Industry News

IndyMac profit jumps 26%

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IndyMac Bancorp, which runs one of Southern California's largest savings and loans, today reported a 26 percent rise in first-quarter profit, helped by higher mortgage production. The company also raised its 2006 earnings forecast. IndyMac said its net income rose to $80 million, or $1.18 a share, for the first quarter of 2006, from $63 million, or 98 cents a share, a year earlier. Revenue jumped 20 percent to $304.5 million Mortgage production for the Pasadena-based parent of IndyMac Bank rose 72 percent in the quarter to a record $20 billion, the company said. This helped to more than double its share of the mortgage market to 3.89 percent from 1.87 percent a year ago. IndyMac said it deployed $505 million more in capital, an increase of 55 percent, and reduced its underdeployed capital to $169 million from $346 million. It deployed $509 million of its capital to its mortgage production divisions, an 83 percent rise on a year ago, but narrowing mortgage banking revenue margins in t...