LV bank operator’s stock falls

Thursday, July 3, 2003 | 11:27 a.m.

SUN STAFF AND WIRE REPORTS

COLUMBUS, Ind. -- Irwin Financial Corp. shares dropped as much as 15 percent today after the Indiana-based mortgage lender said second-quarter profit will be "significantly below" earnings in the previous quarter.

Irwin said second-quarter earnings per share, which analysts in a Thomson Financial survey expected to be 61 cents, would fall short of the 41 cents recorded in the first quarter. Full year profit will be at least $2.25 a share, comparable to analysts' expectations, the company said. Irwin shares fell $2.16 to $23.22 at 10:07 a.m. in New York Stock Exchange composite trading today.

The company's subsidiary -- Irwin Union Bank -- has operated one small business banking branch in Las Vegas since 2001. Irwin Union Bank also has branches in Arizona, Kentucky, Missouri and Utah.

Irwin blamed a weak economy and lack of recovery in the national employment rate, which is making it difficult for customers to pay back debt. In the first quarter, Irwin wrote off $6.1 million in loans, a 24 percent increase from the previous period, partly related to its home-equity lending business.