|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 March 31, 2001                                                                                                                                                                                                                                                                                                           
|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)                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                        
|500 Washington Street, Columbus, IN  47201                                                                                                                                                                                                                                                                                                              
|(Address of principal executive offices)                                                                                                                                                                                                                                                                                                                
|(Zip Code)                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                        
|812/376-1020                                                                                                                                                                                                                                                                                                                                            
|__________________________________________                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                        
|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                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                        
|APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY                                                                                                                                                                                                                                                                                                       
|PROCEEDINGS DURING THE PRECEDING FIVE YEARS                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                        
|Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court.                                                                                              
|                                                                                                                                                                                                                                                                                                                                                        
|Yes   No                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                        
|As of July 12, 2001 there were outstanding 21,194,748 common shares, no par value, of the Registrant.                                                                                                                                                                                                                                                   



|Part I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            |             |                    |              |              |           |         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ---------- | ---------- | ----------- | ------------------ | ------------ | ------------ | --------- | --------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Item 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |             
|CONSOLIDATED BALANCE SHEET (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|(In thousands, except for shares)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            | March 31,   |                    | December 31, |              |          
|Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            | $ 119,388   |                    | $ 83,493     |              |          
|Interest-bearing deposits with financial institutions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                | 61,783     |            | 36,400      |                    |             
|Trading assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 177,814            |              | 154,921      |           |         
|Investment securities (Market value: $32,222 in 2001 and $37,163 in
      2000) - Note 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 32,075                                                                         |            | 37,095     |             |                   
|Loans held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             | 851,484            |              | 579,788      |           |         
|Loans and leases, net of unearned income - Note 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | 1,317,161  |            | 1,234,922   |                    |             
|Less: Allowance for loan and lease losses - Note 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                | (13,622)   |            | (13,129)    |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | 1,303,539          |              | 1,221,793    |           |         
|Servicing assets - Note 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            | 142,639     |                    | 130,522      |              |          
|Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             | 67,597             |              | 69,224       |           |         
|Accrued interest receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |            | 10,873      |                    | 12,979       |              |          
|Premises and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 31,004      |                    | 29,409       |              |          
|Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             | 68,173             |              | 66,805       |           |         
|Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            | $2,866,369  |                    | $2,422,429   |              |          
|Liabilities and Shareholders' Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             |                    |              |             
|Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |              |           |         
|Noninterest-bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            | $ 411,838   |                    | $ 263,159    |              |          
|Interest-bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | 686,745            |              | 517,127      |           |         
|Certificates of deposit over $100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            | 721,421    |             | 663,044            |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | 1,820,004          |              | 1,443,330    |           |         
|Short-term borrowings- Note 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            | 516,522     |                    | 475,502      |              |          
|Long-term debt- Note 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 29,619      |                    | 29,608       |              |          
|Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             | 154,869            |              | 136,897      |           |         
|Company-obligated mandatorily redeemable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |             
|preferred securities of subsidiary trust- Note 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                | 147,139    |            | 147,167     |                    |             
|Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            | 2,668,153   |                    | 2,232,504    |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Commitments and contingencies - Note 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Shareholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            |            |             |                    |              |              |           |         
|Preferred stock, no par value - authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             |                    |              |             
|4,000,000 shares; issued 96,336 shares as of March 31, 2001 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                |            |            |             |                   
|December 31, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            | 1,386       |                    | 1,386        |              |          
|Common stock; no par value - authorized 40,000,000 shares;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             |                   
|issued 23,402,080 shares as of March 31, 2001 and December 31, 2000;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            |            |            
|including 2,235,366 and 2,376,119 shares in treasury as of March 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            |            |            
|2001 and December 31, 2000 respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            | 29,965     |             | 29,965             |              |             
|Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 4,065       |                    | 4,331        |              |          
|Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             | 922                |              | 1,055        |           |         
|Accumulated other comprehensive income net of deferred income tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                   
|asset of ($456) and ($305) in 2001 and 2000, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (1,176)                                                                        |            | (962)      |             |                   
|Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             | 209,524            |              | 201,729      |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | 244,686            |              | 237,504      |           |         
|Less treasury stock, at cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            | (46,470)    |                    | (47,579)     |              |          
|Total shareholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 198,216     |                    | 189,925      |              |          
|Total liabilities and shareholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                | $2,866,369 |            | $2,422,429  |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|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 |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31,          |              |              |           |         
|(In thousands, except for per share)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            | 2001       |             | 2000               |              |             
|Interest income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Loans and leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | $ 29,250           |              | $ 20,210     |           |         
|Investment securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            |             |                    |              |              |          
|Taxable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             | 1,243              |              | 929          |           |         
|Tax-exempt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             | 62                 |              | 63           |           |         
|Loans held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             | 22,856             |              | 12,140       |           |         
|Trading account                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                |            |            |             | 7,146              |              | 2,484        |           |         
|Federal funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            |             | 33                 |              | 46           |           |         
|Total interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            | 60,590      |                    | 35,872       |              |          
|Interest expense:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                    |              |              |           |         
|Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | 19,053             |              | 8,460        |           |         
|Short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            | 8,151       |                    | 6,550        |              |          
|Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 580                |              | 583          |           |         
|Preferred securities distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            | 3,704       |                    | 1,174        |              |          
|Total interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 31,488      |                    | 16,767       |              |          
|Net interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             | 29,102             |              | 19,105       |           |         
|Provision for loan and lease losses - Note 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            | 1,553      |             | 1,136              |              |             
|Net interest income after provision for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             |                    |              |             
|loan and lease losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            | 27,549      |                    | 17,969       |              |          
|Other income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                    |              |              |           |         
|Loan origination fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            | 13,703      |                    | 10,088       |              |          
|Gain from sale of loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            | 32,893      |                    | 16,029       |              |          
|Loan servicing fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             | 16,052             |              | 15,121       |           |         
|Amortization and impairment of servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                | 7,535      |            | 6,101       |                    |             
|Net loan administration income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            | 8,517      |             | 9,020              |              |             
|Gain on sale of mortgage servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            | 2,092      |             | 252                |              |             
|Trading gains (losses)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 3,238       |                    | 3,389        |              |          
|Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             | 1,608              |              | 11,360       |           |         
|Total other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            | 62,051      |                    | 50,138       |              |          
|Other expense:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             |                    |              |              |           |         
|Salaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | 41,283             |              | 25,955       |           |         
|Pension and other employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            | 6,736      |             | 5,668              |              |             
|Office expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 3,642              |              | 3,269        |           |         
|Premises and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 7,428       |                    | 6,057        |              |          
|Marketing and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            | 1,529       |                    | 4,778        |              |          
|Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             | 14,207             |              | 8,209        |           |         
|Total other expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            | 74,825      |                    | 53,936       |              |          
|Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 14,775      |                    | 14,171       |              |          
|Provision for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 5,779       |                    | 5,689        |              |          
|Income before cumulative effect of change in accounting principle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 8,996                                                                          |            | 8,482      |             |                   
|Cumulative effect of change in accounting principle, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 175                                                                            |            | -          |             |                   
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             | $ 9,171            |              | $ 8,482      |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Earnings per share of common stock available to shareholders:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                   
