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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2004                                                 
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission File Number 0-9756





Riggs National Corporation


(Exact name of registrant as specified in its charter)


|                                                                                             |  |                                         
|-------------------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                                     |  | 52-1217953                              
|(State or other jurisdiction of
    incorporation or organization)                           |  | (I.R.S. Employer
    Identification No.)
|                                                                                            
|1503 Pennsylvania Avenue, N.W.,
    Washington, D.C.(Address of principal executive offices) |  | 20005(Zip Code)                         

Registrants telephone number, including area code:


(202) 835-4309


Securities registered pursuant to Section 12(b) of the
Act:


|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of Each Class |  | Name of Each Exchange on Which Registered
|                    |  |                                          
|None                |  | None                                     

Securities registered pursuant to Section 12(g) of the
Act:


| |  |                                             |  | 
| |  | ------------------------------------------- |  | 
| |  | Title of Each Class                         |  | 
| |  |                                             |  | 
| |  | Common Stock, par value
    $2.50 per share |  | 

þ o


o


þ o














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FORM 10-K INDEX


|                                                 |  |                                                                                                                  |     |         |     | 
|------------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------- | --- | ------- | --- | 
|                                                 |  |                                                                                                                  |     | Page(s) |    
|                                                 |  |                                                                                                                  |     |         |    
|PART I                                          
|Item 1                                           |  | Business                                                                                                         |     |         | 3   | 
|Item 2                                           |  | Properties                                                                                                       |     |         | 15  | 
|Item 3                                           |  | Legal Proceedings                                                                                                |     |         | 16  | 
|Item 4                                           |  | Submission of Matters to a Vote of Security Holders                                                              |     |         | 19  | 
|                                                
|PART II                                         
|Item 5                                           |  | Market for Registrants Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities |     |         | 19  | 
|Item 6                                           |  | Selected Consolidated Financial Data                                                                             |     |         | 20  | 
|Item 7                                           |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                        |     |         | 21  | 
|Item 7A                                          |  | Quantitative & Qualitative Disclosures about Market Risk                                                         |     |         | 21  | 
|Item 8                                           |  | Financial Statements and Supplementary Data                                                                      |     |         | 50  | 
|Item 9A                                          |  | Controls and Procedures                                                                                          |     |         | 105 | 
|Item 9B                                          |  | Other Information                                                                                                |     |         | 109 | 
|                                                
|PART III                                        
|Item 10                                          |  | Directors and Executive Officers of the Registrant                                                               |     |         | 109 | 
|Item 11                                          |  | Executive Compensation                                                                                           |     |         | 114 | 
|Item 12                                          |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters               |     |         | 120 | 
|Item 13                                          |  | Certain Relationships and Related Transactions                                                                   |     |         | 123 | 
|Item 14                                          |  | Principal Accountant Fees and Services                                                                           |     |         | 124 | 
|                                                
|PART IV                                         
|Item 15                                          |  | Exhibits and Financial Statement Schedules                                                                       |     |         | 124 | 
|Signatures, Certifications and Index to Exhibits |  |                                                                                                                  | 125 |        

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FORWARD-LOOKING STATEMENTS






PART I


ITEM 1.     BUSINESS


Riggs National Corporation










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Riggs Bank N.A.
















| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Riggs Bank Europe Ltd. (RBEL), located in London (England),
    which provided corporate banking, expatriate and embassy banking
    services. RBELs main office is located in the West End of
    London.
| |  | RCIL, located in London (England), provided portfolio management
    services to international customers;                                                                                                  
| |  | Riggs Bank London Branch, provided banking services and                                                                                                                                                    
| |  | Riggs Bank and Trust Company Limited, located in Jersey
    (Channel Islands), which provided offshore banking and trust
    services to international clients.                                            



Riggs Capital








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Riggs Capital Partners




Regulation-General






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Federal Regulation of National Banks








Insurance of Accounts and Regulation by the FDIC




Payment of Dividends










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Capital Adequacy










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Prompt Corrective Action












Brokered Deposits




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Deposit Insurance Assessments






Depositor Preference




Liability of Commonly Controlled Institutions




Community Reinvestment Act




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Related Party Transactions








Financial Privacy




Holding Company Regulation












10



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Federal Home Loan Bank System






Legislation










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Consent Order, Civil Money Penalty and Other Matters








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Competition and Environment






Additional Information








|        |           
|------- | ----------
|ITEM 2. | PROPERTIES



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|        |                  
|------- | -----------------
|ITEM 3. | LEGAL PROCEEDINGS













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|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



PART II




|        |                                                                                                                 
|------- | ----------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES





|     |  |                |  |             |       |  |           |   |       |          |  |   |      |  |  | 
|---- |  | -------------- |  | ----------- | ----- |  | --------- | - | ----- | -------- |  | - | ---- |  |  | 
|     |  |                |  | PRICE RANGE |       |  | DIVIDENDS |   |       |         
|     |  |                |  |             |       |  | DECLARED  |   |       |         
|     |  |                |  | HIGH        |       |  | LOW       |   |       | AND PAID |  |   |     
|    
|2004 |  | Fourth Quarter |  | $           | 22.98 |  |           | $ | 19.00 |          |  | $ |     |  |  | 
|     |  | Third Quarter  |  |             | 24.19 |  |           |   | 20.50 |          |  |   |     |  |  | 
|     |  | Second Quarter |  |             | 22.20 |  |           |   | 15.25 |          |  |   | 0.05 |  |  | 
|     |  | First Quarter  |  |             | 17.35 |  |           |   | 14.70 |          |  |   | 0.05 |  |  | 
|    
|2003 |  | Fourth Quarter |  | $           | 17.41 |  |           | $ | 15.73 |          |  | $ | 0.05 |  |  | 
|     |  | Third Quarter  |  |             | 16.58 |  |           |   | 14.92 |          |  |   | 0.05 |  |  | 
|     |  | Second Quarter |  |             | 15.90 |  |           |   | 13.25 |          |  |   | 0.05 |  |  | 
|     |  | First Quarter  |  |             | 16.20 |  |           |   | 13.51 |          |  |   | 0.05 |  |  | 
|    







Sale of Unregistered Securities




19



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|        |                                     
|------- | ------------------------------------
|ITEM 6. | SELECTED CONSOLIDATED FINANCIAL DATA



|                                                          |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|--------------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
|(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)                  |  | 2004 |           |   | 2003 |   |           | 2002 |  |   | 2001      |   |  | 2000 |          
|                                                          | 
|Interest Income                                           |  | $    | 230,229   |   |      | $ | 231,932   |      |  | $ | 256,114   |   |  | $    | 298,195   |   |  | $ | 350,378   |  
|Interest Expense                                          |  |      | 80,592    |   |      |   | 62,640    |      |  |   | 65,118    |   |  |      | 108,846   |   |  |   | 161,138   |  
|                                                         
|Net Interest Income                                       |  |      | 149,637   |   |      |   | 169,292   |      |  |   | 190,996   |   |  |      | 189,349   |   |  |   | 189,240   |  
|Less: Provision for Loan Losses                           |  |      | 49        |   |      |   | 5,146     |      |  |   | 421       |   |  |      | 2,526     |   |  |   | 18,791    |  
|                                                         
|Net Interest Income after Provision for Loan Losses       |  |      | 149,588   |   |      |   | 164,146   |      |  |   | 190,575   |   |  |      | 186,823   |   |  |   | 170,449   |  
|Noninterest Income Excluding Securities Gains, Net        |  |      | 98,393    |   |      |   | 95,859    |      |  |   | 83,136    |   |  |      | 72,873    |   |  |   | 117,107   |  
|Securities Gains, Net                                     |  |      | 227       |   |      |   | 13,331    |      |  |   | 9,450     |   |  |      | 12,037    |   |  |   | 327       |  
|Noninterest Expense                                       |  |      | 365,276   |   |      |   | 257,559   |      |  |   | 237,888   |   |  |      | 263,526   |   |  |   | 222,848   |  
|                                                         
|Income (Loss) before Taxes and Minority Interest          |  |      | (117,068  | ) |      |   | 15,777    |      |  |   | 45,273    |   |  |      | 8,207     |   |  |   | 65,035    |  
|Applicable Income Tax Expense (Benefit)                   |  |      | (20,930   | ) |      |   | 4,493     |      |  |   | 15,208    |   |  |      | 10,184    |   |  |   | 23,829    |  
|Minority Interest in Income of Subsidiaries, Net of Taxes |  |      | 3,821     |   |      |   | 10,579    |      |  |   | 16,911    |   |  |      | 19,860    |   |  |   | 19,588    |  
|                                                         
|Net Income (Loss)-Continuing Operations                   |  | $    | (99,959   | ) |      | $ | 705       |      |  | $ | 13,154    |   |  | $    | (21,837   | ) |  | $ | 21,618    |  
|Income (Loss) from Discontinued Operations                |  |      | 961       |   |      |   | 167       |      |  |   | 130       |   |  |      | (649      | ) |  |   | 1,207     |  
|Applicable Income Tax Expense (Benefit)                   |  |      | (709      | ) |      |   | (107      | )    |  |   | 263       |   |  |      | 891       |   |  |   | 1,224     |  
|Net Income (Loss) from Discontinued Operations            |  |      | 1,670     |   |      |   | 274       |      |  |   | (133      | ) |  |      | (1,540    | ) |  |   | (17       | )
|                                                         
|Net Income (Loss)                                         |  | $    | (98,289   | ) |      | $ | 979       |      |  | $ | 13,021    |   |  | $    | (23,377   | ) |  | $ | 21,601    |  
|                                                         
|Earnings (Loss) Per Share                                 |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Basic-Continuing Operations                               |  | $    | (3.33     | ) |      | $ | 0.02      |      |  | $ | 0.46      |   |  | $    | (0.77     | ) |  | $ | 0.76      |  
|Diluted-Continuing Operations                             |  |      | (3.33     | ) |      |   | 0.02      |      |  |   | 0.46      |   |  |      | (0.77     | ) |  |   | 0.76      |  
|Basic-Discontinued Operations                             |  |      | 0.06      |   |      |   | 0.01      |      |  |   |          |   |  |      | (0.05     | ) |  |   |          |  
|Diluted-Discontinued Operations                           |  |      | 0.06      |   |      |   | 0.01      |      |  |   |          |   |  |      | (0.05     | ) |  |   |          |  
|Basic                                                     |  |      | (3.27     | ) |      |   | 0.03      |      |  |   | 0.46      |   |  |      | (0.82     | ) |  |   | 0.76      |  
|Diluted                                                   |  |      | (3.27     | ) |      |   | 0.03      |      |  |   | 0.45      |   |  |      | (0.82     | ) |  |   | 0.76      |  
|Dividends Declared and Paid Per Common Share              |  |      | 0.10      |   |      |   | 0.20      |      |  |   | 0.20      |   |  |      | 0.20      |   |  |   | 0.20      |  
|                                                         
|YEAR-END                                                  |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Assets                                                    |  | $    | 6,008,663 |   |      | $ | 6,320,601 |      |  | $ | 6,796,321 |   |  | $    | 6,083,790 |   |  | $ | 5,526,170 |  
|Long-Term Debt                                            |  |      | 1,138,693 |   |      |   | 912,333   |      |  |   | 358,525   |   |  |      | 66,525    |   |  |   | 66,525    |  
|Shareholders Equity                                      |  |      | 317,840   |   |      |   | 373,520   |      |  |   | 389,241   |   |  |      | 360,823   |   |  |   | 382,746   |  
|                                                         

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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK













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|     |  |              |                 |  |              |  |      |          |  |  |      |  
|---- |  | ------------ | --------------- |  | ------------ |  | ---- | -------- |  |  | ---- | -
|     |  | Net Interest |                 |  | Net Interest |  |      | Interest | 
|     |  | Income       |                 |  | Margin       |  |      | Spread   | 
|     |  |              |                 |  |              |  |      |          | 
|2004 |  |              | $154.5  million |  |              |  | 2.88 | %        |  |  | 2.70 | %
|2003 |  |              | 174.1 million   |  |              |  | 3.16 |          |  |  | 3.03 |  
|2002 |  |              | 194.9 million   |  |              |  | 3.65 |          |  |  | 3.48 |  





|     |  |              
|---- |  | -------------
|2004 |  | $98.6 million
|2003 |  | 109.2 million
|2002 |  | 92.6 million 





|     |  |               
|---- |  | --------------
|2004 |  | $365.3 million
|2003 |  | 257.6 million 
|2002 |  | 237.9 million 





|     |  |                
|---- |  | ---------------
|2004 |  | $(98.3) million
|2003 |  | 1.0 million    
|2002 |  | 13.0 million   



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RISK FACTORS
























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Critical Accounting Policies and Estimates




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RESULTS OF OPERATIONS


Net Interest Income










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|                                                     |  |      |       |   |      |  |       |      |  |  |       |  
|---------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                     |  | 2004 |       |   | 2003 |  |       | 2002 | 
|                                                     | 
|Loans                                                |  |      | 57.6  | % |      |  | 53.2  | %    |  |  | 52.6  | %
|Securities Available for Sale                        |  |      | 35.4  |   |      |  | 36.0  |      |  |  | 34.4  |  
|Securities Held to Maturity                          |  |      | 1.1   |   |      |  | 0.5   |      |  |  |      |  
|Time Deposits with Other Banks                       |  |      | 2.6   |   |      |  | 4.2   |      |  |  | 3.4   |  
|Federal Funds Sold and Reverse Repurchase Agreements |  |      | 3.3   |   |      |  | 6.1   |      |  |  | 9.6   |  
|                                                    
|                                                     |  |      | 100.0 | % |      |  | 100.0 | %    |  |  | 100.0 | %
|                                                    



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|                                                  |  |      |       |   |      |  |       |      |  |  |       |  
|------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                  |  | 2004 |       |   | 2003 |  |       | 2002 | 
|                                                  | 
|Interest-Bearing Deposits                         |  |      | 66.9  | % |      |  | 78.3  | %    |  |  | 88.8  | %
|Federal Funds Purchased and Repurchase Agreements |  |      | 10.1  |   |      |  | 8.8   |      |  |  | 9.4   |  
|Other Short-Term Borrowings                       |  |      | 5.9   |   |      |  | 3.0   |      |  |  | 0.3   |  
|Long-Term Debt                                    |  |      | 17.1  |   |      |  | 9.9   |      |  |  | 1.5   |  
|                                                 
|                                                  |  |      | 100.0 | % |      |  | 100.0 | %    |  |  | 100.0 | %
|                                                 

Provision for Loan Losses




Noninterest Income










Noninterest Expense




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FINANCIAL POSITION AND LIQUIDITY


Summary




31



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Earning Assets










Loans












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Short-Term Investments






Securities Available for Sale and Securities Held to
Maturity














Venture Capital Investments




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Commitments and Liquidity






ASSET QUALITY


Credit Risk Administration




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Provision and Reserve for Loan Losses
















Nonperforming Assets and Past Due Loans






35



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DEPOSITS AND FUNDING SOURCES




Deposits






36



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Short-Term Borrowings




FHLB Borrowings and Other Long-Term Debt






Minority Interest in Trust Preferred Securities






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|                |  |         |       |  |            |   |       |       |  |   |       | 
|--------------- |  | ------- | ----- |  | ---------- | - | ----- | ----- |  | - | ----- | 
|                |  | Riggs   |       |  | Riggs      |   |       |      
|(in $ millions) |  | Capital |       |  | Capital II |   |       | Total | 
|                |  |         |       |  |            |   |       |       | 
|                |  | $       | 150.0 |  |            | $ | 200.0 |       |  | $ | 350.0 | 



|                |  |         |      |  |            |   |      |       |  |   |       | 
|--------------- |  | ------- | ---- |  | ---------- | - | ---- | ----- |  | - | ----- | 
|                |  | Riggs   |      |  | Riggs      |   |      |      
|(in $ millions) |  | Capital |      |  | Capital II |   |      | Total | 
|                |  |         |      |  |            |   |      |       | 
|2004            |  | $       | 17.0 |  |            | $ | 2.2  |       |  | $ | 19.2  | 
|2003            |  |         | 1.9  |  |            |   | 4.6  |       |  |   | 6.5   | 
|2002            |  |         | 58.5 |  |            |   | 43.0 |       |  |   | 101.5 | 



Sensitivity to Market and Other Risk










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CAPITAL RESOURCES










FOURTH QUARTER 2004 VS. FOURTH QUARTER 2003








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40



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TABLE A:


THREE-YEAR AVERAGE CONSOLIDATED STATEMENTS OF CONDITION AND
RATES1


|                                                            |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  |  | 
|----------------------------------------------------------- | ----------------------------------------------------------------- | ------- | --------- | --------- | ------- | - | ------- | ------- |  |  | ------- | ---- |  | ------- | --------- | --------- | ------- | - | ------- | ------- |  |  | ------- | ---- |  | ------- | --------- | --------- |  | - | ------- | ------ |  |  | ----- | ---- |  |  | 
|                                                            |                                                                   | 2004    |           |           | 2003    |   |         | 2002    |  |  |        
|                                                            |                                                                   |        
|                                                            |                                                                   | AVERAGE |           |           | INCOME/ |   |         | YIELDS/ |  |  | AVERAGE |      |  | INCOME/ |           |           | YIELDS/ |   |         | AVERAGE |  |  | INCOME/ |      |  | YIELDS/ |           |           | 
|(IN THOUSANDS, EXCEPT RATES)                                |                                                                   | BALANCE |           |           | EXPENSE |   |         | RATE    |  |  | BALANCE |      |  | EXPENSE |           |           | RATE    |   |         | BALANCE |  |  | EXPENSE |      |  | RATE    |           |           | 
|                                                           
|ASSETS                                                      |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  | 
|Loans(2)                                                    |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  | 
|Commercial-Taxable                                          |                                                                   | $       | 327,512   |           |         | $ | 17,329  |         |  |  | 5.29    | %    |  | $       | 356,098   |           |         | $ | 17,296  |         |  |  | 4.86    | %    |  | $       | 341,450   |           |  | $ | 17,584  |        |  |  | 5.15  | %    |  | 
|Commercial-Tax-Exempt                                       |                                                                   |         | 179,626   |           |         |   | 12,721  |         |  |  | 7.08    |      |  |         | 180,510   |           |         |   | 14,058  |         |  |  | 7.79    |      |  |         | 161,036   |           |  |   | 12,539  |        |  |  | 7.79  |      |  | 
|Commercial Real Estate                                      |                                                                   |         | 859,504   |           |         |   | 43,619  |         |  |  | 5.07    |      |  |         | 628,123   |           |         |   | 34,198  |         |  |  | 5.44    |      |  |         | 529,417   |           |  |   | 33,426  |        |  |  | 6.31  |      |  | 
|Residential Mortgage                                        |                                                                   |         | 1,213,161 |           |         |   | 62,328  |         |  |  | 5.14    |      |  |         | 1,250,934 |           |         |   | 66,139  |         |  |  | 5.29    |      |  |         | 1,117,380 |           |  |   | 74,443  |        |  |  | 6.66  |      |  | 
|Home Equity                                                 |                                                                   |         | 367,665   |           |         |   | 13,502  |         |  |  | 3.67    |      |  |         | 279,908   |           |         |   | 11,632  |         |  |  | 4.16    |      |  |         | 292,994   |           |  |   | 15,713  |        |  |  | 5.36  |      |  | 
|Consumer                                                    |                                                                   |         | 63,283    |           |         |   | 6,707   |         |  |  | 10.60   |      |  |         | 63,778    |           |         |   | 6,673   |         |  |  | 10.46   |      |  |         | 66,104    |           |  |   | 7,003   |        |  |  | 10.59 |      |  | 
|Foreign                                                     |                                                                   |         | 74,974    |           |         |   | 4,493   |         |  |  | 5.99    |      |  |         | 168,247   |           |         |   | 8,955   |         |  |  | 5.32    |      |  |         | 302,014   |           |  |   | 18,089  |        |  |  | 5.99  |      |  | 
|                                                           
|Total Loans                                                 |                                                                   |         | 3,085,725 |           |         |   | 160,699 |         |  |  | 5.21    | %    |  |         | 2,927,598 |           |         |   | 158,951 |         |  |  | 5.43    | %    |  |         | 2,810,395 |           |  |   | 178,797 |        |  |  | 6.36  | %    |  | 
|Securities Available for Sale(3)                            |                                                                   |         | 1,896,586 |           |         |   | 63,556  |         |  |  | 3.35    |      |  |         | 1,982,264 |           |         |   | 66,332  |         |  |  | 3.35    |      |  |         | 1,838,582 |           |  |   | 70,088  |        |  |  | 3.81  |      |  | 
|Securities Held to Maturity                                 |                                                                   |         | 56,803    |           |         |   | 4,837   |         |  |  | 8.52    |      |  |         | 27,194    |           |         |   | 2,357   |         |  |  | 8.67    |      |  |         |          |           |  |   |        |        |  |  |      |      |  | 
|Time Deposits with Other Banks                              |                                                                   |         | 141,700   |           |         |   | 3,565   |         |  |  | 2.52    |      |  |         | 228,774   |           |         |   | 5,015   |         |  |  | 2.19    |      |  |         | 183,781   |           |  |   | 2,624   |        |  |  | 1.43  |      |  | 
|Federal Funds Sold and Reverse Repurchase Agreements        |                                                                   |         | 177,858   |           |         |   | 2,482   |         |  |  | 1.40    |      |  |         | 340,603   |           |         |   | 4,053   |         |  |  | 1.19    |      |  |         | 509,910   |           |  |   | 8,547   |        |  |  | 1.68  |      |  | 
|                                                           
|Total Earning Assets and Average Rate Earned(4)             |                                                                   |         | 5,358,672 |           |         |   | 235,139 |         |  |  | 4.39    |      |  |         | 5,506,433 |           |         |   | 236,708 |         |  |  | 4.30    |      |  |         | 5,342,668 |           |  |   | 260,056 |        |  |  | 4.87  |      |  | 
|Less: Reserve for Loan Losses                               |                                                                   |         | 27,257    |           |         |   |         |         |  |  |         |      |  |         | 26,153    |           |         |   |         |         |  |  |         |      |  |         | 26,738    |           |  |   |         |        |  |  |       |      |  | 
|Cash and Due from Banks                                     |                                                                   |         | 180,092   |           |         |   |         |         |  |  |         |      |  |         | 187,454   |           |         |   |         |         |  |  |         |      |  |         | 168,021   |           |  |   |         |        |  |  |       |      |  | 
|Premises and Equipment, Net                                 |                                                                   |         | 161,834   |           |         |   |         |         |  |  |         |      |  |         | 170,860   |           |         |   |         |         |  |  |         |      |  |         | 169,957   |           |  |   |         |        |  |  |       |      |  | 
|Assets Held for Sale                                        |                                                                   |         | 230,736   |           |         |   |         |         |  |  |         |      |  |         | 222,139   |           |         |   |         |         |  |  |         |      |  |         | 166,498   |           |  |   |         |        |  |  |       |      |  | 
|Other Assets                                                |                                                                   |         | 251,134   |           |         |   |         |         |  |  |         |      |  |         | 248,764   |           |         |   |         |         |  |  |         |      |  |         | 212,797   |           |  |   |         |        |  |  |       |      |  | 
|                                                           
|                                                            | Total Assets                                                      |         | $         | 6,155,211 |         |   |         |         |  |  |         |      |  |         | $         | 6,309,497 |         |   |         |         |  |  |         |      |  |         | $         | 6,033,203 |  |   |         |        |  |  |       |      |  |  | 
|                                                           
|LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS
    EQUITY |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  | 
|Interest-Bearing Deposits                                   |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  | 
|Savings and NOW Accounts                                    |                                                                   | $       | 261,264   |           |         | $ | 492     |         |  |  | 0.19    | %    |  | $       | 225,573   |           |         | $ | 485     |         |  |  | 0.22    | %    |  | $       | 201,041   |           |  | $ | 962     |        |  |  | 0.48  | %    |  | 
|Money Market Deposit Accounts                               |                                                                   |         | 1,954,528 |           |         |   | 7,149   |         |  |  | 0.37    |      |  |         | 2,372,285 |           |         |   | 11,819  |         |  |  | 0.50    |      |  |         | 2,199,441 |           |  |   | 18,176  |        |  |  | 0.83  |      |  | 
|Time Deposits in Domestic Offices                           |                                                                   |         | 897,374   |           |         |   | 20,144  |         |  |  | 2.24    |      |  |         | 1,061,435 |           |         |   | 16,195  |         |  |  | 1.53    |      |  |         | 1,485,946 |           |  |   | 26,561  |        |  |  | 1.79  |      |  | 
|Time Deposits in Foreign Offices                            |                                                                   |         | 83,048    |           |         |   | 1,234   |         |  |  | 1.49    |      |  |         | 210,646   |           |         |   | 3,057   |         |  |  | 1.45    |      |  |         | 263,596   |           |  |   | 5,802   |        |  |  | 2.20  |      |  | 
|                                                           
|Total Interest-Bearing Deposits                             |                                                                   |         | 3,196,214 |           |         |   | 29,019  |         |  |  | 0.91    |      |  |         | 3,869,939 |           |         |   | 31,556  |         |  |  | 0.82    |      |  |         | 4,150,024 |           |  |   | 51,501  |        |  |  | 1.24  |      |  | 
|Short-Term Borrowings:                                      |                                                                   |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |         |   |         |         |  |  |         |      |  |         |           |           |  |   |         |        |  |  |       |      |  | 
|Federal Funds Purchased and Repurchase Agreements           |                                                                   |         | 483,092   |           |         |   | 6,915   |         |  |  | 1.43    |      |  |         | 436,195   |           |         |   | 4,798   |         |  |  | 1.10    |      |  |         | 437,934   |           |  |   | 6,744   |        |  |  | 1.54  |      |  | 
|Other Short-Term Borrowings                                 |                                                                   |         | 283,062   |           |         |   | 6,458   |         |  |  | 2.28    |      |  |         | 148,656   |           |         |   | 3,384   |         |  |  | 2.28    |      |  |         | 12,291    |           |  |   | 200     |        |  |  | 1.63  |      |  | 
|Long-Term Debt                                              |                                                                   |         | 813,395   |           |         |   | 38,200  |         |  |  | 4.70    |      |  |         | 487,150   |           |         |   | 22,902  |         |  |  | 4.70    |      |  |         | 73,435    |           |  |   | 6,673   |        |  |  | 9.09  |      |  | 
|                                                           
|                                                            | Total Interest-Bearing Funds & Average Rate
    Incurred          |         |           | 4,775,763 |         |   |         | 80,592  |  |  |         | 1.69 |  |         |           | 4,941,940 |         |   |         | 62,640  |  |  |         | 1.27 |  |         |           | 4,673,684 |  |   |         | 65,118 |  |  |       | 1.39 |  |  | 
|Demand Deposits(5)                                          |                                                                   |         | 755,796   |           |         |   |         |         |  |  |         |      |  |         | 559,890   |           |         |   |         |         |  |  |         |      |  |         | 501,489   |           |  |   |         |        |  |  |       |      |  | 
|Liabilities Held for Sale                                   |                                                                   |         | 129,548   |           |         |   |         |         |  |  |         |      |  |         | 151,836   |           |         |   |         |         |  |  |         |      |  |         | 97,580    |           |  |   |         |        |  |  |       |      |  | 
|Other Liabilities                                           |                                                                   |         | 64,867    |           |         |   |         |         |  |  |         |      |  |         | 87,880    |           |         |   |         |         |  |  |         |      |  |         | 88,119    |           |  |   |         |        |  |  |       |      |  | 
|Minority Interest in Preferred Stock of Subsidiaries        |                                                                   |         | 64,322    |           |         |   |         |         |  |  |         |      |  |         | 185,345   |           |         |   |         |         |  |  |         |      |  |         | 297,627   |           |  |   |         |        |  |  |       |      |  | 
|Shareholders Equity                                        |                                                                   |         | 364,915   |           |         |   |         |         |  |  |         |      |  |         | 382,606   |           |         |   |         |         |  |  |         |      |  |         | 374,704   |           |  |   |         |        |  |  |       |      |  | 
|                                                           
|                                                            | Total Liabilities, Minority Interest and Shareholders
    Equity |         | $         | 6,155,211 |         |   |         |         |  |  |         |      |  |         | $         | 6,309,497 |         |   |         |         |  |  |         |      |  |         | $         | 6,033,203 |  |   |         |        |  |  |       |      |  |  | 
|                                                           
|NET INTEREST INCOME AND SPREAD                              |                                                                   |         |           |           |         | $ | 154,547 |         |  |  | 2.70    | %    |  |         |           |           |         | $ | 174,068 |         |  |  | 3.03    | %    |  |         |           |           |  | $ | 194,938 |        |  |  | 3.48  | %    |  | 
|                                                           
|NET INTEREST MARGIN ON EARNING ASSETS                       |                                                                   |         |           |           |         |   |         |         |  |  | 2.88    | %    |  |         |           |           |         |   |         |         |  |  | 3.16    | %    |  |         |           |           |  |   |         |        |  |  | 3.65  | %    |  | 
|                                                           

