<PAGE>
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):
July 8, 1999
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) (Zip Code)
Registrant's telephone number, including area code: (301) 887-6000
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Item 5. Other Events
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On July 8, 1999, Riggs National Corporation announced earnings for the
second quarter of 1999.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) The following exhibit is filed as part of this Form 8-K.
Exhibit No. Description
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99 Press release, dated July 8, 1999.
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: July 14, 1999 /s/ JOHN L. DAVIS
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John L. Davis
Chief Financial Officer
(Principal Financial Officer)
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Index To Exhibits
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Exhibit No. Description
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99 Press release issued July 8, 1999, announcing Riggs
National Corporation's second quarter 1999 earnings.
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RIGGS [log] NEWS RELEASE
RIGGS NATIONAL CORPORATION
800 17H STREET, N.W.
WASHINGTON, D.C. 20074-0114
For Immediate Release Contact: Timothy C. Coughlin
202/835-5507
RIGGS NATIONAL CORPORATION REPORTS
SECOND QUARTER 1999 EARNINGS
Washington, D.C., July 8, 1999 -- Riggs National Corporation (NASDAQ: RIGS)
today reported $9.6 million of net income for the second quarter of 1999
compared to $7.7 million for the first quarter. Earnings per share were $.33
compared to $.26 in the first quarter. An increase in securities gains of $932
thousand and a reduction in income taxes of $878 thousand were the primary
reasons for the increase in quarter to quarter net income.
Joe L. Allbritton, chairman and chief executive officer of Riggs National
Corporation, said, "We have realized a $.07 earnings per share improvement from
the first quarter this year while we continue to make strategic investments in
the fee-based parts of our business."
The $9.6 million of net income was earned for the second quarter of 1999,
compared to $14.5 million for the same period a year ago. Earnings per share
were $.33 compared to $.37 for the same period the prior year. A variety of
factors including nonrecurring securities gains and a lower income tax rate in
the second quarter of 1998, together with a reduction in second quarter 1999 net
interest income due to the Corporation's redemption of preferred stock and
repurchase of common stock, reduced net income for the second quarter of 1999 as
compared with the same quarter a year earlier.
Nonperforming assets, including other real estate owned, were $29.5 million at
June 30, 1999 compared to $30.1 million at the end of the first quarter and
$15.1 million at June 30, 1998. Riggs's reserve for loan losses at the end of
the second quarter of 1999 was $52.2 million compared to $53.0 million at the
end of the first quarter and $52.2 million at June 30, 1998. The ratio of loan
loss reserve to total loans was 1.64% at June 30, 1999 compared to 1.66% at the
end of the first quarter and 1.66% at June 30, 1998.
The Corporation continues to maintain a strong capital position well in excess
of regulatory minimum requirements. Riggs's total and leverage capital ratios
were 26.57% and 8.70% at June 30, 1999 compared to regulatory minimums of
8.0% and 4.0%, respectively.
Separately, the Board of Directors of Riggs National Corporation declared a
dividend of $.05 on its Common Stock. The dividend is payable August 2, 1999 to
shareholders of record on July 19, 1999.
* * *
Riggs National Corporation, the largest bank holding company headquartered in
the nation's capital, has 53 branches in the Washington, D.C. metropolitan area,
as well as three locations in London, England.
(tables follow)
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RIGGS NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except per share amounts)
<TABLE>
Three Months Ended
June 30, June 30, March 31,
1999 1998 1999
--------------- ------------- ---------------
<S> <C> <C> <C>
EARNINGS:
Interest Income $ 80,809 $ 87,068 $ 81,527
Interest Expense 34,971 39,706 35,701
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Net Interest Income 45,838 47,362 45,826
Provision for Loan Losses -- -- --
--------------- ------------- ---------------
Net Interest Income After Provision for Loan Losses 45,838 47,362 45,826
Noninterest Income Excluding Securities Gains, Net 24,333 23,770 24,244
Securities Gains, Net 1,018 1,457 86
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Total Noninterest Income 25,351 25,227 24,330
Total Noninterest Expense 50,209 47,070 50,155
--------------- ------------- ---------------
Income Before Taxes and Minority Interest 20,980 25,519 20,001
Applicable Income Tax Expense 6,420 5,987 7,298
Minority Interest, Net of Taxes 4,986 4,986 4,987
--------------- ------------- ---------------
Net Income $ 9,574 14,546 7,716
Less: Dividends on Preferred Stock -- 2,687 --
--------------- ------------- ---------------
Net Income Available to Common Stockholders $ 9,574 11,859 7,716
Basic Earnings Per Share $ .34 .39 .27
Diluted Earnings Per Share .33 .37 .26
AVERAGES:
Total Assets $ 5,479,255 5,493,309 5,497,850
Total Earning Assets 4,971,912 5,042,769 5,007,067
Total Loans, Net of Premium, Discount & Fees 3,173,289 2,972,175 3,198,165
Total Interest-Bearing Deposits 3,554,150 3,151,605 3,517,376