|Basic - Note 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | $ 0.44             |              | $ 0.40       |           |         
|Diluted - Note 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | $ 0.41             |              | $ 0.40       |           |         
|Dividends per share of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            | $ 0.065    |             | $ 0.06             |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|The accompanying notes are an integral part of the consolidated
      financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |             
|CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             |                   
|FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            |             |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            | Accumulated |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            | Other       |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            | Compre-     |                    |              | Additional   |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Retained   | hensive     | Preferred          | Common       | Paid in      | Treasury  | Minority
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                | Total      | Earnings   | Income      | Stock              | Stock        | Capital      | Stock     | Interest
|Balance at January 1, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $189,925                                                                       | $ 201,729  | $ (962)    | $ 1,386     | $29,965            | $ 4,331      | $(47,579)    | $1,055   
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                | 9,171      | 9,171      |             |                    |              |              |           |         
|Unrealized gain on investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                    |              |              |          
|securities net of $43 tax liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 63                                                                             |            | 63         |             |                    |              |              |          
|Foreign currency adjustment net of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            |             |                    |              |              |          
|$187 tax credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                | (281)      |            | (281)       |                    |              |              |           |         
|Deferred compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 4                                                                              |            | 4          |             |                    |              |              |          
|Total comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 8,957                                                                          |            |            |             |                    |              |              |          
|Cash dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                | (1,376)    | (1,376)    |             |                    |              |              |           |         
|Tax benefit on stock option exercises                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1,590                                                                          |            |            |             |                    | 1,590        |              |          
|Treasury stock:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                |            |            |             |                    |              |              |           |         
|Purchase of 90,120 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (2,138)                                                                        |            |            |             |                    |              | (2,138)      |          
|Sales of 230,873 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 1,391                                                                          | -          |            |             |                    | (1,856)      | 3,247        |          
|Minority Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | (133)      |            |             |                    |              |              |           | (133)   
|Balance March 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $198,216                                                                       | $ 209,524  | $ (1,176)  | $ 1,386     | $29,965            | $ 4,065      | $(46,470)    | $ 922    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Balance at January 1, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $159,296                                                                       | $ 171,101  | $ (70)     | $ -         | $29,965            | $ 4,250      | $(45,950)    | $ -      
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                | 8,482      | 8,482      |             |                    |              |              |           |         
|Unrealized loss on investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                    |              |              |          
|securities net of $27 tax credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (42)                                                                           |            | (42)       |             |                    |              |              |          
|Total comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 8,440                                                                          |            |            |             |                    |              |              |          
|Cash dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                | (1,259)    | (1,259)    |             |                    |              |              |           |         
|Treasury stock:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                |            |            |             |                    |              |              |           |         
|Purchase of 198,253 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (3,052)                                                                        |            |            |             |                    |              | (3,052)      |          
|Sales of 29,169 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 444                                                                            |            |            |             |                    | 137          | 307          |          
|Issuance of 96,336 shares of preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 1,387                                                                          |            |            | 1,387       |                    |              |              |          
|Balance March 31, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $165,256                                                                       | $ 178,324  | $ (112)    | $ 1,387     | $29,965            | $ 4,387      | $(48,695)    | $ -      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |             
|CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|For the three months ended March 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2001                                                                           |            | 2000       |             |                    |              |             
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             |                    |              |              |           |         
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            | $ -        |             | $ 8,482            |              |              |           |         
|Adjustments to reconcile net income to cash provided                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            |            |             |                    |             
|by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |              |          
|Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                | 2,550      |            | 2,098       |                    |              |              |          
|Amortization and impairment of servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 7,535                                                                          |            | 6,101      |             |                    |              |             
|Provision for loan and lease losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 1,553                                                                          |            | 1,136      |             |                    |              |             
|Amortization of premiums, less accretion of discounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (1)                                                                            |            | (29)       |             |                    |              |             
|Increase in loans held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                | (271,696)  |            | (32,405)    |                    |              |              |          
|Gain on sale of mortgage servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (2,092)                                                                        |            | (252)      |             |                    |              |             
|Net increase in trading assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                | (22,893)   |            | (12,649)    |                    |              |              |          
|Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            | 18,942     |             | (11,714)           |              |              |           |         
|Net cash used by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (266,102)                                                                      |            | (39,232)   |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Lending and investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                    |              |              |          
|Proceeds from maturities/calls of investment securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |             
|Held-to-maturity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | 3,270      |             | 543                |              |              |           |         
|Available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                | 2,000      |            | 15          |                    |              |              |          
|Purchase of investment securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            |             |                    |              |              |          
|Held-to-maturity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | (143)      |             | (1)                |              |              |           |         
|Net increase in interest-bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |          
|deposits with financial institutions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (25,383)                                                                       |            | (2,055)    |             |                    |              |             
|Net increase in loans, excluding sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (101,577)                                                                      |            | (98,875)   |             |                    |              |             
|Sale of loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            | 18,278     |             | 7,253              |              |              |           |         
|Additions to mortgage servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (19,903)                                                                       |            | (11,641)   |             |                    |              |             
|Proceeds from sale of mortgage servicing assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2,343                                                                          |            | 1,491      |             |                    |              |             
|Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            | (3,132)    |             | (2,987)            |              |              |           |         
|Net cash used by lending and investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (124,247)                                                                      |            | (106,257)  |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             |                    |              |              |          
|Net increase in deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                | 376,674    |            | 136,385     |                    |              |              |          
|Net increase in short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 41,020                                                                         |            | 23,411     |             |                    |              |             
|Repayments of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                | -          |            | (211)       |                    |              |              |          
|Issuance of preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                | -          |            | 1,387       |                    |              |              |          
|Purchase of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                | (2,138)    |            | (3,052)     |                    |              |              |          
|Proceeds from sale of stock for employee benefit plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2,981                                                                          |            | 444        |             |                    |              |             
|Dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            | (1,376)    |             | (1,259)            |              |              |           |         
|Net cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 417,161                                                                        |            | 157,105    |             |                    |              |             
|Effect of exchange rate changes on cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (88)                                                                           |            | -          |             |                    |              |             
|Net increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 26,724                                                                         |            | 11,616     |             |                    |              |             
|Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 83,493                                                                         |            | 47,215     |             |                    |              |             
|Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ 110,217                                                                      |            | $ 58,831   |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Supplemental disclosures of cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                |            |            |             |                    |             
|Cash paid during the period:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |              |          
|Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            | $ (5,543)  |             | $ 15,777           |              |              |           |         
|Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            | $ 740      |             | $ 15               |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|The accompanying notes are an integral part of the consolidated
      financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTES TO THE FINANCIAL STATEMENTS (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |             
|Basis of Presentation:The
      interim financial data as of March 31, 2001 and for the three month
      periods ended March 31, 2001 and March 31, 2000 is unaudited; however, in
      the opinion of Management, the interim data includes all adjustments,
      consisting only of normal recurring adjustments, necessary for a fair
      statement of the results for the interim periods. The accompanying
      financial statements should be read in conjunction with the financial
      statements and related notes included with the Corporation's Annual Report
      on Form 10-K for the year ended December 31, 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Reclassifications: Certain
      amounts in the 2000 consolidated financial statements have been
      reclassified to conform to the 2001 presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Foreign Currency: Assets and
      liabilities denominated in Canadian dollars are translated into U. S.
      dollars at rates prevailing on the balance sheet date; income and expenses
      are translated at average rates of exchange for the period. Unrealized
      foreign currency translation gains and losses (net of related income
      taxes) are recorded in accumulated other comprehensive income in
      shareholders' equity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Loans Held for Sale:Loans
      held for sale are stated at the lower of cost or market as of the balance
