Market conditions lead Irwin Financial to stop dividend payments indefinitely

By Lisa Kerner

Charlotte, N.C., March 3 - Irwin Financial Corp.'s board of directors voted to suspend quarterly dividends on its common, preferred and trust preferred securities until the company returns to "normal levels of profitability," it was announced on Monday.

It is unlikely dividends will be resumed any time in 2008.

In addition, Irwin Financial is not seeking assistance from its subsidiary, Irwin Union Bank and Trust Co., in order to pay the dividends, as it has done in the past, due to uncertainty in the capital markets and continued deterioration in credit quality, chairman and chief executive officer Will Miller said in a company news release.

In order to remain within its policy of maintaining 12% or greater risk-weighted capital, Irwin Union Bank tightened its underwriting guidelines and ceased production of certain second mortgages in its home equity segment.

"With strong capital, good liquidity at the bank, and our moves to reduce risk in our ongoing originations, I believe we can and will manage through the increased uncertainties in the current environment and, when conditions permit, restore the dividends," Miller added.

Columbus, Ind.-based Irwin Financial is the bank holding company of Irwin Union Bank and Trust and Irwin Union Bank, F.S.B.

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