UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to _____________

Commission file number 0-6835

 

IRWIN FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

INDIANA
(State or other jurisdiction of Incorporation or organization)

35-1286807
(IRS Employer Identification No.)

500 Washington Street, Columbus, IN 47201
(Address or principal executive offices)
(Zip Code)

812-376-1909
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes __ X __   No _____

As of November 7, 2000 there were outstanding 21,016,114 common shares, no par value, of the Registrant.

Part 1

Item 1

       
IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES      
CONSOLIDATED BALANCE SHEET (Unaudited)      
       
       
(In thousands, except for shares) September 30,   December 31,
Assets: 2000   1999
Cash and cash equivalents $ 65,672   $ 47,215
Interest-bearing deposits with financial institutions 35,408   26,785
Trading assets 104,315   59,025
Investment securities (Market value: $36,416 in 2000 and $37,464 in 1999) - Note 2 36,822   37,508
Loans held for sale - Note 3 490,690   508,997
Loans and leases, net of unearned income - Note 4 1,117,746   733,424
Less: Allowance for loan and lease losses - Note 5 (12,629)   (8,555)
  1,105,117   724,869
Servicing assets - Note 6 140,966   138,500
Accounts receivable 59,011   49,415
Accrued interest receivable 13,731   8,430
Premises and equipment 29,373   23,368
Other assets 69,017   56,735
  $ 2,150,122   $ 1,680,847
Liabilities and Shareholders' Equity:      
Deposits      
Noninterest-bearing $ 274,888   $ 218,402
Interest-bearing 487,614   411,400
Certificates of deposit over $100,000 557,662   240,516
  1,320,164   870,318
Short-term borrowings- Note 7 442,338   473,103
Long-term debt- Note 8 29,596   29,784
Other liabilities 128,834   100,275
Total liabilities 1,920,932   1,473,480
       
Commitments and contingencies - Note 11      
       
Company-obligated mandatorily redeemable      
preferred securities of subsidiary trust- Note 9 48,125   48,071
       
Shareholders' equity      
Preferred stock, no par value - authorized      
4,000,000 shares; issued 96,336 shares as of September 30, 2000 and      
none as of December 31, 1999 1,386   -
Common stock; no par value - authorized 40,000,000 shares;      
issued 23,402,080 shares as of September 30, 2000 and December 31, 1999;      
including 2,397,764 and 2,297,303 shares in treasury as of September 30,      
2000 and December 31, 1999 respectively 29,965   29,965
Additional paid-in capital 4,311   4,250
Accumulated other comprehensive income (160)   (70)
Retained earnings 193,440   171,101
  228,942   205,246
Less treasury stock, at cost (47,877)   (45,950)
Total shareholders' equity 181,065   159,296
  $ 2,150,122   $ 1,680,847
       
       
       
       
       
The accompanying notes are an integral part of the consolidated financial statements.      
       
       
IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES      
CONSOLIDATED STATEMENT OF INCOME (Unaudited)      
 

Three Months Ended 

 

September 30,

(In thousands, except for per share) 2000   1999
Interest income:      
Loans and leases $ 24,435   $ 13,724
Investment securities:      
Taxable 1,145   948
Tax-exempt 64   64
Loans held for sale 18,449   15,175
Trading account 3,520   1,651
Federal funds sold 22   87
Total interest income 47,635   31,649
Interest expense:    
Deposits 14,716   6,107
Short-term borrowings 10,264   6,540
Long-term debt 605   456
Total interest expense 25,585   13,103
Net interest income 22,050   18,546
Provision for loan and lease losses - Note 5 1,356   364
Net interest income after provision for      
loan and lease losses 20,694   18,182
Other income:    
Loan origination fees 13,854   13,327
Gain from sale of loans 24,625   19,334
       
Loan servicing fees 14,857   14,510
Amortization and impairment of servicing assets 10,234   6,454
Net loan administration income 4,623   8,056
Gain on sale of mortgage servicing assets 8,709   3,557
Trading gains (losses) 1,832   (744)
Brokerage fees and commissions 535   353
Trust fees 538   543
Service charges on deposit accounts 498   443
Insurance commissions, fees and premiums 1,303   1,430
Other 1,957   634
  58,474   46,933
Other expense:    
Salaries 32,284   28,470
Pension and other employee benefits 4,916   4,517
Office expense 3,508   3,484
Premises and equipment 7,039   5,825
Marketing and development 3,618   2,041
Other 11,383   5,161
  62,748   49,498
Income before income taxes 16,420   15,617
Provision for income taxes 6,118   5,732
  10,302   9,885
Distribution on company-obligated mandatorily      
redeemable preferred securities of subsidiary trust 1,174   1,174
Net income available to common shareholders $ 9,128   $ 8,711
       
Earnings per share of common stock available to shareholders:      
Basic - Note 10 $ 0.43   $ 0.41
Diluted - Note 10 $ 0.43   $ 0.40
Dividends per share of common stock $ 0.06   $ 0.05
       
The accompanying notes are an integral part of the consolidated financial statements.      
       
       
IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES      
CONSOLIDATED STATEMENT OF INCOME (Unaudited)      
  Nine Months Ended    
  September 30,    
(In thousands, except for per share) 2000   1999
Interest income:      
Loans and leases $ 63,967   $ 37,954
Investment securities:      
Taxable 3,073   2,934
Tax-exempt 192   206
Loans held for sale 50,097   47,588
Trading account 8,685   4,526
Federal funds sold 115   505
Total interest income 126,129   93,713
Interest expense:    
Deposits 34,725