IndyMac Reports 1Q Profit Plunge

IndyMac Bancorp Inc., Pasadena, Calif., has reported net earnings of $52.4 million ($0.70 per share) for the first quarter, down 34% from $79.8 million ($1.18 per share) a year earlier.However, IndyMac reported mortgage loan production of $26 billion, which was up 28% from that of a year earlier, and the company said it had attained a record market share of 3.92%. "This quarter was a serious test of our hybrid thrift/mortgage banking business model," said Michael W. Perry, IndyMac's chairman and chief executive officer, pointing to big earnings declines in its wholesale and conduit channels, which had been "two of our major profit contributors" in recent years. "However, Financial Freedom, our reverse mortgage subsidiary, posted a 50% increase over last quarter such that we were able to earn $44 million and [a return on equity] of 26% from mortgage production for the quarter." Combined with a 68% rise in earnings from mortgage servicing, IndyMac's total consumer mortgage banking business, "while down 22% from last quarter, was solidly profitable, earning $60 million and a 24% ROE," Mr. Perry said. IndyMac, the holding company for IndyMac Bank FSB, can be found online at http://www.indymacbank.com.