SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported):
March 6, 1997
RIGGS NATIONAL CORPORATION
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(Exact name of Registrant as specified in Charter)
Delaware 0-9756 52-1217953
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
1503 Pennsylvania Avenue, N.W., Washington, D.C. 20005
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(Address of principal executive offices)
Registrant's telephone number, including area code: (301) 887-6000
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ITEM 5. OTHER EVENTS
On January 15, 1997, the Corporation announced its fourth quarter and full
year 1996 earnings.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
The following exhibits are filed as part of this Form 8-K:
EXHIBIT NO. DESCRIPTION
99 Press release, dated January 15, 1997, as amended March 6, 1997.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 6, 1997 /s/ JOHN L. DAVIS
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John L. Davis
Chief Financial Officer
(Principal Financial and
Accounting Officer)
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
99 Press release dated January 15, 1997, as amended March 6, 1997.
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[LOGO] NEWS RELEASE
RIGGS NATIONAL CORPORATION
800 17TH STREET, N.W.
WASHINGTON, D.C. 20074-0114
For Immediate Release, Wednesday, January 15, 1997
RIGGS NATIONAL CORPORATION ACHIEVES
STRONG FINANCIAL PERFORMANCE FOR 1996
--Substantial Improvement in Operating Revenue
and Reduction in Expenses--
Riggs National Corporation ("Riggs"), the largest bank holding company
headquartered in the nation's capital, today announced continued momentum, with
significant growth in operating earnings for the year ended December 31, 1996.
Riggs's net earnings for 1996 were $65.9 million, or $1.79 per common share.
Riggs's net earnings for 1995 of $87.8 million, or $2.54 per common share
included $55.0 million in nonrecurring income from a reduction in the reserve
for loan losses. Net earnings for the fourth quarter of 1996 were $11.2 million,
or $.27 per common share. Riggs's net earnings of $13.0 million, or $.34 per
common share, for the fourth quarter of 1995 included reduced income tax
expense. Net earnings before taxes and minority interest for the fourth quarter
of 1996 increased 30.4% from $13.1 million to $17.1 million when compared with
the same quarter a year earlier.
Net interest income for 1996 was $153.3 million, an increase of $2.3 million, or
1.5%, compared with $151.0 million in 1995. Net interest income for the fourth
quarter of 1996 was $39.4 million, an increase of $1.8 million, or 4.7%,
compared with $37.6 million for the prior year's period. Total assets at
December 31, 1996 were $5.1 billion, an increase of $403 million, or 8.5%,
compared with total assets of $4.7 billion a year earlier.
Noninterest income for 1996 totaled $96.2 million, an increase of $22.2 million,
or 30.0%. This increase was primarily due to increases of $6.7 million in net
securities gains, $5.1 million in interest on tax receivables, $3.4 million in
trust income and $3.2 million from the sale of a portion of Riggs's corporate
trust business. Noninterest income for the fourth quarter of 1996 totaled $23.7
million, an increase of $4.4 million, or 22.6% from the prior year's quarter,
mostly attributable to the corporate trust business sale.
Noninterest expense for 1996 was reduced to $176.9 million, a 7.8% decrease of
$14.9 million from 1995's total of $191.8 million. The decrease in expenses
during 1996 was primarily the result of a $5.5 million reduction in net
occupancy expense, $5.6 million reduction in salaries and benefits and $4.3
million reduction in FDIC premiums. Noninterest expense for the fourth quarter
of 1996 totaled $46.0 million, an increase of $2.1 million (4.9%) from 1995's
total. This increase resulted mostly from increases in pension and other
benefits expense totaling $1.4 million.
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Nonperforming assets, including other real estate owned, decreased $7.8 million,
or 17.0%, during the year to $38.1 million at December 31, 1996. At year-end
1996, Riggs's reserve to total loans ratio stood at 2.4%. Nonperforming loans
totaled $10.0 million at year-end 1996, with a reserve to nonperforming loans
(coverage) ratio over 640%.