      sheet date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Derivatives:On January 1,
      2001, the Corporation adopted the provisions of Statement of Financial
      Accounting Standards ("SFAS") No. 133, "Accounting for
      Derivative Instruments and Hedging Activities." This standard
      obligates the Corporation to record all derivatives at fair value and
      permits the Corporation to designate derivative instruments as being used
      to hedge changes in fair value or changes in cash flows. Changes in the
      fair value of derivatives that offset changes in cash flows of a hedged
      item are recorded initially in other comprehensive income. Amounts
      recorded in other comprehensive income are subsequently reclassified into
      earnings during the same period the hedged item affects earnings. If a
      derivative qualifies as a fair value hedge, then changes in the fair value
      of the hedging derivative are recorded in earnings and are offset by
      changes in fair value attributable to the hedged risk of the hedged item.
      Any portion of the changes in the fair value of derivatives designated as
      a hedge that is deemed ineffective is recorded in earnings along with
      changes in the fair value of derivatives with no hedge designation.                                                                                       
|The Corporation enters into forward contracts to protect it from
      interest rate fluctuations from the date of loan commitment until the
      loans are sold. However, the Corporation has not designated these
      transactions as hedges to qualify for hedge accounting treatment, and
      therefore, the Corporation is required to mark the derivatives to market
      every accounting period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|The initial application of SFAS No. 133 resulted in a cumulative change
      in accounting principle net of income taxes of $175,000, did not have a
      significant impact on other comprehensive income, and had the following
      impact on the Company's assets and liabilities as of January 1, 2001 (in
      millions):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Increase in fair value of derivatives classified as assets .... $ 1.3          |            |           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Increase in fair value of derivatives classified as liabilities... $
      1.0 |            |           
|The adoption of SFAS No. 133 resulted in the recognition of
      derivative-related assets, and derivative-related liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Commitments to originate loans:The Company enters into commitments to originate loans whereby the
      interest rate on the loan is determined prior to funding (rate lock
      commitments). Rate lock commitments on loans that are intended to be sold
      are considered to be derivatives and are therefore recorded at fair value
      with changes in fair value recorded in earnings. For purposes of
      determining their fair value, the Company performs a net present value
      analysis of the anticipated cash flows associated with the rate lock
      commitments. Included in the net present value analysis are anticipated
      cash flows associated with the retained servicing of the loans. Rate lock
      commitments expose the Company to interest rate risk. The Company manages
      this risk by acquiring forward sales contracts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Hedges of loans held for sale:Loans
      held for sale expose the Company to interest rate risk. The Company
      manages the interest rate risk associated with loans held for sale by
      entering into forward sales agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Trading Assets: Trading assets
      are stated at fair value. Unrealized gains and losses are included in
      earnings. Included in trading assets are interest-only strips. When the
      Corporation sells receivables in securitizations of residential mortgage
      loans, it retains interest-only strips, one or more subordinated tranches,
      servicing rights, and in some cases a cash reserve account, all of which
      are retained interests in the securitized receivables. Gain or loss on the
      sale of the receivables depends in part on the previous carrying amount of
      the financial assets involved in the transfer, allocated between the
      assets sold and the retained interests based on their relative fair value
      at the date of transfer. To obtain fair value, quoted market prices are
      used if available. However, quotes are generally not available for
      retained interests, so the Corporation generally estimates fair value
      based on the present value of expected cash flows using management's best
      estimates of the key assumptions that market participants would use -
      prepayment speeds, credit losses, forward yield curves, and discount rates
      commensurate with the risks involved. Adjustments to carrying values are
      recorded as trading gains or losses.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Recent Accounting Developments:
      In September 2000, the FASB issued SFAS No. 140, "Accounting for
      Transfers and Servicing of Financial Assets and Extinguishments of
      Liabilities." SFAS No. 140, which replaces SFAS No. 125,
      "Accounting for Transfers and Servicing of Financial Assets and
      Extinguishments of Liabilities," provides accounting and reporting
      standards for securitizations and other transfers of assets. The Standard
      is based on the application of a financial components approach that
      focuses on control, and provides consistent standards for distinguishing
      transfers of financial assets that are sales from transfers that are
      secured borrowings. The Standard requires disclosure of information about
      securitized assets, including principal outstanding of securitized and
      other managed assets, accounting policies, key assumptions related to the
      determination of the fair value of retained interests, delinquencies and
      credit losses. The accounting requirements of the Standard are effective
      for transfers and servicing of financial assets and extinguishments of
      liabilities occurring after March 31, 2001, and must be applied
      prospectively.                                                                          
|The disclosures related to securitization transactions are required for
      fiscal years ending after December 15, 2000, and comparative disclosures
      for prior periods are not required. The Corporation does not expect the
      impact of the accounting requirements of the Standard to be material to
      its financial position or results of operations in future periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|NOTE 2 - INVESTMENT SECURITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             |                    |              |              |          
|The carrying amounts of investment securities, including net unrealized
      gain of $96 thousand and loss of $9 thousand on available-for-sale
      securities at March 31, 2001 and December 31, 2000, respectively, are
      summarized as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31           |              | December 31, |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Held-to-maturity, at amortized cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             |                    |              |             
|US Treasury and Government obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            | $ 18,623   |             | $ 21,006           |              |             
|Obligations of states and political subdivisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                | 4,472      |            | 4,586       |                    |             
|Mortgage-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 1,920       |                    | 2,059        |              |          
|Corporate obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            | 133         |                    | --           |              |          
|Total held-to-maturity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 25,148      |                    | 27,651       |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Available-for-sale, at fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                    |              |              |          
|US Treasury and Government obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            | 3,052      |             | 4,993              |              |             
|Mortgage-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            | 3,139       |                    | 3,093        |              |          
|Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             | 736                |              | 1,358        |           |         
|Total Available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            | 6,927       |                    | 9,444        |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Total investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             | $ 32,075           |              | $ 37,095     |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Securities which the Corporation has the positive intent and ability to
      hold until maturity are classified as "held-to-maturity" and are
      stated at cost adjusted for amortization of premium and accretion of
      discount. Securities that might be sold prior to maturity are classified
      as "available-for-sale" and are stated at fair value. Unrealized
      gains and losses on available-for-sale securities, net of the future tax
      impact, are reported as a separate component of shareholders' equity until
      realized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 3 - LOANS AND LEASES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Loans and leases are summarized as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |            |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31,          |              | December 31, |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Commercial, financial and agricultural                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            | $ 742,276  |             | $ 677,066          |              |             
|Real estate-construction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            | 221,030     |                    | 220,485      |              |          
|Real estate-mortgage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                |            |            |             | 135,706            |              | 122,301      |           |         
|Consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | 44,640             |              | 56,785       |           |         
|Direct financing leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             |                    |              |              |          
|Domestic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | 135,081            |              | 116,867      |           |         
|Canadian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | 73,538             |              | 72,864       |           |         
|Unearned income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                |            |            |             |                    |              |              |           |         
|Domestic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | (24,822)           |              | (21,570)     |           |         
|Canadian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             | (10,288)           |              | (9,876)      |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | $1,317,161         |              | $1,234,922   |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 4 - ALLOWANCE FOR LOAN AND LEASE LOSSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Changes in the allowance for loan and lease losses are summarized as
      follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31,          |              | March 31,    |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Balance at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            | $ 13,129    |                    | $ 8,555      |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Provision for loan and lease losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            | 1,553      |             | 1,136              |              |             
|Reduction due to sale of loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            | (6)         |                    | -            |              |          
|Foreign currency adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |            | (44)        |                    | -            |              |          
|Recoveries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             | 249                |              | 77           |           |         
|Charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |            |             | (1,259)            |              | (354)        |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Balance at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            | $ 13,622    |                    | $ 9,414      |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 5- SERVICING ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Included on the consolidated balance sheet at March 31, 2001 and
      December 31, 2000 are $142.6 million and $130.5 million, respectively, of
      servicing assets. These amounts relate to the principal balances of loans
      serviced by the Corporation for investors. Although they are not generally
      held for sale, there is an active secondary market for servicing assets.
      The Corporation has periodically sold servicing assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Mortgage Servicing Asset:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31,          |              | December 31, |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|Beginning Balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             | $ 130,522          |              | $ 138,500    |           |         
|Additions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            |             | 19,903             |              | 57,165       |           |         
|Amortization and impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |            |            | (7,535)     |                    | (39,529)     |              |          
|Reduction for servicing sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            | (251)       |                    | (25,614)     |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | $ 142,639          |              | $ 130,522    |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 6- SHORT-TERM BORROWINGS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Short-term borrowings are summarized as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | March 31,          |              | December 31, |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                |            |            |             | 2001               |              | 2000         |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Federal funds and Federal Home Loan Bank borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                | $ 103,000  |            | $ 173,000   |                    |             
|Lines of credit and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            | 127,827     |                    | 226,599      |              |          
|Repurchase agreements and drafts payable related to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             |                    |             
|mortgage loan closings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            |            | 270,630     |                    | 64,557       |              |          
|Commercial paper                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             | 15,065             |              | 11,346       |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                |            |            |             | $ 516,522          |              | $ 475,502    |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Repurchase agreements at March 31, 2001 and December 31, 2000, include
      $98.9 million and $0.1 million respectively, in mortgage loans sold under
      agreements to repurchase which are used to fund mortgage loans sold prior
      to sale in the secondary market. These repurchase agreements are
      collateralized by mortgage loans held for sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Drafts payable related to mortgage loan closings totaled $171.7 million
      and $64.5 million at March 31, 2001 and December 31, 2000, respectively.
      These borrowings are related to mortgage closings at the end of the period
      which have not been presented to banks for payment. When presented for
      payment these borrowings will be funded internally or by borrowing from
      the lines of credit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|The Corporation has lines of credit available to fund mortgage loans
      held for sale. Interest on the lines of credit is payable monthly at
      variable rates ranging from 5.7% to the lender's prime rate at March 31,
      2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 7 -- LONG-TERM DEBT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Long-term debt at March 31, 2001 consists of a note payable of $30.0
