IndyMac Bancorp Announces Record Quarterly EPS of $1.49, Up 20%

-- Company Reports Record Quarterly Mortgage Production of $20.1 Billion

-- Board of Directors Increases Quarterly Cash Dividend 20% to $0.48

IndyMac Bancorp, Inc. (NYSE:NDE) ("Indymac(R)" or the "Company"),the holding company for IndyMac Bank, F.S.B. ("Indymac Bank(R)"),today reported net earnings of $105 million or $1.49 per share for thesecond quarter of 2006, compared with net earnings of $82 million, or$1.24 per share in the second quarter of 2005, representing increasesof 28 percent in net earnings and 20 percent in earnings per share.The 2005 amounts have been retrospectively adjusted to reflect stockoption expenses due to the adoption of Statement of FinancialAccounting Standards No. 123 (R), Share-Based Payment. Indymac hasalso filed its quarterly report on Form 10-Q for the second quarterwith the Securities and Exchange Commission. The Form 10-Q isavailable on Indymac's Website at www.indymacbank.com.

Highlights of the Second Quarter 2006 Compared with Second Quarter2005

-- Record net revenues of $377.1 million, up 31 percent.

-- Record net earnings of $104.7 million, up 28 percent.

-- Record EPS of $1.49, up 20 percent.

-- ROE of 24 percent, compared to 25 percent last year.

-- Total assets of $23.8 billion, up 22 percent.

-- Record mortgage loan production of $20.1 billion, up 41 percent.

-- Mortgage market share of 2.96 percent, up approximately 64 percent based on the MBA's July 2006 Mortgage Finance Forecast.

-- Record pipeline of mortgage loans in process of $12.5 billion at June 30, 2006, up 29 percent.

-- Record portfolio of loans serviced for others of $110 billion at June 30, 2006, up 73 percent.

-- Record total number of consumer customers of 702,000, up 46 percent.

-- Non-performing assets as a percent of total assets of 0.49 percent compared to 0.38 percent a year ago, and net charge-offs of $1.6 million, down from $1.8 million last year.

-- Efficiency ratio of 54 percent, compared to 53 percent a year ago, and total expenses to loan production of 99 basis points, improving from 104 basis points last year.

"We are very pleased to have achieved a number of records thisquarter, particularly in relation to the second quarter of 2005, giventhat over the last year the operating environment has become morechallenging for mortgage lenders as the Federal Reserve has raisedshort-term rates 200 basis points and mortgage rates climbed to theirhighest level since 2002. Our ability to achieve record resultsdespite these adverse trends again demonstrates the strength of ourhybrid thrift/mortgage banking business model and our ability toexecute on it," said Michael W. Perry, Indymac's Chairman and ChiefExecutive Officer.

"The key to our success has been our ability to grow productionand assets with accretive deployment of capital, principally fromretained earnings and excess capital. Over the last year we deployedan additional $557 million of capital into our profit generatingbusinesses, a 53 percent increase in comparison with the secondquarter of last year, from $1.05 billion to $1.61 billion. Thisgenerated a strong return on equity of 24 percent," stated Perry.

"While our mortgage volumes were at a record level for the ninthconsecutive quarter, they were essentially flat compared with thefirst quarter and we are redoubling our efforts to profitably gainmarket share," noted Richard Wohl, Indymac's President. "In keepingwith this goal, our mortgage pipeline was at an all-time record levelof $12.5 billion as of June 30, up 7 percent from the first quarter of2006 and up 29 percent year over year, boding well for our mortgageproduction volumes and profits for the third quarter."

With respect to 2006 earnings guidance, Indymac's Chief FinancialOfficer Scott Keys added, "In light of our continued strongperformance this quarter, we are reiterating our previously issuedforecast of earnings of $5.00 to $5.40 per share, although we feelmore confident that we will finish the year above the mid-point ofthis range."

Quarterly Cash Dividend Increased

Based on Indymac's strong operating performance and financialposition - including earnings, capital and liquidity - and itscommitment to shareholder value, Indymac's Board of Directorsincreased the cash dividend to $0.48 per share. This represents anincrease of 20 percent from the dividend declared and paid in thethird quarter last year. The cash dividend is payable Sept. 7, 2006,to shareholders of record on Aug. 10, 2006.

Conference Call

On Thursday, July 27, 2006, at 11:00 a.m. EDT (8:00 a.m. PDT),Michael W. Perry, Chairman and Chief Executive Officer, will host alive Web cast and conference call to discuss the results of the secondquarter in greater detail, followed by a question and answer session.A slide presentation will accompany the Web cast/conference call andcan be accessed along with Indymac's Form 10-Q via Indymac Bank's homepage at www.indymacbank.com.

If you would like to participate:

-- Internet Web cast access is available at: www.indymacbank.com

-- The telephone dial-in number is (800) 500-0920 or (719) 457-2669 (international) access code #1285043; and

-- The replay number is (888) 203-1112 or (719) 457-0820 (international) access code #1285043.

To participate on the call, please dial in 15 minutes prior to thescheduled start time. The conference call will be replayedcontinuously beginning two hours after the call on July 27, 2006,through 1:00 a.m. EDT on August 2, 2006, and will be available onIndymac's Website at www.indymacbank.com.

About Indymac Bank

IndyMac Bancorp, Inc. (NYSE:NDE) (Indymac(R)) is the holdingcompany for IndyMac Bank, F.S.B. (Indymac Bank(R)), the largestsavings and loan in Los Angeles and the 7th largest mortgageoriginator in the nation. Indymac Bank, operating as a hybridthrift/mortgage banker, provides cost-efficient financing for theacquisition, development, and improvement of single-family homes.Indymac also provides financing secured by single-family homes andother banking products to facilitate consumers' personal financialgoals.

With an increased focus on building customer relationships and avaluable consumer franchise, Indymac is committed to becoming a topsix mortgage lender in the U.S. by 2010, while maintaining annualizedearnings per share growth in excess of 15 percent. The company isdedicated to constantly raising expectations and conducting itselfwith the highest level of ethics.

For more information about Indymac and its affiliates, or tosubscribe to the company's Email Alert feature for notification ofcompany news and events, please visithttp://about.indymacbank.com/investors.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release may be deemedto be forward-looking statements within the meaning of the federalsecurities laws. The words "anticipate," "believe," "estimate,""expect," "project," "plan," "forecast," "intend," "goal," "target,"and similar expressions identify forward-looking statements that areinherently subject to risks and uncertainties, many of which cannot bepredicted or quantified. Actual results and the timing of certainevents could differ materially from those projected in or contemplatedby the forward-looking statements due to a number of factors,including, the effect of economic and market conditions includingindustry volumes and margins(1); the level and volatility of interestrates(1); the Company's hedging strategies, hedge effectiveness andasset and liability management(1); the accuracy of subjectiveestimates used in determining the fair value of financial assets ofIndymac; the credit risks with respect to our loans and otherfinancial assets; the actions undertaken by both current and potentialnew competitors(1); the availability of funds from Indymac's lendersand from loan sales and securitizations, to fund mortgage loanoriginations and portfolio investments; the execution of Indymac'sgrowth plans and ability to gain market share in a significant markettransition(1); the impact of disruptions triggered by naturaldisasters; pending or future legislation, regulations(1) orlitigation; and other risk factors described in the reports thatIndymac files with the Securities and Exchange Commission, includingits Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, andits reports on Form 8-K.

(1) While all of the above items are important, the highlighteditems represent those that, in management's view, merit increasedfocus given current conditions.