Business briefs for July 30, 2004

Friday, July 30, 2004 | 11:07 a.m.

Company closing 53 offices

Washington Mutual Inc., the biggest U.S. savings and loan, plans to close 53 commercial-banking offices that serve large- and mid-sized businesses, eliminating 850 jobs.

The Seattle-based company also will exit the professional homebuilder finance market. Washington Mutual will make loans to businesses with $5 million or less in annual sales through its retail-bank branches, spokesman Alan Gulick said.

In Las Vegas, the company will close one commercial banking office. The branch, located at 2625 S. Rainbow Blvd., has three employees. Washington Mutual also has 27 retail banking branches and three home loan offices. Those locations will be unaffected by the cuts, the company said.

Firm turns profit

Las Vegas-based Vestin Group Inc. this morning reported second-quarter net income of $100,000, or 2 cents per share, reversing a loss of $1 million, or 18 cents a share, a year ago.

Revenue fell to $5.4 million in the second quarter, down from $7.2 million in the same 2003 quarter.

Vestin blamed the lower revenue on declining lending activities which cut into loan origination fees. The company attributed its profitability to steps taken earlier this year to cut marketing and administrative costs.

The company, which declined to elaborate on its statement, said that the cost cutting benefits were offset by about $1 million in expenses related to "regulatory proceedings." At a recent shareholders' meeting Chief Executive Michael Shustek said the company has spent as much as $1.5 million defending itself in a Securities and Exchange Commission inquiry.