      million with an interest rate of 7.58% that will mature on July 7, 2014.
      The note is shown on the balance sheet net of capitalized issuance costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 8 -- COMPANY-OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |            
|OF SUBSIDIARY TRUST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|In January 1997, the Corporation issued $50.0 million of trust
      preferred securities through IFC Capital Trust I, a trust created and
      controlled by the Corporation. The securities were issued at $25 per share
      with a cumulative dividend rate of 9.25% payable quarterly. They have an
      initial maturity of 30 years with a 19-year extension option. The
      securities are callable at par after five years from issuance, or
      immediately, in the event of an adverse tax development affecting the
      Corporation's classification of the securities for federal income tax
      purposes. They are not convertible into common stock of the Corporation.
      The securities are shown on the balance sheet net of capitalized issuance
      costs. The sole assets of IFC Capital Trust I are subordinated debentures
      of the Corporation with a principal balance of $51.5 million, an interest
      rate of 9.25% and an initial maturity of 30 years with a 19-year extension
      option.                                                                                                                                                                                                                                                                                                                              
|In November 2000, the Corporation issued $51.75 million of trust
      preferred securities through IFC Capital Trust II and $51.75 million of
      convertible trust preferred securities through IFC Capital Trust III,
      trusts created and controlled by the Corporation. The securities were
      issued at $25 per share with cumulative dividend rates of 10.5% and 8.75%,
      respectively, payable quarterly. They have an initial maturity of 30
      years. The trust preferred securities of Capital Trust II are not
      convertible into common stock of the Corporation. The convertible trust
      preferred securities of Capital Trust III have an initial conversion ratio
      of 1.261 shares of common stock for each convertible preferred security
      (equivalent to an initial conversion price of $19.825 per share of common
      stock). The securities are shown on the balance sheet net of capitalized
      issuance costs. The sole assets of IFC Capital Trust II and III are
      subordinated debentures of the Corporation with principal balances of
      $53.35 million each, interest rates of 10.5% and 8.75%, respectively, and
      on initial maturity of 30 years.                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 9 -- EARNINGS PER SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Earnings per share calculations are summarized as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            |            |             |                    |             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Basic      | Effect of   | Effect of          |              | Effect of    | Diluted   |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Earnings   | Stock       | Preferred          |              | Convertible  | Earnings  |         
|(In thousands, except share data)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | Per Share  | Options    | shares      |                    | Shares       | Per Share    |          
|Three months ended March 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                    |              |              |          
|Net income before cumulative effect of change in accounting principle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 8,996                                                                        | $ -        | $ -        |             | $ 700              | $ 9,696      |             
|Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            | 21,065     | 333         | 96                 |              | 2,610        | 24,104    |         
|Per-Share amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | $ 0.43     | $ 0.01      | $ -                |              | $ 0.02       | $ 0.40    |         
|Cumulative effect of change in accounting principle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $ 175                                                                          |            |            |             |                    | $ 175        |             
|Per-Share amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | $ 0.01     |             |                    |              |              | $ 0.01    |         
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                |            | $ 9,171    |             |                    |              |              | $ 9,871   |         
|Per-Share amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | $ 0.44     |             |                    |              |              | $ 0.41    |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Basic      | Effect of   | Effect of          |              | Effect of    | Diluted   |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Earnings   | Stock       | Preferred          |              | Convertible  | Earnings  |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | Per Share  | Options     | shares             |              | Shares       | Per Share |         
|Three months ended March 31, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |            |            |             |                    |              |              |          
|Net income available to common shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $ 8,482                                                                        | $ -        | $ -        |             | $ -                | $ 8,482      |             
|Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                |            | 21,058     | 189         | 30                 |              | -            | 21,277    |         
|Per-Share amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            | $ 0.40     | $ -         | $ -                |              | $ -          | $ 0.40    |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 10 -- CONTINGENCIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                |            |            |             |                    |              |              |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|In the normal course of business, Irwin Financial Corporation and its
      subsidiaries are subject to various claims and other pending and possible
      legal actions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Irwin Mortgage Corporation (IMC) is a defendant in a class action
      lawsuit relating to IMC's payment of broker fees to mortgage brokers. On
      June 15, 2001, IMC's appeal on the issue of class certification was denied
      by a panel of the United States Court of Appeals for the 11th Circuit. On
      July 11, 2001, IMC filed a motion for a rehearing before the Court of
      Appeals on the class certification issue. Although the Corporation has not
      yet formed a reasonable estimate of the amount of potential loss, if any,
      that the Corporation could suffer, it is expected that an adverse outcome
      in this litigation could have a material adverse effect on the
      Corporation's financial condition and results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Irwin Leasing Corporation (formerly Affiliated Capital Corp.), Irwin
      Equipment Finance Corporation and Irwin Financial Corporation
      (collectively, "the Irwin Companies") are defendants in an
      action relating to alleged misrepresentations made to obtain Medicare
      reimbursement for treatments performed with medical equipment financed by
      the Irwin Companies. The Irwin Companies filed a motion to dismiss on
      February 12, 2001 in the U.S. District Court for the Middle District of
      Pennsylvania. Because the case is in the early stages of litigation, the
      Corporation is unable at this time to form a reasonable estimate of the
      amount of potential loss, if any, that the Corporation could suffer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|Irwin Union Bank and Trust Company and Irwin Home Equity Corporation
      (collectively "Irwin") are defendants in a lawsuit in the U.S.
      District Court for the District of Rhode Island, which seeks certification
      as a class action and alleges that Irwin's disclosures and closing
      procedure for certain home equity loans did not comply with the Truth in
      Lending Act. Because the case has only recently been filed, the
      Corporation has not formed a reasonable estimate of the amount of
      potential loss, if any, that the Corporation could suffer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|NOTE 11 -- INDUSTRY SEGMENT INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                |            |            |             |                    |              |             
|The Corporation has five principal segments that provide a broad range
      of financial services throughout the United States. The Home Equity
      Lending line of business originates and services home equity loans. The
      Mortgage Banking line of business originates, sells and services
      residential first mortgage loans. The Commercial Banking line of business
      provides commercial banking services. The Equipment Leasing line of
      business leases commercial equipment. The Venture Capital line of business
      invests in early-stage financial services-oriented technology companies.
      Other consists primarily of the parent company including eliminations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|The accounting policies of each segment are the same as those described
      in the "Summary of Significant Accounting Policies". Below is a
      summary of each segment's revenues, net income, and assets for 2001 and
      2000:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Home Equity                                                                    | Mortgage   | Commercial | Equipment   | Venture            |              |              |           |         
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Lending                                                                        | Banking    | Banking    | Leasing     | Capital            | Other        | Consolidated |           |         
|For the three months ended March 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            |             |                    |              |             
|Net interest income, net of provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 15,137                                                                       | $ 3,581    | $ 9,566    | $ 1,099     | $ (140)            | $(1,694)     | $ 27,549     |           |         
|Intersegment interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (528)                                                                          | (394)      | (57)       | (19)        | -                  | 998          | -            |           |         
|Other revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 17,350                                                                         | 42,063     | 3,071      | 357         | (2,506)            | 1,716        | 62,051       |           |         
|Intersegment revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -                                                                              | -          | 52         | -           | 255                | (307)        | -            |           |         
|Total net revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 31,959                                                                         | 45,250     | 12,632     | 1,437       | (2,391)            | 713          | 89,600       |           |         
|Other expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 26,162                                                                         | 34,540     | 9,646      | 2,130       | 113                | 2,234        | 74,825       |           |         
|Intersegment expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 150                                                                            | 352        | 668        | -           | -                  | (1,170)      | -            |           |         
|Income before taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 5,647                                                                          | 10,358     | 2,318      | (693)       | (2,504)            | (351)        | 14,775       |           |         
|Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2,259                                                                          | 4,200      | 917        | -           | (1,059)            | (538)        | 5,779        |           |         
|Income before cumulative effect of change in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                |            |            |             |                    |             
|accounting principle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 3,388                                                                          | 6,158      | 1,401      | (693)       | (1,445)            | 187          | 8,996        |           |         
|Cumulative effect of change in accounting principle, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | -                                                                              | 175        | -          | -           | -                  | -            | 175          |           |         
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,388                                                                          | 6,333      | 1,401      | (693)       | (1,445)            | 187          | 9,171        |           |         
|Assets at March 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $ 622,845                                                                      | $843,814   | $1,291,731 | $ 177,957   | $ 13,041           | $(83,019)    | $2,866,369   |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         
|For the three months ended March 31, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                |            |            |             |                    |              |             
|Net interest income, net of provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 5,545                                                                        | $ 7,197    | $ 8,556    | $ (116)     | $ (270)            | $(2,943)     | $ 17,969     |           |         
|Intersegment interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (405)                                                                          | (966)      | -          | (7)         | (1)                | 1,379        | -            |           |         
|Other revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 13,966                                                                         | 27,249     | 2,892      | 2           | 7,435              | (1,406)      | 50,138       |           |         
|Intersegment revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -                                                                              | -          | 40         | -           | 100                | (140)        | -            |           |         
|Total net revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 19,106                                                                         | 33,480     | 11,488     | (121)       | 7,264              | (3,110)      | 68,107       |           |         
|Other expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 14,588                                                                         | 28,858     | 7,765      | 794         | 89                 | 1,842        | 53,936       |           |         
|Intersegment expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 152                                                                            | 538        | 610        | -           | -                  | (1,300)      | -            |           |         
|Income before taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 4,366                                                                          | 4,084      | 3,113      | (915)       | 7,175              | (3,652)      | 14,171       |           |         
|Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 1,746                                                                          | 1,601      | 1,207      | -           | 2,878              | (1,743)      | 5,689        |           |         
|Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ 2,620                                                                        | $ 2,483    | $ 1,906    | $ (915)     | $ 4,297            | $(1,909)     | $ 8,482      |           |         
|Assets at December 31, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $ 550,526                                                                      | $523,920   | $1,167,559 | $ 159,773   | $ 15,198           | $ 5,453      | $2,422,429   |           |         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                |            |            |             |                    |              |              |           |         



