Budget over-runs and a drop in earnings from new home buyers are not expected to significantly lower income for the first six months for realtor and mortgage company, Bermuda Home Ltd. off the level of profits of the same period last year.

In fact, real estate sales were better than forecast, although there remains an anticipation that property sales may slow.

Home president and CEO Arthur E. Haycock has told shareholders by letter this month, "Our first six months' results are still being prepared, but indications are we will be slightly above budget and close to the level of earnings generated in the first half of last year.

"Interest earnings from mortgages and loans were higher than the previous year, but fee income from new mortgage closings fell, while fee income from new personal and consumer loans strengthened.

"Customers' deposits have shown satisfactory growth, particularly in the second quarter, although the continuing need to market our services and products effectively to maintain the growth rate of our deposit base is still a priority.'' And Mr. Haycock said yesterday that mortgage market closings in the second quarter was stronger than budgeted, because of what was thought to be an unusually strong first half last year.

"From that perspective,'' he pointed out, "the market has held up better than we expected, but finished just marginally lower than the same period last year.

"It's hard to say if real estate sales will slow in the winter months, because of the economic world around us. It was expected that confidence would be lower, but there is no real evidence of that yet.

"I still believe that the second six months may produce a slowdown in sales.'' Mr. Haycock said that Home's realty subsidiary, Bermuda Realty Co., had a successful six months with good results in all departments.

"The number of real estate sales was consistent with the first six months of last year,'' he reported, "but commissions earned were higher.

"The rental department generated increased earnings from higher rental activity while our short term rental service, catering to holiday rentals, showed a considerable increase in volumes and revenues.'' The property management and appraisals department also achieved a satisfactory increase in business volumes and revenues.

Bermuda Home also purchased and cancelled from April 1 to late September some 31,700 common shares and 15,800 preferred shares, representing 0.7 percent and 1.7 percent of common and preferred shares, respectively.

A board of directors approved common share dividend was paid out last week of 12 cents per share for the quarter ending September 30.

A dividend of 20 cents per share is payable next week Friday on the 8% Convertible Preferred shares to shareholders of record October 16.

BUSINESS BUC