Home Capital Group Inc. today announced strong financial results for the second quarter and the first six months of 2007.

Highlights of the quarter include strong growth in all business segments, including core residential mortgage lending, VISA operations and commercial mortgage lending, a significantly improved efficiency ratio, strong return on equity and assets, and continued vigilance with respect to asset quality.

Net income for the quarter was $22 million, an increase of 33.5% over the $16.5 million recorded in the same period last year, and 4.1% over $21.2 million for the quarter ended March 31, 2007.

Basic earnings per share were 64¢, 33.3% above 48¢ for the second quarter of 2006.

Return on equity was 28.9% for the second quarter compared to 27.6% for the quarter ended June 30, 2006.

Total assets at June 30, reached $4.30 billion, 21.4% higher than the $3.55 billion reported one year earlier. Total assets, together with Mortgage-Backed Securities (MBS) originated and administered by the company, grew to $5.54 billion, a rise of 23% from $4.51 billion at June 2006.

Total mortgage originations were $622.6 million during the second quarter, an increase of 23.4% from the $504.6 million advanced during the comparable period of 2006. Residential mortgage lending growth remained strong with originations of $575.3 million, a 14% increase over the $504.6 million reported in the second quarter of last year.

Outstanding balances on the Equityline VISA portfolio reached $272 million, arise of 85.5% from the $146.6 million recorded at the same time in 2006.

The efficiency ratio (TEB) was 27.2% for the second quarter, compared to 29.5% during the same period one year earlier.

Net impaired loans represented 0.68% of the total loans portfolio, up from 0.54% at the end of the second quarter of 2006, and down from 0.74% at March 2007. Losses resulting from loan write-offs during the period remained negligible. Non-performing loans continue to be professionally managed on a loan-by-loan basis by the company.

Subsequent to the end of the quarter, the board of directors declared a dividend increase of 10% to 11¢ per share on a quarterly basis. The increase reflects Home Capital’s continued strong performance and earnings growth.

Home Capital Group Inc. operates through its principal subsidiary, Home Trust Company.