Allied Capital Corp. said it realized more and larger gains on its investments in the second quarter, helping push profit up 59 percent.
The District company, which lends money to and invests in mid-size businesses, earned $95.3 million (73 cents a share) in the quarter ended June 30, compared with profit of $59.9 million (52 cents) in the same quarter a year ago. Allied's primary source of revenue -- the interest and fee income from its portfolio of investments -- was $87.5 million in the quarter, compared with $77.2 million a year earlier. Net realized gains on Allied's investments grew from $8.5 million to $26.6 million, accounting for most of the increase in the bottom line.
For the first half of the year, Allied earned $115.7 million (88 cents), compared with $79.8 million (71 cents) in the first six months of 2003. Net realized gains were $174.5 million, compared with $56.9 million in the first half of 2003. Investment-related income was $169.3 million, compared with $150.3 million a year earlier.
* FTI Consulting Inc., an Annapolis company that provides corporate restructuring advice as well as forensic, litigation and economic consulting, said the drop-off in corporate restructuring business as well as higher expenses led to a flat second quarter.
FTI earned $12.8 million (30 cents a share) on revenue of $107.4 million, compared with profit of $12.2 million (29 cents) on revenue of $94.5 million in the second quarter of 2003. Results for the first six months of the year were off significantly, reflecting also the loss of several key employees in its restructuring practice in the first quarter. For the first half of 2004, FTI earned $24.3 million (57 cents) on revenue of $217.7 million, compared with profit of $31.6 million (76 cents) on revenue of $195.9 million in the first half of 2003.
* Community Bank of Northern Virginia of Sterling said robust growth in its business real estate and indirect consumer lending businesses helped boost second-quarter profit by 92 percent.
Community Bank earned $1.7 million (16 cents) in the quarter, compared with $881,000 (9 cents) in the same quarter a year earlier. Profit in the first half of the year was $4.1 million (40 cents), compared with $3.5 million (34 cents) in the first half of 2003. Assets on June 30 were $869.9 million, a 22 percent increase from a year earlier.