NVR Inc., one of the nation's largest home builders, said that it had a strong second quarter of home construction but that operating income declined by almost a quarter at its much smaller mortgage banking business thanks to a shift away from fixed-rate mortgages to less profitable adjustable-rate and brokered mortgages.
The McLean company said profit rose to $116 million ($14.82 a share) from $95.1 million ($10.90) in the same quarter a year earlier. Revenue rose to $1 billion from $848.5 million.
For the first six months of 2004, profit rose to $216.6 million ($27.38) from $182.9 million ($20.99) in the same period of 2003. Revenue rose to $1.9 billion from $1.6 billion.
Loan production rose 8 percent during the quarter but operating income fell by 21 percent, or $11.1 million, because of the change in the mix of mortgages.
* Legg Mason Inc. said its investment advisory business helped mitigate uneven performance in its securities brokerage and investment banking business.
The Baltimore investment house earned $86.4 million ($1.14 a share) on revenue of $554.9 million in the quarter ended June 30, its first fiscal quarter. In the same quarter in 2003, Legg Mason earned $58.4 million (83 cents) on revenue of $433.9 million.
Investment advisory revenue grew 53 percent, to $368.8 million. Investment banking revenue, consisting mostly of stock and bond underwritings, fell 16 percent, to $26.5 million.
* Eagle Bancorp Inc. earned $1.1 million (19 cents a share) in the second quarter, compared with $639,000 (20 cents) in the same quarter a year earlier. For the first half of the year, the Bethesda parent company of EagleBank earned $2.3 million (40 cents), compared with $1.6 million (52 cents a share) in the first six months of 2003. The company sold 2.4 million new shares in August for an 85 percent increase in shares outstanding.