IndyMac Bancorp, the holding company for IndyMac Bank, today reported its third-quarter earnings jumped 40 percent on strong mortgage loan production.
Third-quarter earnings were $79.3 million, or $1.18 a share, including a 5-cents-per-share loss related to the Gulf Coast hurricanes. Third-quarter earnings a year ago were $49.7 million, or 78 cents a share.
Revenues were up 31 percent to $282.7 million in the third quarter.
The company recorded record mortgage loan production of $17 billion, up 64 percent from last year. IndyMac’s mortgage market share of 2.19 percent was up 37 percent based on the Mortgage Bankers Association’s long-term forecast.
The company had a record pipeline of mortgage loans in process, totaling $8.9 billion at the end of the quarter, up 39 percent from last year. And the company’s portfolio of loans serviced for others was up 66 percent to $74 billion.
Though the company’s business performed well and stock is up for the year, it is currently down 20 percent from the year’s high, IndyMac Chairman and CEO Michael Perry said. “This is primarily due to the fact that the mortgage industry is experiencing some challenges and there is widespread concern that conditions for our industry will get worse before they get better.”
IndyMac shares (NYSE:NDE) were trading at $37.70 this afternoon.
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