By Kirk Johannesen, The Republic
johannsen@therepublic.com
Irwin Financial Corp. lost an estimated $200 million this year before it filed for bankruptcy, and more than $500 million the last two years, according to court documents filed Monday.
IFC had reported that it had lost $151 million in the first and second quarters of this year - but the corporation also said last month it was told by Federal Reserve Bank of Chicago and state regulators to amend its secondquarter earnings statement and report higher losses.
IFC also listed in the new court documents assets of just more than $12 million and liabilities of more than $200 million.
Previously IFC had reported assets and liabilities in ranges: $10 million to $50 million in assets, and $100 million to $500 million in liabilities.
IFC filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court Southern District of Indiana on Sept. 18, after state and federal bank chartering agencies seized control of Irwin Union Bank and Trust and Irwin Union Bank FSB, the corporation's thrift bank.
The chartering agencies named Federal Deposit Insurance Corp. as the receiver of the banks, and FDIC brokered a sale of both to Hamilton, Ohio-based First Financial Bancorp.
The chartering agencies said in news releases that the banks operated in unsafe and unsound manners, IUBT was in danger of insolvency and the thrift bank lacked realistic prospects for raising capital to offset losses and had inadequate management.
IFC said in a statement of financial affairs document that it lost $54,673,032 in 2007, $340,479,825 in 2008 and an estimated $200 million this year.
Documents show IFC claiming assets of $12,717,045.60. Those assets include bank accounts, stocks and interests in businesses, partnerships or joint ventures, accounts receivable, office equipment, furniture and supplies.
IFC listed liabilities of $229,998,181.86. The bulk of the liabilities, $229,530,670.35, are creditors holding unsecured, nonpriority claims.
The majority of the unsecured claims, more than $227 million, are junior subordinated debentures.
Debentures are debt instruments not secured by physical assets or collateral. They are backed by the general creditworthiness and reputation of the issuer.
Subordinated debentures rank below other investments, such as secured debt, when claims are filed against the debtor.