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                   
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1)  | Income and rates are computed on a tax-equivalent basis using
    a Federal income tax rate of 35% and local tax rates as
    applicable. Net interest income on a tax equivalent basis, or
    net interest income plus an amount equal to the tax savings on
    tax-exempt interest, is utilized in this table to improve year
    to year comparability as well as facilitate comparison with
    other banking organizations.
|(2)  | Nonperforming loans are included in average balances used to
    determine rates.                                                                                                                                                                                                                                                                                                                                                 
|(3)  | The averages and rates for the securities available for sale
    portfolio are based on amortized cost.                                                                                                                                                                                                                                                                                                                           
|(4)  | Excludes venture capital investments                                                                                                                                                                                                                                                                                                                                                                                              
|(5)  | Demand deposit balances for all periods presented exclude
    certain accounts transferred to the money market classification
    to reduce the level of deposit reserves required.                                                                                                                                                                                                                                               

41



---



##### 



TABLE B:


NET INTEREST INCOME
CHANGES1


|                       |                                                          |               |         |        |               |   |        |        |   |   |         |        |   |        |         |         |        |   |        |        |   |   |         |         |   |  | 
|---------------------- | -------------------------------------------------------- | ------------- | ------- | ------ | ------------- | - | ------ | ------ | - | - | ------- | ------ | - | ------ | ------- | ------- | ------ | - | ------ | ------ | - | - | ------- | ------- | - |  | 
|                       |                                                          | 2004 VS. 2003 |         |        | 2003 VS. 2002 |   |        |       
|                       |                                                          |              
|(TAX-EQUIVALENT BASIS) |                                                          | DUE TO        |         |        | DUE TO        |   |        | TOTAL  |   |   | DUE TO  |        |   | DUE TO |         |         | TOTAL  |   |        |       
|(IN THOUSANDS)         |                                                          | RATE          |         |        | VOLUME        |   |        | CHANGE |   |   | RATE    |        |   | VOLUME |         |         | CHANGE |   |        |       
|                      
|Interest Income:       |                                                          |               |         |        |               |   |        |        |   |   |         |        |   |        |         |         |        |   |        |        |   |   |         |         |   | 
|                       | Loans, Including Fees                                    |               | $       | (6,611 | )             |   | $      | 8,359  |   |   | $       | 1,748  |   |        | $       | (27,042 | )      |   | $      | 7,196  |   |   | $       | (19,846 | ) |  | 
|                       | Securities Available for Sale                            |               |         |       |               |   |        | (2,776 | ) |   |         | (2,776 | ) |        |         | (8,926  | )      |   |        | 5,170  |   |   |         | (3,756  | ) |  | 
|                       | Securities Held to
    Maturity2                         |               |         | (62    | )             |   |        | 2,542  |   |   |         | 2,480  |   |        |         |        |        |   |        | 2,357  |   |   |         | 2,357   |   |  | 
|                       | Time Deposits with Other Banks                           |               |         | 670    |               |   |        | (2,120 | ) |   |         | (1,450 | ) |        |         | 1,637   |        |   |        | 754    |   |   |         | 2,391   |   |  | 
|                       | Federal Funds Sold and Reverse
    Repurchase Agreements |               |         | 621    |               |   |        | (2,192 | ) |   |         | (1,571 | ) |        |         | (2,102  | )      |   |        | (2,392 | ) |   |         | (4,494  | ) |  | 
|                      
|                      
|Total Interest Income  |                                                          |               | (5,382  | )      |               |   | 3,813  |        |   |   | (1,569  | )      |   |        | (36,433 | )       |        |   | 13,085 |        |   |   | (23,348 | )       |   | 
|                      
|Interest Expense:      |                                                          |               |         |        |               |   |        |        |   |   |         |        |   |        |         |         |        |   |        |        |   |   |         |         |   | 
|                       | Savings and NOW Accounts                                 |               |         | (70    | )             |   |        | 77     |   |   |         | 7      |   |        |         | (582    | )      |   |        | 105    |   |   |         | (477    | ) |  | 
|                       | Money Market Deposit Accounts                            |               |         | (2,784 | )             |   |        | (1,886 | ) |   |         | (4,670 | ) |        |         | (7,704  | )      |   |        | 1,347  |   |   |         | (6,357  | ) |  | 
|                       | Time Deposits in Domestic Offices                        |               |         | 6,728  |               |   |        | (2,779 | ) |   |         | 3,949  |   |        |         | (3,494  | )      |   |        | (6,872 | ) |   |         | (10,366 | ) |  | 
|                       | Time Deposits in Foreign Offices                         |               |         | 82     |               |   |        | (1,905 | ) |   |         | (1,823 | ) |        |         | (1,727  | )      |   |        | (1,018 | ) |   |         | (2,745  | ) |  | 
|                       | Federal Funds Purchased and Repurchase Agreements        |               |         | 1,558  |               |   |        | 559    |   |   |         | 2,117  |   |        |         | (1,919  | )      |   |        | (27    | ) |   |         | (1,946  | ) |  | 
|                       | Other Short-Term Borrowings                              |               |         |       |               |   |        | 3,074  |   |   |         | 3,074  |   |        |         | 111     |        |   |        | 3,073  |   |   |         | 3,184   |   |  | 
|                       | Long-Term Debt                                           |               |         |       |               |   |        | 15,298 |   |   |         | 15,298 |   |        |         | (4,657  | )      |   |        | 20,886 |   |   |         | 16,229  |   |  | 
|                      
|                      
|Total Interest Expense |                                                          |               | 5,514   |        |               |   | 12,438 |        |   |   | 17,952  |        |   |        | (19,972 | )       |        |   | 17,494 |        |   |   | (2,478  | )       |   | 
|                      
|                      
|Net Interest Income    |                                                          | $             | (10,896 | )      |               | $ | (8,625 | )      |   | $ | (19,521 | )      |   | $      | (16,461 | )       |        | $ | (4,409 | )      |   | $ | (20,870 | )       |   | 
|                      

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1)  | The dollar amount of changes in interest income and interest
    expense attributable to changes in rate/volume (change in rate
    multiplied by change in volume) has been allocated between rate
    and volume variances based on the percentage relationship of
    such variances to each other. Income and rates are computed on a
    tax-equivalent basis using a Federal income tax rate of 35% and
    local tax rates as applicable.
|(2)  | Effective October 1, 2003, trust preferred securities
    issued by unconsolidated wholly-owned trusts are classified as
    held to maturity securities due to the adoption of FIN 46R.
    Consequently, the change in interest income from 2002 to 2003 is
    entirely due to volume.                                                                                                                                                       

42



---



##### 



TABLE C:


YEAR-END LOANS


DECEMBER 31,


|                                                      |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|----------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
|(IN THOUSANDS)                                        |  | 2004 |           |   | 2003 |   |           | 2002 |  |   | 2001      |   |  | 2000 |          
|                                                      | 
|Domestic:                                             |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Commercial and Financial                              |  | $    | 401,526   |   |      | $ | 581,223   |      |  | $ | 613,786   |   |  | $    | 479,285   |   |  | $ | 479,443   |  
|Commercial Real Estate                                |  |      | 903,829   |   |      |   | 815,004   |      |  |   | 559,384   |   |  |      | 494,192   |   |  |   | 440,900   |  
|Residential Mortgage                                  |  |      | 1,178,058 |   |      |   | 1,155,079 |      |  |   | 1,225,211 |   |  |      | 1,112,409 |   |  |   | 1,168,243 |  
|Residential Mortgage Loans Held for Sale              |  |      | 713       |   |      |   | 524       |      |  |   | 1,247     |   |  |      | 8,671     |   |  |   | 15,433    |  
|Home Equity                                           |  |      | 416,912   |   |      |   | 306,599   |      |  |   | 279,737   |   |  |      | 297,637   |   |  |   | 335,825   |  
|Consumer                                              |  |      | 61,086    |   |      |   | 64,403    |      |  |   | 65,437    |   |  |      | 64,888    |   |  |   | 68,010    |  
|                                                     
|                                                     
|Total Domestic                                        |  |      | 2,962,124 |   |      |   | 2,922,832 |      |  |   | 2,744,802 |   |  |      | 2,457,082 |   |  |   | 2,507,854 |  
|                                                     
|                                                     
|Foreign:                                              |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Governments and Official Institutions                 |  |      | 19,298    |   |      |   | 122,831   |      |  |   | 107,940   |   |  |      | 93,300    |   |  |   | 69,119    |  
|Banks and Other Financial Institutions                |  |      |          |   |      |   | 159       |      |  |   | 30        |   |  |      | 1,531     |   |  |   | 1,717     |  
|Commercial and Industrial                             |  |      | 10,750    |   |      |   | 60,974    |      |  |   | 74,794    |   |  |      | 282,766   |   |  |   | 328,698   |  
|Other                                                 |  |      | 168,807   |   |      |   | 115,091   |      |  |   | 76,526    |   |  |      | 38,244    |   |  |   | 38,291    |  
|                                                     
|                                                     
|Total Foreign                                         |  |      | 198,855   |   |      |   | 299,055   |      |  |   | 259,290   |   |  |      | 415,841   |   |  |   | 437,825   |  
|                                                     
|                                                     
|Total Loans                                           |  |      | 3,160,979 |   |      |   | 3,221,887 |      |  |   | 3,004,092 |   |  |      | 2,872,923 |   |  |   | 2,945,679 |  
|                                                     
|Net Deferred Loan Fees, Costs, Premiums and Discounts |  |      | 3,743     |   |      |   | 3,267     |      |  |   | 3,813     |   |  |      | (4,331    | ) |  |   | (4,941    | )
|                                                     
|                                                     
|Loans, Net                                            |  |      | 3,164,722 |   |      |   | 3,225,154 |      |  |   | 3,007,905 |   |  |      | 2,868,592 |   |  |   | 2,940,738 |  
|Loans Included in Assets Held for Sale                |  |      | (163,391  | ) |      |   |          |      |  |   |          |   |  |      |          |   |  |   |          |  
|                                                     
|Loans                                                 |  | $    | 3,001,331 |   |      | $ | 3,225,154 |      |  | $ | 3,007,905 |   |  | $    | 2,868,592 |   |  | $ | 2,940,738 |  
|                                                     
|Reserve for Loan Losses                               |  |      | (24,717   | ) |      |   | (28,285   | )    |  |   | (25,958   | ) |  |      | (29,540   | ) |  |   | (36,197   | )
|                                                     
|                                                     
|Total Net Loans                                       |  | $    | 2,976,614 |   |      | $ | 3,196,869 |      |  | $ | 2,981,947 |   |  | $    | 2,839,052 |   |  | $ | 2,904,541 |  
|                                                     

43



---



##### 



TABLE D:


YEAR-END MATURITIES AND RATE SENSITIVITY


DECEMBER 31, 2004


|                                                      |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   |           |           | 
|----------------------------------------------------- | ------------------------------------------- | --------- | ------- | ------- | --------- | - | ------- | ------- |  | - | --------- | ------- |  | - | --------- | --------- | 
|                                                      |                                             | LESS THAN |         |         |           |   | OVER    |         |  |  
|(IN THOUSANDS)                                        |                                             | 1 YEAR    |         |         | 1-5 YEARS |   |         | 5 YEARS |  |   | TOTAL     |        
|                                                      |                                            
|Maturities:                                           |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   |           |          
|Commercial and Financial                              |                                             | $         | 85,451  |         |           | $ | 91,013  |         |  | $ | 225,062   |         |  | $ | 401,526   |          
|Commercial Real Estate                                |                                             |           | 183,450 |         |           |   | 560,441 |         |  |   | 159,938   |         |  |   | 903,829   |          
|Residential Mortgage                                  |                                             |           | 28,299  |         |           |   | 131,552 |         |  |   | 1,018,207 |         |  |   | 1,178,058 |          
|Residential Mortgage Loans Held for Sale              |                                             |           |        |         |           |   |        |         |  |   | 713       |         |  |   | 713       |          
|Home Equity                                           |                                             |           | 372,654 |         |           |   | 6,073   |         |  |   | 38,185    |         |  |   | 416,912   |          
|Consumer                                              |                                             |           | 50,534  |         |           |   | 10,131  |         |  |   | 421       |         |  |   | 61,086    |          
|Foreign                                               |                                             |           | 31,464  |         |           |   | 150,795 |         |  |   | 16,596    |         |  |   | 198,855   |          
|                                                     
|Total Loans                                           |                                             | $         | 751,852 |         |           | $ | 950,005 |         |  | $ | 1,459,122 |         |  | $ | 3,160,979 |          
|Net Deferred Loan Fees, Costs, Premiums and Discounts |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   | 3,743     |          
|Loans Included in Assets Held for Sale                |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   | (163,391  | )        
|                                                     
|Loans                                                 |                                             |           |         |         |           |   |         |         |  |   |           |         |  | $ | 3,001,331 |          
|Rate Sensitivity:                                     |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   |           |          
|                                                      | With Fixed Interest Rates                   |           |         | 97,803  |           |   |         | 272,191 |  |   |           | 740,013 |  |   |           | 1,110,007 | 
|                                                      | With Floating and Adjustable Interest Rates |           |         | 654,049 |           |   |         | 677,814 |  |   |           | 719,109 |  |   |           | 2,050,972 | 
|                                                     
|Total Loans                                           |                                             | $         | 751,852 |         |           | $ | 950,005 |         |  | $ | 1,459,122 |         |  | $ | 3,160,979 |          
|Net Deferred Loan Fees, Costs, Premiums and Discounts |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   | 3,743     |          
|Loans Included in Assets Held for Sale                |                                             |           |         |         |           |   |         |         |  |   |           |         |  |   | (163,391  | )        
|                                                     
|Loans                                                 |                                             |           |         |         |           |   |         |         |  |   |           |         |  | $ | 3,001,331 |          
|                                                     

TABLE E:


CROSS-BORDER OUTSTANDINGS THAT EXCEED 1% OF TOTAL
ASSETS1


|                        |  |                 |        |  |            |   |        |       |  |   |         |  |  |   |         | 
|----------------------- |  | --------------- | ------ |  | ---------- | - | ------ | ----- |  | - | ------- |  |  | - | ------- | 
|                        |  | BANKS AND       |        |  | COMMERCIAL |   |        |       |  |  
|                        |  | OTHER FINANCIAL |        |  | AND        |   |        |       |  |  
|(IN THOUSANDS)          |  | INSTITUTIONS    |        |  | INDUSTRIAL |   |        | OTHER |  |   | TOTAL   | 
|                        | 
|As of December 31, 2004 |  |                 |        |  |            |   |        |       |  |   |         |  |  |   |         | 
|United Kingdom          |  | $               | 24,322 |  |            | $ | 8,474  |       |  | $ | 155,035 |  |  | $ | 187,831 | 
|                       
|As of December 31, 2003 |  |                 |        |  |            |   |        |       |  |   |         |  |  |   |         | 
|United Kingdom          |  | $               | 29,325 |  |            | $ | 13,939 |       |  | $ | 83,850  |  |  | $ | 127,114 | 
|United
    States2      |  |                 | 54,019 |  |            |   |       |       |  |   | 23,592  |  |  |   | 77,611  | 
|Portugal                |  |                 | 55,932 |  |            |   |       |       |  |   | 7,593   |  |  |   | 63,525  | 
|                       
|As of December 31, 2002 |  |                 |        |  |            |   |        |       |  |   |         |  |  |   |         | 
|United
    States2      |  | $               | 35,010 |  |            | $ |       |       |  | $ | 48,904  |  |  | $ | 83,914  | 
|Saudi Arabia            |  |                 | 41     |  |            |   |       |       |  |   | 75,475  |  |  |   | 75,516  | 
|                       



|  |                                                                                                                                                                                                                                                 
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1 | Cross-border outstandings include loans, acceptances,
    investments, accrued interest and other monetary assets, net of
    interest-bearing deposits with other banks that are denominated
    in U.S. dollars or other non-local currencies.
| 
|2 | United States cross-border outstandings consist of deposits
    placed by the Company in foreign branches of United States
    banks.                                                                                                           

44



---



##### 



TABLE F:


CROSS-BORDER OUTSTANDINGS THAT EXCEED 1% OF TOTAL ASSETS 
 WITH NONPERFORMING OR PAST-DUE LOANS


|                                           |  |            |       |       |               |   |          |  |  |   |    |  |  | 
|------------------------------------------ |  | ---------- | ----- | ----- | ------------- | - | -------- |  |  | - | -- |  |  | 
|                                           |  |            |       | TOTAL |               |   |          | 
|                                           |  | NONACCRUAL |       |       | NONPERFORMING |   | PAST-DUE |  |  |  
|(IN THOUSANDS)                             |  | LOANS      |       |       | LOANS         |   | LOANS    |  |  |  
|                                          
|As of December 31, 2004
    United Kingdom |  | $          | 240   |       |               | $ |         |  |  | $ | 7  |  |  | 
|                                          
|As of December 31, 2003
    United Kingdom |  | $          | 2,193 |       |               | $ |         |  |  | $ | 68 |  |  | 
|                                          
|As of December 31, 2002                    |  | $          |      |       |               | $ |         |  |  | $ |   |  |  | 
|                                          

TABLE G:


MATURITIES OF SECURITIES AVAILABLE FOR SALE


DECEMBER 31, 2004


|                                    |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  |  | 
|----------------------------------- | ------------------------------------- | --------- | --------- | --------- | ---------- | - | ----- | ---------- |  | - | ------ | ----- |  | - | --------- | --------- |  |  | 
|                                    |                                       |           |           | GROSS     |            |   | GROSS |            |  |   |        |      
|                                    |                                       | AMORTIZED |           |           | UNREALIZED |   |       | UNREALIZED |  |   | FAIR   |       |  |  
|(IN THOUSANDS)                      |                                       | COST      |           |           | GAINS      |   |       | LOSSES     |  |   | VALUE  |       |  |  
|                                   
|U.S. Treasury Securities:           |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  | 
|                                    | Due within 1 year                     |           | $         | 1,999     |            |   | $     |           |  |   | $      |      |  |   | $         | 1,999     |  |  | 
|State & Municipal Securities        |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  | 
|                                    | Due after 5 years but within 10 years |           |           | 25,049    |            |   |       | 173        |  |   |        | 49    |  |   |           | 25,173    |  |  | 
|                                    | Due after 10 years                    |           |           | 1,785     |            |   |       | 5          |  |   |        | 11    |  |   |           | 1,779     |  |  | 
|Government Agencies Securities:     |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  | 
|                                    | Due within 1 year                     |           |           | 76,520    |            |   |       |           |  |   |        |      |  |   |           | 76,520    |  |  | 
|                                    | Due after 1 year but within 5 years   |           |           | 509,199   |            |   |       | 31         |  |   |        | 6,388 |  |   |           | 502,842   |  |  | 
|Mortgage-Backed Securities:         |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  | 
|                                    | Due after 5 years but within 10 years |           |           | 13,425    |            |   |       |           |  |   |        | 178   |  |   |           | 13,247    |  |  | 
|                                    | Due after 10 years                    |           |           | 1,019,823 |            |   |       | 936        |  |   |        | 8,377 |  |   |           | 1,012,382 |  |  | 
|Other Securities:                   |                                       |           |           |           |            |   |       |            |  |   |        |       |  |   |           |           |  | 
|                                    | Due within 1 year                     |           |           | 9,155     |            |   |       |           |  |   |        |      |  |   |           | 9,155     |  |  | 
|                                    | Due after 10 years                    |           |           | 52,442    |            |   |       | 248        |  |   |        |      |  |   |           | 52,690    |  |  | 
|                                   
|Total Securities Available for Sale |                                       | $         | 1,709,397 |           |            | $ | 1,393 |            |  | $ | 15,003 |       |  | $ | 1,695,787 |           |  | 
|                                   

This table reflects the carrying values and amortized cost,
by contractual maturity, of securities available for sale.
Actual maturities may differ from contractual maturities because
borrowers may have the right to call or prepay obligations.


