Money Store Inc., Union, N.J., reported a 76% increase in net income for the second quarter, to a record $18.9 million. Earnings per share increased 52%, to 32 cents.
The company said its serviced loan portfolio is 44% larger than it was last year at this time, and it securitized $1.3 billion of receivables for the quarter.
Home equity loan volume increased 46% in the second quarter to $1.025 billion, said the company's president and chief executive, Marc Turtletaub. Small-business lending increased 86%, while student loan volume rose 21%, and auto lending jumped 110%.
Mr. Turtletaub cites the company's strategy of diversifying into new products and new distribution channels as key to its growth.
Delinquencies of 30 days or more in the company's home equity portfolio crept up 25 basis points from the level in the preceding quarter, to 5.35%. Delinquency rates for small-business loans decreased 64 basis points to 5.70%, and increased 44 basis points to 2.83% for auto loans.
Total home equity loan chargeoffs were $8.3 million for the quarter, for an annual rate of 0.48%.