Weeks after saying it expected to report a first-quarter loss, Irwin Financial Corp. of Columbus, Ind., announced Friday that it turned a small profit.
The $5.2 billion-asset company said it earned $3.6 million, or 13 cents a share.
The results changed from a loss to a profit after it updated the estimates of certain fees related to home equity lending, Irwin said.
Still, the quarter was a disappointing one for Irwin, which could not sustain its pace of mortgage lending as interest rates rose. Earnings fell 82% from the same period last year, largely because of a $9.6 million loss from mortgage banking operations. As a result, Irwin's return on equity plummeted to 2.9%, from 11.7% a year earlier.
On a more positive note, Irwin reported a 4.3% increase in net income from home equity lending, to $6.9 million, and a 1% increase in commercial lending, to $5.5 million.
Late Friday, Irwin's stock price was trading at $19.93 a share, up 1% from Thursday's close.