45



---



##### 



TABLE H:


RESERVE FOR LOAN LOSSES AND SUMMARY OF CHARGE-OFFS
(RECOVERIES) 
 DECEMBER 31,


|                                                                              |                          |      |        |       |      |   |        |       |  |   |        |       |  |      |        |       |  |   |        |        |  |  | 
|----------------------------------------------------------------------------- | ------------------------ | ---- | ------ | ----- | ---- | - | ------ | ----- |  | - | ------ | ----- |  | ---- | ------ | ----- |  | - | ------ | ------ |  |  | 
|(IN THOUSANDS)                                                                |                          | 2004 |        |       | 2003 |   |        | 2002  |  |   | 2001   |       |  | 2000 |        |       | 
|                                                                             
|Balance, January 1                                                            |                          | $    | 28,285 |       |      | $ | 25,958 |       |  | $ | 29,540 |       |  | $    | 36,197 |       |  | $ | 41,455 |        |  | 
|Provision for Loan Losses                                                     |                          |      | 49     |       |      |   | 5,146  |       |  |   | 421    |       |  |      | 2,526  |       |  |   | 18,791 |        |  | 
|Loans Charged Off:                                                            |                          |      |        |       |      |   |        |       |  |   |        |       |  |      |        |       |  |   |        |        |  | 
|                                                                              | Commercial and Financial |      |        | 264   |      |   |        | 854   |  |   |        | 69    |  |      |        | 4,071 |  |   |        | 9,059  |  |  | 
|                                                                              | Commercial Real Estate   |      |        | 588   |      |   |        |      |  |   |        | 255   |  |      |        |      |  |   |        | 148    |  |  | 
|                                                                              | Residential Mortgage     |      |        |      |      |   |        |      |  |   |        |      |  |      |        | 10    |  |   |        | 30     |  |  | 
|                                                                              | Home Equity              |      |        |      |      |   |        | 9     |  |   |        | 81    |  |      |        | 48    |  |   |        | 63     |  |  | 
|                                                                              | Consumer                 |      |        | 2,525 |      |   |        | 2,085 |  |   |        | 2,473 |  |      |        | 2,422 |  |   |        | 2,699  |  |  | 
|                                                                              | Foreign                  |      |        | 1,775 |      |   |        | 2,932 |  |   |        | 4,094 |  |      |        | 4,913 |  |   |        | 14,168 |  |  | 
|                                                                             
|Total Loans Charged Off                                                       |                          |      | 5,152  |       |      |   | 5,880  |       |  |   | 6,972  |       |  |      | 11,464 |       |  |   | 26,167 |        |  | 
|                                                                             
|Recoveries on Charged-Off Loans:                                              |                          |      |        |       |      |   |        |       |  |   |        |       |  |      |        |       |  |   |        |        |  | 
|                                                                              | Commercial and Financial |      |        | 2     |      |   |        |      |  |   |        | 62    |  |      |        | 70    |  |   |        | 568    |  |  | 
|                                                                              | Commercial Real Estate   |      |        |      |      |   |        | 204   |  |   |        | 341   |  |      |        | 85    |  |   |        | 548    |  |  | 
|                                                                              | Residential Mortgage     |      |        |      |      |   |        |      |  |   |        |      |  |      |        | 37    |  |   |        | 49     |  |  | 
|                                                                              | Home Equity              |      |        | 5     |      |   |        | 68    |  |   |        | 62    |  |      |        | 126   |  |   |        | 117    |  |  | 
|                                                                              | Consumer                 |      |        | 753   |      |   |        | 676   |  |   |        | 950   |  |      |        | 791   |  |   |        | 715    |  |  | 
|                                                                              | Foreign                  |      |        | 2,198 |      |   |        | 1,862 |  |   |        | 837   |  |      |        | 1,376 |  |   |        | 626    |  |  | 
|                                                                             
|Total Recoveries on Charged-Off Loans                                         |                          |      | 2,958  |       |      |   | 2,810  |       |  |   | 2,252  |       |  |      | 2,485  |       |  |   | 2,623  |        |  | 
|                                                                             
|Net Charge-offs (Recoveries)                                                  |                          |      | 2,194  |       |      |   | 3,070  |       |  |   | 4,720  |       |  |      | 8,979  |       |  |   | 23,544 |        |  | 
|Lower of Cost or Market Adjustment for Loans Transferred to Held
    for Sale |                          |      | (1,521 | )     |      |   |       |       |  |   |       |       |  |      |       |       |  |   |       |        |  | 
|Foreign Exchange Translation Adjustments                                      |                          |      | 98     |       |      |   | 251    |       |  |   | 717    |       |  |      | (204   | )     |  |   | (505   | )      |  | 
|                                                                             
|Balance, December 31                                                          |                          | $    | 24,717 |       |      | $ | 28,285 |       |  | $ | 25,958 |       |  | $    | 29,540 |       |  | $ | 36,197 |        |  | 
|Ratio of Net Charge-Offs (Recoveries) to Average Loans                        |                          |      | 0.07   | %     |      |   | 0.10   | %     |  |   | 0.17   | %     |  |      | 0.31   | %     |  |   | 0.76   | %      |  | 
|                                                                             
|Ratio of Reserve for Loan Losses to Total Loans                               |                          |      | 0.82   | %     |      |   | 0.88   | %     |  |   | 0.86   | %     |  |      | 1.03   | %     |  |   | 1.23   | %      |  | 
|                                                                             

TABLE I:


RESERVE FOR LOAN LOSSES ALLOCATION AND LOAN DISTRIBUTION


DECEMBER 31,


(IN THOUSANDS)


|                                          |  |      |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        |  |  | 
|----------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ |  |  | 
|Allocation of the Reserve for Loan Losses |  | 2004 |        |  | 2003 |   |        | 2002 |  |   | 2001   |  |  | 2000 |        |  | 
|                                         
|Commercial and Financial                  |  | $    | 3,350  |  |      | $ | 5,353  |      |  | $ | 6,390  |  |  | $    | 5,518  |  |  | $ | 15,755 |  |  | 
|Commercial Real Estate                    |  |      | 9,083  |  |      |   | 8,199  |      |  |   | 5,995  |  |  |      | 4,015  |  |  |   | 5,446  |  |  | 
|Residential Mortgage                      |  |      | 1,767  |  |      |   | 1,718  |      |  |   | 2,416  |  |  |      | 1,112  |  |  |   | 1,176  |  |  | 
|Home Equity and Consumer                  |  |      | 3,019  |  |      |   | 2,991  |      |  |   | 3,581  |  |  |      | 3,709  |  |  |   | 2,851  |  |  | 
|Foreign                                   |  |      | 640    |  |      |   | 3,573  |      |  |   | 3,334  |  |  |      | 8,243  |  |  |   | 7,036  |  |  | 
|Based on Qualitative Factors              |  |      | 6,858  |  |      |   | 6,451  |      |  |   | 4,242  |  |  |      | 6,943  |  |  |   | 3,933  |  |  | 
|                                         
|Balance, December 31                      |  |      | 24,717 |  |      |   | 28,285 |      |  |   | 25,958 |  |  |      | 29,540 |  |  |   | 36,197 |  |  | 
|                                         

|                               |  |      |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |   |  | 
|------------------------------ |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | - |  | ---- | ----- | - |  |  | ----- | - |  | 
|Distribution of Year-End Loans |  | 2004 |       |   | 2003 |  |       | 2002 |  |  | 2001  |   |  | 2000 |       |   | 
|                              
|Commercial and Financial       |  |      | 13.4  | % |      |  | 18.0  | %    |  |  | 20.4  | % |  |      | 16.7  | % |  |  | 16.3  | % |  | 
|Commercial Real Estate         |  |      | 30.2  |   |      |  | 25.3  |      |  |  | 18.6  |   |  |      | 17.2  |   |  |  | 15.0  |   |  | 
|Residential Mortgage           |  |      | 39.2  |   |      |  | 35.9  |      |  |  | 40.9  |   |  |      | 39.0  |   |  |  | 40.1  |   |  | 
|Home Equity and Consumer       |  |      | 16.0  |   |      |  | 11.5  |      |  |  | 11.5  |   |  |      | 12.6  |   |  |  | 13.7  |   |  | 
|Foreign                        |  |      | 1.2   |   |      |  | 9.3   |      |  |  | 8.6   |   |  |      | 14.5  |   |  |  | 14.9  |   |  | 
|                              
|Total, December 31             |  |      | 100.0 | % |      |  | 100.0 | %    |  |  | 100.0 | % |  |      | 100.0 | % |  |  | 100.0 | % |  | 
|                              

46



---



##### 



TABLE J:


NONPERFORMING ASSETS AND PAST-DUE LOANS


DECEMBER 31,


|                                                                                  |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  |  | 
|--------------------------------------------------------------------------------- | -------- | ---- | --------- | ----- | ---- | - | --------- | ----- |  | - | --------- | ------ |  | ---- | --------- | ------ |  | - | --------- | ------ |  |  | 
|(IN THOUSANDS)                                                                    |          | 2004 |           |       | 2003 |   |           | 2002  |  |   | 2001      |        |  | 2000 |           |        | 
|                                                                                 
|Nonperforming Assets:                                                             |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  | 
|Nonaccrual Loans:                                                                 |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  | 
|                                                                                  | Domestic |      | $         | 190   |      |   | $         | 115   |  |   | $         | 87     |  |      | $         | 472    |  |   | $         | 34,228 |  |  | 
|                                                                                  | Foreign  |      |           | 240   |      |   |           | 2,193 |  |   |           | 461    |  |      |           | 901    |  |   |           | 957    |  |  | 
|                                                                                 
|Total Nonaccrual Loans                                                            |          |      | 430       |       |      |   | 2,308     |       |  |   | 548       |        |  |      | 1,373     |        |  |   | 35,185    |        |  | 
|                                                                                 
|Renegotiated Loans:                                                               |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  | 
|                                                                                  | Domestic |      |           |      |      |   |           |      |  |   |           |       |  |      |           |       |  |   |           | 31     |  |  | 
|                                                                                  | Foreign  |      |           |      |      |   |           |      |  |   |           |       |  |      |           | 529    |  |   |           | 822    |  |  | 
|                                                                                 
|Total Renegotiated Loans                                                          |          |      |          |       |      |   |          |       |  |   |          |        |  |      | 529       |        |  |   | 853       |        |  | 
|                                                                                 
|Other Real Estate & Repossessed Assets                                            |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  | 
|                                                                                  | Domestic |      |           |      |      |   |           |      |  |   |           |       |  |      |           | 600    |  |   |           | 1,133  |  |  | 
|                                                                                  | Foreign  |      |           | 12    |      |   |           | 40    |  |   |           | 122    |  |      |           | 1,156  |  |   |           |       |  |  | 
|                                                                                 
|Total Other Real Estate & Repossessed Assets                                      |          |      | 12        |       |      |   | 40        |       |  |   | 122       |        |  |      | 1,756     |        |  |   | 1,133     |        |  | 
|                                                                                 
|Total Nonperforming Assets, Net                                                   |          | $    | 442       |       |      | $ | 2,348     |       |  | $ | 670       |        |  | $    | 3,658     |        |  | $ | 37,171    |        |  | 
|                                                                                 
|Past-Due Loans:                                                                   |          |      |           |       |      |   |           |       |  |   |           |        |  |      |           |        |  |   |           |        |  | 
|                                                                                  | Domestic |      | $         | 5,880 |      |   | $         | 9,590 |  |   | $         | 10,457 |  |      | $         | 10,909 |  |   | $         | 11,100 |  |  | 
|                                                                                  | Foreign  |      |           | 7     |      |   |           | 2,588 |  |   |           | 588    |  |      |           | 2,406  |  |   |           | 19     |  |  | 
|                                                                                 
|Total Past-Due Loans                                                              |          | $    | 5,887     |       |      | $ | 12,178    |       |  | $ | 11,045    |        |  | $    | 13,315    |        |  | $ | 11,119    |        |  | 
|                                                                                 
|Total Loans                                                                       |          | $    | 3,001,331 |       |      | $ | 3,225,154 |       |  | $ | 3,007,905 |        |  | $    | 2,868,592 |        |  | $ | 2,940,738 |        |  | 
|Ratio of Nonaccrual Loans to Total Loans                                          |          |      | 0.01      | %     |      |   | 0.07      | %     |  |   | 0.02      | %      |  |      | 0.05      | %      |  |   | 1.20      | %      |  | 
|                                                                                 
|Ratio of Nonperforming Assets to Total Loans and Other Real
    Estate Owned, Net |          |      | 0.01      | %     |      |   | 0.07      | %     |  |   | 0.02      | %      |  |      | 0.13      | %      |  |   | 1.26      | %      |  | 
|                                                                                 

TABLE K:


INTEREST INCOME ON NONACCRUAL AND RENEGOTIATED LOANS


DECEMBER 31,


|                                   |                    |          |     |   |      |   |     |      |     |   |      |    |    |      |       |     |       |   |       |     |       |  |  | 
|---------------------------------- | ------------------ | -------- | --- | - | ---- | - | --- | ---- | --- | - | ---- | -- | -- | ---- | ----- | --- | ----- | - | ----- | --- | ----- |  |  | 
|(IN THOUSANDS)                     |                    | 2004     |     |   | 2003 |   |     | 2002 |     |   | 2001 |    |    | 2000 |       |     |      
|                                  
|Interest Income at Original Terms: |                    |          |     |   |      |   |     |      |     |   |      |    |    |      |       |     |       |   |       |     |       | 
|                                   | Nonaccrual Loans:  |          |     |   |      |   |     |      |     |   |      |    |    |      |       |     |       |   |       |     |       |  | 
|                                   |                    | Domestic |     | $ | 55   |   |     | $    | 20  |   |      | $  | 46 |      |       | $   | 1,151 |   |       | $   | 3,346 |  |  | 
|                                   |                    | Foreign  |     |   | 67   |   |     |      | 195 |   |      |    | 17 |      |       |     | 228   |   |       |     | 332   |  |  | 
|                                   | Renegotiated Loans |          |     |  |      |   |     |     |     |   |      | 23 |    |      |       | 109 |       |   |       | 201 |       |  | 
|                                  
|Total                              |                    | $        | 122 |   |      | $ | 215 |      |     | $ | 86   |    |    | $    | 1,488 |     |       | $ | 3,879 |     |       | 
|                                  
|Actual Interest Income Recognized: |                    |          |     |   |      |   |     |      |     |   |      |    |    |      |       |     |       |   |       |     |       | 
|                                   | Nonaccrual Loans:  |          |     |   |      |   |     |      |     |   |      |    |    |      |       |     |       |   |       |     |       |  | 
|                                   |                    | Domestic |     | $ | 54   |   |     | $    | 4   |   |      | $  | 49 |      |       | $   | 105   |   |       | $   | 41    |  |  | 
|                                   |                    | Foreign  |     |   |     |   |     |      |    |   |      |    |   |      |       |     |      |   |       |     |      |  |  | 
|                                   | Renegotiated Loans |          |     |  |      |   |     |     |     |   |      |   |    |      |       | 10  |       |   |       | 19  |       |  | 
|                                  
|Total                              |                    | $        | 54  |   |      | $ | 4   |      |     | $ | 49   |    |    | $    | 115   |     |       | $ | 60    |     |       | 
|                                  

47



---



##### 



TABLE L:


SHORT-TERM BORROWINGS


|                                            |  |                         |         |   |                  |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |        |  
|------------------------------------------- |  | ----------------------- | ------- | - | ---------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | - |  | - | ------ | -
|                                            |  | FEDERAL FUNDS PURCHASED |         |   |                 
|                                            |  | AND REPURCHASE          |         |   | OTHER SHORT-TERM |  
|                                            |  | AGREEMENTS              |         |   | BORROWINGS       |  
|                                            |  |                         |         |   |                  |  
|(IN THOUSANDS, EXCEPT RATES)                |  | 2004                    |         |   | 2003             |   |         | 2002 |  |   | 2004    |   |  | 2003 |         |   | 2002 |  
|                                            | 
|Balance, December 31                        |  | $                       | 398,013 |   |                  | $ | 518,711 |      |  | $ | 459,098 |   |  | $    | 100,291 |   |      | $ | 151,671 |   |  | $ | 11,274 |  
|Average Amount
    Outstanding1             |  |                         | 483,092 |   |                  |   | 436,196 |      |  |   | 437,934 |   |  |      | 283,063 |   |      |   | 148,656 |   |  |   | 12,291 |  
|Weighted-Average Rate
    Paid1             |  |                         | 1.43    | % |                  |   | 1.10    | %    |  |   | 1.54    | % |  |      | 2.28    | % |      |   | 2.28    | % |  |   | 1.63   | %
|Maximum Amount Outstanding at any Month-End |  |                         | 551,918 |   |                  |   | 518,711 |      |  |   | 567,286 |   |  |      | 266,401 |   |      |   | 151,671 |   |  |   | 11,832 |  
|                                           

1 Average
amounts are based on daily balances. Average rates are computed
by dividing actual interest expense by average amounts
outstanding.


TABLE M:


INTEREST-RATE SENSITIVITY
ANALYSIS1


MOVEMENTS IN INTEREST RATES FROM DECEMBER 31, 2004


|                                                       |                                         |                       |   |     |                        |  |   |        |    |  |        |        |    |  |   |       |  
|------------------------------------------------------ | --------------------------------------- | --------------------- | - | --- | ---------------------- |  | - | ------ | -- |  | ------ | ------ | -- |  | - | ----- | -
|                                                       |                                         | SIMULATED IMPACT OVER |   |     | SIMULATED IMPACT OVER  | 
|(IN THOUSANDS, EXCEPT RATES)                           |                                         | NEXT TWELVE MONTHS    |   |     | NEXT THIRTY-SIX MONTHS | 
|                                                       |                                        
|                                                       |                                         | +100BP                |   |     | -100BP                 |  |   | +300BP |    |  | -300BP |       
|                                                       |                                        
|Simulated Impact Compared with a Most Likely Scenario: |                                         |                       |   |     |                        |  |   |        |    |  |        |        |    |  |   |      
|                                                       | Net Interest Income Increase (Decrease) |                       |   | 0.2 | %                      |  |   | (3.6   | )% |  |        | (1.4   | )% |  |   | 0.8   | %
|                                                       | Net Interest Income Increase (Decrease) |                       | $ | 208 |                        |  | $ | (4,317 | )  |  | $      | (5,064 | )  |  | $ | 2,998 |  
|                                                      

1 Key
Assumptions:


| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Assumptions with respect to the models projection of
    the effect of changes in interest rates on net interest income
    include:

|   |                                                                                                                                                                                                                                                                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | Target balances for various asset and liability classes,
    which are solicited from management of the business units of the
    Company.                                                                                                                                                                                                                 
|2. | A most likely federal funds rate and U.S. Treasury yield
    curve which are determined by an authorized committee and
    variances from this rate which are established by policy.                                                                                                                                                                       
|3. | Spread relationships between various interest rate indices
    which are generated by the analysis of historical data and
    committee consensus.                                                                                                                                                                                                         
|4. | Assumptions about the effect of embedded options and
    prepayment speeds: instruments that are callable are assumed to
    be called at the first opportunity if an interest rate scenario
    makes it advantageous for the owner of the call to do so.
    Prepayment assumptions for mortgage products are derived from
    accepted industry sources.
|5. | Reinvestment rates for funds replacing assets or liabilities
    that are assumed (through early withdrawal, prepayment, calls,
    etc.) to run off the balance sheet, which are generated by the
    spread relationships.                                                                                                                               
|6. | Maturity strategies with respect to assets and liabilities,
    which are solicited from management of the business units of the
    Company.                                                                                                                                                                                                              

48



---



##### 



TABLE N:


CAPITAL RATIOS


DECEMBER 31,


|                                |                             |      |  |       |      |          |  |          |      |  |             |      |   |  |  |       |   |  | 
|------------------------------- | --------------------------- | ---- |  | ----- | ---- | -------- |  | -------- | ---- |  | ----------- | ---- | - |  |  | ----- | - |  | 
|                                |                             |      |  |       |      | REQUIRED |  |          | WELL |  |             |     
|                                |                             | 2004 |  |       | 2003 |          |  | MINIMUMS |      |  | CAPITALIZED |      |   | 
|                               
|Riggs National Corporation      |                             |      |  |       |      |          |  |          |      |  |             |      |   |  |  |       |   | 
|                                | Tier I                      |      |  | 11.18 | %    |          |  | 12.52    | %    |  |             | 4.00 | % |  |  | 6.00  | % |  | 
|                                | Combined Tier I and Tier II |      |  | 16.20 |      |          |  | 17.81    |      |  |             | 8.00 |   |  |  | 10.00 |   |  | 
|                                | Leverage                    |      |  | 7.25  |      |          |  | 8.41     |      |  |             | 4.00 |   |  |  | 5.00  |   |  | 
|Riggs Bank National Association |                             |      |  |       |      |          |  |          |      |  |             |      |   |  |  |       |   | 
|                                | Tier I                      |      |  | 11.58 | %    |          |  | 11.08    | %    |  |             | 4.00 | % |  |  | 6.00  | % |  | 
|                                | Combined Tier I and Tier II |      |  | 12.23 |      |          |  | 11.82    |      |  |             | 8.00 |   |  |  | 10.00 |   |  | 
|                                | Leverage                    |      |  | 7.72  |      |          |  | 7.52     |      |  |             | 4.00 |   |  |  | 5.00  |   |  | 
|                               