Joe L. Allbritton, Chairman and Chief Executive Officer of Riggs National
Corporation, said, "Riggs completed its 160th year of operations in strong
financial condition with significant improvement in noninterest income and
reduction in operating expenses. We achieved the highest capital ratios in
Riggs's history and produced record profits from operations. In 1997, we look
forward to further strengthening of our fee-based services and continued
benefits from our expense control efforts."
Separately, the Board of Directors of Riggs National Corporation declared a
dividend of $.05 on its Common Stock and a dividend of $.671875 on its Series B
Preferred Stock. The dividends on the Common Stock and Series B Preferred Stock
are payable February 3, 1997 and February 1, 1997, respectively, to shareholders
of record January 24, 1997 for both the Common and Preferred Stock.
Riggs National Corporation is a Washington, D.C. based multi-bank holding
company with banks in the Washington, D.C. metropolitan area, The United Kingdom
and France. Riggs serves the Washington community with 32 locations in the
District of Columbia, 16 in Virginia and 9 in Maryland. The Corporation's common
shares are traded on the NASDAQ National Market System under the symbol "RIGS".
(tables follow)
For more information, contact:
Timothy C. Coughlin, 202-835-5507
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RIGGS NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except per share amounts)
<TABLE>
Three Months Ended Twelve Months Ended
December 31, December 31,
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
EARNINGS:
Interest Income $ 74,077 $ 74,236 $ 293,198 $ 298,799
Interest Expense 34,727 36,652 139,891 147,821
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Net Interest Income 39,350 37,584 153,307 150,978
Provision for Loan Losses -- -- -- (55,000)
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Net Interest Income After Provision for Loan Losses 39,350 37,584 153,307 205,978
Noninterest Income Excluding Securities Gains, Net 23,682 19,013 89,007 73,493
Securities Gains, Net 4 310 7,170 511
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Total Noninterest Income 23,686 19,323 96,177 74,004
Total Noninterest Expense 45,965 43,819 176,947 191,834
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Income Before Tax and Minority Interest 17,071 13,088 72,537 88,148
Applicable Income Tax Expense 5,430 91 6,174 346
Minority Interest in Dividends of Subsidiary, Net of Tax 420 -- 420 --
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Net Income $ 11,221 $ 12,997 $ 65,943 $ 87,802
Less: Dividends on Preferred Stock 2,687 2,687 10,750 10,750
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Net Income Applicable to Common Stockholders $ 8,534 $ 10,310 $ 55,193 $ 77,052
Earnings Per Common Share $ .27 $ .34 $ 1.79 $ 2.54
AVERAGES:
Total Assets $ 4,750,744 $ 4,589,784 $ 4,716,369 $ 4,573,151
Total Earning Assets 4,287,680 4,102,396 4,222,265 4,122,017
Total Loans, Net of Premium, Discount & Fees 2,620,052 2,561,210 2,557,412 2,543,154
Total Interest-Bearing Deposits 3,024,221 2,931,759 2,993,458 2,928,355
Total Noninterest-Bearing Deposits 819,139 825,490 812,515 816,758
Total Deposits 3,843,360 3,757,249 3,805,973 3,745,113
Total Interest-Bearing Liabilities 3,426,462 3,341,938 3,444,905 3,394,597
Total Stockholders' Equity 419,188 366,082 400,067 310,844
OTHER FINANCIAL INFORMATION:
Net Interest Margin 3.74 % 3.70 % 3.72 % 3.74 %
Return on Average Assets .94 % 1.12 % 1.40 % 1.92 %
