IndyMac Bancorp Inc., Pasadena, Calif., has lowered its expected earnings for the third quarter to $0.78 per share from its previous forecast of $0.85-0.95 per share.The company attributed the change in the earnings outlook to declining net interest and gain-on-sale margins (mitigated by an increase in mortgage production and market share); an underestimation of the impact of purchase accounting adjustments related to the acquisition of Financial Freedom Holdings Inc.; and the continuing effects of the Securities and Exchange Commission Staff Accounting Bulletin No. 105 on gain-on-sale margins as the pipeline clears out. Michael W. Perry, IndyMac's chief executive officer, said the $0.78 earnings-per-share estimate still reflects "strong performance given the fact that the overall mortgage industry volumes declined 44% year over year, and industry margins have compressed as well." IndyMac, the holding company for IndyMac Bank, can be found online at http://www.indymacbank.com.

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