Irwin's Servicing Results Help Boost Mortgage Earnings
Irwin Financial Corp. said net income grew to $18.5 million in the third quarter, up from $16.3 million in the third quarter of 2004. Earnings also improved compared to the second quarter.
Strong loan origination volume and a reversal of mortgage servicing impairment helped generate the increase in earnings, Irwin said.
"The quarter-over-quarter improvement was fueled by the turnaround in mortgage banking," Irwin Financial's chairman, Will Miller, said in a news release.
That mortgage turnaround also reflected an increase in reported revenue due to improved mortgage servicing valuations.
Irwin's mortgage banking unit had record net income of $5.9 million, compared to a loss of $9.2 million in the second quarter and prior-year earnings of $4.1 million.
Net servicing and hedging impairment in this year's third quarter was a positive, adding $1 million to Irwin's results. That's a sharp turnaround from the $27 million impairment charge the company took in the second quarter.
Loan production of $3.2 billion was 21% higher than the second-quarter production number. Fourth quarter results were not available by press time.
SNAPSHOT: Irwin's 3rd Quarter
Net Income $18.5 MM
Mortgage Income $5.9 MM
Servicing Improvement $1 Million
Source: Irwin Financial Corp.
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