/2H9  d 1$&%*3'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES-'CONSOLIDATED BALANCE SHEET (Unaudited)('(In thousands, except for shares)^March 31, ^December 31, ^2000 ^1999'Assets:'Cash and due from banks"$53,831"$47,215'Federal funds sold "5,000"0 'Cash and cash equivalents  "58,831  "47,215< 'Interest-bearing deposits with financial institutions  "28,840  "26,785 'Trading assets  "71,674  "59,025; 'Investment securities (Market value: $36,602 in 2000$ 'and $37,464 in 1999) - Note 2  "36,911  "37,508#'Loans held for sale - Note 3"541,402"508,9978'Loans and leases, net of unearned income - Note 4"824,769"733,4249'Less: Allowance for loan and lease losses - Note 5"(9,414)"(8,555)"815,355"724,869 'Servicing assets - Note 6"142,801"138,500'Accounts receivable "52,877 "49,415"'Accrued interest receivable "7,715 "8,430'Premises and equipment "25,068 "23,368'Other assets "58,733 "56,735"$1,840,207"$1,680,847,'Liabilities and Shareholders' Equity:'Deposits'Noninterest-bearing"$249,846"$218,402'Interest-bearing"473,154"411,400,'Certificates of deposit over $100,000"283,703"240,516"1,006,703"870,318$'Short-term borrowings- Note 7"496,514"473,103'Long-term debt- Note 8 "29,573 "29,784 'Other liabilities  "94,072 "100,275!'Total liabilities!"1,626,862!"1,473,480/"'Company-obligated mandatorily redeemable7#'preferred securities of subsidiary trust- Note 9 #"48,089 #"48,071$'Shareholders' equity1%'Preferred stock, no par value - authorized0&'4,000,000 shares; issued 96,336 shares as9''of March 31, 2000 and none as of December 31, 2000 '"1,387'"09('Common stock; no par value - authorized 40,000,0007)'shares; issued 23,402,080 shares as of March 31,6*'2000 and December 31, 1999; including 2,466,3873+'and 2,297,303 shares in treasury as of March2,'31, 2000 and December 31, 1999 respectively ,"29,965 ,"29,965!-'Additional paid-in capital -"4,387 -"4,2501.'Unrealized losses on investment securities ."(112) ."(70)/'Retained earnings/"178,324/"171,1010"213,9510"205,246#1'Less treasury stock, at cost1"(48,695)1"(45,950)!2'Total shareholders' equity2"165,2562"159,2963"$1,840,2073"$1,680,84795'The accompanying notes are an integral part of the)6'consolidated financial statements.38'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES39'CONSOLIDATED STATEMENT OF INCOME (Unaudited):^Three Months Ended:^Three Months Ended;^March 31,;^March 31,+<'(In thousands, except for per share) <^2000 <^1999='Interest income:>'Loans and leases>"$20,116>"$11,666?'Investment securities:@'Taxable @"929 @"996A'Tax-exempt A"63 A"72B'Loans held for sale B"12,132 B"17,967C'Trading Account C"2,484 C"1,286D'Federal funds sold D"46 D"(309)E'Total interest income E"35,770 E"31,678F'Interest expense:G'Deposits G"8,460 G"5,665H'Short-term borrowings H"6,448 H"7,992I'Long-term debt I"583 I"100J'Total interest expense J"15,491 J"13,757K'Net interest income K"20,279 K"17,9213L'Provision for loan and lease losses - Note 5 L"1,136 L"1,201.M'Net interest income after provision forN'loan and lease losses N"19,143 N"16,720O'Other income:P'Loan origination fees P"7,514 P"13,415Q'Gain from sales of loans Q"18,602 Q"31,633R'Loan servicing fees R"15,121 R"15,4315S'Amortization and impairment of servicing asset S"6,101 S"1,329%T'Net loan administration income T"9,020 T"14,102)U'Gain on sale of mortgage servicing U"252 U"2,352V'Trading gains (losses) V"3,389V"(9,793)%W'Brokerage fees and commissions W"535 W"352X'Trust fees X"482 X"577*Y'Service charges on deposit accounts Y"440 Y"402/Z'Insurance commissions, fees and premiums Z"1,192 Z"488 ['Other ["8,712 ["1,125 \"50,138 \"54,653]'Other expense:^'Salaries ^"25,955 ^"28,600*_'Pension and other employee benefits _"5,668 _"5,478`'Office expense `"3,269 `"3,371a'Premises and equipment a"6,057 a"5,667 b'Marketing and development b"4,778 b"2,780 c'Other c"8,209 c"9,219 d"53,936 d"55,115!e'Income before income taxes e"15,345 e"16,258!f'Provision for income taxes f"5,689 