Total Noninterest-Bearing Deposits 587,393 835,962 621,604
Total Deposits 4,141,543 3,987,567 4,138,980
Total Interest-Bearing Liabilities 4,128,457 3,759,602 4,109,855
Total Stockholders' Equity 345,430 476,417 363,268
OTHER FINANCIAL INFORMATION:
Net Interest Margin 3.74 % 3.83 % 3.78 %
Return on Average Assets .70 % 1.06 % .57 %
Return on Average Stockholders' Equity 11.12 % 12.25 % 8.61 %
Return on Average Common Equity 11.12 % 12.48 % 8.61 %
Common Shares Outstanding 28,257,197 30,622,746 28,255,747
Average Common Shares Outstanding 28,256,902 30,589,950 28,994,671
Average Diluted Shares Outstanding 28,790,718 31,737,370 29,628,616
Book Value Per Common Share Outstanding 12.06 12.78 12.31
Period End Stockholders' Equity to Total Assets 6.25 % 8.40 % 6.08 %
PERIOD END:
Total Assets $ 5,453,880 5,792,263 5,718,441
Total Earning Assets 4,920,004 5,323,944 5,238,247
Total Loans, Net of Premium, Discount & Fees 3,186,045 3,149,932 3,186,352
Total Goodwill 8,306 8,951 8,467
Total Core Deposits and Other Intangibles 3,694 6,780 4,459
Total Interest-Bearing Deposits 3,465,289 3,320,670 3,490,689
Total Noninterest-Bearing Deposits 674,175 943,011 685,052
Total Deposits 4,139,464 4,263,681 4,175,741
Total Interest-Bearing Liabilities 4,026,105 3,962,887 4,077,831
Minority Interest-Trust Preferred Securities 350,000 350,000 350,000
Total Stockholders' Equity 340,692 486,449 347,826
</TABLE>
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RIGGS NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except per share amounts)
<TABLE>
Six Months Ended
June 30,
1999 1998
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<S> <C> <C>
EARNINGS:
Interest Income $ 162,336 174,000
Interest Expense 70,672 78,953
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Net Interest Income 91,664 95,047
Provision for Loan Losses -- --
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Net Interest Income After Provision for Loan Losses 91,664 95,047
Noninterest Income Excluding Securities Gains, Net 48,577 46,583
Securities Gains, Net 1,104 6,781
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Total Noninterest Income 49,681 53,364
Total Noninterest Expense 100,364 94,478
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Income Before Taxes and Minority Interest 40,981 53,933
Applicable Income Tax Expense 13,718 13,779
Minority Interest, Net of Taxes 9,973 9,973
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Net Income $ 17,290 30,181
Less: Dividends on Preferred Stock -- 5,375
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Net Income Available to Common Stockholders $ 17,290 24,806
Basic Earnings Per Share $ .60 .81
Diluted Earnings Per Share .59 .78
AVERAGES:
Total Assets $ 5,488,501 5,496,804
Total Earning Assets 4,989,392 5,042,291
Total Loans, Net of Premium, Discount & Fees 3,185,659 2,904,744
Total Interest-Bearing Deposits 3,535,865 3,163,472
Total Noninterest-Bearing Deposits 604,404 843,254
Total Deposits 4,140,269 4,006,726
Total Interest-Bearing Liabilities 4,119,208 3,764,620
Total Stockholders' Equity 354,300 471,568
OTHER FINANCIAL INFORMATION:
Net Interest Margin 3.76 % 3.86 %
Return on Average Assets .64 % 1.11 %
Return on Average Stockholders' Equity 9.84 % 12.91 %
Return on Average Common Equity 9.84 % 13.29 %
Common Shares Outstanding 28,257,197 30,622,746
Average Common Shares Outstanding 28,623,632 30,581,020
Average Diluted Shares Outstanding 29,210,711 31,693,017
Book Value Per Common Share Outstanding 12.06 12.78
Period End Stockholders' Equity to Total Assets 6.25 % 8.40 %
</TABLE>
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RIGGS NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS (Unaudited)
(In thousands, except per share amounts)
<TABLE>
June 30, June 30, March 31,
1999 1998 1999
--------------- --------------- --------------
<S> <C> <C> <C>
NONPERFORMING ASSETS AND PAST DUE LOANS:
Nonaccrual Loans $ 26,389 $ 12,477 $ 26,681
Renegotiated Loans (1) 1,452 90 1,772
Other Real Estate Owned, Net 1,678 2,569 1,679
--------------- --------------- --------------
Total Nonperforming Assets $ 29,519 $ 15,136 $ 30,132
Loans Past Due 90 Days or More $ 8,646 $ 19,166 $ 8,950
Potential Problem Loans $ 15,861 $ 100 $ 1,031
Nonaccrual Loans to Total Loans .83 % .40 % .84 %
Nonperforming Assets to Total Loans and
Other Real Estate Owned, Net .93 % .48 % .95 %
Nonperforming Assets to Total Assets .54 % .26 % .53 %
RESERVE FOR LOAN LOSSES:
Reserve for Loan Losses $ 52,174 $ 52,235 $ 53,004
Reserve for Loan Losses to Total Loans 1.64 % 1.66 % 1.66 %
Reserve for Loan Losses to Nonaccrual and Renegotiated 187.40 % 415.65 % 186.29 %
Loans
Net Charge-Offs (Recoveries) for the Three Months $ 633 $ (128) $ 1,197
Net Charge-Offs (Recoveries) to Average Loans for the .02 % -- % .04 %
Three Months
Net Charge-Offs (Recoveries) for the Six Months $ 1,830 $ 299
Net Charge-Offs (Recoveries) to Average Loans for the .06 % .01 %
Six Months
CAPITAL RATIOS:
RIGGS NATIONAL CORPORATION:
Tier 1 Capital to Risk-Weighted Assets 13.47 % 17.82 % 13.30 %
Combined Tier 1 & Tier 2 Capital to Risk-Weighted Assets 26.57 % 29.73 % 26.59 %
Leverage 8.70 % 11.60 % 8.51 %
RIGGS BANK N.A.:
Tier 1 Capital to Risk-Weighted Assets 12.88 % 12.50 % 12.64 %
Combined Tier 1 & Tier 2 Capital to Risk-Weighted Assets 14.14 % 13.76 % 13.89 %
Leverage 8.78 % 8.78 % 8.51 %
</TABLE>
(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. Renegotiated loans do not include $ 6.4 million in loans
renegotiated at market terms that have performed in accordance with their
respective renegotiated terms.
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