(Source: PRNewswire)
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.