TABLE O:


CONTRACTUAL OBLIGATIONS


AT DECEMBER 31, 2004


|                            |  |       |           |      |          |   |         |       |  |     |           |  |      |         |         |  |  |   |           |  |  | 
|--------------------------- |  | ----- | --------- | ---- | -------- | - | ------- | ----- |  | --- | --------- |  | ---- | ------- | ------- |  |  | - | --------- |  |  | 
|                            |  |       |           | LESS |          |   |         |       |  |     | MORE      |  |      |        
|                            |  |       |           | THAN |          |   | 1-3     |       |  | 3-5 |           |  | THAN |         |         | 
|(IN THOUSANDS)              |  | TOTAL |           |      | ONE YEAR |   |         | YEARS |  |     | YEARS     |  |      | 5 YEARS |         |  | 
|                           
|Long-Term Debt              |  | $     | 2,322,530 |      |          | $ | 316,639 |       |  | $   | 964,365   |  |      | $       | 139,212 |  |  | $ | 902,314   |  |  | 
|Capital Lease Obligations   |  |       |          |      |          |   |        |       |  |     |          |  |      |         |        |  |  |   |          |  |  | 
|Operating Leases            |  |       | 56,120    |      |          |   | 9,798   |       |  |     | 16,963    |  |      |         | 11,781  |  |  |   | 17,578    |  |  | 
|Purchase Obligations        |  |       | 44,120    |      |          |   | 20,011  |       |  |     | 12,413    |  |      |         | 8,645   |  |  |   | 3,051     |  |  | 
|Other Long-Term Liabilities |  |       | 354,759   |      |          |   | 26,084  |       |  |     | 17,416    |  |      |         | 17,448  |  |  |   | 293,811   |  |  | 
|                           
|Total                       |  | $     | 2,777,529 |      |          | $ | 372,532 |       |  | $   | 1,011,157 |  |      | $       | 177,086 |  |  | $ | 1,216,754 |  |  | 
|                           

49



---



##### 





|        |                                            
|------- | -------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CONSOLIDATED STATEMENTS OF OPERATIONS


FOR THE YEARS ENDED DECEMBER 31,


|                                                  |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |         |        | 
|------------------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------- | - | -------- | ------ |  | - | ------- | ------ |  | - | ------- | ------ | 
|(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)          |                                                                  | 2004                                                  |   |          | 2003   |  |   | 2002    |       
|                                                  |                                                                 
|INTEREST INCOME                                   |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Interest and Fees on Loans                                       |                                                       | $ | 156,268  |        |  | $ | 154,189 |        |  | $ | 174,855 |       
|                                                  | Interest and Dividends on Securities Available for Sale          |                                                       |   | 63,077   |        |  |   | 66,318  |        |  |   | 70,088  |       
|                                                  | Interest and Dividends on Securities Held to Maturity            |                                                       |   | 4,837    |        |  |   | 2,357   |        |  |   |        |       
|                                                  | Interest on Time Deposits with Other Banks                       |                                                       |   | 3,565    |        |  |   | 5,015   |        |  |   | 2,624   |       
|                                                  | Interest on Federal Funds Sold and Reverse Repurchase Agreements |                                                       |   | 2,482    |        |  |   | 4,053   |        |  |   | 8,547   |       
|                                                 
|                                                  | Total Interest Income                                            |                                                       |   | 230,229  |        |  |   | 231,932 |        |  |   | 256,114 |       
|INTEREST EXPENSE                                  |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Interest on Deposits:                                            |                                                       |   |          |        |  |   |         |        |  |   |         |       
|                                                  |                                                                  | Savings, NOW and Money Market Accounts                |   |          | 7,641  |  |   |         | 12,304 |  |   |         | 19,138 | 
|                                                  |                                                                  | Time Deposits in Domestic Offices                     |   |          | 20,144 |  |   |         | 16,195 |  |   |         | 26,561 | 
|                                                  |                                                                  | Time Deposits in Foreign Offices                      |   |          | 1,234  |  |   |         | 3,057  |  |   |         | 5,802  | 
|                                                 
|                                                  | Total Interest on Deposits                                       |                                                       |   | 29,019   |        |  |   | 31,556  |        |  |   | 51,501  |       
|                                                 
|                                                  | Interest on Short-Term Borrowings and Long-Term Debt:            |                                                       |   |          |        |  |   |         |        |  |   |         |       
|                                                  |                                                                  | Repurchase Agreements and Other Short-Term Borrowings |   |          | 13,373 |  |   |         | 8,182  |  |   |         | 6,944  | 
|                                                  |                                                                  | Long-Term Debt                                        |   |          | 38,200 |  |   |         | 22,902 |  |   |         | 6,673  | 
|                                                 
|                                                  | Total Interest on Short-Term Borrowings and Long-Term Debt       |                                                       |   | 51,573   |        |  |   | 31,084  |        |  |   | 13,617  |       
|                                                 
|                                                  | Total Interest Expense                                           |                                                       |   | 80,592   |        |  |   | 62,640  |        |  |   | 65,118  |       
|                                                 
|                                                  | Net Interest Income                                              |                                                       |   | 149,637  |        |  |   | 169,292 |        |  |   | 190,996 |       
|                                                  | Provision for Loan Losses                                        |                                                       |   | 49       |        |  |   | 5,146   |        |  |   | 421     |       
|                                                 
|                                                  | Net Interest Income after Provision for Loan Losses              |                                                       |   | 149,588  |        |  |   | 164,146 |        |  |   | 190,575 |       
|NONINTEREST INCOME                                |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Trust and Investment Advisory Income                             |                                                       |   | 35,541   |        |  |   | 36,896  |        |  |   | 42,368  |       
|                                                  | Service Charges and Fees                                         |                                                       |   | 48,783   |        |  |   | 49,153  |        |  |   | 45,080  |       
|                                                  | Venture Capital Investment Gains (Losses), Net                   |                                                       |   | 3,579    |        |  |   | (4,206  | )      |  |   | (14,822 | )     
|                                                  | Other Noninterest Income                                         |                                                       |   | 10,490   |        |  |   | 14,016  |        |  |   | 10,510  |       
|                                                  | Securities Gains, Net                                            |                                                       |   | 227      |        |  |   | 13,331  |        |  |   | 9,450   |       
|                                                 
|                                                  | Total Noninterest Income                                         |                                                       |   | 98,620   |        |  |   | 109,190 |        |  |   | 92,586  |       
|NONINTEREST EXPENSE                               |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Salaries and Wages                                               |                                                       |   | 102,109  |        |  |   | 91,728  |        |  |   | 85,511  |       
|                                                  | Pension and Other Employee Benefits                              |                                                       |   | 24,593   |        |  |   | 23,725  |        |  |   | 23,053  |       
|                                                  | Fines and Settlements                                            |                                                       |   | 51,700   |        |  |   |        |        |  |   |        |       
|                                                  | Legal Fees                                                       |                                                       |   | 30,142   |        |  |   | 4,889   |        |  |   | 4,111   |       
|                                                  | Consultants and Outsourcing Fees                                 |                                                       |   | 29,940   |        |  |   | 20,756  |        |  |   | 13,439  |       
|                                                  | Occupancy, Net                                                   |                                                       |   | 23,301   |        |  |   | 21,090  |        |  |   | 21,145  |       
|                                                  | Furniture, Equipment and Software                                |                                                       |   | 15,897   |        |  |   | 13,615  |        |  |   | 15,203  |       
|                                                  | Credit Card Processing                                           |                                                       |   | 10,753   |        |  |   | 10,121  |        |  |   | 9,092   |       
|                                                  | Advertising and Public Relations                                 |                                                       |   | 9,463    |        |  |   | 3,900   |        |  |   | 4,585   |       
|                                                  | Write-down of Corporate Aircraft                                 |                                                       |   | 7,128    |        |  |   |        |        |  |   |        |       
|                                                  | Data Processing Services                                         |                                                       |   | 6,851    |        |  |   | 19,606  |        |  |   | 21,097  |       
|                                                  | Software Maintenance                                             |                                                       |   | 4,848    |        |  |   | 4,111   |        |  |   | 2,984   |       
|                                                  | Communications Expense                                           |                                                       |   | 4,430    |        |  |   | 3,426   |        |  |   | 3,063   |       
|                                                  | Other Noninterest Expense                                        |                                                       |   | 44,121   |        |  |   | 40,592  |        |  |   | 34,605  |       
|                                                 
|                                                  | Total Noninterest Expense                                        |                                                       |   | 365,276  |        |  |   | 257,559 |        |  |   | 237,888 |       
|                                                 
|                                                  | Income (Loss) before Taxes and Minority Interest                 |                                                       |   | (117,068 | )      |  |   | 15,777  |        |  |   | 45,273  |       
|                                                  | Applicable Income Tax Expense (Benefit)                          |                                                       |   | (20,930  | )      |  |   | 4,493   |        |  |   | 15,208  |       
|                                                  | Minority Interest in Income of Subsidiaries, Net of Taxes        |                                                       |   | 3,821    |        |  |   | 10,579  |        |  |   | 16,911  |       
|                                                 
|                                                  | Income (Loss) from Continuing Operations                         |                                                       | $ | (99,959  | )      |  | $ | 705     |        |  | $ | 13,154  |       
|                                                 
|                                                  | Income from Discontinued Operations                              |                                                       |   | 961      |        |  |   | 167     |        |  |   | 130     |       
|                                                  | Applicable Income Tax Expense (Benefit)                          |                                                       |   | (709     | )      |  |   | (107    | )      |  |   | 263     |       
|                                                 
|                                                  | Net Income (Loss) from Discontinued Operations                   |                                                       |   | 1,670    |        |  |   | 274     |        |  |   | (133    | )     
|                                                 
|                                                  | Net Income (Loss)                                                |                                                       | $ | (98,289  | )      |  | $ | 979     |        |  | $ | 13,021  |       
|                                                 
|                                                 
|EARNINGS (LOSS) PER SHARE-CONTINUING OPERATIONS   |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Basic                                                            |                                                       | $ | (3.33    | )      |  | $ | 0.02    |        |  | $ | 0.46    |       
|                                                  | Diluted                                                          |                                                       |   | (3.33    | )      |  |   | 0.02    |        |  |   | 0.46    |       
|                                                 
|EARNINGS (LOSS) PER SHARE-DISCONTINUED OPERATIONS |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Basic                                                            |                                                       | $ | 0.06     |        |  | $ | 0.01    |        |  | $ |        |       
|                                                  | Diluted                                                          |                                                       |   | 0.06     |        |  |   | 0.01    |        |  |   |        |       
|                                                 
|EARNINGS (LOSS) PER SHARE-                        |                                                                  |                                                       |   |          |        |  |   |         |        |  |   |        
|                                                  | Basic                                                            |                                                       | $ | (3.27    | )      |  | $ | 0.03    |        |  | $ | 0.46    |       
|                                                  | Diluted                                                          |                                                       |   | (3.27    | )      |  |   | 0.03    |        |  |   | 0.45    |       

The Accompanying Notes Are An Integral Part Of
These Statements


50



---



##### 



CONSOLIDATED STATEMENTS OF CONDITION


DECEMBER 31,


|                                                                                                    |                                                                                                             |                                   |        |           |           |  |   |           |           |  |  | 
|--------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | --------------------------------- | ------ | --------- | --------- |  | - | --------- | --------- |  |  | 
|(IN THOUSANDS, EXCEPT SHARE AMOUNTS)                                                                |                                                                                                             | 2004                              |        |           | 2003      |  |   |          
|                                                                                                   
|ASSETS                                                                                              |                                                                                                             |                                   |        |           |           |  |   |           |           | 
|                                                                                                    | Cash and Due from Banks                                                                                     |                                   | $      | 147,561   |           |  | $ | 325,975   |           |  | 
|                                                                                                    | Federal Funds Sold and Reverse Repurchase Agreements                                                        |                                   |        | 450,000   |           |  |   |          |           |  | 
|                                                                                                   
|                                                                                                    | Total Cash and Cash Equivalents                                                                             |                                   |        | 597,561   |           |  |   | 325,975   |           |  | 
|                                                                                                    | Time Deposits with Other Banks                                                                              |                                   |        | 65,391    |           |  |   | 287,077   |           |  | 
|                                                                                                    | Securities Available for Sale                                                                               |                                   |        | 1,695,787 |           |  |   | 1,826,818 |           |  | 
|                                                                                                    | Securities Held to Maturity (Fair Value-$50,850 at
    December 31, 2004 and $115,319 at December 31, 2003) |                                   |        | 49,853    |           |  |   | 107,891   |           |  | 
|                                                                                                    | Venture Capital Investments                                                                                 |                                   |        | 39,239    |           |  |   | 43,356    |           |  | 
|                                                                                                   
|                                                                                                    | Loans                                                                                                       |                                   |        | 3,001,331 |           |  |   | 3,225,154 |           |  | 
|                                                                                                    | Reserve for Loan Losses                                                                                     |                                   |        | (24,717   | )         |  |   | (28,285   | )         |  | 
|                                                                                                   
|                                                                                                    | Total Net Loans                                                                                             |                                   |        | 2,976,614 |           |  |   | 3,196,869 |           |  | 
|                                                                                                    | Premises and Equipment, Net                                                                                 |                                   |        | 174,690   |           |  |   | 226,502   |           |  | 
|                                                                                                    | Assets Held for Sale                                                                                        |                                   |        | 196,642   |           |  |   |          |           |  | 
|                                                                                                    | Other Assets                                                                                                |                                   |        | 212,886   |           |  |   | 306,113   |           |  | 
|                                                                                                   
|                                                                                                    | Total Assets                                                                                                |                                   | $      | 6,008,663 |           |  | $ | 6,320,601 |           |  | 
|                                                                                                   
|LIABILITIES                                                                                         |                                                                                                             |                                   |        |           |           |  |   |           |           | 
|                                                                                                    | Deposits:                                                                                                   |                                   |        |           |           |  |   |           |           |  | 
|                                                                                                    | Noninterest-Bearing Demand Deposits                                                                         |                                   | $      | 475,380   |           |  | $ | 673,610   |           |  | 
|                                                                                                    | Interest-Bearing Deposits:                                                                                  |                                   |        |           |           |  |   |           |           |  | 
|                                                                                                    |                                                                                                             | Savings and NOW Accounts          |        |           | 252,719   |  |   |           | 294,546   |  |  | 
|                                                                                                    |                                                                                                             | Money Market Deposit Accounts     |        |           | 1,650,385 |  |   |           | 2,378,779 |  |  | 
|                                                                                                    |                                                                                                             | Time Deposits in Domestic Offices |        |           | 1,409,157 |  |   |           | 585,260   |  |  | 
|                                                                                                    |                                                                                                             | Time Deposits in Foreign Offices  |        |           | 10,015    |  |   |           | 354,037   |  |  | 
|                                                                                                   
|                                                                                                    | Total Interest-Bearing Deposits                                                                             |                                   |        | 3,322,276 |           |  |   | 3,612,622 |           |  | 
|                                                                                                   
|                                                                                                    | Total Deposits                                                                                              |                                   |        | 3,797,656 |           |  |   | 4,286,232 |           |  | 
|                                                                                                   
|                                                                                                    | Short-Term Borrowings                                                                                       |                                   |        | 498,304   |           |  |   | 670,382   |           |  | 
|                                                                                                    | Other Liabilities                                                                                           |                                   |        | 112,832   |           |  |   | 78,134    |           |  | 
|                                                                                                    | Liabilities Held for Sale                                                                                   |                                   |        | 70,704    |           |  |   |          |           |  | 
|                                                                                                    | Long-Term Borrowings                                                                                        |                                   |        | 1,138,693 |           |  |   | 912,333   |           |  | 
|                                                                                                   
|                                                                                                    | Total Liabilities                                                                                           |                                   |        | 5,618,189 |           |  |   | 5,947,081 |           |  | 
|                                                                                                   
|GUARANTEED PREFERRED BENEFICIAL INTERESTS IN JUNIOR
    SUBORDINATED DEFERRABLE INTEREST DEBENTURES |                                                                                                             |                                   | 72,634 |           |           |  |  |           |           | 
|                                                                                                   
|COMMITMENTS AND CONTINGENCIES                                                                       |                                                                                                             |                                   |        |           |           |  |   |           |           | 
|SHAREHOLDERS EQUITY                                                                                |                                                                                                             |                                   |        |           |           |  |   |           |           | 
|                                                                                                    | Common Stock-$2.50 Par Value                                                                                |                                   |        |           |           |  |   |           |           |  | 

|                                              |                |      |  |            |      |   |           |            |  |   |           |        |  |  |         |        |  |  | 
|--------------------------------------------- | -------------- | ---- |  | ---------- | ---- | - | --------- | ---------- |  | - | --------- | ------ |  |  | ------- | ------ |  |  | 
|                                              |                | 2004 |  |            | 2003 |   |           |            |  |   |           |       
|                                              |                |      |  |            |      |   |           |            | 
|                                              | Authorized     |      |  | 50,000,000 |      |   |           | 50,000,000 |  |   |           |        |  |  |         |        |  |  | 
|                                              | Issued         |      |  | 35,017,721 |      |   |           | 31,998,260 |  |   |           |        |  |  |         |        |  |  | 
|                                              | Outstanding    |      |  | 31,675,800 |      |   |           | 28,680,138 |  |   |           | 87,544 |  |  |         | 79,996 |  |  | 
|                                              | Treasury Stock |      |  | 3,341,921  |      |   |           | 3,318,122  |  |   |           |        |  |  |         |        |  |  | 
|Additional Paid in Capital                    |                |      |  |            |      |   |           |            |  |   | 214,718   |        |  |  | 174,396 |        |  | 
|Retained Earnings                             |                |      |  |            |      |   |           |            |  |   | 98,946    |        |  |  | 200,131 |        |  | 
|Accumulated Other Comprehensive Income (Loss) |                |      |  |            |      |   | (11,375   | )          |  |   | (9,380    | )      |  | 
|Treasury Stock                                |                |      |  |            |      |   |           |            |  |   | (71,993   | )      |  |  | (71,623 | )      |  | 
|                                             
|Total Shareholders Equity                    |                |      |  |            |      |   |           |            |  |   | 317,840   |        |  |  | 373,520 |        |  | 
|                                             
|Total Liabilities and Shareholders Equity    |                |      |  |            |      | $ | 6,008,663 |            |  | $ | 6,320,601 |        |  | 

The Accompanying Notes Are An Integral Part Of
These Statements


51



---



##### 



CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS
EQUITY


FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002


|                                                                                |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |         |  
|------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | --------- | ------ |  | ---------- | - | ------- | ----------- |  | ----- | ------------- | ------- | - | -------- | ------- | ------- | ------------- | - | ------- | - |  | - | -------- | ------- | -
|                                                                                |                                                                                           |           |        |  |            |   |         | ACCUMULATED |  |       |               |         |  
|                                                                                |                                                                                           | COMMON    |        |  | ADDITIONAL |   |         |             |  | OTHER |               |         |   |          | TOTAL   |        
|(IN THOUSANDS, EXCEPT SHARE                                                     |                                                                                           | STOCK     |        |  | PAID IN    |   |         | RETAINED    |  |       | COMPREHENSIVE |         |   | TREASURY |         |         | SHAREHOLDERS |  
|AMOUNTS)                                                                        |                                                                                           | $2.50 PAR |        |  | CAPITAL    |   |         | EARNINGS    |  |       | INCOME (LOSS) |         |   | STOCK    |         |         | EQUITY        |  
|                                                                                |                                                                                          
|Balance, January 1, 2002                                                        |                                                                                           | $         | 79,489 |  |            | $ | 163,125 |             |  | $     | 197,545       |         |   | $        | (7,979  | )       |               | $ | (71,357 | ) |  | $ | 360,823  |        
|Comprehensive Income:                                                           |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |        
|                                                                                | Net Income                                                                                |           |        |  |            |   |         |             |  |       |               | 13,021  |   |          |         |         |               |   |         |   |  |   |          | 13,021  |  
|                                                                                | Other Comprehensive Income, Net of Tax:                                                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |         |  
|                                                                                | Unrealized Gain on Securities Available for Sale, Net of
    Reclassification Adjustments |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 12,815  |               |   |         |   |  |   |          | 12,815  |  
|                                                                                | Unrealized Loss on Derivatives, Net of Reclassification
    Adjustments                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         | (893    | )             |   |         |   |  |   |          | (893    | )
|                                                                                | Foreign Exchange Translation Adjustments                                                  |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 1,525   |               |   |         |   |  |   |          | 1,525   |  
|                                                                               
|                                                                                | Total Other Comprehensive Income                                                          |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          | 13,447  |  
|                                                                               
|Total Comprehensive Income                                                      |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | 26,468   |        
|Issuance of Common Stock for Stock Option
    Plans-16,319 Shares               |                                                                                           |           | 41     |  |            |   | 174     |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | 215      |        
|Repurchase of Trust Preferred Securities, Net                                   |                                                                                           |           |        |  |            |   | 7,448   |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | 7,448    |        
|Common Stock Repurchase-1,000 Shares                                            |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   | (12     | ) |  |   | (12      | )      
|Cash Dividends-Common Stock, $.20 per share                                     |                                                                                           |           |        |  |            |   |         |             |  |       | (5,701        | )       |   |          |         |         |               |   |         |   |  |   | (5,701   | )      
|                                                                               
|Balance, December 31, 2002                                                      |                                                                                           | $         | 79,530 |  |            | $ | 170,747 |             |  | $     | 204,865       |         |   | $        | 5,468   |         |               | $ | (71,369 | ) |  | $ | 389,241  |        
|                                                                               
|Comprehensive Income:                                                           |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |        
|                                                                                | Net Income                                                                                |           |        |  |            |   |         |             |  |       |               | 979     |   |          |         |         |               |   |         |   |  |   |          | 979     |  
|                                                                                | Other Comprehensive Income, Net of Tax:                                                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |         |  
|                                                                                | Unrealized Loss on Securities Available for Sale, Net of
    Reclassification Adjustments |           |        |  |            |   |         |             |  |       |               |         |   |          |         | (17,949 | )             |   |         |   |  |   |          | (17,949 | )
|                                                                                | Unrealized Gain on Derivatives, Net of Reclassification
    Adjustments                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 1,634   |               |   |         |   |  |   |          | 1,634   |  
|                                                                                | Foreign Exchange Translation Adjustments                                                  |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 1,467   |               |   |         |   |  |   |          | 1,467   |  
|                                                                               
|                                                                                | Total Other Comprehensive Loss                                                            |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          | (14,848 | )
|                                                                               
|Total Comprehensive Loss                                                        |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | (13,869  | )      
|Issuance of Common Stock for Stock Option
    Plans-186,238 Shares              |                                                                                           |           | 466    |  |            |   | 3,746   |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | 4,212    |        
|Repurchase of Trust Preferred Securities, Net                                   |                                                                                           |           |        |  |            |   | (97     | )           |  |       |               |         |   |          |         |         |               |   |         |   |  |   | (97      | )      
|Common Stock Repurchase-16,324 Shares                                           |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   | (254    | ) |  |   | (254     | )      
|Cash Dividends-Common Stock, $.20 per share                                     |                                                                                           |           |        |  |            |   |         |             |  |       | (5,713        | )       |   |          |         |         |               |   |         |   |  |   | (5,713   | )      
|                                                                               
|Balance, December 31, 2003                                                      |                                                                                           | $         | 79,996 |  |            | $ | 174,396 |             |  | $     | 200,131       |         |   | $        | (9,380  | )       |               | $ | (71,623 | ) |  | $ | 373,520  |        
|                                                                               
|Comprehensive Income:                                                           |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |        
|                                                                                | Net Loss                                                                                  |           |        |  |            |   |         |             |  |       |               | (98,289 | ) |          |         |         |               |   |         |   |  |   |          | (98,289 | )
|                                                                                | Other Comprehensive Income, Net of Tax:                                                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          |         |  
|                                                                                | Unrealized Loss on Securities Available for Sale, Net of
    Reclassification Adjustments |           |        |  |            |   |         |             |  |       |               |         |   |          |         | (3,722  | )             |   |         |   |  |   |          | (3,722  | )
|                                                                                | Unrealized Gain on Derivatives, Net of Reclassification
    Adjustments                   |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 1,436   |               |   |         |   |  |   |          | 1,436   |  
|                                                                                | Foreign Exchange Translation Adjustments                                                  |           |        |  |            |   |         |             |  |       |               |         |   |          |         | 291     |               |   |         |   |  |   |          | 291     |  
|                                                                               
|                                                                                | Total Other Comprehensive Loss                                                            |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   |          | (1,995  | )
|                                                                               
|Total Comprehensive Loss                                                        |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | (100,284 | )      
|Issuance of Common Stock for Stock Option and Award Plans-
    3,019,461 Shares |                                                                                           |           | 7,548  |  |            |   | 40,894  |             |  |       |               |         |   |          |         |         |               |   |         |   |  |   | 48,442   |        
|Repurchase of Trust Preferred Securities, Net                                   |                                                                                           |           |        |  |            |   | (572    | )           |  |       |               |         |   |          |         |         |               |   |         |   |  |   | (572     | )      
|Common Stock Repurchase-23,799 Shares                                           |                                                                                           |           |        |  |            |   |         |             |  |       |               |         |   |          |         |         |               |   | (370    | ) |  |   | (370     | )      
|Cash Dividends-Common Stock, $.10 per share                                     |                                                                                           |           |        |  |            |   |         |             |  |       | (2,896        | )       |   |          |         |         |               |   |         |   |  |   | (2,896   | )      
|                                                                               
|Balance, December 31, 2004                                                      |                                                                                           | $         | 87,544 |  |            | $ | 214,718 |             |  | $     | 98,946        |         |   | $        | (11,375 | )       |               | $ | (71,993 | ) |  | $ | 317,840  |        
|                                                                               

