The bottom line — What results do we project based on these strategies?
While any company can project strong growth numbers, our track record over the last ten years lends credence to the growth targets we have set for the next five. In addition, despite the strong performance over the past three years, IndyMac's market share remains below 1% in a strong and growing industry. So we clearly have a substantial opportunity to grow. As seen in the table at the right, we have achieved outstanding growth in all key financial measures and we believe we will continue to have strong results as we execute on our strategic plan over the next five years.

Outlook for 2003
Our current outlook for 2003 contemplates that the mortgage industry volumes will decline during the year. We have planned for it and believe we are well positioned for another strong year of earnings. If mortgage volumes decline, as the industry currently predicts, by approximately 20%, stronger results in our mortgage servicing portfolio, improved net interest margin on loans we hold for investment and continued cost management are expected to offset any decline in earnings from our mortgage banking activities. Our current EPS projections for the coming year range from equal to our 2002 results to an increase of 15%.

Our confidence that we can outperform our competitors and achieve our goals as the market transitions to more normal levels is based on measurable evidence that shows that our business model works:

• We nearly doubled our market share from 1999 to 2000, a period in which the market contracted 20%.
• We have expanded our sales force and active customer base by 24% and 19%, respectively, on a compounded annual basis since 1999.
• Our experience shows that as we open regional centers in geographic areas where we have not had a physical presence (recent expansion includes Kansas City, Missouri in 2002 and Atlanta, Georgia and Sacramento, California in 2001), we gain additional business from our existing customers in those areas and also add a substantial number of new customers while reducing our operating costs.
  

  	-	In the 18 months after opening our Atlanta regional office, our pre-existing 190 customers in this geographic region increased their business with us by 150%. In addition, we added 303 new customers that generated $709 million of mortgage loans, $181 million, or 26%, of which was generated in the most recent quarter alone.
  	-	These new regional centers have allowed us to add capacity in lower cost regions outside of our historic base in Southern California, further enhancing our cost structure. In addition, our effective tax rate declined due in part to our geographic expansion in states with lower tax rates than California.
  	-	We plan to open a regional center in Dallas, Texas in the first half of 2003 and are considering two additional locations later in the year. Beyond 2003, we plan further expansion of our regional centers to reach a total of 15 to 20 locations over the next five years from the five centers we operate today.

We also plan to increase our customer base and geographic penetration by means of our newest mortgage channels, B2R and the Homebuilder Division. These channels, which focus on the home purchase market, have demonstrated strong growth over the last year.

Fair Lending
IndyMac is committed to the American dream of home ownership and fair treatment of all customers. Our automated risk-based pricing system, e-MITS, objectively measures each and every customer's risk profile individually and provides them with the best product and price available at IndyMac across the spectrum of mortgage products that we provide. Our "one door" approach — one underwriting system, one set of rules, one national license through our thrift charter — is the fairest system and is the model we believe other lenders will eventually adopt.

	Compounded Annual Growth Rates
	1993 to 2002		1999 to 2002*
Revenue	53%	29%
Earnings	40%	28%
EPS	28%	41%
Loan Production	NM	44%
Assets	30%	33%
		2002
ROE		17%
* 1999 marks the introduction of e-MITS to smaller customers and the transition to the depository structure.