INCOME INCREASE

NEVADA -- Farm and Home Financial Corporation had a 61 percent increase in net income for the second quarter of 1991, jumping from $2.8 million to $4.5 million. Its earnings doubled for the first half of 1991, reaching $8.7 million, compared to $4.3 for the first half of 1990.

Company vice president and chief executive officer Joe Lynch attributes the second quarter increase in earnings to a 24 percent increase in net interest income and a substantial increase in non-interest income, such as loan servicing and annuity sales.

The second quarter profit rise is despite the company's increasing its reserves for real estate and loan losses. A $3.8 pre-tax addition was made to the reserves, up from $1.3 million a year ago.

Farm and Home Financial Corporation, whose principal subsidiary is Farm and Home Savings Association, has $3.5 billion in assets. It maintains offices in Southeast Missouri, including Cape Girardeau.