The Accompanying Notes Are An Integral Part Of
These Statements


52



---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS


FOR THE YEARS ENDED DECEMBER 31,


|                                                             |                                                                                                                       |                                                                  |          |             |         |   |          |            |         |   |          |             |         |   |  | 
|------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | -------- | ----------- | ------- | - | -------- | ---------- | ------- | - | -------- | ----------- | ------- | - |  | 
|(IN THOUSANDS)                                               |                                                                                                                       | 2004                                                             |          |             | 2003    |   |          | 2002       |         |   |         
|                                                            
|CASH FLOWS FROM OPERATING ACTIVITIES:                        |                                                                                                                       |                                                                  |          |             |         |   |          |            |         |   |          |             |         |  
|Net Income (Loss)                                            |                                                                                                                       | $                                                                | (98,289  | )           |         | $ | 979      |            |         | $ | 13,021   |             |         |  
|                                                             | Adjustments to Reconcile Net Income (Loss) to Cash
    Provided By Operating Activities:                              |                                                                  |          |             |         |   |          |            |         |   |          |             |         |   | 
|                                                             |                                                                                                                       | Write-down of Corporate Aircraft                                 |          |             | 7,128   |   |          |            |        |   |          |             |        |   |  | 
|                                                             |                                                                                                                       | Provision for Loan Losses                                        |          |             | 49      |   |          |            | 5,146   |   |          |             | 421     |   |  | 
|                                                             |                                                                                                                       | Unrealized (Gains) Losses on Venture Capital Investments         |          |             | (9,358  | ) |          |            | (4,691  | ) |          |             | 11,690  |   |  | 
|                                                             |                                                                                                                       | (Gains) Losses on Sales of Venture Capital Investments           |          |             | 5,779   |   |          |            | 8,897   |   |          |             | 3,132   |   |  | 
|                                                             |                                                                                                                       | Depreciation Expense and Other Amortization                      |          |             | 25,543  |   |          |            | 19,994  |   |          |             | 17,688  |   |  | 
|                                                             |                                                                                                                       | Net Gains on Sales of Premises and Securities Available for Sale |          |             | (2,602  | ) |          |            | (13,331 | ) |          |             | (9,450  | ) |  | 
|                                                             |                                                                                                                       | (Increase) Decrease in Other Assets                              |          |             | (44,292 | ) |          |            | 11,807  |   |          |             | (47,077 | ) |  | 
|                                                             |                                                                                                                       | Increase in Other Liabilities                                    |          |             | 45,594  |   |          |            | 1,266   |   |          |             | 15,045  |   |  | 
|                                                            
|                                                             | Total Adjustments                                                                                                     |                                                                  |          | 27,841      |         |   |          | 29,088     |         |   |          | (8,551      | )       |   | 
|                                                            
|Net Cash (Used in) Provided By Operating Activities          |                                                                                                                       |                                                                  | (70,448  | )           |         |   | 30,067   |            |         |   | 4,470    |             |         |  
|                                                            
|CASH FLOWS FROM INVESTING ACTIVITIES:                        |                                                                                                                       |                                                                  |          |             |         |   |          |            |         |   |          |             |         |  
|                                                             | Net (Increase) Decrease In Time Deposits with Other Banks                                                             |                                                                  |          | 211,250     |         |   |          | (83,810    | )       |   |          | 86,197      |         |   | 
|                                                             | Proceeds from Maturities of Securities Available for Sale                                                             |                                                                  |          | 26,032,312  |         |   |          | 8,353,744  |         |   |          | 12,155,976  |         |   | 
|                                                             | Proceeds from Sales of Securities Available for Sale                                                                  |                                                                  |          | 737,017     |         |   |          | 682,368    |         |   |          | 531,157     |         |   | 
|                                                             | Purchases of Securities Available for Sale                                                                            |                                                                  |          | (26,531,669 | )       |   |          | (8,669,248 | )       |   |          | (13,359,434 | )       |   | 
|                                                             | Purchases of Venture Capital Investments                                                                              |                                                                  |          | (3,421      | )       |   |          | (3,145     | )       |   |          | (9,327      | )       |   | 
|                                                             | Proceeds from Sale of OREO                                                                                            |                                                                  |          |            |         |   |          | 812        |         |   |          | 3,926       |         |   | 
|                                                             | Proceeds from Sale of Venture Capital Investments                                                                     |                                                                  |          | 11,135      |         |   |          | 5,002      |         |   |          | 1,405       |         |   | 
|                                                             | Net (Increase) Decrease in Loans                                                                                      |                                                                  |          | 56,814      |         |   |          | (221,043   | )       |   |          | (148,355    | )       |   | 
|                                                             | Net Additions to Premises and Equipment                                                                               |                                                                  |          | (19,098     | )       |   |          | (54,798    | )       |   |          | (11,262     | )       |   | 
|                                                             | Proceeds from Sales of Assets Used in International Business                                                          |                                                                  |          | 31,869      |         |   |          |           |         |   |          |            |         |   | 
|                                                             | Other, Net                                                                                                            |                                                                  |          |            |         |   |          | 253        |         |   |          | 551         |         |   | 
|                                                            
|Net Cash Provided By (Used in) Investing Activities          |                                                                                                                       |                                                                  | 526,209  |             |         |   | 10,135   |            |         |   | (749,166 | )           |         |  
|                                                            
|CASH FLOWS FROM FINANCING ACTIVITIES:                        |                                                                                                                       |                                                                  |          |             |         |   |          |            |         |   |          |             |         |  
|                                                             | Net Increase (Decrease) in Non-Time Deposits                                                                          |                                                                  |          | (956,151    | )       |   |          | 166,492    |         |   |          | 257,298     |         |   | 
|                                                             | Net Increase (Decrease) in Time Deposits                                                                              |                                                                  |          | 537,925     |         |   |          | (1,119,257 | )       |   |          | 459,416     |         |   | 
|                                                             | Maturities and Payments of Short-Term Borrowings                                                                      |                                                                  |          | (837,290    | )       |   |          | (448,959   | )       |   |          | (579,696    | )       |   | 
|                                                             | Additional Short-Term Borrowings                                                                                      |                                                                  |          | 587,212     |         |   |          | 508,969    |         |   |          | 453,448     |         |   | 
|                                                             | Issuance of Common Stock                                                                                              |                                                                  |          | 48,442      |         |   |          | 1,800      |         |   |          | 215         |         |   | 
|                                                             | Maturities and Payments of Long-Term Borrowings                                                                       |                                                                  |          | (75,000     | )       |   |          |           |         |   |          |            |         |   | 
|                                                             | Additional Long-Term Borrowings                                                                                       |                                                                  |          | 534,000     |         |   |          | 333,000    |         |   |          | 292,000     |         |   | 
|                                                             | Dividend Payments                                                                                                     |                                                                  |          | (2,896      | )       |   |          | (5,713     | )       |   |          | (5,701      | )       |   | 
|                                                             | Repurchase of Common Stock                                                                                            |                                                                  |          | (370        | )       |   |          | (254       | )       |   |          |            |         |   | 
|                                                             | Repurchase of Guaranteed Preferred Beneficial Interests in
    Junior
    Subordinated Deferrable Interest Debentures |                                                                  |          | (20,055     | )       |   |          | (6,475     | )       |   |          | (87,849     | )       |   | 
|                                                            
|Net Cash (Used In) Provided By Financing Activities          |                                                                                                                       |                                                                  | (184,183 | )           |         |   | (570,397 | )          |         |   | 789,131  |             |         |  
|                                                            
|Cash of International Business Reclassified as Held for Sale |                                                                                                                       |                                                                  | (283     | )           |         |   |         |            |         |   |         |             |         |  
|Effect of Exchange Rate Changes                              |                                                                                                                       |                                                                  | 291      |             |         |   | 1,467    |            |         |   | 1,525    |             |         |  
|                                                            
|Net (Decrease) Increase in Cash and Cash Equivalents         |                                                                                                                       |                                                                  | 271,586  |             |         |   | (528,728 | )          |         |   | 45,960   |             |         |  
|Cash and Cash Equivalents at Beginning of Period             |                                                                                                                       |                                                                  | 325,975  |             |         |   | 854,703  |            |         |   | 808,743  |             |         |  
|                                                            
|Cash and Cash Equivalents at End of Period                   |                                                                                                                       | $                                                                | 597,561  |             |         | $ | 325,975  |            |         | $ | 854,703  |             |         |  
|                                                            
|SUPPLEMENTAL DISCLOSURES:                                    |                                                                                                                       |                                                                  |          |             |         |   |          |            |         |   |          |             |         |  
|                                                            
|                                                             | Interest Paid                                                                                                         |                                                                  | $        | 66,469      |         |   | $        | 64,581     |         |   | $        | 68,247      |         |   | 
|                                                             | Income Tax Payments                                                                                                   |                                                                  |          |            |         |   |          | 11         |         |   |          | 3,670       |         |   | 
|                                                             | Trade Dated Securities Purchases                                                                                      |                                                                  |          |            |         |   |          | 8,350      |         |   |          |            |         |   | 
|                                                             | Trade Dated Securities Sales                                                                                          |                                                                  |          |            |         |   |          | 120,426    |         |   |          |            |         |   | 
|                                                            

The Accompanying Notes Are An Integral Part Of
These Statements


53



---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS










|        |                                           
|------- | ------------------------------------------
|NOTE 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation








Cash and Cash Equivalents




Securities






54



---



##### 







Loans










Reserve for Loan Losses








55



---



##### 







Premises and Equipment






Impairment of Long-Lived Assets




Venture Capital Investments








56



---



##### 



Discontinued Operations and Exit Costs


Statement of Financial Accounting
Standards


Accounting for Costs Associated with Exit
or Disposal Activities


Income Taxes and Deferred Tax Assets












Post-retirement Benefits




57



---



##### 















Stock-Based Employee Compensation Plans






58



---



##### 





|                                                                                                                                                    |                                       |                         |          |     |       |   |        |       |       |   |        |       |      |  |  | 
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ----------------------- | -------- | --- | ----- | - | ------ | ----- | ----- | - | ------ | ----- | ---- |  |  | 
|                                                                                                                                                    |                                       | Year Ended December 31,
|                                                                                                                                                    |                                       |                        
|(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND RATES)                                                                                                  |                                       | 2004                    |          |     | 2003  |   |        | 2002  |       |   |       
|                                                                                                                                                   
|Net income (loss), as reported                                                                                                                      |                                       | $                       | (98,289  | )   |       | $ | 979    |       |       | $ | 13,021 |       |      | 
|Add: Stock-based employee compensation expense included in
    reported net income (loss), net of related tax effects                               |                                       |                         | 820      |     |       |   | 1,012  |       |       |   | 420    |       |      | 
|Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |                                       |                         | (3,307   | )   |       |   | (6,754 | )     |       |   | (3,068 | )     |      | 
|                                                                                                                                                    |                                       |                        
|Pro forma net income (loss)                                                                                                                         |                                       | $                       | (100,776 | )   |       | $ | (4,763 | )     |       | $ | 10,373 |       |      | 
|                                                                                                                                                    |                                       |                        
|Earnings (loss) per share:                                                                                                                          |                                       |                         |          |     |       |   |        |       |       |   |        |       |      | 
|                                                                                                                                                    |                                       | Basicas reported       |          | $   | (3.27 | ) |        | $     | 0.03  |   |        | $     | 0.46 |  |  | 
|                                                                                                                                                    |                                       |                        
|                                                                                                                                                    |                                       | Basicpro forma         |          | $   | (3.36 | ) |        | $     | (0.17 | ) |        | $     | 0.36 |  |  | 
|                                                                                                                                                    |                                       |                        
|                                                                                                                                                    |                                       | Dilutedas reported     |          | $   | (3.27 | ) |        | $     | 0.03  |   |        | $     | 0.45 |  |  | 
|                                                                                                                                                    |                                       |                        
|                                                                                                                                                    |                                       | Dilutedpro forma       |          | $   | (3.36 | ) |        | $     | (0.17 | ) |        | $     | 0.36 |  |  | 
|                                                                                                                                                    |                                       |                        
|Weighted-Average Fair Value of Options Granted                                                                                                      |                                       |                         | N/A      |     |       | $ | 5.20   |       |       | $ | 6.03   |       |      | 
|Weighted-Average Assumptions:                                                                                                                       |                                       |                         |          |     |       |   |        |       |       |   |        |       |      | 
|                                                                                                                                                    | Expected Lives (Years)                |                         |          | N/A |       |   |        | 9.00  |       |   |        | 9.00  |      |  | 
|                                                                                                                                                    | Risk-Free Interest Rate               |                         |          | N/A |       |   |        | 4.18  | %     |   |        | 4.97  | %    |  | 
|                                                                                                                                                    | Expected Volatility                   |                         |          | N/A |       |   |        | 29.92 | %     |   |        | 38.70 | %    |  | 
|                                                                                                                                                    | Expected Dividends (Annual Per Share) |                         |          | N/A |       |   | $      | 0.20  |       |   | $      | 0.20  |      |  | 
|                                                                                                                                                   



Earnings Per Common Share




|                                                                        |  |      |            |  |      |  |            |      |  |  |            |  |  | 
|----------------------------------------------------------------------- |  | ---- | ---------- |  | ---- |  | ---------- | ---- |  |  | ---------- |  |  | 
|                                                                        |  | 2004 |            |  | 2003 |  |            | 2002 |  |  |           
|                                                                       
|Basic average common shares                                             |  |      | 30,025,352 |  |      |  | 28,609,296 |      |  |  | 28,505,405 |  |  | 
|Dilutive effect of stock options and unvested deferred stock
    awards |  |      | 1,209,459  |  |      |  | 967,789    |      |  |  | 398,794    |  |  | 
|                                                                       
|Dilutive average common shares                                          |  |      | 31,234,811 |  |      |  | 29,577,085 |      |  |  | 28,904,199 |  |  | 
|                                                                       
|Anti-dilutive stock options excluded from calculation                   |  |      | 2,231,487  |  |      |  | 2,777,248  |      |  |  | 3,762,710  |  |  | 
|                                                                       

Foreign Currency Translation




Foreign Exchange Income




59



---



##### 





Interest Rate and Foreign Currency Risk












Accounting for Derivatives






60



---



##### 







Treasury Stock




Gain and Loss Contingencies








NOTE 2.     PENDING MERGER






61



---



##### 







NOTE 3.     INTERNATIONAL EXIT
ACTIVITIES


Accounting for Impairment and
Disposal of Long-Lived Assets




|                                                                |  |   |         | 
|--------------------------------------------------------------- |  | - | ------- | 
|Assets (IN THOUSANDS):                                          |  |   |         | 
|Cash                                                            |  | $ | 283     | 
|Time Deposits with Other Banks                                  |  |   | 10,436  | 
|Loans                                                           |  |   | 163,391 | 
|Bank Premises and Equipment                                     |  |   | 8,957   | 
|Other Assets (primarily corporate artwork located domestically) |  |   | 13,575  | 
|                                                                |  |   |        
|Total                                                           |  | $ | 196,642 | 
|                                                                |  |   |        
|Liabilities (IN THOUSANDS):                                     |  |   |         | 
|Noninterest-Bearing Demand Deposits                             |  | $ | 424     | 
|Interest-Bearing Deposits (including time deposits of $58,048)  |  |   | 69,927  | 
|Other Liabilities                                               |  |   | 353     | 
|                                                                |  |   |        
|Total                                                           |  | $ | 70,704  | 
|                                                                |  |   |        



62



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##### 





|                                                                |  |            |        |  |              |   |       |            |  |   |        | 
|--------------------------------------------------------------- |  | ---------- | ------ |  | ------------ | - | ----- | ---------- |  | - | ------ | 
|                                                                |  | Continuing |        |  | Discontinued |   |       | Total Exit | 
|(IN THOUSANDS)                                                  |  | Operations |        |  | Operations   |   |       | Costs      | 
|                                                                |  |            |       
|One-time termination benefit costs                              |  | $          | 6,172  |  |              | $ | 1,124 |            |  | $ | 7,296  | 
|Lease termination costs                                         |  |            | 90     |  |              |   | 99    |            |  |   | 189    | 
|Accelerated depreciation on assets to be abandoned              |  |            | 2,214  |  |              |   | 170   |            |  |   | 2,384  | 
|Net loss on sale of corporate fixed assets                      |  |            | 4,615  |  |              |   |      |            |  |   | 4,615  | 
|Valuation allowances established on foreign deferred tax assets |  |            | 10,338 |  |              |   |      |            |  |   | 10,338 | 
|                                                                |  |            |        |  |              |   |       |            | 
|                                                                |  | $          | 23,429 |  |              | $ | 1,393 |            |  | $ | 24,822 | 
|                                                                |  |            |        |  |              |   |       |            | 

Accounting for Costs Associated with Exit or Disposal
Activities


|                                |  |             |       |   |             |  |      |  
|------------------------------- |  | ----------- | ----- | - | ----------- |  | ---- | -
|                                |  | One-Time    |       |   | Lease       | 
|                                |  | Termination |       |   | Termination | 
|(IN THOUSANDS)                  |  | Benefits    |       |   | Costs       | 
|                                |  |             |      
|Balance as of December 31, 2003 |  | $           | -0-   |   |             |  | -0-  |  
|Amounts accrued                 |  |             | 7,296 |   |             |  | 189  |  
|Amounts paid                    |  |             | (718  | ) |             |  | (189 | )
|                                |  |             |       |   |             | 
|Balance as of December 31, 2004 |  | $           | 6,578 |   |             |  | -0-  |  
|                                |  |             |       |   |             | 





