Already out of traditional mortgage banking, Columbus, Ind.-based Irwin Financial Corp. (IFC) reported a $107 million second quarter loss as it looks now to exit home equity lending, as well -- part of the bank's restructuring plan that will see it refocus almost entirely on small business and local lending, after a foray into national mortgage banking left it facing mounting losses in the past year. "Overall, we expect to incur significant costs to exit and restructure these businesses; approximately $105 million was recognized in the second quarter, and a like amount will be recorded in coming months, mostly in the third quarter," said CEO and chairman Will Miller. "Thus, we expect the bulk of the restructuring costs to be recognized by year end." The bank holding company provisioned $158 million for loan losses during the quarter, $132 million of which was tied to its home equity and small ticket leasing segments -- the company will be exiting both businesses as part of its restructuring effort. Net of charge-offs, allowance for losses increased to $216 million at the end of Q2, up from $159 million at the end of the first quarter; the company has been extremely conservative in reserving for losses, with its loan loss allowance representing 203 percent of non-performing loans at the end of Q2. The company's home equity segment lost $44 million during the second quarter, compared to a loss of $16 million during the first quarter. On July 25, Irwin said it had entered a deal for the sale and securitization of substantially all its $1.3 billion home equity portfolio; the company will hold just $316 million after the deal goes through, it said. Thirty-day and greater delinquencies on the total home equity portfolio increased from 5.66 percent at March 31 to 6.06 percent at June 30, Irwin said. Disclosure: The author held no positions in IFC when this story was published; indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.