WASHINGTON -- The Student Loan Marketing Association reported a 2% increase in net income, to $108.7 million, for the second quarter.

The figure was down 3% from the $112.5 million earned in this year's first quarter.

In the second quarter, the agency recognized all its "floor revenue" on older loans that are converted from variable to fixed rates. Only a portion of floor revenue was in earlier periods' results.

Core earnings - net of floor revenue - for the 1994 second quarter were $85.4 million, compared with $97 million in the second quarter last year and $85.6 million in the first 1994 quarter.

Lawrence A. Hough, president and chief executive, said that despite floor income's depressing effect on secondary market activity, "we have been able to retain our share of the total market, which is headed toward the largest origination volume in history."

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