As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 7/27/06  Indymac Bancorp Inc               10-Q        6/30/06    7:1.9M                                   RR Donnelley

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML   1.53M 
 2: EX-10.1     Material Contract                                   HTML     33K 
 3: EX-10.2     Material Contract                                   HTML     37K 
 4: EX-31.1     Certification per Sarbanes-Oxley Act (Section 302)  HTML     12K 
 5: EX-31.2     Certification per Sarbanes-Oxley Act (Section 302)  HTML     12K 
 6: EX-32.1     Certification per Sarbanes-Oxley Act (Section 906)  HTML      9K 
 7: EX-32.2     Certification per Sarbanes-Oxley Act (Section 906)  HTML      9K 

      Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ          Accelerated filer o          Non-accelerated filer o

      Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes o          No þ

      Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock outstanding as of July 21, 2006: 68,652,618 shares

TABLE OF CONTENTS

      Certain statements contained in this Form 10-Q may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements regarding our financial condition, results of operations, plans, objectives and future performance and business. Forward-looking statements typically include the words “anticipate,” “believe,” “estimate,” “expect,” “project,” “plan,” “forecast,” “intend,” and other similar expressions. These statements reflect our current views with respect to future events and financial performance. They are subject to risks and uncertainties which could cause future results to differ materially from historical results or from the results anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates or as of the date hereof if no other date is identified. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information on our risk factors, refer to “Risk Factors” in our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2006, filed with the SEC on April 25, 2006.

      The following highlights the Company’s consolidated financial condition and results of operations for the three and six months ended June 30, 2006 and 2005. The 2005 data has been retrospectively adjusted to reflect the stock option expenses under Statement of Financial Accounting Standards No. 123(R), Share-Based Payment (“SFAS No. 123(R)”). References to “Indymac Bancorp” or the “Parent Company” refer to the parent company alone, while references to “Indymac,” the “Company,” or “we” refer to the parent company

Three Months ended June 30, 2006

      The Company achieved record net earnings of $104.7 million, or $1.49 per share, for the second quarter of 2006. This represents an increase of 28% and 20% in net earnings and earnings per share, respectively, compared with net earnings of $81.7 million, or $1.24 per share, for the second quarter of 2005. The earnings for the second quarter of 2005 were retrospectively adjusted to reflect the stock option expenses due to the adoption of SFAS No. 123(R). Return on equity was 24% for the second quarter of 2006 compared with 25% for the second quarter of 2005.

      Net revenues of $377.1 million in the second quarter of 2006 were at record levels, reflecting an increase of 31% over the second quarter of 2005. Key drivers of this growth included the following items:

      Operating expenses of $203.7 million also reflected growth consistent with the growth in Indymac’s operations and infrastructure investments to open new regional mortgage centers across the country to expand our mortgage operations platform. Total regional centers are 15 at the end of the second quarter of 2006, five more than the ten that we had at the end of the second quarter of 2005. These new regional centers are being opened as part of our strategy to expand our mortgage market share through geographic expansion.

      Asset quality remains solid. Non-performing assets remain at low levels for Indymac at 0.49% of total assets at June 30, 2006 compared to 0.38% of total assets at June 30, 2005. The allowance for loan losses currently represents 8.8 times annualized net charge-offs, up from 7.4 times at June 30, 2005. Net charge-offs (annualized) in the second quarter of 2006 represent 0.08% of average loans held for investment, down from 0.10% during the second quarter of 2005.

      For the six months ended June 30, 2006, the Company’s net earnings were $184.5 million, or $2.68 per share, up 27% from $145.2 million, or $2.22 per share for the same period in 2005. Return on equity was 22% for both the six month periods ended June 30, 2006 and 2005.

      Net revenues of $681.6 million in the first half of 2006 reflect an increase of 26% over the first half of 2005. Key drivers of this growth included the following items:

      Operating expenses of $375.5 million reflected an increase of 25%, consistent with the growth in Indymac’s revenues and operations.

      The Company conducts business substantially through IndyMac Bank, F.S.B. via two primary operating segments, the mortgage banking and the thrift segments. These segments provide clear transparency to the two primary activities in our hybrid model: mortgage banking with high asset turn and high returns on equity, and thrift investing characterized by lower but more consistent returns on equity. Please refer to the Company’s annual report on Form 10-K for the year ended December 31, 2005 (“2005 10-K”), page 23, for further discussions of the divisions within the mortgage banking and thrift segments.

      The tables below summarize the year-over-year performance of Indymac’s divisions. Detailed operating results for each division are provided on pages 8 to 11.

      Total capital deployed in our operating business segments increased 53% to $1.6 billion in the second quarter of 2006 and earned a 33% return on equity before the impact of corporate overhead. Net of corporate overhead and including the excess undeployed capital, Indymac’s average capital of $1.7 billion earned a 24% return on equity.

      We deployed $521.9 million of capital into our mortgage production divisions in the second quarter of 2006, an increase of 64% over the second quarter of 2005. Mortgage production earnings grew 11%; however the return on equity declined from 97% to 65% reflecting the narrower mortgage banking revenue margins. The wholesale and correspondent divisions reflected stronger production year over year, but a reduction in net income as margins were significantly lower in these two business lines year over year. The wholesale division net income also reflected the loss related to the lot loan fraud discussed earlier. Our conduit group had a particularly strong quarter reflecting earnings growth of 295% and return on equity of 43%, up from 21%. The increase was due to improvement in the revenue margins primarily related to their option arm production and strong efficiencies in their pipeline hedge management. Looking forward, we expect the returns in this division to revert to the more normal levels reflected in the prior period. Our reverse mortgage division continued to demonstrate strong returns with earnings and production growth of 113% and 109%, respectively. The strong returns in this business are reflective of the strong growth in demographics for the seniors market and the growing popularity of the reverse mortgage product. We expect this division to continue its strong growth in the future given its industry leadership position in the reverse mortgage market.

      We deployed 21% of our capital, or $363.8 million, in the MSRs and Other Retained Assets, up from 13% one year ago. This segment experienced a strong increase in ROE from 21 percent in the second quarter of 2005 to 27% in the second quarter of 2006. We target our pricing and hedging strategies to earn expected ROE of 18% to 23% for this segment. Given the volatility in this segment, returns in a quarter may substantially exceed or fall below the targeted level.

      We deployed 38% of our capital or $666.1 million to the Thrift, a 31% increase over last year. This segment continued to earn a solid, stable ROE, earning 23% for the second quarter of 2006.

      The following tables summarize the Company’s financial results for the three months ended June 30, 2006 and 2005, by its two primary segments via each of its operating divisions:

      The following tables provide additional detail on the results for the production divisions of our mortgage banking segment for the three months ended June 30, 2006 and 2005: