IndyMac Posts $500M+ 4Q Loss

IndyMac Bancorp Inc., Pasadena, Calif., has reported a net loss of $509.1 million ($6.43 per share) for the fourth quarter, compared with net earnings of $72.2 million ($0.97 per share) one year earlier. For the full year, IndyMac lost $614.8 million ($8.28 per share), the first annual loss in the company's 23-year history. In 2006, it recorded net earnings of $342.9 million ($4.82 per share). IndyMac chairman and chief executive Michael Perry attributed the loss to $863 million in pretax credit provisions and costs during the fourth quarter. Despite the big loss, Mr. Perry said IndyMac's capital levels "continue to exceed the levels defined as 'well capitalized' by our regulators," with a core capital ratio of 6.24% and a total risk-based capital ratio of 10.50%. The company had total operating liquidity in excess of $6 billion. But even though IndyMac has what Mr. Perry termed strong liquidity, it is still suspending its quarterly common stock dividend payments indefinitely. That move, combined with shrinking its balance sheet, will add an additional $400 million to capital. The company can be found online at http://www.indymacbank.com.