63



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##### 



NOTE 4:     SECURITIES
AVAILABLE FOR SALE




|                                    |  |           |           |       |            |   |       |            |  |   |        |       |  |           |           |  |            |   |           |            |  |   |       |  |  |   |        |  |  |   |           |  |  | 
|----------------------------------- |  | --------- | --------- | ----- | ---------- | - | ----- | ---------- |  | - | ------ | ----- |  | --------- | --------- |  | ---------- | - | --------- | ---------- |  | - | ----- |  |  | - | ------ |  |  | - | --------- |  |  | 
|                                    |  | 2004      |           |       | 2003       |   |       |           
|                                    |  |          
|                                    |  |           |           | GROSS |            |   | GROSS |            |  |   |        | GROSS |  |           | GROSS     |  |            |  
|                                    |  | AMORTIZED |           |       | UNREALIZED |   |       | UNREALIZED |  |   | FAIR   |       |  | AMORTIZED |           |  | UNREALIZED |   |           | UNREALIZED |  |   | FAIR  |  |  |  
|(IN THOUSANDS)                      |  | COST      |           |       | GAINS      |   |       | LOSSES     |  |   | VALUE  |       |  | COST      |           |  | GAINS      |   |           | LOSSES     |  |   | VALUE |  |  |  
|                                   
|U.S. Treasury Securities            |  | $         | 1,999     |       |            | $ |      |            |  | $ |       |       |  | $         | 1,999     |  |            | $ | 25,103    |            |  | $ |      |  |  | $ | 29     |  |  | $ | 25,074    |  |  | 
|State and Municipal Securities      |  |           | 26,834    |       |            |   | 178   |            |  |   | 60     |       |  |           | 26,952    |  |            |   | 24,917    |            |  |   | 145   |  |  |   | 44     |  |  |   | 25,018    |  |  | 
|Government Agencies Securities      |  |           | 585,719   |       |            |   | 31    |            |  |   | 6,388  |       |  |           | 579,362   |  |            |   | 720,212   |            |  |   | 506   |  |  |   | 3,191  |  |  |   | 717,527   |  |  | 
|Mortgage-Backed Securities          |  |           | 1,033,248 |       |            |   | 936   |            |  |   | 8,555  |       |  |           | 1,025,629 |  |            |   | 1,012,635 |            |  |   | 1,547 |  |  |   | 6,933  |  |  |   | 1,007,249 |  |  | 
|Other Securities                    |  |           | 61,597    |       |            |   | 248   |            |  |   |       |       |  |           | 61,845    |  |            |   | 51,831    |            |  |   | 119   |  |  |   |       |  |  |   | 51,950    |  |  | 
|                                   
|Total Securities Available for Sale |  | $         | 1,709,397 |       |            | $ | 1,393 |            |  | $ | 15,003 |       |  | $         | 1,695,787 |  |            | $ | 1,834,698 |            |  | $ | 2,317 |  |  | $ | 10,197 |  |  | $ | 1,826,818 |  |  | 
|                                   





|                                                           |  |                     |           |  |                   |   |        |       |  |   |            |  |  |       |       |  |            |   |           |  |  |   |        |  |  | 
|---------------------------------------------------------- |  | ------------------- | --------- |  | ----------------- | - | ------ | ----- |  | - | ---------- |  |  | ----- | ----- |  | ---------- | - | --------- |  |  | - | ------ |  |  | 
|                                                           |  | LESS THAN 12 MONTHS |           |  | 12 MONTHS OR MORE |   |        | TOTAL |  |   |           
|                                                           |  |                    
|                                                           |  | FAIR                |           |  | UNREALIZED        |   |        | FAIR  |  |   | UNREALIZED |  |  | FAIR  |       |  | UNREALIZED |   |           | 
|(IN THOUSANDS)                                             |  | VALUE               |           |  | LOSSES            |   |        | VALUE |  |   | LOSSES     |  |  | VALUE |       |  | LOSSES     |   |           | 
|                                                          
|State and Municipal Securities                             |  | $                   | 7,125     |  |                   | $ | 60     |       |  | $ |           |  |  | $     |      |  |            | $ | 7,125     |  |  | $ | 60     |  |  | 
|Government Agencies Securities                             |  |                     | 444,505   |  |                   |   | 5,970  |       |  |   | 16,082     |  |  |       | 418   |  |            |   | 460,587   |  |  |   | 6,388  |  |  | 
|Mortgage-Backed Securities                                 |  |                     | 640,916   |  |                   |   | 6,222  |       |  |   | 123,741    |  |  |       | 2,333 |  |            |   | 764,657   |  |  |   | 8,555  |  |  | 
|                                                          
|Total Securities Available for Sale with Unrealized Losses |  | $                   | 1,092,546 |  |                   | $ | 12,252 |       |  | $ | 139,823    |  |  | $     | 2,751 |  |            | $ | 1,232,369 |  |  | $ | 15,003 |  |  | 
|                                                          









64



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##### 



|                                    |  |           |           |       |            |   |       |            |      |   |        |       |  |           |           |  |            |   |           |            |  |   |       |  |  |   |        |  |  |   |           |  |  | 
|----------------------------------- |  | --------- | --------- | ----- | ---------- | - | ----- | ---------- | ---- | - | ------ | ----- |  | --------- | --------- |  | ---------- | - | --------- | ---------- |  | - | ----- |  |  | - | ------ |  |  | - | --------- |  |  | 
|                                    |  |           |           | 2004  |            |   |       |            | 2003 |   |        |      
|                                    |  |          
|                                    |  |           |           | GROSS |            |   | GROSS |            |      |   |        | GROSS |  |           | GROSS     |  |            |  
|                                    |  | AMORTIZED |           |       | UNREALIZED |   |       | UNREALIZED |      |   | FAIR   |       |  | AMORTIZED |           |  | UNREALIZED |   |           | UNREALIZED |  |   | FAIR  |  |  |  
|(IN THOUSANDS)                      |  | COST      |           |       | GAINS      |   |       | LOSSES     |      |   | VALUE  |       |  | COST      |           |  | GAINS      |   |           | LOSSES     |  |   | VALUE |  |  |  
|                                   
|Within 1 year                       |  | $         | 87,674    |       |            | $ |      |            |      | $ |       |       |  | $         | 87,674    |  |            | $ | 179,179   |            |  | $ | 8     |  |  | $ | 29     |  |  | $ | 179,158   |  |  | 
|After 1 but within 5 years          |  |           | 509,199   |       |            |   | 31    |            |      |   | 6,388  |       |  |           | 502,842   |  |            |   | 582,698   |            |  |   | 498   |  |  |   | 3,191  |  |  |   | 580,005   |  |  | 
|After 5 but within 10 years         |  |           | 25,048    |       |            |   | 173   |            |      |   | 49     |       |  |           | 25,172    |  |            |   | 17,077    |            |  |   | 123   |  |  |   | 33     |  |  |   | 17,167    |  |  | 
|After 10 years                      |  |           | 54,228    |       |            |   | 253   |            |      |   | 11     |       |  |           | 54,470    |  |            |   | 43,109    |            |  |   | 141   |  |  |   | 11     |  |  |   | 43,239    |  |  | 
|Mortgage-Backed Securities          |  |           | 1,033,248 |       |            |   | 936   |            |      |   | 8,555  |       |  |           | 1,025,629 |  |            |   | 1,012,635 |            |  |   | 1,547 |  |  |   | 6,933  |  |  |   | 1,007,249 |  |  | 
|                                   
|Total Securities Available for Sale |  | $         | 1,709,397 |       |            | $ | 1,393 |            |      | $ | 15,003 |       |  | $         | 1,695,787 |  |            | $ | 1,834,698 |            |  | $ | 2,317 |  |  | $ | 10,197 |  |  | $ | 1,826,818 |  |  | 
|                                   



|                                    |  |      |        |  |      |   |        |      |  |   |        |  |  | 
|----------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | 
|(IN THOUSANDS)                      |  | 2004 |        |  | 2003 |   |        | 2002 |  |   |       
|                                   
|U.S. Treasury Securities            |  | $    | 49     |  |      | $ | 244    |      |  | $ | 619    |  |  | 
|State and Municipal Securities      |  |      | 941    |  |      |   | 28     |      |  |   |       |  |  | 
|Government Agencies Securities      |  |      | 16,510 |  |      |   | 23,773 |      |  |   | 31,088 |  |  | 
|Mortgage-Backed Securities          |  |      | 43,716 |  |      |   | 40,570 |      |  |   | 36,506 |  |  | 
|Other Securities                    |  |      | 1,861  |  |      |   | 1,703  |      |  |   | 1,875  |  |  | 
|                                   
|Total Securities Available for Sale |  | $    | 63,077 |  |      | $ | 66,318 |      |  | $ | 70,088 |  |  | 
|                                   



NOTE 5:     LOANS AND RESERVE
FOR LOAN LOSSES




|                                                      |  |      |           |   |      |   |           |  |  | 
|----------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- |  |  | 
|(IN THOUSANDS)                                        |  | 2004 |           |   | 2003 |   |           | 
|                                                     
|Commercial and Financial                              |  | $    | 401,526   |   |      | $ | 581,223   |  |  | 
|Commercial Real Estate                                |  |      | 903,829   |   |      |   | 815,004   |  |  | 
|Residential Mortgage                                  |  |      | 1,178,058 |   |      |   | 1,155,079 |  |  | 
|Residential Mortgage Loans Held for Sale              |  |      | 713       |   |      |   | 524       |  |  | 
|Home Equity                                           |  |      | 416,912   |   |      |   | 306,599   |  |  | 
|Consumer                                              |  |      | 61,086    |   |      |   | 64,403    |  |  | 
|Foreign                                               |  |      | 198,855   |   |      |   | 299,055   |  |  | 
|                                                     
|Total Loans                                           |  |      | 3,160,979 |   |      |   | 3,221,887 |  |  | 
|Net Deferred Loan Fees, Costs, Premiums and Discounts |  |      | 3,743     |   |      |   | 3,267     |  |  | 
|                                                     
|Loans, Net                                            |  |      | 3,164,722 |   |      |   | 3,225,154 |  |  | 
|Loans Included in Assets Held for Sale                |  |      | (163,391  | ) |      |   |          |  |  | 
|                                                     
|Loans                                                 |  | $    | 3,001,331 |   |      | $ | 3,225,154 |  |  | 
|                                                     



|                 |  |      |       |  |      |   |        |  |  | 
|---------------- |  | ---- | ----- |  | ---- | - | ------ |  |  | 
|(IN THOUSANDS)   |  | 2004 |       |  | 2003 |   |        | 
|                
|Nonaccrual Loans |  | $    | 430   |  |      | $ | 2,308  |  |  | 
|Past-Due Loans   |  |      | 5,887 |  |      |   | 12,178 |  |  | 
|                



65



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##### 







|                                                                              |  |      |        |   |      |   |        |      |  |   |        |  |  | 
|----------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ |  |  | 
|(IN THOUSANDS)                                                                |  | 2004 |        |   | 2003 |   |        | 2002 |  |   |       
|                                                                             
|Balance, January 1                                                            |  | $    | 28,285 |   |      | $ | 25,958 |      |  | $ | 29,540 |  |  | 
|Provision for Loan Losses                                                     |  |      | 49     |   |      |   | 5,146  |      |  |   | 421    |  |  | 
|Loans Charged-Off                                                             |  |      | 5,152  |   |      |   | 5,880  |      |  |   | 6,972  |  |  | 
|Less: Recoveries of Charged-Off Loans                                         |  |      | 2,958  |   |      |   | 2,810  |      |  |   | 2,252  |  |  | 
|                                                                             
|Net Charge-Offs                                                               |  |      | 2,194  |   |      |   | 3,070  |      |  |   | 4,720  |  |  | 
|Lower of Cost or Market Adjustment for Loans Transferred to Held
    for Sale |  |      | (1,521 | ) |      |   |       |      |  |   |       |  |  | 
|Foreign Exchange Translation Adjustments                                      |  |      | 98     |   |      |   | 251    |      |  |   | 717    |  |  | 
|                                                                             
|Balance, December 31                                                          |  | $    | 24,717 |   |      | $ | 28,285 |      |  | $ | 25,958 |  |  | 
|                                                                             









|        |                                  
|------- | ---------------------------------
|NOTE 6: | TRANSACTIONS WITH RELATED PARTIES





66



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##### 





|               |  |                 |        |  |                     |   |       | 
|-------------- |  | --------------- | ------ |  | ------------------- | - | ----- | 
|               |  | MANAGEMENT FEES |        |  | SERVICE CHARGES     |  
|(IN THOUSANDS) |  | PAID BY RIGGS   |        |  | REIMBURSED TO RIGGS |  
|               | 
|2004           |  | $               | 500    |  |                     | $ | 351   | 
|2003           |  |                 | 750    |  |                     |   | 660   | 
|2002           |  |                 | 2,600  |  |                     |   | 1,444 | 
|2001           |  |                 | 4,000  |  |                     |   | 2,000 | 
|2000           |  |                 | 2,500  |  |                     |   | 1,536 | 
|1999           |  |                 | 2,000  |  |                     |   | 1,097 | 
|1998           |  |                 | 917    |  |                     |   | 322   | 
|              
|Total          |  | $               | 13,267 |  |                     | $ | 7,410 | 
|              



|               |  |                        |         |  
|-------------- |  | ---------------------- | ------- | -
|(IN THOUSANDS) |  | INVESTMENT GAIN (LOSS) |        
|               | 
|2004           |  | $                      | 3,579   |  
|2003           |  |                        | (4,206  | )
|2002           |  |                        | (14,822 | )
|2001           |  |                        | (31,103 | )
|2000           |  |                        | 10,563  |  
|1999           |  |                        | 1,975   |  
|1998           |  |                        |        |  
|              
|Total          |  | $                      | (34,014 | )
|              







67



---



##### 





|        |                       
|------- | ----------------------
|NOTE 7: | PREMISES AND EQUIPMENT



|                                                 |  |      |          |   |      |   |          |   |  | 
|------------------------------------------------ |  | ---- | -------- | - | ---- | - | -------- | - |  | 
|(IN THOUSANDS)                                   |  | 2004 |          |   | 2003 |   |          |  
|                                                
|Premises and Land                                |  | $    | 190,488  |   |      | $ | 191,908  |   |  | 
|Furniture and Equipment                          |  |      | 90,843   |   |      |   | 130,985  |   |  | 
|Leasehold Improvements                           |  |      | 53,818   |   |      |   | 45,738   |   |  | 
|Purchased and Capitalized Software               |  |      | 75,139   |   |      |   | 73,081   |   |  | 
|Accumulated Depreciation and Amortization        |  |      | (226,641 | ) |      |   | (215,210 | ) |  | 
|                                                 |  |     
|                                                 |  |      | 183,647  |   |      |   | 226,502  |   |  | 
|Less: Assets of Foreign Operations Held for Sale |  |      | (8,957   | ) |      |   |         |   |  | 
|                                                
|Total Premises and Equipment, Net                |  | $    | 174,690  |   |      | $ | 226,502  |   |  | 
|                                                



Assets Held for Sale




Assets Disposed






|                             |  |               |        | 
|---------------------------- |  | ------------- | ------ | 
|                             |  | MINIMUM LEASE |       
|(IN THOUSANDS)               |  | PAYMENTS      |       
|                             | 
|2005                         |  | $             | 9,798  | 
|2006                         |  |               | 8,884  | 
|2007                         |  |               | 7,984  | 
|2008                         |  |               | 6,926  | 
|2009                         |  |               | 4,856  | 
|2010 and thereafter          |  |               | 17,578 | 
|                            
|Total Minimum Lease Payments |  | $             | 56,026 | 
|                            



68



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##### 





|                       |  |      |       |   |      |   |       |      |  |   |       |   |  | 
|---------------------- |  | ---- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | - |  | 
|(IN THOUSANDS)         |  | 2004 |       |   | 2003 |   |       | 2002 |  |   |      
|                      
|Rental Expense         |  | $    | 9,812 |   |      | $ | 9,563 |      |  | $ | 9,114 |   |  | 
|Sublease Rental Income |  |      | (215  | ) |      |   | (300  | )    |  |   | (481  | ) |  | 
|                      
|Net Rental Expense     |  | $    | 9,597 |   |      | $ | 9,263 |      |  | $ | 8,633 |   |  | 
|                      





|        |                                    
|------- | -----------------------------------
|NOTE 8: | TIME DEPOSITS $100 THOUSAND OR MORE







|                                                     |  |   |           |   |  | 
|---------------------------------------------------- |  | - | --------- | - |  | 
|(IN THOUSANDS)                                       |  |   |           |  
|                                                    
|2005                                                 |  | $ | 789,918   |   |  | 
|2006                                                 |  |   | 391,016   |   |  | 
|2007                                                 |  |   | 139,602   |   |  | 
|2008                                                 |  |   | 54,277    |   |  | 
|2009                                                 |  |   | 100,247   |   |  | 
|2010 and thereafter                                  |  |   | 2,160     |   |  | 
|                                                    
|Total                                                |  |   | 1,477,220 |   |  | 
|Less: Time Deposits In Foreign Offices Held for Sale |  |   | (58,048   | ) |  | 
|                                                    
|Time Deposits-Continuing Operations                  |  | $ | 1,419,172 |   |  | 
|                                                    



|        |           
|------- | ----------
|NOTE 9: | BORROWINGS

Short-Term Borrowings




|                            |  |      |         |  |      |   |         |  |  | 
|--------------------------- |  | ---- | ------- |  | ---- | - | ------- |  |  | 
|(IN THOUSANDS)              |  | 2004 |         |  | 2003 |   |         | 
|                           
|Federal Funds Purchased     |  | $    | 6,000   |  |      | $ | 64,500  |  |  | 
|Repurchase Agreements       |  |      | 392,013 |  |      |   | 454,211 |  |  | 
|FHLB Advances               |  |      | 87,000  |  |      |   | 140,000 |  |  | 
|Other Short-Term Borrowings |  |      | 13,291  |  |      |   | 11,671  |  |  | 
|                           
|Total Short-Term Borrowings |  | $    | 498,304 |  |      | $ | 670,382 |  |  | 
|                           

69



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##### 





|                                     |  |      |         |   |      |   |         |   |  | 
|------------------------------------ |  | ---- | ------- | - | ---- | - | ------- | - |  | 
|(IN THOUSANDS, EXCEPT RATES)         |  | 2004 |         |   | 2003 |   |         |  
|                                    
|Average
    Outstanding1             |  | $    | 766,154 |   |      | $ | 584,852 |   |  | 
|Maximum Outstanding at any Month-End |  |      | 729,425 |   |      |   | 670,382 |   |  | 
|Weighted-Average Rate
    Paid1      |  |      | 1.75    | % |      |   | 1.40    | % |  | 
|Year-End Rate                        |  |      | 2.08    | % |      |   | 0.97    | % |  | 
|                                    



| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | 1 Average amounts are based on daily balances. Average
    rates are computed by dividing actual interest expense by
    average amounts outstanding.



Long-Term Borrowings




|                                                 |  |      |           |  |      |   |         |  |  | 
|------------------------------------------------ |  | ---- | --------- |  | ---- | - | ------- |  |  | 
|(IN THOUSANDS)                                   |  | 2004 |           |  | 2003 |   |         | 
|                                                
|Subordinated Debentures                          |  | $    | 66,525    |  |      | $ | 66,525  |  |  | 
|FHLB Advances                                    |  |      | 596,000   |  |      |   | 279,000 |  |  | 
|Repurchase Agreements                            |  |      | 270,000   |  |      |   | 206,000 |  |  | 
|Payable to Issuers of Trust Preferred Securities |  |      | 206,168   |  |      |   | 360,808 |  |  | 
|                                                
|                                                 |  | $    | 1,138,693 |  |      | $ | 912,333 |  |  | 
|                                                





FHLB Advances


|                             |  |               |         |  |              |  |      |   |  | 
|---------------------------- |  | ------------- | ------- |  | ------------ |  | ---- | - |  | 
|                             |  | TOTAL ADVANCE |         |  | WEIGHTED-    |  |      |  
|(IN THOUSANDS, EXCEPT RATES) |  | AMOUNTS       |         |  | AVERAGE RATE |  |      |  
|                            
|2005                         |  | $             | 87,000  |  |              |  | 2.85 | % |  | 
|2006                         |  |               | 314,000 |  |              |  | 2.84 |   |  | 
|2007                         |  |               | 282,000 |  |              |  | 2.62 |   |  | 
|                            
|                             |  | $             | 683,000 |  |              |  | 2.75 | % |  | 
|                            



70



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##### 



Term Repurchase Agreements


|                             |  |                  |         |  |              |  |      |   |  | 
|---------------------------- |  | ---------------- | ------- |  | ------------ |  | ---- | - |  | 
|                             |  | TOTAL REPURCHASE |         |  | WEIGHTED-    |  |      |  
|(IN THOUSANDS, EXCEPT RATES) |  | AMOUNTS          |         |  | AVERAGE RATE |  |      |  
|                            
|2005                         |  | $                | 164,247 |  |              |  | 2.49 | % |  | 
|2006                         |  |                  | 125,000 |  |              |  | 2.34 |   |  | 
|2007                         |  |                  | 145,000 |  |              |  | 2.58 |   |  | 
|                            
|                             |  | $                | 434,247 |  |              |  | 2.48 | % |  | 
|                            



|         |                              
|-------- | -----------------------------
|NOTE 10: | COMMITMENTS AND CONTINGENCIES







|                             |  |      |           |  |      |   |           |  |  | 
|---------------------------- |  | ---- | --------- |  | ---- | - | --------- |  |  | 
|(IN THOUSANDS)               |  | 2004 |           |  | 2003 |   |           | 
|                            
|Commitments to extend credit |  | $    | 1,444,307 |  |      | $ | 1,327,070 |  |  | 
|Commercial letters of credit |  |      | 10,939    |  |      |   | 46,273    |  |  | 
|Stand-by letters of credit   |  |      | 49,126    |  |      |   | 60,115    |  |  | 













71



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##### 



Consent Order, Civil Money Penalty and Other Matters












72



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##### 











|         |                        
|-------- | -----------------------
|NOTE 11: | REGULATORY REQUIREMENTS





|  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Dividends that the Bank can pay to the Company are limited,
    generally, to the earnings of the Bank in the current and two
    previous years, less any dividend payments during that period.
    However, the payment of dividends by the Bank and its
    subsidiaries is further restricted by requirements for the
    maintenance of adequate capital.                                                      
| 
| | The Bank must maintain non-interest earning reserves with the
    Federal Reserve against its deposits and Eurocurrency
    liabilities. At December 31, 2004 and 2003, the
    Companys reserves with the Federal Reserve were
    $45.9 million and $167.3 million, respectively. The
    average of such reserves was $66.9 million in 2004 and
    $70.1 million in 2003.                                      
| 
| | There are limitations, based primarily on the amount of equity
    capital, on the amount of loans or advances that the Bank can
    make to the Company or to any non-bank subsidiaries or
    affiliates. In addition, such loans and advances must be secured
    by collateral. At December 31, 2004, the Bank had total
    equity capital of $435.5 million, including
    $62.4 million of retained earnings.