Return on Average Stockholders' Equity 10.65 % 14.09 % 16.48 % 28.25 %
Return on Average Common Equity 10.48 % 15.10 % 18.10 % 35.73 %
Common Shares Outstanding 30,372,546 30,274,464 30,372,546 30,274,464
Average Common Shares Outstanding 30,367,149 30,268,690 30,317,572 30,257,585
Book Value Per Common Share Outstanding $ 10.88 $ 9.30
Period End Stockholders' Equity to Total Assets 8.29 % 7.96 %
PERIOD END:
Total Assets $ 5,135,100 $ 4,732,533
Total Earning Assets 4,621,463 4,196,339
Total Loans, Net of Premium, Discount & Fees 2,637,834 2,571,959
Total Goodwill 4,395 4,689
Total Core Deposits and Other Intangibles 11,498 14,725
Total Interest-Bearing Deposits 3,158,089 2,974,292
Total Noninterest-Bearing Deposits 892,594 910,887
Total Deposits 4,050,683 3,885,179
Total Interest-Bearing Liabilities 3,604,848 3,393,392
Minority Interest/Trust Preferred Securities 150,000 --
Total Stockholders' Equity 425,776 376,669
</TABLE>
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RIGGS NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except per share amounts)
<TABLE>
December 31, December 31,
1996 1995
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<S> <C> <C>
NONPERFORMING ASSETS AND PAST DUE LOANS:
Nonaccrual Loans $ 9,876 $ 9,326
Renegotiated Loans (1) 125 3,410
Other Real Estate Owned, Net 28,121 33,197
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Total Nonperforming Assets $ 38,122 $ 45,933
Loans Past Due 90 Days or More $ 3,849 $ 5,459
Potential Problem Loans $ 1,636 $ 8,106
Other Potential Problem Assets -- 4,700
Nonaccrual Loans to Total Loans .37 % .36 %
Nonperforming Assets to Total Loans and
Other Real Estate Owned, Net 1.43 % 1.76 %
Nonperforming Assets to Total Assets .74 % .97 %
RESERVE FOR LOAN LOSSES:
Reserve for Loan Losses $ 64,486 $ 56,546
Reserve for Loan Losses to Total Loans 2.44 % 2.20 %
Reserve for Loan Losses to Nonaccrual and Renegotiated Loans 644.80 % 443.99 %
Net Charge-Offs (Recoveries) for the Three Months $ (2,548) $ (1,393)
Net Charge-Offs (Recoveries) for the Three Months to Average Loans (.10) % (.05) %
Net Charge-Offs (Recoveries) for the Twelve Months $ (6,575) $ (14,538)
Net Charge-Offs (Recoveries) for the Twelve Months to Average Loans (.26) % (.57) %
CAPITAL RATIOS:
RIGGS NATIONAL CORPORATION:
Tier 1 Capital to Risk-Weighted Assets 20.04 % 13.57 %
Combined Tier 1 & Tier 2 Capital to Risk-Weighted Assets 28.47 % 21.62 %
Leverage 11.84 % 8.03 %
RIGGS BANK N.A. (2):
Tier 1 Capital to Risk-Weighted Assets 18.66 % N/A %
Combined Tier 1 & Tier 2 Capital to Risk-Weighted Assets 19.92 % N/A %
Leverage 10.96 % N/A %
</TABLE>
[FN]
(1) - Loans for which terms have been renegotiated to provide a reduction of
interest or principal as a result of a deterioration in the financial position
of the borrower in accordance with Statement of Financial Accounting Standards
No. 15. Renegotiated loans do not include $10.6 million in loans renegotiated at
market terms that have performed in accordance with their respective
renegotiated terms. These performing, market rate loans are no longer included
in nonperforming asset totals.
(2) -On March 28, 1996, the Corporation merged its three national banking
subsidiaries: The Riggs National Bank of Washington, D.C., The Riggs National
Bank of Virginia and The Riggs National Bank of Maryland, renaming the combined
national bank Riggs Bank National Association ("Riggs Bank N.A."). Riggs Bank
N.A. is a wholly owned subsidiary of Riggs National Corporation.
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