Shares in IndyMac Bancorp Inc. continued to tumble Tuesday after an analyst reaffirmed his "underperform" rating, saying the company's book value continues to diminish shares, forcing the company to raise capital.

Friedman, Billings, Ramsey & Co. analyst Paul Miller said in a research report that "IndyMac needs to raise significant capital the question is not if, but how much capital will be raised and on what terms."

Miller said IndyMac will need to raise at least $500 million in additional capital to maintain appropriate reserves and also estimated that IndyMac's loss for the rest of 2008 will be above $200 million.

This comes a day after the Pasadena bank posted a quarterly loss of $184 million and said it will not be profitable for at least the rest of the year. This came about a week after Chief Executive Mike Perry said the company had "turned the corner" and should be profitable by the end of 2008.

Shares in IndyMac closed down 24 percent on Tuesday, following a 12 percent decline Monday, to close at $2.32.

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