Riggs National Posts First-Quarter Loss of $28.7 million

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Riggs National Corp., the troubled regional bank being acquired by PNC Financial Services Group Inc., on Tuesday said it posted a loss during the first quarter due to higher expenses and a loss from its venture capital investments.

The Washington-based parent of Riggs Bank posted a loss of $28.7 million, or 89 cents per share, compared to a profit of $3.9 million, or 13 cents per share. Net interest income fell to $31.4 million, from $40.4 million during the year-ago period. Noninterest income fell to $21.9 million from $25.2 million.

The company reported that it incurred a $4.3 million loss from its venture capital investments during the quarter, while trust and investment advisory income fell to $8 million from $9.5 million. Total noninterest expenses during the period rose to $91.2 million from last year's $59.5 million.

Riggs said in a filing with the Securities and Exchange Commission that its venture capital portfolio was valued at $33.6 million at March 31. The bank said PNC signed a letter of intent with a potential buyer to sell the portfolio, but that Riggs is not obligated until the merger is closed.

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