Closed Friday, July 11, 2008 · Pasadena, Los Angeles County, California
IndyMac Bank
By total assets IndyMac Bank is the fifth-largest of the 3,375 bank failures since 1934 for which the FDIC records a size, counted in dollars of the day. Its estimated cost to the Deposit Insurance Fund makes it the third-costliest failure on FDIC record since 1934. No bank in California had failed for five years, since Southern Pacific Bank closed in 2003.
On the books, 2000 to 2008
Total assets peaked at $33.5 billion in the third quarter of 2007 and were 8% lower at the final report. In the three years to the third quarter of 2007, IndyMac Bank's assets grew 123%. Equity capital went from 9.7% of assets in the third quarter of 2000 to 3.7% at the last report. By then 10% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $767 million, was booked in 2008 in only part of the year.* 2008: January to June only, the last report before closing.
Size against the other 2008 failures
Total assets of each 2008 failure, log scale; IndyMac Bank in red.
By assets it ranked second of the 25 failures in 2008. Of the 239 failed banks on record in California since 1934, it ranks third by size. Across the failures of 2008, the median estimated loss came to 37% of assets. In the size ranking of that year, just above it was Washington Mutual Bank of Henderson, Nevada ($307 billion, no estimated loss); just below, Downey Savings and Loan Association, F.A. of Newport Beach, California ($12.8 billion, loss 1.2% of assets). Every 2008 failure in the explorer.
Failures in California
It was one of five banks in California to fail in 2008. The next was First Heritage Bank, NA of Newport Beach, on July 25, 2008. Los Angeles County has 87 failed banks on FDIC record since 1934. Closest in time: Security Pacific Bank (2008), PFF Bank & Trust (2008), Alliance Bank (2009), First Bank of Beverly Hills (2009), Mirae Bank (2009).