IndyMac Bancorp Inc. appeared to buck the downward trend hitting the mortgage banking industry Thursday with solid third quarter earnings.

The Pasadena-based lender reported net income of $86 million ($1.19 per share), compared with $78 million ($1.16) for the third quarter of 2005. Revenues were up 22 percent to $345.6 million.

IndyMac chairman and chief executive Michael Perry attributed the comparatively robust performance to strong loan production and the company's hybrid thrift/mortgage banking business model, which gives it flexibility to withstand industry downturns. As the housing market has softened, overall mortgage loan volume in the industry has dropped.

IndyMac's performance came in slightly below analyst expectations of between $1.22 and $1.30 per share, in part because of accounting adjustments and an unusually large loan production volume hit in late September that could not be booked in time for the end of the quarter. Those loans will be booked in the fourth quarter, Perry said.

That explanation appeared to satisfy investors. In afternoon trading, IndyMac stock was up 3 percent to $46.21 per share.

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