IndyMac Reports Record 2Q Profits

IndyMac Bancorp Inc., Pasadena, Calif., the holding company for IndyMac Bank, has reported record net earnings of $41.4 million ($0.73 per share) for the second quarter, up 20% from $34.6 million ($0.56 per share) a year earlier.The Mortgage Banking Group produced a record $8.0 billion of loans in the second quarter, up 73% from the volume recorded a year earlier, IndyMac said. "In light of the recent significant increase in long-term Treasury and mortgage rates, the industry appears to be in for an abrupt return to a more normal purchase-dominated mortgage market," said Michael W. Perry, IndyMac's vice chairman and chief executive officer. "Given that the majority of our capital is devoted to investment portfolio activities as opposed to mortgage origination activities and we currently have $259 million of excess capital, we believe we are reasonably well positioned for this likely challenging transition." IndyMac declared a cash dividend of $0.15 per share, up from $0.10 per share in the previous quarter, and pointed to recent changes in the tax laws regarding dividends as the reason for the hike. The company also announced that Terrance G. Hodel, the former president and chief operating officer of North American Mortgage Co., has been appointed to IndyMac's board. IndyMac can be found online at http://www.indymacbank.com.