Irwin Financial has announced that approximately $150 million of commercial banking loans were sold to First Financial Bank, National Association. Approximately, $40 million other commercial banking and franchise finance loans were sold to other purchasers. In aggregate, the loans were sold at 99.8% of par.
Irwin also agreed to sell the offices of Irwin Union Bank & Trust Company located in Greensburg and Indiana, to First Financial.
Will Miller, Chairman and CEO of Irwin Financial, said: “While we finalize our second quarter results and await approval for our capital infusion, reducing our balance sheet with loan sales at or near par value is the best way to help keep our banks adequately capitalized. These transactions are designed to give us the time necessary to complete our work with the Treasury and private investors who have committed to make equity investments as part of our recapitalization plan.”
Further, Irwin announced a reorganization of managerial responsibilities in the commercial banking segment. John Wilcox will assume the role of President of the commercial banking division of Irwin Union Bank and Trust. Brad Kime, the current President of commercial banking, has decided to focus exclusively on loan portfolio credit quality, where management believes the company is making good progress. Rick Hagan will become the President of Irwin Union Bank, F.S.B.
Irwin Financial provides banking services to small businesses and consumers in the Midwest and Southwest, and to restaurant franchisees across the US.
