Pasadena, California-based IndyMac Bancorp Inc., the holding company of IndyMac Bank F.S.B., says losses related to its mortgage lending business contributed to the company’s recent 57-percent decline in net earnings during the second quarter of 2007.

The company’s latest quarter report shows IndyMac with net earnings of $44.6 million, or $.60 per share during the second quarter, compared to $104.7 million (or $1.49 per share) for the same period last year.
The company attributes some of the losses to challenges it’s facing in the mortgage lending market. “Performing poorly for the quarter was our thrift segment,” the company said in a press statement. “The increase in NPAs in our loan portfolios resulted in increased loan loss provisions, and we took credit valuation adjustments in our non-investment grade and residual securities portfolios to reflect expected increases in credit losses. Nonetheless, given the solid performance of our consumer and builder construction businesses, the thrift segment earned $15 million, representing a 7-percent ROE.”
Click here= to read IndyMac’s full Second Quarter Report.