Irwin Cuts 3Q Earnings, Citing MSRs

Irwin Financial Corp., Columbus, Ind., has reported a downward revision of its third-quarter and year-to-date net income to reflect an additional impairment to the mortgage servicing rights of its commercial banking business.The revision, which totaled $800,000 ($0.03 per share), brought earnings down to $8.2 million ($0.29 per share) for the third quarter and $26.1 million ($0.96 per share) for the first nine months of this year. "The additional impairment is the result of unprecedented and unexpected levels of residential mortgage loan originations in the commercial line of business over the past two years, largely driven by refinancing activity," Irwin said. The company said it had determined that the carrying value of its $328 million of conventional first mortgages should be reduced by $1.3 million to a total of $1.8 million. The earnings revision did not affect the mortgage servicing rights of Irwin's mortgage banking business, which remained unchanged, and the company reaffirmed its earnings forecasts for 2002 and 2003. Irwin can be found online at http://www.irwinfinancial.com.