IndyMac Posts 22% Increase in Profit, Boosts Dividend 25%

Internet mortgage specialist IndyMac Bancorp Inc. reported 22% higher fourth-quarter earnings Thursday and raised its stock dividend 25%, predicting growth despite the end of the boom in home-loan refinancings.

The Pasadena-based lender reported a profit of $43.3 million, or 75 cents a share, up from $35.6 million, or 63 cents a share, during the same period of 2002.

For the full year, net income rose to $171.3 million, or $3.01 a share, from $143.4 million, or $2.41.

The earnings were toward the bottom end of analysts’ expectations, and IndyMac shares fell $1.18 to $30.18 in New York Stock Exchange trading.

IndyMac Chief Executive Michael W. Perry said earnings would grow slightly this year to an estimated $3.07 a share. He called that a “temporary blip” and said the company’s profit should exceed $4 a share in 2005.

IndyMac said its network of Southern California savings and loan offices was expected to grow from 10 branches today to 50 over the next five years.

IndyMac raised its quarterly cash dividend to 25 cents a share from 20 cents a share, payable March 11 to shareholders of record as of Feb. 12.