f"6,112 g"9,656 g"10,1464h'Distribution on company-obligated mandatorily4i'redeemable preferred securities of subsidiary j'trust j"1,174 j"1,1742k'Net income available to common shareholders k"$8,482 k"$8,9726l'Earnings per share of common stock available tom'shareholders:n'Basic - Note 10 n"$0.40 n"$0.41o'Diluted - Note 10 o"$0.40 o"$0.41*p'Dividends per share of common stock p"$0.06 p"$0.059q'The accompanying notes are an integral part of the)r'consolidated financial statements.3t'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES@u'CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY9v'FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999w'(Unaudited)x^Unrealizedy^Gains/Lossesy^Additionalz^Retainedz^on Investment z^Commonz^Paid inz^Treasuryz^Preferred {^Total{^Earnings{^Securities {^Stock{^Capital {^Stock {^Stock|'(In thousands)!}'Balance at January 1, 2000}"$159,296}"$171,101 }"($70)}"$29,965 }"$4,250}"($45,950) }"$0#~'Comprehensive Income: Note 1'Net Income "8,482!'Other Comprehensive Income "(42) 'Total "8,440'Cash dividends"(1,259)"(1,259)!'Purchase of treasury stock"(3,052)"(3,052)'Sales of treasury stock "444 "137 "307'Preferred stock issued "1,387 "1,387'Balance March 31, 2000"$165,256"$178,324 "($112)"$29,965 "$4,387"($48,695) "$1,387!'Balance at January 1, 1999"$145,233"$142,232 "$85"$29,965 "$2,595"($29,644) $0#'Comprehensive Income: Note 1'Net Income "8,972!'Other Comprehensive Income "(41) 'Total "8,931'Cash dividends"(1,085)"(1,085)'Sales of treasury stock "487 "286 "201'Balance March 31, 1999"$153,566"$150,119 "$44"$29,965 "$2,881"($29,443) "$0-'The accompanying notes are an integral'part of the consolidated'financial statements.3'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES7'CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)+'For the three months ended March 31, "2000 "1999'(In thousands)'Net income "$8,482 "$8,972;'Adjustments to reconcile net income to cash provided&'(used) by operating activities:$'Depreciation and amortization "2,098 "1,4396'Amortization and impairment of servicing assets "6,101 "1,329*'Provision for loan and lease losses "1,136 "1,201<'Amortization of premiums, less accretion of discounts "(29) "1,0871'(Increase) decrease in loans held for sale"(32,405)"320,486)'Gain on sale of mortgage servicing "(252)"(2,352)%'Net increase in trading assets"(12,649)"(10,624)'Other, net"(11,714)"(7,120)7'Net cash provided (used) by operating activities"(39,232)"314,418('Lending and investing activities:?'Proceeds from maturities/calls of investment securities:'Held-to-Maturity "543"0'Available-for-Sale "15"0)'Purchase of investment securities:'Held-to-Maturity "(1)"0'Available-for-Sale"0"02'Net (increase) decrease in interest-bearing+'deposits with financial institutions"(2,055) "123-'Net increase in loans, excluding sales"(98,875)"(193,325)'Sale of loans "7,253"178,567-'Additions to mortgage servicing assets"(11,641)"(37,895)6'Proceeds from sale of mortgage servicing assets "1,491 "25,853'Other, net"(2,987)"(1,221)8'Net cash used by lending and investing activities"(106,257)"(27,898)'Financing activities:*'Net increase (decrease) in deposits"136,385"(59,895)7'Net increase (decrease) in short-term borrowings "23,411"(245,486)#'Repayments of long-term debt "(211) "(120)"'Issuance of preferred stock "1,387"0!'Purchase of treasury stock"(3,052)"0='Proceeds from sale of stock for employee benefit plans "444 "487'Dividends paid"(1,259)"(1,085)7'Net cash provided (used) by financing activities"157,105"(306,099);'Net increase (decrease) in cash and cash equivalents "11,616"(19,579)5'Cash and cash equivalents at beginning of year "47,215 "77,522/'Cash and cash equivalents at end of year"$58,831"$57,9439'Supplemental disclosures of cash flow information:#'Cash paid during the period:'Interest"$15,777"$13,704'Income taxes "$15 "$6419'The accompanying notes are an integral part of the)'consolidated financial statements.'