Irwin Commercial Finance Reports Record Net Income in Q3 2006

November 6, 2006 — Irwin Commercial Finance (ICF) reported earnings of $3.3 million in the third quarter of 2006, up 12% from $2.9 million in the second quarter and a $0.7 million increase as compared to the third quarter of 2005.

Net income was a quarterly record for the segment; earnings during the quarter exceeded the segment's net income in all of 2004.

Loan and lease fundings totaled $147 million during the quarter compared to $164 million in the second quarter and $119 million in the year earlier period.

ICF's loan and lease portfolio now totals $1.0 billion, representing a 31% increase over the past year. Net interest income totaled $10.4 million, a $0.3 million sequential quarter increase. Net interest margin decreased modestly to 4.27%, as compared to 4.50% in the prior quarter, primarily reflecting a continued portfolio mix shift toward franchise finance loans from small-ticket leases.

The loan and lease loss provision totaled $1.6 million during the quarter, down from $1.8 million during the prior quarter. Net charge-offs increased to $1.2 million, as compared to $0.9 million in the prior quarter. The thirty-day and greater delinquency ratio in this segment increased modestly to 0.57 percent at September 30, from 0.42 percent at June 30.

Company-wide, Irwin Financial Corporation reported net income from continuing operations for the third quarter of 2006 of $9.2 million. During the third quarter, Irwin sold substantially all of its mortgage segment operations to New Century Financial.

"Our commercial finance and banking segments again recorded very solid earnings," said Will Miller, chairman and CEO of Irwin Financial, commenting on third quarter results. "Although we continue to see tight competitive conditions across the board, we have been able to make strides in broadening our geographic reach and product lines in both segments."

Click here to view Irwin Financial Corporation's third quarter 2006 earnings statement in its entirety.

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