IndyMac Bancorp Swings to Loss


IndyMac Bancorp, one of the largest independent U.S. mortgage lenders, Monday reported that it swung to a loss in the first quarter on credit provisions and the cost of cutting jobs and closing offices.

IndyMac reported a net loss of $184.2 million, or $2.27 a share, compared with a profit of $52.4 million, or 70 cents a share, in the year-ago quarter.

Analysts had forecast a loss of $1.92 a share, according to Reuters Estimates.

The Pasadena, California-based lender, which said it does not expect to return to profitability this year, added it was suspending dividends on its preferred stock to preserve capital, which it called a temporary measure.

IndyMac has suffered as the nation's housing slump has extended beyond subprime mortgages into the medium- and higher-quality loans in which it has long specialized.

IndyMac, whose shares have tumbled 42 percent so far this year, said it expected its loss to narrow to $20 million by the fourth quarter.