PASADENA, Calif. IndyMac Bancorp reported first-quarter net income on Thursday of just over $15 million, or 24 cents a share, down 30% from the first quarter last year, which included a non-recurring net gain of $30.1 million.
The company called attention to a previously disclosed charge of $10 million for a change in an accounting principle related to interest and investment income, as well as to higher loan- and credit-loss provisions for discontinued businesses.
Without the accounting charge, IndyMacs per-share earnings grew 15%, to $25.2 million, or 39 cents a share.
The market reacted harshly to the news, pushing IndyMacs stock price down almost 9% in late afternoon trading, to $25.75.
IndyMac said that it expects per-share earnings of $1.80 for the year, a 36% increase from 2000, and a range of $2.25 to $2.40 in 2002.
Michael Perry, chief executive of IndyMac, said 90% of its credit losses are related to its discontinued manufactured housing and home improvement businesses, which in the long run should be a positive.
I dont think the market is understanding this morning, from the reaction of the stock, the power of getting those issues behind us, Mr. Perry said during a conference call Thursday. He added that future credit losses would be very low.
In addition, Mr. Perry said, he wants to move IndyMac, the 27th-largest mortgage originator in the country last year, into the top 10.
It was a very, very good quarter, Gary Gordon, an analyst at UBS Warburg, said in an interview. I think its one of the best mortgage companies in the industry. They have very low costs to originate loans; theyre getting terrific volume growth and very nice profit margins.