IndyMac Bancorp Inc. said Thursday that it expected further losses until at least the second half of next year and rejected a shareholder proposal to buy back stock, sending shares down.

Chief Executive Mike Perry said in a filing with the Securities and Exchange Commission that until the company sees a “light at the end of the tunnel maintaining strong capital and liquidity” was paramount to the company’s survival. Therefore, the company would not spend its scarce money to buy back its stock.

IndyMac raised $68.8 million in October by selling shares and is still looking to raise capital, Perry added.

“We are exploring every option possible to raise our capital levels, including shrinking our balance sheet and cutting our common stock dividend.”

The announcement by Perry comes after shareholders had requested that the lender buy back shares to boost the company’s share price, which have lost more than 80 percent so far this year.

Perry added that the Pasadena-based lender “could return to modest profitability in the second half of 2008.”

Shares in IndyMac were down 4 percent to $8.40 in afternoon trading Thursday on the New York Stock Exchange.