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 June 30, 2000
OR

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

For the transition period from ________________ to _____________

Commission file number    0-6835
IRWIN FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

INDIANA  

(State or other jurisdiction of Incorporation or organization)

35-1286807

(IRS Employer Identification No.)

500 Washington Street, Columbus, IN  47201

(Address or principal executive offices)

(Zip Code)

812-376-1909

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reportsrequired to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject tosuch 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 andreports required to be filed by Sections 12, 13, or 15(d) of the SecuritiesExchange Act of 1934 subsequent to the distribution of securities under aplan confirmed by a court.

Yes _____   No _____

As of July 31, 2000 there were outstanding 20,979,683 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)
June 30,
December 31,**Assets:
2000
1999
Cash and due from banks
$51,999 
$47,215 
Federal funds sold
10,000 
0 
Cash and cash equivalents
61,999 
47,215 
Interest-bearing deposits with financial institutions
34,595 
26,785 
Trading assets
96,094 
59,025 
Investment securities  (Market value: $36,400 in 2000

and $37,464 in 1999) - Note 2
36,754 
37,508 
Loans held for sale - Note 3
543,673 
508,997 
Loans and leases, net of unearned income - Note 4
939,025 
733,424 
Less: Allowance for loan and lease losses - Note 5
(10,054)
(8,555)
928,971 
724,869 
Servicing assets  - Note 6
139,876 
138,500 
Accounts receivable
54,016 
49,415 
Accrued interest receivable
12,488 
8,430 
Premises and equipment 
27,540 
23,368 
Other assets
57,005 
56,735 
$1,993,011 
$1,680,847 **Liabilities and Shareholders' Equity:
Deposits
   Noninterest-bearing
$263,661 
$218,402 
   Interest-bearing
487,017 
411,400 
   Certificates of deposit over $100,000
479,821 
240,516 
1,230,499 
870,318 
Short-term borrowings- Note 7
410,971 
473,103 
Long-term debt- Note 8
29,585 
29,784 
Other liabilities
101,032 
100,275 
Total liabilities
1,772,087 
1,473,480 
Company-obligated mandatorily redeemable preferred securities of subsidiary trust- Note 9
48,107 
48,071 
Shareholders' equity
   Preferred stock, no par value - authorized  4,000,000 shares; issued 96,336 shares as of June 30, 2000 and none as of December 31, 1999
1,386 
0 
   Common stock; no par value - authorized 40,000,000 shares; issued 23,402,080 shares as of June 30, 2000 and December 31, 1999; including 2,430,488 and 2,297,303 shares in treasury as of June30, 2000 and December 31, 1999 respectively
29,965 
29,965 
Additional paid-in capital 
4,334 
4,250 
Unrealized losses on investment securities
(105)
(70)
Retained earnings
185,570 
171,101 
221,150 
205,246 
Less treasury stock, at cost
(48,333)
(45,950)
Total shareholders' equity
172,817 
159,296 
$1,993,011 
$1,680,847 *The accompanying notes are an integral part of the consolidated financial statements.*
IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)
**
Three Months Ended
June 30,*(In thousands, except for per share)
2000
1999**Interest income:
 Loans and leases
$19,322 
$12,450 
 Investment securities:
   Taxable
999 
981 
   Tax-exempt
64 
69 
 Loans held for sale
19,610 
14,972 
 Trading Account
2,682 
1,589 
 Federal funds sold
47 
274 
    Total interest income
42,724 
30,335 **Interest expense:

 Deposits
11,550 
5,755 
 Short-term borrowings
9,050 
5,612 
 Long-term debt
580 
1,186 
    Total interest expense
21,180 
12,553 
 Net interest income
21,544 
17,782 
 Provision for loan and lease losses - Note 5
1,119 
2,330 
 Net interest income after provision for
    loan and lease losses
20,425 
15,452 **Other income:

 Loan origination fees
9,052 
12,613 
 Gain from sales of loans
21,718 
25,834 
 Loan servicing fees
14,802 
15,943 
 Amortization and impairment of servicing assets
6,708 
4,573 
     Net loan administration income
8,094 
11,370 
 Gain on sale of mortgage servicing
5,471 
478 
 Trading gains (losses)
4,902 
(639)
 Brokerage fees and commissions
497 
411 
 Trust fees
683 
544 
 Service charges on deposit accounts
472 
445 
 Insurance commissions, fees and premiums
1,363 
976 
 Other
627 
1,444 
52,879 
53,476 **Other expense:

 Salaries
29,527 
28,808 
 Pension and other employee benefits
5,256 
4,511 
 Office expense
3,244 
3,058 
 Premises and equipment
7,048 
5,804 
 Marketing and development
3,934 
2,337 
 Other
9,026 
10,263 
58,035 
54,781 
Income before income taxes
15,269 
14,147 
Provision for income taxes
5,590 
5,360 
9,679 
8,787 
Distribution on company-obligated mandatorily 
 redeemable preferred securities of subsidiary trust
1,174 
1,174 
Net income available to common shareholders
$8,505 
$7,613 
Earnings per share of common stock available to shareholders:
 Basic - Note 10
$0.41 
$0.35 
 Diluted - Note 10
$0.40 
$0.35 
 Dividends per share of common stock
$0.06 
$0.05 *The accompanying notes are an integral part of the consolidated financial statements.

IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)
**
Six Months Ended
June 30,*(In thousands, except for per share)
2000
1999**Interest income:
 Loans and leases
$39,532 
$24,230 
 Investment securities:
   Taxable
1,928 
1,987 
   Tax-exempt
127 
141 
 Loans held for sale
31,648 
32,413 
 Trading Account
5,166 
2,875 
 Federal funds sold
93 
417 
    Total interest income
78,494 
62,063 **Interest expense:

 Deposits
20,010 
11,420 
 Short-term borrowings********************