SECURITIES AND EXCHANGE COMMISSION
Form 10-Q
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the period ended June 30, 2002 | ||
| or | ||
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the transition period from to | ||
Commission File Number 1-8972
IndyMac Bancorp, Inc.
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Delaware
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95-3983415 | |
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(State or other jurisdiction of incorporation or organization) |
(I. R. S. Employer Identification No.) |
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| 155 North Lake Avenue, Pasadena, California | 91101-7211 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code (800) 669-2300
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. Yes þ No o
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 31, 2002: 57,256,337 shares
INDYMAC BANCORP, INC.
FORM 10-Q QUARTERLY REPORT
TABLE OF CONTENTS
| Page | ||||||
| PART I. FINANCIAL INFORMATION | ||||||
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Item 1.
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Financial Statements (Unaudited) | |||||
| Consolidated Balance Sheets | 2 | |||||
| Consolidated Statements of Earnings | 3 | |||||
| Consolidated Statements of Shareholders’ Equity and Comprehensive Income | 4 | |||||
| Consolidated Statements of Cash Flows | 5 | |||||
| Notes to Consolidated Financial Statements | 6 | |||||
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 9 | ||||
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Item 3.
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Quantitative and Qualitative Disclosure about Market Risk | 29 | ||||
| PART II. OTHER INFORMATION | ||||||
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Item 4.
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Submission of Matters to a Vote of Security Holders | 31 | ||||
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Item 6.
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Exhibits and Reports on Form 8-K | 31 | ||||
1
INDYMAC BANCORP, INC. AND SUBSIDIARIES
| June 30, | December 31, | ||||||||||
| 2002 | 2001 | ||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands, | |||||||||||
| except per share data) | |||||||||||
| ASSETS | |||||||||||
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Cash and cash equivalents
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$ | 108,879 | $ | 153,295 | |||||||
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Securities classified as trading
($544.9 million and $182.5 million pledged as
collateral for repurchase agreements at June 30, 2002 and
December 31, 2001, respectively)
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631,601 | 215,200 | |||||||||
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Mortgage-backed securities available for sale,
amortized cost of $1.3 billion and $1.4 billion,
respectively ($438.6 million and $81.6 million pledged
as collateral for repurchase agreements at June 30, 2002
and December 31, 2001, respectively)
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1,363,879 | 1,349,159 | |||||||||
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Loans receivable:
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Loans held for sale
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Prime
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1,301,878 | 1,940,213 | |||||||||
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Subprime
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124,865 | 140,550 | |||||||||
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HELOC
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172,606 | — | |||||||||
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Consumer lot loans
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143,014 | — | |||||||||
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Total loans held for sale
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1,742,363 | 2,080,763 | |||||||||
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Loans held for investment
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Mortgage
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1,490,895 | 1,531,757 | |||||||||
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Builder construction
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528,540 | 596,273 | |||||||||
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Consumer construction
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744,641 | 725,200 | |||||||||
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Income property
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74,320 | 58,616 | |||||||||
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HELOC
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— | 84,511 | |||||||||
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Allowance for loan losses
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(52,978 | ) | (57,700 | ) | |||||||
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Total loans held for investment
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2,785,418 | 2,938,657 | |||||||||
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Total loans receivable ($0.9 billion and
$2.0 billion pledged as collateral for repurchase
agreements at June 30, 2002 and December 31, 2001,
respectively)
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4,527,781 | 5,019,420 | |||||||||
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Mortgage servicing rights
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316,779 | 321,316 | |||||||||
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Investment in Federal Home Loan Bank stock, at
cost
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107,120 | 99,996 | |||||||||
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Interest receivable
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41,658 | 52,172 | |||||||||
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Goodwill and other intangible assets
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35,057 | 35,637 | |||||||||
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Foreclosed assets
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21,569 | 19,372 | |||||||||
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Other assets
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280,511 | 231,744 | |||||||||
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Total assets
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$ | 7,434,834 | $ | 7,497,311 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
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Deposits
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$ | 2,806,135 | $ | 3,238,864 | |||||||
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Advances from Federal Home Loan Bank
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1,986,726 | 1,999,378 | |||||||||
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Other borrowings
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1,344,535 | 1,053,670 | |||||||||
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Trust preferred securities
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116,550 | 116,287 | |||||||||
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Other liabilities
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288,560 | 243,974 | |||||||||
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Total liabilities
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6,542,506 | 6,652,173 | |||||||||
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Shareholders’ Equity
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Preferred Stock — authorized,
10,000,000 shares of $0.01 par value; none issued
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— | — | |||||||||
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Common stock — authorized, 200,000,000
shares of $0.01 par value; issued 83,742,071 shares (59,250,632
outstanding) at June 30, 2002 and issued 83,312,516 shares
(60,366,266 outstanding) at December 31, 2001
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837 | 833 | |||||||||
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Additional paid-in-capital
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1,005,129 | 996,649 | |||||||||
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Accumulated other comprehensive income
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5,372 | 570 | |||||||||
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Retained earnings
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304,907 | 234,314 | |||||||||
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Treasury stock, 24,491,439 shares and 22,946,250
shares at June 30, 2002 and December 31, 2001,
respectively
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(423,917 | ) | (387,228 | ) | |||||||
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Total shareholders’ equity
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892,328 | 845,138 | |||||||||
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Total liabilities and shareholders’ equity
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$ | 7,434,834 | $ | 7,497,311 | |||||||
The accompanying notes are an integral part of these statements.