Part I



Item 2



MANAGEMENT'S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS





Management's discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and footnotes.  This discussion contains forward-looking statements that are based on management's expectations,
estimates, projections and assumptions.  Words such as "expected," "assumptions," "estimate" and similar expressions are intended to identify forward-looking statements, which include, but are not limited to, projections of business strategies and future
activities.  These statements are not guarantees of future performance and involve uncertainties that are difficult to predict.  Actual future results may differ materially from what is projected due to a variety of factors, including, but not limited to,
unexpected changes in interest rates or in the economies served by the Corporation, competition from other financial service providers, unanticipated difficulties in expanding the Corporation's businesses, such as higher than expected entry costs in new
markets, availability of appropriate investment opportunities, fluctuations in the valuation of the Corporation's portfolios, legislative or regulatory changes, or governmental changes in monetary or fiscal policy.



Overview

Net income for the first quarter ended March 31, 2001, was $9.2 million, up 8.1% from the first quarter 2000 net income of $8.5 million.  Net income per share (diluted) was $0.41 for the first quarter of 2001 as compared to $0.40 for the same
period in 2000; a 2.5% increase.  Return on equity for the first quarter of 2001 was 19.48% compared to 21.07% in the first quarter of 2000.



Lines of Business

Irwin Financial Corporation has five principal lines of business:

- Home equity lending (includes Irwin Home Equity Corporation and the related activities of Irwin Union Bank and Trust Company ("Irwin Union Bank")
- Mortgage banking (includes Irwin Mortgage Corporation and the related activities of Irwin Union Bank)
- Commercial banking (includes Irwin Union Bank and Irwin Union Bank, F.S.B.)
- Equipment leasing (includes Irwin Business Finance, Onset Capital Corporation, and the related activities of Irwin Union Bank)
- Venture capital (includes Irwin Ventures LLC, and the related activities of Irwin Union Bank)

Listed below are the results by line of business for the quarter ended March 31, 2001, as compared to the same period in 2000 (shown in thousands):



|                                        | Three Months   
|--------------------------------------- | ---------------
|                                        | Ended March 31,
|                                        | 2001           
|Home equity lending                     | $3,388         
|Mortgage banking                        | 6,333          
|Commercial banking                      | 1,401          
|Equipment leasing                       | (693)          
|Venture capital                         | (1,445)        
|Parent (includes consolidating entries) | 187            
|                                        | $9,171         



Home Equity Lending

Selected Financial Data (shown in thousands):



|                                                | Three Months   
|----------------------------------------------- | ---------------
|                                                | Ended March 31,
|                                                | 2001           
|Selected Income Statement Data:                 |                
|Net interest revenue-unsold loans and other     | $7,449         
|I/O strip interest income                       | 7,160          
|Loan origination fees                           | 2,122          
|Gain from sale of loans                         | 12,551         
|Loan servicing fees                             | 2,981          
|Amortization and impairment of servicing assets | (555)          
|Trading gains/(losses)                          | (69)           
|Other revenue                                   | 320            
|Total net revenues                              | 31,959         
|                                                |                
|Salaries and employee benefits                  | (16,613)       
|Other operating expenses                        | (9,699)        
|                                                |                
|Income before tax                               | 5,647          
|Income tax                                      | (2,259)        
|Net Income                                      | $3,388         

|                                                        | March 31, | December 31,
|------------------------------------------------------- | --------- | ------------
|Other Selected Financial Data:                          | 2001      | 2000        
|                                                        |           |             
|Home equity loans and loans held for sale               | $323,144  | $334,218    
|Interest-only strips                                    | 172,740   | 152,614     
|Total managed portfolio                                 | 1,708,885 | 1,625,719   
|Total managed portfolio including subserviced portfolio | 1,893,181 | 1,825,527   



Irwin Home Equity, in combination with the related activities of Irwin Union Bank (together, the home equity line of business), originates and services home equity and first mortgage loans nationwide through direct mail and telemarketing, broker
and correspondent channels, acquisition channels and Internet-based solicitations.

Net income for the home equity lending business was $3.4 million during the first quarter of 2001.  These results are compared to 2000 first quarter net income of $2.6 million.

Net interest revenue-unsold loans and other was $4.9 million higher in first quarter 2001 compared to first quarter 2000, representing a 191.8% increase.  I/O strip interest income increased 176.8% to $7.2 million for the first quarter 2001
compared to 2000.  These increases are a result of increased loan production and sales during 2001 compared to 2000.

During the first quarter of 2001, home equity loan and line of credit originations totaled $180.7 million, compared with $97.2 million in originations in first quarter 2000.  Loan acquisitions totaled $0.1 million during the first quarter 2001
compared to $99.3 million in home equity loans which were acquired from other prime credit, high loan-to-value lenders in 2000.

Gains from the securitization of loans totaled $12.6 million in the first quarter of 2001, up 96.6% from the first quarter 2000.  The company sold $183.3 million of product in the first quarter of 2001, versus $131.6 million during first quarter
2000.  The gain from securitizations as a percentage of loans sold was 6.85% in the first quarter of 2001 versus 4.85% in the same period a year earlier, principally reflecting an improvement in the overall economics of the transaction.  These
improvements include a higher mix of loans originated with prepayment protection, a higher risk-adjusted interest rate on the underlying collateral, a lower relative acquisition cost structure due to continued expansion of new distribution channels, an
ability to sell a portion of the residual interest at inception of the transaction, and otherwise improved excess spread.  Furthermore, the results include a slight change in estimate resulting from the introduction of loss frequency curves which replaced
previously utilized static loss assumptions.  The introduction of loss frequency curves, which may result in a corresponding lower unrealized gain/loss over time, was made to conform valuations with the observed behavior of the loans.



Servicing Portfolio (in thousands):

|                                                       | March 31, 2001 | December 31, 2000
|------------------------------------------------------ | -------------- | -----------------
|                                                       |                |                  
|Managed portfolio                                      | $1,708,885     | $1,625,719       
|Delinquency ratio                                      | 4.32%          | 4.35%            
|                                                       |                |                  
|Managed portfolio including      subserviced portfolio | 1,893,181      | 1,825,527        
|Delinquency ratio                                      | 4.35%          | 4.31%            



The home equity lending business services the loans it has securitized and collects an annual fee of up to 1% of the outstanding principal balance of the securitized loans. The managed portfolio included in the schedule above includes all loans
being serviced by the home equity lending business for which the company retains risk of ownership.  Also included in the table above is the portfolio of loans serviced by the company including loans for which the underlying residual interest has been
sold to an independent third party.  Net servicing fee income totaled $2.4 million in the first quarter of 2001, up 116.6% from the same period in 2000.  The increase is primarily due to growth in the servicing portfolio.

The securitization of loans into the secondary market results in the creation of a residual asset which we refer to as an interest-only strip.  This interest-only strip is equal to the discounted future cash flows of the interest paid by
borrowers less servicing fees, expected losses, third party fees and interest paid to investors.  Interest-only strips are carried on the balance sheet as a trading asset and recorded at their estimated fair values determined using assumptions about the
duration and performance of the securitized loans.  At March 31, 2001, the weighted average assumptions used in the valuation of the interest-only strips were as follows:

|Product type                         | Unpaid Principal balance | Weighted avg. carrying speed (CPR) | Remaining weighted avg. life (years) | Weighted avg. annual loss rate
|------------------------------------ | ------------------------ | ---------------------------------- | ------------------------------------ | ------------------------------
|HELs (home equity loans)             | $272,481                 | 21.96%                             | 3.22                                 | 0.80%                         
|HELOCs (home equity lines of credit) | 149,392                  | 26.56%                             | 2.93                                 | 0.90%                         
|125 HELs                             | 498,623                  | 16.20%                             | 4.03                                 | 2.09%                         
|125 LTV HELOCs                       | 77,274                   | 16.02%                             | 4.61                                 | 2.38%                         
|First mortgages                      | 46,762                   | 10.80%                             | 8.44                                 | 0.25%                         
|Other HELs and HELOCs                | 66,369                   | 24.37%                             | 2.63                                 | 6.23%                         
|Purchased I/O strips                 | 273,127                  | 28.00%                             | 2.27                                 | 2.87%                         



Included in income during the first quarter of 2001 was an unrealized trading loss of $69 thousand recorded to adjust the carrying value of interest-only strips to their fair values.  This loss compares with a $3.4 million gain recorded in the
first quarter of 2000. The decline in 2001 is primarily due to the declining interest rate environment and the refinement in loss estimates noted above.

Operating expenses were $29.0 million in the first quarter of 2001, up 96.8% from 2000, reflecting the growth in the company's managed portfolio and growth in production.  Salaries and employee benefits increased $9.9 million compared to first
quarter 2000 related to the growth of the line of business.  Also, included in this increase is $5.4 million in compensation to certain minority owners at the home equity lending line of business.  Marketing and development costs at the home equity line
of business declined $3.2 million in the first quarter of 2001 compared to first quarter 2000 related primarily to decreased direct mailing costs as a result of product channel diversification.



Mortgage Banking

Selected Financial Data (shown in thousands):

|                                                                             | Three Months   
|---------------------------------------------------------------------------- | ---------------
|                                                                             | Ended March 31,
|                                                                             | 2001           
|Selected Income Statement Data:                                              |                
|                                                                             |                
|Loan origination fees                                                        | $11,443        
|Gain from sales of loans                                                     | 18,113         
|Loan servicing fees                                                          | 12,570         
|Amortization and impairment of 
   servicing assets, net of hedging
   gains | (3,502)        
|Net interest income                                                          | 3,210          
|Provision for loan losses                                                    | (23)           
|Gain on sale of servicing                                                    | 2,092          
|Other income                                                                 | 1,347          
|Total net revenues                                                           | 45,250         
|                                                                             |                
|Salaries and employee benefits                                               | (22,381)       
|Other operating expenses                                                     | (12,511)       
|                                                                             |                
|Income before tax                                                            | 10,358         
|Income tax                                                                   | (4,200)        
|Income before cumulative effect of change in accounting principle            | 6,158          
|Cumulative effect of change in accounting principle                          | 175            
|Net income                                                                   | $6,333         
|Mortgage loan originations                                                   | $1,891,203     

|                             | March 31,  | December 31,
|---------------------------- | ---------- | ------------
|                             | 2001       | 2000        
|                             |            |             
|Servicing portfolio          | $9,329,451 | $9,196,513  
|Mortgage loans held for sale | 529,915    | 249,580     
|Mortgage servicing asset     | 133,023    | 121,555     





Irwin Mortgage Corporation, in combination with the related activities of Irwin Union Bank, (together, the mortgage banking line of business) originates, purchases, sells, and services conventional and government agency backed (i.e., FHA and VA)
residential mortgage loans throughout the United States.

Net income from mortgage banking for the first quarter was $6.3 million, up 155.1% from the same period in 2000.  This increase relates to increased production as a result of a declining interest rate environment.  Mortgage loan interest rates
were, on average, 140 basis points lower in the first quarter of 2001 compared to the same quarter in 2000.

As a result of the declining interest rate environment, mortgage loan originations of $1.9 billion were 119.3% ahead of the first quarter of 2000. Refinanced loans accounted for 56.2% of first quarter production, compared with 13.9% in the same
period a year ago.  Higher production volume caused mortgage loan origination income to increase 54.1% in the first quarter to $11.4 million. Because certain fees are not collected for loan refinancings, loan origination fees did not increase at the same
rate as loan production during the first quarter of 2001.

As a result of higher loan production in the first quarter of 2001, gains on the sales of loans increased 67.2% to $18.1 million.

Net interest income during the first quarter of 2001 declined 48.8% compared to the same period in 2000 to $3.2 million.  Included in first quarter 2000 interest income was $3.0 million related to interest earned pursuant to a refund of federal
income taxes due the company relating to a prior period tax return.  Excluding the impact of the tax refund in 2000, net interest income for the first quarter of 2001 was comparable to the same period in 2000.

Mortgage loan servicing fees totaled $12.6 million for the first quarter of 2001, a decrease of $0.8 million or 6.0%. The servicing portfolio totaled $9.3 billion at March 31, 2001,  an increase of 1.4% from December 31, 2000 and a decrease of
11.3% compared to March 31, 2000.

Mortgage servicing assets totaled $133.0 million at March 31, 2001, up 9.4% from December 31, 2000.  The mortgage banking line of business has followed a strategy to manage the interest rate risk associated with the servicing portfolio by
selling servicing rights on those loans that are most likely to refinance as interest rates decline.  During the first quarter of 2001, the line of business sold servicing rights to help manage its investment in the portfolio and to monetize existing
gains in its servicing portfolio.  The business recognized revenues of $2.1 million in the first quarter of 2001 from these sales, up from $0.3 million in the first quarter of 2000.

The amortization and impairment of servicing assets, net of hedging gains, of $3.5 million in the first quarter of 2001 represents a decline of 37.6% compared to the same period in 2000.  Included in the 2001 amount was a $3.3 million trading
gain on hedging activities related to the mortgage servicing assets.  There were no trading gains or losses recorded in the first quarter of 2000.  During the first quarter of 2001, the company restratified its mortgage servicing asset for impairment
purposes, as a result of changing predominate risk characteristics of the portfolio.  This restratification was driven by a change in portfolio mix and greater weighting towards government servicing.

Salaries and employee benefits increased 25.2% to $22.4 million for the first quarter of 2001 reflecting the company's increased production during the period.  Other operating expenses also increased 8.6% in the first quarter 2001 as a result of
higher production.

The corporation adopted SFAS 133 on January 1, 2001.  Adoption of this pronouncement resulted in a transition adjustment at the mortgage banking line of business of $0.2 million, which was recorded as a cumulative effect of a change in accounting
principle.







Commercial Banking

Selected Financial Data (shown in thousands):

|                                | Three Months   
|------------------------------- | ---------------
|                                | Ended March 31,
|                                |                
|Selected Income Statement Data: | 2001           
|                                |                
|Net interest income             | $10,309        
|Provision for loan losses       | (800)          
|Other income                    | 3,067          
|Salaries and employee benefits  | (5,966)        
|Other operating expenses        | (4,292)        
|Income before tax               | 2,318          
|Income tax                      | (917)          
|Net income                      | $1,401         

|                                      |           |             
|------------------------------------- | --------- | ------------
|                                      | March 31, | December 31,
|Selected Balance Sheet Data:          | 2001      | 2000        
|                                      |           |             
|Securities and short-term investments | $75,302   | $27,286     
|Loans and leases                      | 1,136,991 | 1,067,980   
|Allowance for loan losses             | (9,628)   | (9,228)     
|Deposits                              | 1,159,124 | 998,892     



Commercial banking activities are conducted by Irwin Union Bank and Trust Company and Irwin Union Bank, F.S.B. (together, the "commercial bank"). In recent years, the commercial bank has implemented a growth plan that calls for expansion into new
markets outside of its traditional markets in south-central Indiana using de novo offices staffed by senior commercial loan officers who have experience with other commercial banks.  As a result, the commercial bank currently operates in nine counties in
Indiana as well as Kalamazoo, Grandville (Grand Rapids), Lansing and Traverse City, Michigan; Brentwood (St. Louis), Missouri; Las Vegas and Carson City, Nevada; Phoenix, Arizona; and Salt Lake City, Utah.

Net income for the commercial bank decreased in the first quarter to $1.4 million from $1.9 million a year earlier. Net interest income improved 14.5% to $10.3 million in the first quarter of 2001.  This decrease in net income and the increase
in net interest income relate primarily to the commercial bank's continued growth in new markets.  The provision for loan losses increased 80.2% to $0.8 million in the first quarter compared with a provision of $0.4 million a year earlier. This increase
is also a result of the company's growth.

Following is an analysis of net interest income and net interest margin computed on a tax-equivalent basis:



|For the Three
Months Ended  
March 31, | 2001             | 2000    
|-------------------------------------- | ---------------- | --------
|(In thousands)                         | Average 
Balance | Interest
|                                       |                  |         
|Interest-earning assets                | $1,137,469       | $24,833 
|Interest-bearing
liabilities           | 1,034,484        | 14,467  
|Net interest income                    | *                | $10,366 
|Net interest margin                    | *                | *       





Interest margins during 2001 have declined as shown above compared to 2000.  Net interest margin was 3.70% for the first quarter 2001 compared to 4.65% in the same period a year earlier.  The reduction in net interest margin is due to a
combination of three factors.  First, the expansion activities at the commercial bank have resulted in an increased use of wholesale deposit sources required to fund the growth in the loan portfolio.  Secondly, in mid-2000 the parent company began
allocating interest-bearing capital to the commercial bank.  Last, the commercial bank was negatively impacted by repricing of approximately 40% of its commercial loan portfolio which is tied to the Prime rate in advance of corresponding declines in its
funding base which is more closely tied to LIBOR and similar market-driven rate indices.



Other income in the first quarter was up 4.6% to $3.1 million from $2.9 million in the first quarter of 2000.  Total operating expenses, including salaries and benefits, increased 22.5% from the first quarter of 2000 to $10.3 million.  The
continued expansion of operations in new markets led to increased non-interest expense in 2001.





Equipment Leasing

During 1999, the Corporation formed a new leasing subsidiary, Irwin Business Finance.  The company began lease originations in early 2000. On July 14, 2000, the Corporation completed its acquisition of a 78% ownership position in Onset Capital
Corporation, a Canadian small-ticket equipment leasing company.  Irwin Business Finance and Onset Capital Corporation, together with the related activities of Irwin Union Bank, form the leasing line of business.

During the first quarter of 2001, the leasing line of business incurred a pre-tax loss of $0.7 million, compared to a pre-tax loss of $0.9 million in the first quarter of 2000.  These losses reflect expenses related to staffing, systems
development and portfolio growth initiatives in excess of portfolio revenue.  Total loan and lease receivables originated during the first quarter of 2001 were $33.9 million, which more than doubled first quarter 2000 production of $16.0 million. The
total loan and lease portfolio totaled $170.7 million at March 31, 2001.

Lease Portfolio (in thousands):

|                       | March 31, 2001 | December 31, 2000
|---------------------- | -------------- | -----------------
|Domestic Leases        | $107,405       | $91,946          
|Weighted average yield | 10.92%         | 10.84%           
|Delinquency ratio      | 1.36%          | .66%             
|Canadian Leases        | 63,249         | 62,988           
|Weighted average yield | 12.46%         | 12.52%           
|Delinquency ratio      | 2.01%          | 1.61%            



Venture Capital

Irwin Ventures LLC, is a venture capital company which makes minority investments in early-stage financial services-related businesses.  During the first quarter of 2001 the venture capital line of business recorded a net loss of $1.4 million
which resulted principally from a valuation adjustment to one of its portfolio investments.  This compares with net income of $4.3 million in the first quarter of 2000 which was primarily the result of an upward valuation adjustment to the same portfolio
company.  Venture capital investments held by Irwin Ventures are carried at fair value with changes in fair value recognized in other income.

At March 31, 2001, the business had investments in the following companies:



|Company           | Public/Private | Investment At Cost | Carrying Value
|----------------- | -------------- | ------------------ | --------------
|                  |                |                    |               
|LiveCapital.com   | Private        | $1.94 million      | $6.19 million 
|Bremer Associates | Private        | $1.98 million      | $1.98 million 
|DocuTouch         | Private        | $1.67 million      | $1.42 million 
|Zoologic          | Private        | $0.67 million      | $0.67 million 
|PayCycle          | Private        | $0.95 million      | $0.95 million 
|Total             |                | $7.21 million      | $11.21 million



Parent Company (including consolidating entries)

For the quarter ended March 31, 2001, the parent company recorded  net income of $0.2 million compared with a net loss of $1.9 million a year earlier.    The parent company recorded $0.3 million of income tax benefit related to Irwin Business
Finance for the quarter ended March 31, 2001 and March 31, 2000.  The parent company will continue to record tax benefits resulting from the operating losses of Irwin Business Finance until such time as Irwin Business Finance becomes profitable and
utilizes all of its operating loss carryforwards.

Parent company operating results improved in 2001 versus 2000 as a result of allocations made by the parent company to its subsidiaries of $2.3 million in interest expense related to interest-bearing capital obligations of the parent company.
During the first quarter of 2000, these expenses were not allocated by the parent to the subsidiaries.