73



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##### 









|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Bank must obtain the approval of the OCC prior to declaring
    or paying a dividend to the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| 
| | The Company must obtain the approval of the Federal Reserve for
    the payment of dividends on its common stock, the payment by its
    wholly-owned trusts of dividends on the guaranteed preferred
    beneficial interests in the trusts, or the acquisition of its
    own stock. As previously disclosed, the Company has suspended
    the payment of its dividend on its common stock and
    distributions on its trust preferred securities. Riggs, however,
    continues to accrue the expense related to trust preferred
    securities as the amounts are deferred and payable at a future
    date.
| 
| | The Bank and the Company each are limited in the payment of
    severance to directors, officers and employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   





|                                          |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|----------------------------------------- |  | ------ | --- | ---------------- | -------- | ---------------- | ---------- | ----------------- | ------------ | - | ----- |  |  | ------ | ---- | - | ----- | - | --- |  |  |  | ----- | -
|                                          |  |        |     |                  |          |                  |            | TO BE WELL        |             
|                                          |  |        |     |                  |          | MINIMUM          |            |                   | CAPITALIZED  |  
|                                          |  |        |     |                  |          | REQUIREMENTS FOR |            |                   | UNDER PROMPT |  
|                                          |  |        |     | CAPITAL ADEQUACY |          |                  | CORRECTIVE |                  
|                                          |  | ACTUAL |     |                  | PURPOSES |                  |            | ACTION PROVISIONS |             
|                                          | 
|(DOLLAR AMOUNTS IN MILLIONS)              |  | AMOUNT |     |                  | RATIO    |                  |            | AMOUNT            |              |   | RATIO |  |  | AMOUNT |      |   | RATIO |  
|                                          | 
|AS OF DECEMBER 31, 2004                   |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Total Capital (to Risk-Weighted Assets):  |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  | $      | 620 |                  |          |                  | 16.20      | %                 |              | $ | 306   |  |  |        | 8.00 | % |       | $ | 382 |  |  |  | 10.00 | %
|Riggs Bank                                |  |        | 464 |                  |          |                  | 12.23      |                   |              |   | 303   |  |  |        | 8.00 |   |       |   | 379 |  |  |  | 10.00 |  
|Tier I Capital (to Risk-Weighted Assets): |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  |        | 428 |                  |          |                  | 11.18      |                   |              |   | 153   |  |  |        | 4.00 |   |       |   | 229 |  |  |  | 6.00  |  
|Riggs Bank                                |  |        | 439 |                  |          |                  | 11.58      |                   |              |   | 152   |  |  |        | 4.00 |   |       |   | 228 |  |  |  | 6.00  |  
|Tier I Leverage (to Average Assets):      |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  |        | 428 |                  |          |                  | 7.25       |                   |              |   | 236   |  |  |        | 4.00 |   |       |   | 295 |  |  |  | 5.00  |  
|Riggs Bank                                |  |        | 439 |                  |          |                  | 7.72       |                   |              |   | 228   |  |  |        | 4.00 |   |       |   | 285 |  |  |  | 5.00  |  

74



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##### 



|                                          |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|----------------------------------------- |  | ------ | --- | ---------------- | -------- | ---------------- | ---------- | ----------------- | ------------ | - | ----- |  |  | ------ | ---- | - | ----- | - | --- |  |  |  | ----- | -
|                                          |  |        |     |                  |          |                  |            | TO BE WELL        |             
|                                          |  |        |     |                  |          | MINIMUM          |            |                   | CAPITALIZED  |  
|                                          |  |        |     |                  |          | REQUIREMENTS FOR |            |                   | UNDER PROMPT |  
|                                          |  |        |     | CAPITAL ADEQUACY |          |                  | CORRECTIVE |                  
|                                          |  | ACTUAL |     |                  | PURPOSES |                  |            | ACTION PROVISIONS |             
|                                          | 
|(DOLLAR AMOUNTS IN MILLIONS)              |  | AMOUNT |     |                  | RATIO    |                  |            | AMOUNT            |              |   | RATIO |  |  | AMOUNT |      |   | RATIO |  
|                                          | 
|AS OF DECEMBER 31, 2003                   |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Total Capital (to Risk-Weighted Assets):  |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  | $      | 708 |                  |          |                  | 17.81      | %                 |              | $ | 318   |  |  |        | 8.00 | % |       | $ | 397 |  |  |  | 10.00 | %
|Riggs Bank                                |  |        | 456 |                  |          |                  | 11.82      |                   |              |   | 309   |  |  |        | 8.00 |   |       |   | 386 |  |  |  | 10.00 |  
|Tier I Capital (to Risk-Weighted Assets): |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  |        | 497 |                  |          |                  | 12.52      |                   |              |   | 159   |  |  |        | 4.00 |   |       |   | 238 |  |  |  | 6.00  |  
|Riggs Bank                                |  |        | 428 |                  |          |                  | 11.08      |                   |              |   | 154   |  |  |        | 4.00 |   |       |   | 232 |  |  |  | 6.00  |  
|Tier I Leverage (to Average Assets):      |  |        |     |                  |          |                  |            |                   |              |   |       |  |  |        |      |   |       |   |     |  |  |  |       |  
|Consolidated                              |  |        | 497 |                  |          |                  | 8.41       |                   |              |   | 237   |  |  |        | 4.00 |   |       |   | 296 |  |  |  | 5.00  |  
|Riggs Bank                                |  |        | 428 |                  |          |                  | 7.52       |                   |              |   | 228   |  |  |        | 4.00 |   |       |   | 285 |  |  |  | 5.00  |  



|         |                                                                     
|-------- | --------------------------------------------------------------------
|NOTE 12: | GUARANTEED PREFERRED BENEFICIAL INTERESTS IN JUNIOR
    SUBORDINATED

DEFERRABLE INTEREST DEBENTURES




|                         |  |                |  |                |  |               
|------------------------ |  | -------------- |  | -------------- |  | --------------
|                         |  | SERIES A       |  | SERIES C       |  | TOTAL         
|                        
|Amount Originally Issued |  | $150.0 million |  | $200.0 million |  | $350.0 million
|Rate                     |  | 8.625%         |  | 8.875%         |  | 8.768%        
|Liquidation Preference   |  | $1,000/share   |  | $1,000/share   |  |               
|Earliest Redemption      |  | 12/31/2006     |  | 3/15/2007      |  |               
|Maturity                 |  | 12/31/2026     |  | 3/15/2027      |  |               
|Dividends                |  | semi-annual    |  | semi-annual    |  |               







|                   |  |               |  |                |  |               
|------------------ |  | ------------- |  | -------------- |  | --------------
|                   |  | SERIES A      |  | SERIES C       |  | TOTAL         
|                  
|Amount Outstanding |  | $72.6 million |  | $150.2 million |  | $222.8 million
|Rate               |  | 8.625%        |  | 8.875%         |  | 8.794%        



75



---



##### 











|         |                                                     
|-------- | ----------------------------------------------------
|NOTE 13: | DISCLOSURE ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS



Cash and Due from Banks and Short-Term Investments




Securities Available for Sale




Securities Held to Maturity




Venture Capital Investments




Loans




Financial Assets Held for Sale




Deposit Liabilities




76



---



##### 



Short-Term Borrowings




Long-Term Debt




Financial Liabilities Held for Sale




Guaranteed Preferred Beneficial Interests in Junior
Subordinated Deferrable Interest Debentures




Derivative Instruments




Commitments to Extend Credit and Other Off-Balance Sheet
Financial Instruments




Accrued Interest Receivable and Accrued Interest Payable




Estimated Fair Values of Financial Instruments




77



---



##### 





|                                                                                                    |  |                   |           |   |                   |   |           |          |  |   |           |   |  |   |           |  
|--------------------------------------------------------------------------------------------------- |  | ----------------- | --------- | - | ----------------- | - | --------- | -------- |  | - | --------- | - |  | - | --------- | -
|                                                                                                    |  | DECEMBER 31, 2004 |           |   | DECEMBER 31, 2003 |  
|                                                                                                    |  | CARRYING          |           |   | FAIR              |   |           | CARRYING |  |   | FAIR      |  
|(IN THOUSANDS)                                                                                      |  | AMOUNT            |           |   | VALUE             |   |           | AMOUNT   |  |   | VALUE     |  
|                                                                                                    | 
|Financial Assets:                                                                                   |  |                   |           |   |                   |   |           |          |  |   |           |   |  |   |           |  
|Cash and Due from Banks                                                                             |  | $                 | 147,561   |   |                   | $ | 147,561   |          |  | $ | 325,975   |   |  | $ | 325,975   |  
|Federal Funds Sold and Reverse Repurchase Agreements                                                |  |                   | 450,000   |   |                   |   | 450,000   |          |  |   |          |   |  |   |          |  
|Time Deposits with Other Banks                                                                      |  |                   | 65,391    |   |                   |   | 65,391    |          |  |   | 287,077   |   |  |   | 287,077   |  
|Securities Available for Sale                                                                       |  |                   | 1,695,787 |   |                   |   | 1,695,787 |          |  |   | 1,826,818 |   |  |   | 1,826,818 |  
|Securities Held to Maturity                                                                         |  |                   | 49,853    |   |                   |   | 50,850    |          |  |   | 107,891   |   |  |   | 115,319   |  
|Venture Capital Investments                                                                         |  |                   | 39,239    |   |                   |   | 39,239    |          |  |   | 43,356    |   |  |   | 43,356    |  
|Total Net Loans                                                                                     |  |                   | 2,976,614 |   |                   |   | 3,053,929 |          |  |   | 3,196,869 |   |  |   | 3,326,883 |  
|Accrued Interest Receivable                                                                         |  |                   | 23,139    |   |                   |   | 23,139    |          |  |   | 22,907    |   |  |   | 22,907    |  
|Financial Assets Held for Sale                                                                      |  |                   | 174,110   |   |                   |   | 174,110   |          |  |   |          |   |  |   |          |  
|                                                                                                   
|Financial Liabilities:                                                                              |  |                   |           |   |                   |   |           |          |  |   |           |   |  |   |           |  
|Deposits                                                                                            |  |                   | 3,797,656 |   |                   |   | 3,800,706 |          |  |   | 4,286,232 |   |  |   | 4,290,538 |  
|Short-Term Borrowings                                                                               |  |                   | 498,304   |   |                   |   | 498,304   |          |  |   | 670,382   |   |  |   | 670,382   |  
|Long-Term Debt                                                                                      |  |                   | 1,138,693 |   |                   |   | 1,149,059 |          |  |   | 912,333   |   |  |   | 947,462   |  
|Guaranteed Preferred Beneficial Interests in Junior
    Subordinated Deferrable Interest Debentures |  |                   | 72,634    |   |                   |   | 74,087    |          |  |   |          |   |  |   |          |  
|Accrued Interest Payable                                                                            |  |                   | 20,075    |   |                   |   | 20,075    |          |  |   | 1,378     |   |  |   | 1,378     |  
|Financial Liabilities Held for Sale                                                                 |  |                   | 70,351    |   |                   |   | 70,351    |          |  |   |          |   |  |   |          |  
|                                                                                                   
|Derivative Instruments                                                                              |  | $                 | (737      | ) |                   | $ | (737      | )        |  | $ | (3,862    | ) |  | $ | (3,862    | )
|Off-Balance Sheet Commitments:                                                                      |  |                   |           |   |                   |   |           |          |  |   |           |   |  |   |           |  
|Commitments to Extend Credit                                                                        |  |                   |          |   |                   |   |          |          |  |   |          |   |  |   |          |  
|Letters of Credit-Commercial                                                                        |  |                   |          |   |                   |   |          |          |  |   |          |   |  |   |          |  
|Letters of Credit-Stand-By                                                                          |  |                   | 141       |   |                   |   | 141       |          |  |   | 167       |   |  |   | 167       |  
|Venture Capital Commitments                                                                         |  |                   |          |   |                   |   |          |          |  |   |          |   |  |   |          |  
|                                                                                                   



|         |             
|-------- | ------------
|NOTE 14: | INCOME TAXES





|                 |  |      |          |   |      |   |        |      |  |   |        | 
|---------------- |  | ---- | -------- | - | ---- | - | ------ | ---- |  | - | ------ | 
|(IN THOUSANDS)   |  | 2004 |          |   | 2003 |   |        | 2002 | 
|                 | 
|Domestic Offices |  | $    | (110,188 | ) |      | $ | 17,307 |      |  | $ | 43,335 | 
|Foreign Offices  |  |      | (5,919   | ) |      |   | (1,363 | )    |  |   | 2,068  | 
|                
|Total            |  | $    | (116,107 | ) |      | $ | 15,944 |      |  | $ | 45,403 | 
|                

78



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##### 





|                                           |  |      |         |   |      |   |        |      |  |   |        |  
|------------------------------------------ |  | ---- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | -
|(IN THOUSANDS)                             |  | 2004 |         |   | 2003 |   |        | 2002 | 
|                                           | 
|Current Provision (Benefit):               |  |      |         |   |      |   |        |      |  |   |        |  
|Federal                                    |  | $    |        |   |      | $ | 10,471 |      |  | $ | 15,881 |  
|State                                      |  |      | 4       |   |      |   | 11     |      |  |   | 114    |  
|Foreign                                    |  |      | 7       |   |      |   | 9      |      |  |   | 70     |  
|                                          
|Total Current Provision (Benefit):         |  |      | 11      |   |      |   | 10,491 |      |  |   | 16,065 |  
|Deferred Provision (Benefit):              |  |      |         |   |      |   |        |      |  |   |        |  
|Federal                                    |  |      | (20,941 | ) |      |   | (5,998 | )    |  |   | (857   | )
|State                                      |  |      |        |   |      |   |       |      |  |   |       |  
|Total Deferred Provision                   |  |      | (20,941 | ) |      |   | (5,998 | )    |  |   | (857   | )
|                                          
|Provision (Benefit) for Income Tax Expense |  | $    | (20,930 | ) |      | $ | 4,493  |      |  | $ | 15,208 |  
|                                          









Reconciliation of Statutory Tax Rates to Effective Tax Rates
from Continuing Operations:


|                                                                          |  |      |         |   |      |   |        |      |  |   |        |  
|------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | -
|(IN THOUSANDS, EXCEPT PERCENTAGES)                                        |  | 2004 |         |   | 2003 |   |        | 2002 | 
|                                                                          | 
|Income Tax Computed at Federal Statutory Rate of 35%                      |  | $    | (40,974 | ) |      | $ | 5,523  |      |  | $ | 15,846 |  
|Add (Deduct):                                                             |  |      |         |   |      |   |        |      |  |   |        |  
|State Tax, Net of Federal Tax Benefit                                     |  |      | 2       |   |      |   | 7      |      |  |   | 74     |  
|Tax-Exempt Interest                                                       |  |      | (2,584  | ) |      |   | (2,878 | )    |  |   | (2,477 | )
|Increase in Tax Credits                                                   |  |      | (235    | ) |      |   | (1,893 | )    |  |   | (242   | )
|Increase of Valuation Allowance                                           |  |      | 4,840   |   |      |   | 4,528  |      |  |   | 726    |  
|Nontaxable Life Insurance                                                 |  |      | (393    | ) |      |   | (1,143 | )    |  |   | (432   | )
|Nondeductible Fines and Penalties                                         |  |      | 17,153  |   |      |   |       |      |  |   | 1      |  
|Other, Net                                                                |  |      | 1,261   |   |      |   | 349    |      |  |   | 1,712  |  
|                                                                         
|Provision (Benefit) for Income Tax Expense from Continuing
    Operations |  | $    | (20,930 | ) |      | $ | 4,493  |      |  | $ | 15,208 |  
|                                                                         
|Effective Tax Rate                                                        |  |      | 17.9%   |   |      |   | 28.5%  |      |  |   | 33.6%  |  
|                                                                         



79



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##### 







Sources of Temporary Differences Resulting in Deferred Tax
Liabilities (Assets):


|                                             |  |      |         |   |      |   |         |  
|-------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|(IN THOUSANDS)                               |  | 2004 |         |   | 2003 |  
|                                             | 
|Pension Plan and Post-Retirement-Domestic    |  | $    | 14,278  |   |      | $ | 15,370  |  
|Pension Plan and Post-Retirement-Foreign     |  |      | 3,086   |   |      |   | 89      |  
|Capitalized Costs                            |  |      | 2,582   |   |      |   | 2,962   |  
|Subsidiary Dividend Deferral                 |  |      | 5,534   |   |      |   | 9,184   |  
|                                            
|Total Deferred Tax Liabilities               |  |      | 25,480  |   |      |   | 27,605  |  
|                                            
|Unrealized Venture Capital Losses            |  |      | (7,918  | ) |      |   | (8,720  | )
|Unrealized Securities Gains and Losses       |  |      | (4,685  | ) |      |   | (2,677  | )
|Excess Book Over Tax Depreciation-Domestic   |  |      | (3,170  | ) |      |   | 741     |  
|Excess Book Over Tax Depreciation-Foreign    |  |      | (1,391  | ) |      |   | (1,021  | )
|Allowance for Loan Losses-Domestic           |  |      | (8,815  | ) |      |   | (9,346  | )
|Allowance for Loan Losses-Foreign            |  |      | (275    | ) |      |   | (490    | )
|Accrual to Cash Basis Conversion             |  |      | (1,592  | ) |      |   | (1,601  | )
|Charitable Contribution Carryforward         |  |      | (299    | ) |      |   | (222    | )
|Capital Loss Carryforward                    |  |      | (1,852  | ) |      |   | (2,716  | )
|Tax Credit Carryforward                      |  |      | (4,326  | ) |      |   | (3,599  | )
|Net Operating Loss Carryforward-Domestic     |  |      | (35,497 | ) |      |   | (17,260 | )
|Net Operating Loss Carryforward-Foreign      |  |      | (10,917 | ) |      |   | (6,073  | )
|Unrealized Hedging Gains and Losses-Domestic |  |      | (56     | ) |      |   | (831    | )
|Unrealized Hedging Gains and Losses-Foreign  |  |      | (21     | ) |      |   | 23      |  
|Other, Net-Domestic                          |  |      | (1,207  | ) |      |   | (1,693  | )
|Other, Net-Foreign                           |  |      | 95      |   |      |   | (103    | )
|                                            
|Total Deferred Tax Assets                    |  |      | (81,926 | ) |      |   | (55,588 | )
|Valuation Allowances (Foreign and Domestic)  |  |      | 23,548  |   |      |   | 16,593  |  
|                                            
|Net Deferred Tax Asset                       |  | $    | (32,898 | ) |      | $ | (11,390 | )
|                                            



|         |              
|-------- | -------------
|NOTE 15: | BENEFIT PLANS

Pension Plans






80



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##### 









WEIGHTED-AVERAGE ASSUMPTIONS AS OF DECEMBER 31,


|                               |  |           |      |   |           |  |      |      |  |  |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|------------------------------ |  | --------- | ---- | - | --------- |  | ---- | ---- |  |  | ---- | - |  | ---- | ---- | - | ---- |  | ---- | - |  |  | ---- | -
|                               |  | U.S. PLAN |      |   | U.K. PLAN | 
|                               | 
|                               |  | 2004      |      |   | 2003      |  |      | 2002 |  |  | 2004 |   |  | 2003 |      |   | 2002 | 
|                               | 
|Discount Rate                  |  |           | 5.75 | % |           |  | 6.00 | %    |  |  | 6.50 | % |  |      | 4.00 | % |      |  | 5.50 | % |  |  | 5.50 | %
|Expected Return on Plan Assets |  |           | 7.50 | % |           |  | 8.00 | %    |  |  | 8.00 | % |  |      | 4.00 | % |      |  | 5.50 | % |  |  | 5.50 | %
|Rate of Compensation Increase  |  |           | N/A  |   |           |  | N/A  |      |  |  | N/A  |   |  |      | N/A  |   |      |  | N/A  |   |  |  | N/A  |  

CHANGE IN PENSION BENEFIT OBLIGATION


|                                                  |  |           |         |   |           |   |         |      |  |   |        |  |  |   |       |  
|------------------------------------------------- |  | --------- | ------- | - | --------- | - | ------- | ---- |  | - | ------ |  |  | - | ----- | -
|(IN THOUSANDS)                                    |  | U.S. PLAN |         |   | U.K. PLAN |  
|                                                  | 
|                                                  |  | 2004      |         |   | 2003      |   |         | 2004 |  |   | 2003   | 
|                                                  | 
|Projected Benefit Obligation at Beginning of Year |  | $         | 109,388 |   |           | $ | 100,241 |      |  | $ | 8,766  |  |  | $ | 6,013 |  
|Service Cost                                      |  |           | 238     |   |           |   | 240     |      |  |   |       |  |  |   |      |  
|Interest Cost                                     |  |           | 6,363   |   |           |   | 6,320   |      |  |   | 493    |  |  |   | 336   |  
|Actuarial Loss                                    |  |           | 5,510   |   |           |   | 13,288  |      |  |   | 3,243  |  |  |   | 2,182 |  
|Benefits and Expenses Paid                        |  |           | (9,661  | ) |           |   | (10,701 | )    |  |   |       |  |  |   | (430  | )
|Other1                                            |  |           |        |   |           |   |        |      |  |   | 665    |  |  |   | 665   |  
|                                                 
|Projected Benefit Obligation at End of Year       |  | $         | 111,838 |   |           | $ | 109,388 |      |  | $ | 13,167 |  |  | $ | 8,766 |  
|                                                 

1 Represents
Foreign Exchange Translation Adjustments


81



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##### 



COMPONENTS OF NET PERIODIC PENSION COST


|                                     |  |           |        |   |           |   |        |      |  |   |        |   |  |      |      |   |      |   |      |   |  |   |      |  
|------------------------------------ |  | --------- | ------ | - | --------- | - | ------ | ---- |  | - | ------ | - |  | ---- | ---- | - | ---- | - | ---- | - |  | - | ---- | -
|(IN THOUSANDS)                       |  | U.S. PLAN |        |   | U.K. PLAN |  
|                                     | 
|                                     |  | 2004      |        |   | 2003      |   |        | 2002 |  |   | 2004   |   |  | 2003 |      |   | 2002 |  
|                                     | 
|Service Cost/Defined Contribution    |  | $         | 238    |   |           | $ | 240    |      |  | $ | 388    |   |  | $    | 539  |   |      | $ | 424  |   |  | $ | 507  |  
|Interest Cost                        |  |           | 6,363  |   |           |   | 6,320  |      |  |   | 6,398  |   |  |      | 493  |   |      |   | 337  |   |  |   | 272  |  
|Expected Return on Plan Assets       |  |           | (8,085 | ) |           |   | (7,875 | )    |  |   | (7,595 | ) |  |      | (293 | ) |      |   | (243 | ) |  |   | (308 | )
|Amortization of Prior Service Cost   |  |           | (116   | ) |           |   | (120   | )    |  |   | (137   | ) |  |      |     |   |      |   |     |   |  |   |     |  
|Recognized Net Actuarial Loss (Gain) |  |           | 5,091  |   |           |   | 5,319  |      |  |   | 3,622  |   |  |      | 218  |   |      |   | 250  |   |  |   | 9    |  
|Other1                               |  |           |       |   |           |   |       |      |  |   |       |   |  |      | (311 | ) |      |   | 2    |   |  |   | 102  |  
|                                    
|Net Periodic Cost                    |  | $         | 3,491  |   |           | $ | 3,884  |      |  | $ | 2,676  |   |  | $    | 646  |   |      | $ | 770  |   |  | $ | 582  |  
|                                    

|  |                                                    
|- | ---------------------------------------------------
|1 | Represents Foreign Exchange Translation Adjustments







|                                     |  |      |     |   |      |  |     |  
|------------------------------------ |  | ---- | --- | - | ---- |  | --- | -
|                                     |  | 2004 |     |   | 2003 | 
|                                     | 
|Cash and cash equivalents            |  |      |    | % |      |  | 2   | %
|Domestic equity mutual funds         |  |      | 46  |   |      |  | 49  |  
|International equity mutual funds    |  |      | 11  |   |      |  | 10  |  
|High grade fixed income mutual funds |  |      | 43  |   |      |  | 35  |  
|High yield fixed income mutual funds |  |      |    |   |      |  | 4   |  
|                                    
|                                     |  |      | 100 | % |      |  | 100 | %
|                                    



82



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##### 



CHANGE IN PLAN ASSETS


|                                               |  |           |         |   |           |   |         |      |  |   |        |  |  |   |        |  
|---------------------------------------------- |  | --------- | ------- | - | --------- | - | ------- | ---- |  | - | ------ |  |  | - | ------ | -
|(IN THOUSANDS)                                 |  | U.S. PLAN |         |   | U.K. PLAN |  
|                                               | 
|                                               |  | 2004      |         |   | 2003      |   |         | 2004 |  |   | 2003   | 
|                                               | 
|Fair Value of Plan Assets at Beginning of Year |  | $         | 111,134 |   |           | $ | 101,692 |      |  | $ | 5,207  |  |  | $ | 4,327  |  
|Actual Return on Plan Assets                   |  |           | 10,095  |   |           |   | 18,643  |      |  |   | 702    |  |  |   | 793    |  
|Employer Contributions                         |  |           | 1,000   |   |           |   | 1,500   |      |  |   | 9,892  |  |  |   |       |  
|Benefits and Expenses Paid                     |  |           | (9,661  | ) |           |   | (10,701 | )    |  |   |       |  |  |   | (430   | )
|Other1                                         |  |           |        |   |           |   |        |      |  |   | 893    |  |  |   | 517    |  
|                                              
|Fair Value of Plan Assets at End of Year       |  | $         | 112,568 |   |           | $ | 111,134 |      |  | $ | 16,694 |  |  | $ | 5,207  |  
|                                              
|Funded Status                                  |  | $         | 730     |   |           | $ | 1,746   |      |  | $ | 3,527  |  |  | $ | (3,559 | )
|Unrecognized Net Actuarial Loss                |  |           | 52,694  |   |           |   | 54,285  |      |  |   | 6,365  |  |  |   | 4,033  |  
|Unrecognized Prior Service Cost                |  |           | (9      | ) |           |   | (124    | )    |  |   |       |  |  |   |       |  
|                                              
|Prepaid Pension Cost                           |  | $         | 53,415  |   |           | $ | 55,907  |      |  | $ | 9,892  |  |  | $ | 474    |  
|                                              

|  |                                                    
|- | ---------------------------------------------------
|1 | Represents Foreign Exchange Translation Adjustments