2
INDYMAC BANCORP, INC. AND SUBSIDIARIES
| For the Three Months | For the Six Months | |||||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||
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Interest income
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Mortgage-backed and other securities
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$ | 27,933 | $ | 30,467 | $ | 56,815 | $ | 62,026 | ||||||||||
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Loans held for sale
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Prime
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26,102 | 44,540 | 59,429 | 76,514 | ||||||||||||||
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Subprime
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2,271 | 4,519 | 5,687 | 9,935 | ||||||||||||||
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HELOC
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— | 612 | — | 1,150 | ||||||||||||||
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Total loans held for sale
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28,373 | 49,671 | 65,116 | 87,599 | ||||||||||||||
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Loans held for investment
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Mortgage
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28,976 | 35,169 | 58,570 | 71,039 | ||||||||||||||
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Builder construction
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9,438 | 14,111 | 19,731 | 29,123 | ||||||||||||||
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Consumer construction
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13,949 | 9,764 | 27,926 | 18,477 | ||||||||||||||
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Income property
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1,487 | 1,261 | 2,593 | 2,587 | ||||||||||||||
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HELOC
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1,819 | — | 3,124 | — | ||||||||||||||
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Total loans held for investment
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55,669 | 60,305 | 111,944 | 121,226 | ||||||||||||||
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Other
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1,585 | 1,560 | 3,367 | 3,112 | ||||||||||||||
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Total interest income
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113,560 | 142,003 | 237,242 | 273,963 | ||||||||||||||
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Interest expense
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Deposits
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26,828 | 20,302 | 58,136 | 34,776 | ||||||||||||||
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Advances from Federal Home Loan Bank
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25,004 | 23,742 | 49,393 | 46,158 | ||||||||||||||
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Borrowings
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9,768 | 45,720 | 21,243 | 97,733 | ||||||||||||||
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Trust preferred securities
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2,757 | — | 5,513 | — | ||||||||||||||
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Total interest expense
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64,357 | 89,764 | 134,285 | 178,667 | ||||||||||||||
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Net interest income
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49,203 | 52,239 | 102,957 | 95,296 | ||||||||||||||
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Provision for loan losses
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3,568 | 3,026 | 7,754 | 12,026 | ||||||||||||||
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Net interest income after provision for loan
losses
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45,635 | 49,213 | 95,203 | 83,270 | ||||||||||||||
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Other income
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Gain on sale of loans
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71,280 | 52,714 | 148,746 | 101,913 | ||||||||||||||
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Service fee income
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6,405 | 2,906 | 14,227 | 14,368 | ||||||||||||||
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Gain (loss) on mortgage-backed securities,
net
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2,701 | 1,572 | (4,287 | ) | (915 | ) | ||||||||||||
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Fee and other income
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12,680 | 13,413 | 26,289 | 24,360 | ||||||||||||||
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Total other income
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93,066 | 70,605 | 184,975 | 139,726 | ||||||||||||||
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Net revenues
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138,701 | 119,818 | 280,178 | 222,996 | ||||||||||||||
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Other expense
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Operating expenses
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80,702 | 66,870 | 160,256 | 125,935 | ||||||||||||||
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Amortization of goodwill and other intangible
assets
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280 | 935 | 579 | 1,895 | ||||||||||||||
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Total other expense
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80,982 | 67,805 | 160,835 | 127,830 | ||||||||||||||
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Earnings before provision for income taxes and
cumulative effect of a change in accounting principle
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57,719 | 52,013 | 119,343 | 95,166 | ||||||||||||||
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Provision for income taxes
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23,145 | 21,611 | 48,750 | 39,541 | ||||||||||||||
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Earnings before cumulative effect of a change in
accounting principle
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34,574 | 30,402 | 70,593 | 55,625 | ||||||||||||||
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Cumulative effect of a change in accounting
principle
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— | — | — | (10,185 | ) | |||||||||||||
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Net earnings
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$ | 34,574 | $ | 30,402 | $ | 70,593 | $ | 45,440 | ||||||||||
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Earnings per share before cumulative effect of
a change in accounting principle
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Basic
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$ | 0.58 | $ | 0.50 | $ | 1.17 | $ | 0.90 | ||||||||||
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Diluted
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$ | 0.56 | $ | 0.48 | $ | 1.14 | $ | 0.87 | ||||||||||
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Earnings per share from cumulative effect of a
change in accounting principle
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Basic
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$ | — | $ | — | $ | — | $ | (0.16 | ) | |||||||||
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Diluted
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$ | — | $ | — | $ | — | $ | (0.16 | ) | |||||||||
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Earnings per share
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Basic
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$ | 0.58 | $ | 0.50 | $ | 1.17 | $ | 0.74 | ||||||||||
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Diluted
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$ | 0.56 | $ | 0.48 | $ | 1.14 | $ | 0.71 | ||||||||||
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Weighted average shares outstanding
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Basic
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60,050 | 60,860 | 60,139 | 61,523 | ||||||||||||||
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Diluted
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61,763 | 63,217 | 61,903 | 63,916 | ||||||||||||||
The accompanying notes are an integral part of these statements.
3
INDYMAC BANCORP, INC. AND SUBSIDIARIES
| Accumulated | ||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Additional | Comprehensive | Total | Total | |||||||||||||||||||||||||||||
| Shares | Common | Paid-in | Income | Cumulative | Comprehensive | Treasury | Shareholders’ | |||||||||||||||||||||||||
| Outstanding | Stock | Capital | (Loss) | Earnings | Income | Stock | Equity | |||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||
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Balance at December 31, 2000
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62,176,316 | $ | 818 | $ | 920,205 | $ | (2,603 | ) | $ | 117,926 | $ | (308,453 | ) | $ | 727,893 | |||||||||||||||||
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Common stock options exercised
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1,021,952 | 10 | 15,181 | — | — | &n | ||||||||||||||||||||||||||