: --
difficulties in completing the branch sales, including the receipt
of regulatory approvals; -- difficulties in completing our
recapitalization plan, including the failure to raise sufficient
private investment through our proposed rights offer or a possible
exchange of trust preferred securities for our equity or by other
means, the failure of a sufficient number of shareholders to
participate in a rights offer or to exercise fully their rights,
the failure to satisfy the conditions that require the standby
purchasers to exercise fully their subscription privileges, the
failure to receive assistance in substantially the form proposed to
the U.S. Treasury and banking regulators, or the failure to obtain
any necessary regulatory approvals; -- potential further
deterioration or effects of general economic conditions,
particularly in sectors relating to real estate and/or mortgage
lending, small business lending, and franchise restaurants finance;
-- fluctuations in housing prices; -- potential effects related to
the Corporation's decision to suspend the payment of dividends on
its common, preferred and trust preferred securities; -- potential
changes in direction, volatility and relative movement (basis risk)
of interest rates, which may affect consumer and commercial demand
for our products and the management and success of our interest
rate risk management strategies; -- difficulties in obtaining
regulatory approval for our managerial appointments; -- the impact
on staff of implementing corporate strategies that affect our work
force, and potential associated charges; -- the relative
profitability of our lending and deposit operations; -- the
valuation and management of our portfolios, including the use of
external and internal modeling assumptions we embed in the
valuation of those portfolios and short-term swings in the
valuation of such portfolios; -- 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 or collectability
of our loan and lease assets, including deterioration resulting
from the effects of natural disasters (including a pandemic); --
difficulties in accurately estimating any future repurchases of
residential mortgage, home equity, or other loans or leases due to
alleged violations of representations and warranties we made when
selling these loans and leases to the secondary market or in
securitizations; -- 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 businesses and
obtaining or retaining deposit or other funding sources as needed,
including the loss of public fund deposits or any actions that may
be taken by the state of Indiana and its political subdivisions; --
competition from other financial service providers, including the
purchasers of our assets, for experienced managers as well as for
customers; -- changes in the value of our lines of business,
subsidiaries, or 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 lawsuits or outcomes
in litigation; -- legislative or regulatory changes, including
changes in laws, rules or regulations that affect tax, consumer or
commercial lending, corporate governance and disclosure
requirements, and other laws, rules or regulations affecting the
rights and responsibilities of our Corporation, or our
state-chartered bank or federal savings bank subsidiary; --
regulatory actions that impact our Corporation, bank or thrift,
including the written agreement the Corporation and its
state-chartered bank subsidiary, Irwin Union Bank and Trust
Company, entered into with the Federal Reserve Bank of Chicago and
the Indiana Department of Financial Institutions on October 10,
2008, and the supervisory agreement the Corporation's federal
savings bank subsidiary, Irwin Union Bank, F.S.B., entered into
with the Office of Thrift Supervision on the same day; -- changes
in the interpretation and application of regulatory capital or
other rules; -- the availability of resources to address changes in
laws, rules or regulations or to respond to regulatory actions; --
changes in applicable accounting policies or principles or their
application to our business or final audit adjustments, including
additional guidance and interpretation on accounting issues and
details of the implementation of new accounting methods; -- the
final disposition of the remaining assets and obligations of lines
of business we have exited or are exiting, including the mortgage
banking segment, small ticket commercial leasing segment and home
equity segment; or -- governmental changes in monetary or fiscal
policies. In addition, our past results of operations do not
necessarily indicate our future results. 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. DATASOURCE: Irwin Financial
Corporation CONTACT: Susan Matthews, Media, +1-317-590-3202; or
Suzie Singer, Corporate Communications, +1-812-376-1917 Web Site:
http://www.irwinfinancial.com/
Copyright
Irwin Financial (NYSE:IFC)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Irwin Financial (NYSE:IFC)
Historical Stock Chart
Von Jun 2023 bis Jun 2024