Catching up on a press release from last week, Irwin Financial Corporation warned that it will lose a consolidated $15 to $20 million dollars when it reports its third quarter results on October 31. The company said it expects to break even on continuing operations, while absorbing losses in it discontinued operations:
"The sustained disruptions in the housing and mortgage markets duringthe third quarter have created a more difficult environment than weexpected in which to wind-down our Discontinued Operations and torestructure our home equity segment," said Will Miller, Chairman and CEO ofIrwin Financial Corporation. "Nonetheless, we believe we are makingprogress in each of these segments. Our provision in the third quarter hascreated significant reserves for larger potential losses from futurerepurchase demands in the Discontinued Operations and loan losses in ourconsumer home equity portfolio. "In response to the current environment, we have taken additionalaction in both of these troubled operations. We have increased ourresources to address repurchase demands, loss mitigation, and recoveryefforts. At home equity, we have further tightened our lending guidelinesand reduced our production-based staffing," Miller concluded.
Irwin lost $6.1 million in the first quarter, while it turned a profit in the second quarter of 2007.