Consolidated Income Statement Analysis

Net interest income for the first quarter of 2001 totaled $29.1 million, up $10.0 million or 52.3% from the first quarter of 2000.  The increase was due primarily to increased loans and interest-only strips outstanding at the home equity
line of business which accounted for $9.3 million of the $10.0 million increase.

The loan and lease loss provision was $1.6 million for the first quarter of 2001, as compared with $1.1 million for the same period in 2000.  The provision related related primarily to the commercial bank and the equipment leasing lines of
business.  See the section on credit risk for additional information on the loan loss provision.

Noninterest income was up 23.8% to $62.1 million in the first quarter of 2001.  The first quarter increase was primarily a result of increased revenues at the mortgage line of business as a result of the lower interest rate environment which
increased loan production activity. Included in the "other" component of noninterest income was the fair value adjustments made at the venture capital line of business in both the first quarter of 2000 and 2001.

Other expenses increased 38.7% in the first quarter of 2001 to $74.8 million.  This increase relates to increased production and implementation of growth strategies at each of the Corporation's lending and leasing lines of business.

The effective income tax rate for the Corporation was 39.1% during the first quarter of 2001.  This is compared with 40.1% in the first quarter of 2000.





Consolidated Balance Sheet Analysis

Total assets of the Corporation at March 31, 2001, were $2.9 billion, up from December 31, 2000 total assets of $2.4 billion.  The increase in total assets was due to growth in loans held for sale at the mortgage bank of $0.3 billion and growth
in loans at the commercial bank of $0.1 billion.  The increase in assets was accompanied by an increase in deposits at the commercial bank of $0.3 billion.  A portion of noninterest bearing deposits is associated with escrow accounts held on loans in the
servicing portfolio of Irwin Mortgage.  These escrow accounts totaled $289.7 million at March 31, 2001, up from $145.3 million at December 31, 2000.

Shareholders' equity grew to $198.2 million as of March 31, 2001, an increase of 4.4% over year-end 2000 shareholders' equity of $189.9 million. Shareholders' equity as of March 31, 2001 represented $9.30 per common share, an increase of 3.7%
compared to December 31, 2000. The Corporation's equity to assets ratio ended the quarter at 6.92% compared to 7.84% at the end of 2000.





Credit Risk

The assumption of credit risk is a key source of earnings for the home equity lending, commercial banking and equipment leasing lines of business. In addition, the mortgage banking business assumes some credit risk despite the fact that its
mortgages are typically insured.

The credit risk in the loan portfolios of the home equity lending business and commercial bank have the most potential to have a significant effect on consolidated financial performance.  These lines of business manage credit risk through the use
of lending policies, credit analysis and approval procedures,  periodic loan reviews, and personal contact with borrowers.  Loans over a certain size are reviewed by a loan committee prior to approval.

An allowance for loan losses is established as an estimate of the probable credit losses on the loans held by the Corporation. A specific allowance is determined by evaluating those loans which are either substandard or have the potential to
become substandard. In general, commercial loans, mortgage loans, and leases are evaluated individually to determine the appropriate allowance. Consumer loans, including home equity loans, are generally evaluated as a group. A specific allowance is set at
a level which management considers sufficient to cover probable losses on these loans. A general allowance is determined by analyzing historical loss experience by loan type and then adjusting these loss factors for current conditions not reflected in
prior experience. The allowance for loan losses is an estimate which is based on management's judgement combined with a quantitative process of evaluation and analysis. For interest-only strips, a loss estimate is embedded in the discounted residual
value of the asset, and therefore there is no amount included in the allowance.

Loans and leases that are determined by management to be uncollectible are charged against the allowance. The allowance is increased by provisions against income and recoveries of loans and leases previously charged off.  As of March 31, 2001, the
allowance for loan and lease losses as a percentage of total loans and leases was 1.03% compared to 1.06% at December 31, 2000.

Net charge-offs in the first quarter of 2001 were $1.0 million, compared to $0.3 million in the first quarter of 2000.  Higher net charge-offs in 2001 relate to the loan growth at the commercial bank and charge-offs at Onset Capital Corporation.
Onset was acquired by Irwin in July 2000 and had an existing portfolio of leases.

Total nonperforming loans and leases at March 31, 2001 were $7.3 million, relatively unchanged from year-end. Nonperforming loans and leases as a percent of total loans and leases were 0.56% at March 31, 2001, compared to 0.58% at the end of
2000. 	Other real estate owned totaled $4.3 million at March 31, 2001, up from $2.8 million at December 31, 2000, an increase primarily attributable to the home equity lending line of business.  Total nonperforming assets were $11.6 
million, or 0.41% of total assets at March 31, 2001, as compared to $10.1 million, or 0.42%, at year-end 2000.







|Nonperforming Assets
(In thousands)          | March 31,2001 | December 31,2000
|-------------------------------------------- | ------------- | ----------------
|Accruing loans past due 90 days or more:     |               |                 
|Commercial                                   | $623          | $324            
|Consumer                                     | 278           | 510             
|Leasing - domestic                           | -             | 627             
|Subtotal                                     | 901           | 1,461           
|Nonaccrual loans:                            |               |                 
|Real estate mortgage                         | 2,398         | 1,922           
|Commercial                                   | 1,005         | 752             
|Leasing - domestic                           | 1,105         | 960             
|Leasing - Canadian                           | 1,165         | 1,209           
|Consumer                                     | 746           | 918             
|Subtotal                                     | 6,419         | 5,761           
|Total nonperforming loans         and leases | 7,320         | 7,222           
|Other real estate owned                      | 4,321         | 2,833           
|Total nonperforming assets                   | $11,641       | $10,055         
|Nonperforming assets to
total assets         | 0.41%         | 0.42%           

Capital Adequacy

|                   | Ratio         |           |              | 
|------------------ | ------------- | --------- | ------------ | 
|                   | Required to   |           |              | 
|                   | be considered |           |              | 
|                   | Well-         | March 31, | December 31, | 
|                   | Capitalized   | 2001      | 2000         | 
|                   |               |           |              | 
|Equity to Assets   | n/a           | 6.92%     | 7.84%        | 
|Risk-Based Capital | 10.0%         | 12.59%    | 13.59%       | 
|Tier I Capital     | 6.0%          | 8.40%     | 8.87%        | 
|Tier I Leverage    | 5.0%          | 9.78%     | 12.41%       | 





Derivative Financial Instruments

The Corporation utilizes certain derivative instruments which do not qualify for hedge accounting treatment under SFAS No. 133.

The Corporation economically hedges its interest rate risk on mortgage loans held for sale using mandatory commitments to sell the loans at a future date. Certain of the Corporation's interest-only strips are
hedged using interest rate caps which had a fair value of $0.1 million and a notional amount of $21.1 million at March 31, 2001.  Interest rate caps are classified as trading securities on the balance sheet and carried at their fair values.  Adjustments
to fair values are recorded as trading gains or losses on the income statement.  In the first quarter of 2001, the Corporation recorded a $0.1 million loss related to these derivative products.  This compares to a gain of $3.4 million in the first quarter
of 2000.

The Corporation also engaged in economically hedging its mortgage servicing rights through the use of Eurodollar and  U.S. Treasury futures contracts.  For the first quarter, the Corporation experienced $0.1 million of realized gains and $3.2
million of unrealized gains on these economic hedges.  The notional value of U.S. Treasury futures contracts outstanding at March 31, 2001 was $4.9 billion. The Corporation did not hold any US Treasury futures at March 31, 2001.  The futures contracts
were marked-to-market as trading securities with changes in value recorded in the income statement.

Onset Capital Corporation uses two interest rate swaps to reduce repricing risk associated with a funding source.  The interest rate risk is created due to a repricing mismatch between the fixed-rate payment stream from leasing assets and
floating rate funding. The notional amounts of the swaps were $28.0 million and $29.1 million as of March 31, 2001.  The notional values of both interest rate swaps amortize on a schedule designed to approximate the principal pay down of the loan
portfolio, and has a final maturity date of May 25, 2004.  Onset can reduce the notional value of the swaps by up to 10% if prepayments on the loans are greater than originally anticipated.

The Corporation has foreign currency contracts to protect the value of intercompany loans made to Onset Capital against changes in the exchange rate.  The Corporation had a notional amount of $14.7 million
in forward contracts outstanding as of March 31, 2001.  Gains and losses associated with these contracts are included in other expense on the income statement.

Liquidity
      Liquidity is the availability of funds to meet the daily requirements of the Corporation's business.  For financial institutions, demand for funds results principally from extensions of credit and withdrawal of deposits.  Liquidity is provided by
asset maturities or sales and through deposits and short-term borrowings.
       The objectives of liquidity management are to ensure that funds will be available to meet current demands and that funds are available at a reasonable cost.  Liquidity is managed by the parent company via daily interaction with the lines of
business and periodic liquidity planning sessions.
      Since loans are less marketable than securities, the ratio of total loans to total deposits is a traditional measure of liquidity for banks and bank holding companies.  At March 31, 2001, the ratio of loans and loans held for sale to total deposits
was 119.2%.  The Corporation is comfortable with this relatively high level due to its position in mortgage loans held for sale.  These loans carry an interest rate at or near current market rates for first and second lien mortgage loans.  Since the
Corporation securitizes and sells nearly all these mortgage loans within a 90-day period, our liquidity is significantly higher than the ratio would suggest by traditional standards.  Excluding mortgage loans held for sale, the loan-to-deposit ratio is
72.4% at March 31, 2001.







