Jul. 3--Struggling Irwin Financial Corp. has sold about $190 million in commercial loans and has agreed to sell three Central Indiana bank branches in a continuing effort to raise capital to shore up its bottom line.

The sale of assets closed at the end of the second quarter on Tuesday. About $150 million in loans were sold to First Financial Bancorp of Cincinnati.

Columbus-based Irwin also has agreed to sell three branch locations of Irwin Union Bank and Trust Co. -- in Carmel, Greensburg and Shelbyville -- to First Financial pending regulatory approval.

"The sale of assets helps us keep our bank adequately capitalized at the end of the second quarter," said Matt Souza, chief administrative officer of Irwin.

Souza said Irwin, which lost nearly $94 million in the first quarter and faces the threat of delisting by the New York Stock Exchange, is continuing to follow its recapitalization plan. That includes negotiations with the U.S. Treasury Department on a proposal for a public-private partnership to help recapitalize the bank.

First Financial entered the Indianapolis market when it opened a Downtown branch last year, said Claude E. Davis, president and chief executive.

The branch purchases from Irwin are part of First Financial's plan to "significantly extend its reach" into Central and Southeastern Indiana, he said. When those purchases and another deal with Peoples Community Bank close, First Financial will have 36 branches statewide.

"We'll be looking to open more branches," Davis said. "We're always looking for strategic acquisition opportunities."

Souza said the 137-year-old Irwin Financial doesn't presently plan to sell more bank branches.

"First Financial was willing to pay us a pretty good price for those assets and close the sale on our timetable," Souza said of the deal, which was announced late Wednesday. "That was very helpful to us."

Irwin plans to release second-quarter results in mid-August, Souza said.

Its stock closed Thursday at 78 cents, up 6 cents, or 8.3 percent.

Call Star reporter Dwight Adams at (317) 444-6532.

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