Irwin Financial announces strategic restructuring

Jul 25, 2008 (Datamonitor via COMTEX) -- UBKFF | Quote | Chart | News | PowerRating -- Irwin Financial has announced transactions that, when completed in the third quarter of 2008, will accomplish a strategic restructuring of the corporation and Irwin Union Bank.

Irwin believes that the restructuring will enable the company to re-focus on core banking services to small businesses and branch-based customers. The restructuring will cap Irwin's remaining exposure to the national home equity lending business, which has been a principal driver of recent losses.

To further strengthen its liquidity, the corporation also entered into agreements to sell its small-ticket leasing business in Canada to RoyNat, a subsidiary of Scotiabank Group, and in the US to Equilease Financial Services for $600 million prior to associated costs.

Will Miller, chairman and CEO of Irwin Financial, said: "We believe these transactions will enhance Irwin Financial's capital and liquidity to support our focus on our traditional strengths in serving the banking needs of small businesses and our local communities. These transactions and the strategic restructuring actions they entail will return our core operations to profitability."

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