Part I



Item 3



QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

|Economic Value Change Method |                                           
|---------------------------- | ------------------------------------------
|                             | Present Value                             
|                             | At March 31, 2001                         
|                             | Instantaneous Change in Interest Rates of:

|(In Thousands)                            | -2%         | -1%         | Current     | +1%         | +2%        
|----------------------------------------- | ----------- | ----------- | ----------- | ----------- | -----------
|                                          |             |             |             |             |            
|Interest Sensitive Assets                 |             |             |             |             |            
|Loans and Other Assets (1)                | $1,595,971  | $1,557,857  | $1,520,664  | $1,484,835  | $1,450,440 
|Loans Held for Sale                       | 718,136     | 713,212     | 707,726     | 701,981     | 696,018    
|Mortgage Servicing Rights                 | 54,279      | 83,056      | 136,883     | 179,658     | 200,820    
|Interest-Only Strips                      | 160,301     | 166,781     | 174,545     | 182,972     | 191,599    
|Total Interest Sensitive Assets           | 2,528,687   | 2,520,906   | 2,539,818   | 2,549,446   | 2,538,877  
|                                          |             |             |             |             |            
|Interest Sensitive Liabilities            |             |             |             |             |            
|Deposits                                  | (1,120,943) | (1,116,157) | (1,111,455) | (1,106,832) | (1,102,289)
|Short Term Borrowings                     | (805,850)   | (803,067)   | (800,255)   | (797,620)   | (794,961)  
|Long Term Debt                            | (215,435)   | (206,751)   | (197,340)   | (186,482)   | (174,898)  
|Total Interest Sensitive Liabilities      | (2,142,228) | (2,125,975) | (2,109,050) | (2,090,934) | (2,072,148)
|                                          |             |             |             |             |            
|Net Market Value as of March 31, 2001 (1) | $386,459    | $394,931    | $430,768    | $458,512    | $466,729   
|                                          |             |             |             |             |            
|Potential Change                          | ($44,309)   | ($35,837)   | $-          | $27,744     | $35,961    
|                                          |             |             |             |             |            
|Net Market Value as of December 31, 2000  | $303,443    | $312,277    | $338,895    | $353,270    | $348,506   
|                                          |             |             |             |             |            
|Potential Change                          | ($35,452)   | ($26,618)   | $-          | $14,375     | $9,611     

1. Approximately $51.0 million of the increase in Net Market Value of interest sensitive items relative to December 31, 2000, is due to the re-categorizing of certain deposit assets from non interest sensitive assets to interest sensitive assets.









|GAAP-Based Value Change Method |                                           
|------------------------------ | ------------------------------------------
|                               | Present Value                             
|                               | At March 31, 2001                         
|                               | Instantaneous Change in Interest Rates of:

|(In Thousands)                           | -2%       | -1%       | Current    | +1%        | +2%      
|---------------------------------------- | --------- | --------- | ---------- | ---------- | ---------
|                                         |           |           |            |            |          
|Interest Sensitive Assets                |           |           |            |            |          
|Loans and Other Assets (1)               | $26,242   | $14,493   | $2,808     | $(8,765)   | $(20,168)
|Loans Held for Sale                      | 707,726   | 707,726   | 707,726    | 701,981    | 696,018  
|Mortgage Servicing Rights                | 56,719    | 85,404    | 128,673    | 129,278    | 131,107  
|Interest-Only Strips                     | 160,302   | 166,781   | 174,545    | 182,972    | 191,599  
|Total Interest Sensitive Assets          | 950,989   | 974,404   | 1,013,752  | 1,005,466  | 998,556  
|                                         |           |           |            |            |          
|Interest Sensitive
 Liabilities          |           |           |            |            |          
|Deposits (1)                             |           |           |            |            |          
|Short Term Borrowings (1)                |           |           |            |            |          
|Long Term Debt (1)                       |           |           |            |            |          
|Total Interest Sensitive Liabilities (1) |           |           |            |            |          
|                                         |           |           |            |            |          
|Net Market Value as of
March 31, 2001    | $950,989  | $974,404  | $1,013,752 | $1,005,466 | $998,556 
|                                         |           |           |            |            |          
|Potential Change                         | ($62,763) | ($39,348) | $-         | ($8,286)   | ($15,196)
|                                         |           |           |            |            |          
|Net Market Value as of
December 31, 2000 | $818,322  | $837,172  | $856,432   | $859,801   | $849,783 
|                                         |           |           |            |            |          
|Potential Change                         | ($38,110) | ($19,260) | $-         | $3,369     | ($6,649) 

(1)  Value does not change in GAAP presentation.



Part II



OTHER INFORMATION



Item 1.  Legal Proceedings

On May 9, 2001, Irwin Union Bank and Trust Company and Irwin Home Equity Corporation (collectively "Irwin") received notice that they were named as defendants in Thompson v. Irwin Union Bank and Trust Company and Irwin Home Equity Corporation
, a lawsuit filed in the U.S. District Court for the District of Rhode Island.  The suit alleges that Irwin's disclosures and closing procedure for certain home equity loans did not comply with certain provisions of the Truth in Lending Act.  The suit
also requests that the court certify a plaintiff class in this action. On June 18, Irwin filed a motion with the court to compel arbitration pursuant to the provisions in the home equity loan agreement.  Because the case has only recently been filed, the
Corporation has not formed a reasonable estimate of the amount of potential loss, if any, that the Corporation could suffer.



On June 15, 2001, a panel of the United States Court of Appeals for the 11th Circuit denied the appeal of Irwin Mortgage Corporation ("IMC") (formerly Inland Mortgage Corporation), and upheld the trial court's certification of a limited
class of borrowers in Culpepper, et. al v. Inland Mortgage Corporation.  This lawsuit was filed against IMC in April, 1996, in the United States District Court for the Northern District of Alabama.  The suit alleges that IMC violated the Real Estate Settlement
Procedures Act (RESPA) in connection with certain payments IMC made to mortgage brokers.  The decision allowing the class certification to stand does not conclude the lawsuit or otherwise establish liability.  On July 11, 2001, IMC filed a motion seeking
a rehearing before the 11th Circuit Court of Appeals and will continue to vigorously defend this lawsuit.  Although the Corporation is unable at this stage of the litigation to determine a reasonable estimate of potential losses, it is expected that an adverse outcome
in this litigation could have a material adverse effect on the Corporation's financial condition and results of operations.







Item 5.  Market for Corporation's Common Equity and Related Stockholder Matters

On January 2, 2001 the Corporation issued 2,898 shares of common stock pursuant to elections made by nine outside directors of the Corporation to receive board compensation under the 1999 Outside Director Restricted Stock Compensation Plan
in lieu of cash fees.

All of these shares were issued in reliance on the private placement exemption from registration provided in section 4(2) of the Securities Act.



Item 6



(a)   Exhibits to Form 10-Q

|Number Assigned
In Regulation S-K |                                                                                           
|--------------------------------- | ------------------------------------------------------------------------------------------
|Item 601                          | Description                                                                               
|                                  |                                                                                           
|(2)                               | No Exhibit                                                                                
|                                  |                                                                                           
|(3)                               | Code of By-Laws of Irwin Financial Corporation as amended to date                         
|                                  |                                                                                           
|(4)                               | No Exhibit                                                                                
|                                  |                                                                                           
|(10)(a)                           | Limited Liability Company Agreement of Irwin Ventures LLC                                 
|(10)(b)                           | Irwin Home Equity Corporation Shareholder Agreement                                       
|                                  |                                                                                           
|(11)                              | Computation of earnings per share is included in the footnotes to the financial statements
|                                  |                                                                                           
|(15)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(18)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(19)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(22)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(23)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(24)                              | No Exhibit                                                                                
|                                  |                                                                                           
|(99)                              | No Exhibit                                                                                

(b)   Reports on Form 8-K





|8-K   | January 2, 2001  | Attaching press release announcing Robert H. Griffith as President of IMC                            
|----- | ---------------- | -----------------------------------------------------------------------------------------------------
|8-K   | January 23, 2001 | Attaching press release announcing quarterly and annual earnings                                     
|8-K/A | January 24, 2001 | Amendment to 1/23/01 8-K to correct misstatement                                                     
|8-K   | March 1, 2001    | Attaching press release announcing action on dividend, directors' terms and rights plan              
|8-K   | March 2, 2001    | Filed by Vedder Price with summary of Rights Plan and attaching Rights Agreement between IFC and IUBT
|      |                  |                                                                                                      
|      |                  |                                                                                                      
|      |                  |                                                                                                      
|      |                  |                                                                                                      









SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.





IRWIN FINANCIAL CORPORATION



By: /s/Gregory F. Ehlinger

___________________________

Gregory F. Ehlinger

Chief Financial Officer



By: /s/Jody A. Littrell

___________________________

Jody A. Littrell

Corporate Controller

(Chief Accounting Officer)