Struggling lender IndyMac Bancorp. reported its first-ever annual loss and scrapped its dividend in an effort to shore up capital.

The lender swung to a fourth- quarter loss of $509 million (-$6.43 per share) because of a slumping housing market, constricting credit requirements for buyers and a surge in defaults and foreclosures. Chief Executive Michael Perry called 2007 “a terrible year” for the company.

The results also came in much worse than analysts’ expected. A poll by Thomson Financial showed Wall Street was expecting the company to post a loss of $1.57 per share.

For the same period a year earlier, the Pasadena-based company reported a profit of $72.2 million (97 cents per share).

For the year, IndyMac posted a loss of $615 million (-$8.28), compared with a profit of $343 million ($4.82) for 2006.

Perry added that the loss was mainly attributed to subprime, home equity and home construction lending, all of which the company shuttered or sold.

Revenue also plunged from $1.3 billion in 2006 to $3.6 million for the most recent year.

However, Perry added that IndyMac has a “realistic shot” at becoming profitable this year, saying he expected the company to post a $13 million profit in 2008.

Investors apparently shared his sentiment. The stock of IndyMac was up 13.6 percent to $8.62 in early trading on the New York Stock Exchange.