Irwin Financial Corporation amends its Form 10-Q filed for
the quarter ending March 31, 1999. The amended entry is
flagged with an "*" at the beginning and end.
Derivative Financial Instruments
The Corporation hedges its interest rate risk on
mortgage loans held for sale using mandatory commitments to
sell the loans at a future date. The economic value of
mortgage servicing assets are hedged using options on
treasury futures. At March 31, 1999, these options had a
fair value of $0.8 million and a notional amount (which does
not represent the amount at risk) of *$337.5 million.*
Interest-only strips are hedged using interest rate caps
which had a fair value of $0.6 million at March 31, 1999,
and a notional amount of $61.4 million. Options on treasury
futures and interest rate caps are classified as trading
assets on the balance sheet and carried at their market
values. Adjustments to market values are recorded as net
trading gains or losses on the income statement. In the
first quarter of 1999, the Corporation recorded $10.0
million of trading losses related to these derivative
products. No gains or losses were reported in the first
quarter of 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
June 4, 1999 IRWIN FINANCIAL CORPORATION
/s/ Marie S. Ameis
Corporate Controller
(Chief Accounting Officer)
