Home Capital Group Inc. is reporting record second quarter earnings of $3.5 million. These results represent the 24th consecutive quarter of earnings gains.

For the three-month period ended June 30, net earnings rose 42.7% to $3,545,687 from $2,485,178 for the same period a year earlier. Earnings per share were 24¢.

Return on equity climbed to 26.3% in the second quarter, up from 22.9% recorded last year. Home Capital’s total assets exceeded the $1 billion mark for the first time. This represents an increase of 28.4% over total assets on June 30, 2000.

Net impaired mortgage loans as at June 30, 2001 represented 0.43%, a slight decrease compared to 0.48% on March 30. Charge-offs during the first six months of 2001 fell to $70,000, compared to $142,000 for the same period in 2000. The company has increased its General Allowance from $3,466,000 at June 30, 2000 to $4,881,000 at the end of the current quarter.

During the quarter, Home Trust’s core residential first mortgage business recorded steady growth as housing demand remained strong and interest rates remained stable. It also completed the issuance of its third Mortgage-Backed Security in the amount of $11.8 million.

The company recently announced a quarterly dividend increase of 25% to 10¢ a share on an annualized basis. The first increased quarterly dividend of 2.5¢ per share is payable on September 1.

Home Capital Group expects the earnings momentum of the first six months to continue throughout 2001. In a statement the company said “There is very strong demand in the marketplace for a national alternative to the offerings of traditional financial institutions, and the company has shown considerable success in understanding and meeting the needs of this large target market. Home Capital Group continues to exercise prudence in managing risk. The company is focused on strong lending fundamentals, and understanding and meeting the needs of its market. We are confident in our ability to continue our upward earnings growth.”