DAVENPORT (AP) -- The Roman Catholic Diocese of Davenport announced that it has agreed to settle 37 claims of sexual abuse by priests for $9 million.

The deal allows the diocese to avoid immediate bankruptcy and avert a series of trials potentially embarrassing to the church's handling of priests accused of abuse in the last 50 years.

"This has been a tragic time for our church," Bishop William Franklin said during a press conference Thursday. "It is my prayer that true healing may now begin in the Diocese of Davenport."

Franklin and lawyers for the diocese had said that without a settlement, the diocese most likely would file for bankruptcy, a process that would have exposed the diocese to unprecedented financial scrutiny.

In July, the Archdiocese of Portland, Ore., became the first diocese in the nation to file for bankruptcy in the wake of the sexual abuse crisis in the church. The Diocese of Tucson, Ariz., filed for Chapter 11 protection in September.

The settlement amount, reached after weeks of intense and difficult negotiations, is a mix of insurance payments and diocesan funds, Franklin said. Both sides agreed not so share details of the negotiations publicly.

The bishop also said it is unclear how the settlement would affect the church, its holdings and the services it provides to its 102,000 parishioners in 84 parishes across southeastern Iowa.

Earlier this month, Franklin announced layoffs and early resignations to trim church staff from 44 employees to 18. He also mentioned selling church property and assets, including St. Vincent's, which is home to diocese offices and a retirement home for priests.

Franklin declined to release the payment received by its insurer. In a court hearing earlier this month, diocese attorneys calculated church assets at $10 million.

"All I can say right now is we're looking at these possibilities," Franklin said. "I hope this for the moment puts bankruptcy aside."

Franklin said he is anticipating other claims could come forward in the future, which would make the diocese's financial situation uncertain.

"I'm concerned about it. It's sad to say there are still more victims. When they come forward, we have to handle their cases as is," Franklin said.

He said lawyers for both sides also agreed on some measures to provide stronger protections for children, including better monitoring of priests.

He noted that most of the claims date back to the 1950s and 1960s.

"Prior bishops are no longer living to explain their decisions," he said.

"All I know for certain is that, in fact, we failed to protect children from harm," the bishop said. "I am profoundly sorry and I express deep apology to the victims from the entire Catholic community."

Craig Levien, the attorney representing most of the victims, said the settlement will help heal the mental and emotional wounds caused by the priests' behavior.

"These victims have suffered drug, alcohol, marital, mental and sexual problems," Levien said. "For years, these victims have waited for vindication, validation, support and closure."

The 37 claims target the past behavior of as many as 11 priests, three of whom were individually named in the lawsuits.

Franklin said a decision has not yet been made whether to identify the others.

The settlement was reached just days before the first of the cases was set for trial.

Levien said the settlement eliminates the diocese as a defendant in all the lawsuits, but not the priests accused of abusing the victims.

Levien said the Nov. 1 trial involving former priest James Janssen may be delayed, pending a court hearing Friday. Janssen, who retired in 1990 and was defrocked last month by the Vatican, is living at St. Vincent's and is a defendant in eight of the lawsuits.

"I personally feel better … than to have him not live there and be out in the general public" Franklin said.