401(k) Plan




Supplemental Executive Retirement Plan




Health and Insurance Benefits




83



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##### 



CHANGE IN POST-RETIREMENT BENEFIT OBLIGATION and ACCRUED
BENEFITS


|                                        |  |      |         |   |      |   |         |   |  | 
|--------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | - |  | 
|(IN THOUSANDS)                          |  | 2004 |         |   | 2003 |   |         |  
|                                       
|Benefit Obligation at Beginning of Year |  | $    | 29,002  |   |      | $ | 28,105  |   |  | 
|Service Cost                            |  |      | 441     |   |      |   | 518     |   |  | 
|Interest Cost                           |  |      | 1,751   |   |      |   | 1,664   |   |  | 
|Actuarial Loss                          |  |      | 1,887   |   |      |   | 9,144   |   |  | 
|Benefits Paid                           |  |      | (1,234  | ) |      |   | (1,222  | ) |  | 
|Plan Amendments                         |  |      |        |   |      |   | (9,207  | ) |  | 
|                                       
|Benefit Obligation at End of Year       |  | $    | 31,847  |   |      | $ | 29,002  |   |  | 
|Unrecognized Net Actuarial Loss         |  |      | (19,729 | ) |      |   | (20,492 | ) |  | 
|Unrecognized Prior Service Cost         |  |      | 3,069   |   |      |   | 6,138   |   |  | 
|Unrecognized Transition Obligation      |  |      | (2,854  | ) |      |   | (3,211  | ) |  | 
|                                       
|Accrued Postretirement Benefit Cost     |  | $    | 12,333  |   |      | $ | 11,437  |   |  | 
|                                       



COMPONENTS OF NET PERIODIC COST OF POST-RETIREMENT HEALTH AND
LIFE INSURANCE BENEFITS


|                                    |  |      |        |   |      |   |        |      |  |   |       |  |  | 
|----------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ----- |  |  | 
|(IN THOUSANDS)                      |  | 2004 |        |   | 2003 |   |        | 2002 |  |   |      
|                                   
|Service Cost                        |  | $    | 441    |   |      | $ | 518    |      |  | $ | 861   |  |  | 
|Interest Cost                       |  |      | 1,751  |   |      |   | 1,664  |      |  |   | 1,725 |  |  | 
|Amortization of Transition Amount   |  |      | 357    |   |      |   | 357    |      |  |   | 357   |  |  | 
|Amortization of Prior Service Costs |  |      | (3,069 | ) |      |   | (3,069 | )    |  |   |      |  |  | 
|Recognized Net Actuarial Loss       |  |      | 2,649  |   |      |   | 2,688  |      |  |   | 1,173 |  |  | 
|                                   
|Net Periodic Cost                   |  | $    | 2,129  |   |      | $ | 2,158  |      |  | $ | 4,116 |  |  | 
|                                   





|                  |  |               |      |  |                 |   |     |  |  | 
|----------------- |  | ------------- | ---- |  | --------------- | - | --- |  |  | 
|                  |  | United States |      |  | Post-Retirement |   |     | 
|(IN MILLIONS)     |  | Pension Plan  |      |  | Plans           |   |     | 
|                 
|2005              |  | $             | 7.0  |  |                 | $ | 1.8 |  |  | 
|2006              |  |               | 7.0  |  |                 |   | 1.6 |  |  | 
|2007              |  |               | 7.0  |  |                 |   | 1.6 |  |  | 
|2008              |  |               | 7.0  |  |                 |   | 1.6 |  |  | 
|2009              |  |               | 7.1  |  |                 |   | 1.6 |  |  | 
|2010 through 2014 |  |               | 37.1 |  |                 |   | 8.1 |  |  | 
|                 

84



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##### 





Stock Compensation Plans






|                                 |  |         |           |          |  |   |       | 
|-------------------------------- |  | ------- | --------- | -------- |  | - | ----- | 
|                                 |  |         |           | WEIGHTED
|                                 |  | NUMBER  |           | AVERAGE 
|                                 |  | OF      |           | EXERCISE
|                                 |  | OPTIONS |           | PRICE   
|                                
|Outstanding at December 31, 2001 |  |         | 6,022,173 |          |  | $ | 15.86 | 
|Granted                          |  |         | 1,582,202 |          |  |   | 13.19 | 
|Exercised                        |  |         | 16,319    |          |  |   | 12.20 | 
|Terminated                       |  |         | 202,896   |          |  |   | 17.52 | 
|                                
|Outstanding at December 31, 2002 |  |         | 7,385,160 |          |  | $ | 15.25 | 
|Granted                          |  |         | 1,506,369 |          |  |   | 13.86 | 
|Exercised                        |  |         | 158,561   |          |  |   | 12.09 | 
|Terminated                       |  |         | 437,520   |          |  |   | 15.30 | 
|                                
|Outstanding at December 31, 2003 |  |         | 8,295,448 |          |  | $ | 15.05 | 
|Granted                          |  |         |          |          |  |   |      | 
|Exercised                        |  |         | 3,204,725 |          |  |   | 12.85 | 
|Terminated                       |  |         | 2,263,416 |          |  |   | 18.90 | 
|                                
|Outstanding at December 31, 2004 |  |         | 2,827,307 |          |  | $ | 15.05 | 
|                                



85



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##### 





|                                 |  |         |         |          |  |   |       | 
|-------------------------------- |  | ------- | ------- | -------- |  | - | ----- | 
|                                 |  |         |         | WEIGHTED
|                                 |  | NUMBER  |         | AVERAGE 
|                                 |  | OF      |         | EXERCISE
|                                 |  | OPTIONS |         | PRICE   
|                                
|Outstanding at December 31, 2001 |  |         | 407,500 |          |  | $ | 18.98 | 
|Granted                          |  |         |        |          |  |   |      | 
|Exercised                        |  |         |        |          |  |   |      | 
|Terminated                       |  |         | 32,500  |          |  |   | 19.63 | 
|                                
|Outstanding at December 31, 2002 |  |         | 375,000 |          |  | $ | 18.87 | 
|Granted                          |  |         |        |          |  |   |      | 
|Exercised                        |  |         |        |          |  |   |      | 
|Terminated                       |  |         |        |          |  |   |      | 
|                                
|Outstanding at December 31, 2003 |  |         | 375,000 |          |  | $ | 18.87 | 
|Granted                          |  |         |        |          |  |   |      | 
|Exercised                        |  |         | 7,500   |          |  |   | 23.29 | 
|Terminated                       |  |         | 27,500  |          |  |   | 17.04 | 
|                                
|Outstanding at December 31, 2004 |  |         | 340,000 |          |  | $ | 18.98 | 
|                                



|         |                  |                     |                 |  |                     |          |  |          |          |  |        |                |       |          |          |  |           |  |  |   |       | 
|-------- | ---------------- | ------------------- | --------------- |  | ------------------- | -------- |  | -------- | -------- |  | ------ | -------------- | ----- | -------- | -------- |  | --------- |  |  | - | ----- | 
|         |                  | OPTIONS OUTSTANDING |                 |  | OPTIONS EXERCISABLE |         
|         |                 
|         |                  | WEIGHTED-           |                 |  |                    
|         |                  | AVERAGE             |                 |  |                    
|         |                  | NUMBER              |                 |  | REMAINING           |          |  | WEIGHTED |          |  | NUMBER |                |       | WEIGHTED |         
|RANGE OF |                  |                     | OUTSTANDING     |  |                     | CONTRACT |  |          | AVERAGE  |  |        | EXERCISABLE AT |       |          | AVERAGE  | 
|EXERCISE |                  |                     | AT DECEMBER 31, |  |                     | LIFE IN  |  |          | EXERCISE |  |        | DECEMBER 31,   |       |          | EXERCISE | 
|PRICES   |                  |                     | 2004            |  |                     | YEARS    |  |          | PRICE    |  |        | 2004           |       |          | PRICE    | 
|         |                 
|         | $12.00 TO $15.00 |                     |                 |  | 2,096,579           |          |  |          | 7.70     |  |        | $              | 13.49 |          |          |  | 1,447,661 |  |  | $ | 13.40 | 
|         | 15.19 TO  17.56  |                     |                 |  | 578,812             |          |  |          | 6.02     |  |        |                | 15.73 |          |          |  | 578,812   |  |  |   | 15.73 | 
|         | 19.50 TO  20.50  |                     |                 |  | 391,416             |          |  |          | 3.22     |  |        |                | 20.10 |          |          |  | 391,416   |  |  |   | 20.10 | 
|         | 25.88 TO  30.25  |                     |                 |  | 100,500             |          |  |          | 3.37     |  |        |                | 28.73 |          |          |  | 100,500   |  |  |   | 28.73 | 
|        
|         | 12.00 TO  30.25  |                     |                 |  | 3,167,307           |          |  |          | 6.70     |  |        | $              | 15.20 |          |          |  | 2,518,389 |  |  | $ | 15.58 | 
|        







NOTE 16:     FOREIGN
ACTIVITIES




86



---



##### 





FOREIGN RESERVE FOR LOAN LOSSES


|                                                                              |  |      |        |   |      |   |       |      |  |   |        |  
|----------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | - | ----- | ---- |  | - | ------ | -
|(IN THOUSANDS)                                                                |  | 2004 |        |   | 2003 |   |       | 2002 | 
|                                                                              | 
|Balance, January 1                                                            |  | $    | 4,292  |   |      | $ | 4,930 |      |  | $ | 11,651 |  
|Provision for Loan losses                                                     |  |      | (2,065 | ) |      |   | 181   |      |  |   | (4,182 | )
|Loans Charged-Off                                                             |  |      | 1,775  |   |      |   | 2,932 |      |  |   | 4,094  |  
|Less: Recoveries on Charged-Off Loans                                         |  |      | 2,197  |   |      |   | 1,862 |      |  |   | 838    |  
|                                                                             
|Net Charge-Offs (Recoveries)                                                  |  |      | (422   | ) |      |   | 1,070 |      |  |   | 3,256  |  
|Lower of Cost or Market Adjustment for Loans Transferred to Held
    for Sale |  |      | (1,521 | ) |      |   |      |      |  |   |       |  
|Foreign Exchange Translation Adjustments                                      |  |      | 98     |   |      |   | 251   |      |  |   | 717    |  
|                                                                             
|Balance, December 31                                                          |  | $    | 1,226  |   |      | $ | 4,292 |      |  | $ | 4,930  |  
|                                                                             





87



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##### 



GEOGRAPHICAL PERFORMANCE


|                                      |  |  |      |              |  |   |         |   |  |               |        |   |          |   |        |            |  |   |         |   |  |   |         |  
|------------------------------------- |  |  | ---- | ------------ |  | - | ------- | - |  | ------------- | ------ | - | -------- | - | ------ | ---------- |  | - | ------- | - |  | - | ------- | -
|                                      |  |  |      |              |  |   |         |   |  | INCOME BEFORE |        |   |         
|                                      |  |  |      |              |  |   |         |   |  | TAXES AND     |        |   |         
|                                      |  |  |      | TOTAL ASSETS |  |   | TOTAL   |   |  | TOTAL         |        |   | MINORITY |   |        | NET INCOME | 
|(IN THOUSANDS)                        |  |  |      | DECEMBER 31, |  |   | REVENUE |   |  | EXPENSES      |        |   | INTEREST |   |        | (LOSS)     | 
|                                      | 
|Middle East and Africa                |  |  | 2004 |              |  | $ | 5,727   |   |  | $             | 753    |   |          | $ | 20,103 |            |  | $ | (19,350 | ) |  | $ | (12,578 | )
|                                      |  |  | 2003 |              |  |   | 109,983 |   |  |               | 6,265  |   |          |   | 2,656  |            |  |   | 3,609   |   |  |   | 2,938   |  
|                                      |  |  | 2002 |              |  |   | 136,206 |   |  |               | 5,463  |   |          |   | 3,633  |            |  |   | 1,830   |   |  |   | 1,094   |  
|                                     
|Europe                                |  |  | 2004 |              |  | $ | 247,491 |   |  | $             | 17,618 |   |          | $ | 50,886 |            |  | $ | (33,268 | ) |  | $ | (41,559 | )
|                                      |  |  | 2003 |              |  |   | 360,686 |   |  |               | 16,410 |   |          |   | 34,826 |            |  |   | (18,416 | ) |  |   | (14,990 | )
|                                      |  |  | 2002 |              |  |   | 245,950 |   |  |               | 20,487 |   |          |   | 35,911 |            |  |   | (15,424 | ) |  |   | (9,219  | )
|                                     
|Asia/Pacific                          |  |  | 2004 |              |  | $ | 8,755   |   |  | $             | 248    |   |          | $ | 486    |            |  | $ | (238    | ) |  | $ | (155    | )
|                                      |  |  | 2003 |              |  |   | 8,501   |   |  |               | 458    |   |          |   | 194    |            |  |   | 264     |   |  |   | 215     |  
|                                      |  |  | 2002 |              |  |   | 7,885   |   |  |               | 322    |   |          |   | 214    |            |  |   | 108     |   |  |   | 65      |  
|                                     
|South and Central America             |  |  | 2004 |              |  | $ | 15,817  |   |  | $             | 1,109  |   |          | $ | 20,717 |            |  | $ | (19,608 | ) |  | $ | (12,745 | )
|                                      |  |  | 2003 |              |  |   | 51,182  |   |  |               | 1,936  |   |          |   | 2,163  |            |  |   | (227    | ) |  |   | (185    | )
|                                      |  |  | 2002 |              |  |   | 24,476  |   |  |               | 919    |   |          |   | 1,161  |            |  |   | (242    | ) |  |   | (145    | )
|                                     
|Caribbean                             |  |  | 2004 |              |  | $ | 16      |   |  | $             | 101    |   |          | $ | 4,597  |            |  | $ | (4,496  | ) |  | $ | (2,922  | )
|                                      |  |  | 2003 |              |  |   | 28,411  |   |  |               | 1,652  |   |          |   | 975    |            |  |   | 677     |   |  |   | 551     |  
|                                      |  |  | 2002 |              |  |   | 18,871  |   |  |               | 1,945  |   |          |   | 1,822  |            |  |   | 123     |   |  |   | 73      |  
|                                     
|Other                                 |  |  | 2004 |              |  | $ | 5,872   |   |  | $             | 280    |   |          | $ | 398    |            |  | $ | (118    | ) |  | $ | (77     | )
|                                      |  |  | 2003 |              |  |   | 25,158  |   |  |               | 1,331  |   |          |   | 564    |            |  |   | 767     |   |  |   | 624     |  
|                                      |  |  | 2002 |              |  |   | 22,662  |   |  |               | 937    |   |          |   | 623    |            |  |   | 314     |   |  |   | 188     |  
|                                     
|Total Foreign                         |  |  | 2004 |              |  | $ | 283,678 |   |  | $             | 20,109 |   |          | $ | 97,187 |            |  | $ | (77,078 | ) |  | $ | (70,036 | )
|                                      |  |  | 2003 |              |  |   | 583,921 |   |  |               | 28,052 |   |          |   | 41,378 |            |  |   | (13,326 | ) |  |   | (10,847 | )
|                                      |  |  | 2002 |              |  |   | 456,050 |   |  |               | 30,073 |   |          |   | 43,364 |            |  |   | (13,291 | ) |  |   | (7,944  | )
|                                     
|Percentage of Foreign to Consolidated |  |  | 2004 |              |  |   | 5       | % |  |               | 8      | % |          |   | 27     | %          |  |   | 66      | % |  |   | 71      | %
|                                      |  |  | 2003 |              |  |   | 9       | % |  |               | 10     | % |          |   | 16     | %          |  |   | N/A     |   |  |   | N/A     |  
|                                      |  |  | 2002 |              |  |   | 7       |   |  |               | 9      |   |          |   | 13     |            |  |   | N/A     |   |  |   | N/A     |  
|                                     





|   |                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1) | Foreign assets at December 31, 2004, 2003 and 2002
    exclude net pool funds contributed by foreign activities to fund
    domestic activities.                                                                        
|2) | N/A-Due to losses posted by foreign business segments,
    percentage of income before taxes, minority interest and
    percentage of net income may not be applicable.                                                 
|3) | Total assets for Middle East and Africa include
    $3.0 million and $19.9 million of overdrawn account
    balances for 2003 and 2002, respectively, approved under a
    guidance line of credit, to a single country.

88



---



##### 



NOTE 17:     PARENT COMPANY
FINANCIAL
STATEMENTS(1)


STATEMENTS OF OPERATIONS


YEARS ENDED DECEMBER 31,


|                                                        |  |      |          |   |      |   |         |      |  |   |         |   |  | 
|------------------------------------------------------- |  | ---- | -------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | 
|(IN THOUSANDS)                                          |  | 2004 |          |   | 2003 |   |         | 2002 |  |   |        
|                                                       
|Revenues                                                |  |      |          |   |      |   |         |      |  |   |         |   |  | 
|Dividends from Subsidiaries                             |  | $    |         |   |      | $ | 35,621  |      |  | $ | 54,019  |   |  | 
|Equity in Undistributed Loss of Subsidiaries            |  |      | (55,784  | ) |      |   | (15,174 | )    |  |   | (23,329 | ) |  | 
|Interest on Time Deposit Placements                     |  |      | 171      |   |      |   | 679     |      |  |   | 1,117   |   |  | 
|Interest on Reverse Repurchase Agreements               |  |      | 35       |   |      |   | 22      |      |  |   | 44      |   |  | 
|Interest and Dividends on Securities Available for Sale |  |      | 1,221    |   |      |   | 888     |      |  |   | 1,514   |   |  | 
|Interest and Dividends on Securities Held to Maturity   |  |      | 4,837    |   |      |   | 2,356   |      |  |   |        |   |  | 
|Other Operating Income                                  |  |      | 12,224   |   |      |   | 2,462   |      |  |   | 2,572   |   |  | 
|                                                       
|Total Revenues                                          |  |      | (37,296  | ) |      |   | 26,854  |      |  |   | 35,937  |   |  | 
|Operating Expenses                                      |  |      |          |   |      |   |         |      |  |   |         |   |  | 
|Interest Expense                                        |  |      | 38,107   |   |      |   | 38,094  |      |  |   | 33,610  |   |  | 
|Other Operating Expenses                                |  |      | 36,924   |   |      |   | 4,872   |      |  |   | 3,575   |   |  | 
|                                                       
|Total Operating Expenses                                |  |      | 75,031   |   |      |   | 42,966  |      |  |   | 37,185  |   |  | 
|                                                       
|Loss before Taxes                                       |  |      | (112,327 | ) |      |   | (16,112 | )    |  |   | (1,248  | ) |  | 
|Applicable Income Tax
    Benefit(2)                    |  |      | 14,038   |   |      |   | 17,091  |      |  |   | 14,269  |   |  | 
|                                                       
|Net Income (Loss)                                       |  | $    | (98,289  | ) |      | $ | 979     |      |  | $ | 13,021  |   |  | 
|                                                       

STATEMENTS OF CONDITION 
 DECEMBER 31,


|                                           |                                                                            |      |         |         |      |   |         |         |  |  | 
|------------------------------------------ | -------------------------------------------------------------------------- | ---- | ------- | ------- | ---- | - | ------- | ------- |  |  | 
|(IN THOUSANDS)                             |                                                                            | 2004 |         |         | 2003 |   |         |        
|                                          
|Assets                                     |                                                                            |      |         |         |      |   |         |         |  | 
|Cash                                       |                                                                            | $    | 1,093   |         |      | $ | 1,762   |         |  | 
|Time Deposits with Other Banks             |                                                                            |      |        |         |      |   | 54,000  |         |  | 
|Intercompany Reverse Repurchase Agreements |                                                                            |      | 2,000   |         |      |   | 6,000   |         |  | 
|Securities Available for Sale              |                                                                            |      | 74,995  |         |      |   | 81,994  |         |  | 
|Securities Held to Maturity                |                                                                            |      | 49,853  |         |      |   | 107,891 |         |  | 
|Investment in Subsidiaries                 |                                                                            |      | 485,640 |         |      |   | 470,061 |         |  | 
|Other Assets                               |                                                                            |      | 109,780 |         |      |   | 82,623  |         |  | 
|                                          
|Total Assets                               |                                                                            | $    | 723,361 |         |      | $ | 804,331 |         |  | 
|                                          
|Liabilities                                |                                                                            |      |         |         |      |   |         |         |  | 
|Other Liabilities                          |                                                                            | $    | 55,554  |         |      | $ | 3,478   |         |  | 
|Long-Term Borrowings:                      |                                                                            |      |         |         |      |   |         |         |  | 
|                                           | Subordinated Debentures due 2009                                           |      |         | 66,525  |      |   |         | 66,525  |  |  | 
|                                           | Junior Subordinated Deferrable Interest Debentures,
    Series A, due 2026 |      |         | 77,274  |      |   |         | 154,640 |  |  | 
|                                           | Junior Subordinated Deferrable Interest Debentures,
    Series C, due 2027 |      |         | 206,168 |      |   |         | 206,168 |  |  | 
|                                          
|Total Long-Term Borrowings                 |                                                                            |      | 349,967 |         |      |   | 427,333 |         |  | 
|                                          
|Total Liabilities                          |                                                                            |      | 405,521 |         |      |   | 430,811 |         |  | 
|                                          
|Shareholders Equity                       |                                                                            |      | 317,840 |         |      |   | 373,520 |         |  | 
|                                          
|Total Liabilities and Shareholders Equity |                                                                            | $    | 723,361 |         |      | $ | 804,331 |         |  | 
|                                          



|    |                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Parent Company financial statements reflect the adoption of
    FIN 46R as of October 1, 2003. FIN 46R does not
    require restatement of prior year financial statements.
|(2) | Applicable income taxes are provided for based on parent
    corporation income only, and do not reflect the tax expense or
    benefit of the subsidiaries operations.   

89



---



##### 



PARENT COMPANY FINANCIAL STATEMENTS


STATEMENTS OF CASH FLOWS


YEARS ENDED DECEMBER 31,


|                                                       |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |       |  |  | 
|------------------------------------------------------ | --------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ----------------- | - | ---------- | ------ | ------ | ---- | ---------- | ----- | ------- | - | ---------- | ----- |  |  | 
|(IN THOUSANDS)                                         |                                   | 2004                                                                                                              |                   |   | 2003       |        |        | 2002 |            |       |        
|                                                      
|Cash Flows from Operating Activities:                  |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |      
|Net Income (Loss)                                      |                                   | $                                                                                                                 | (98,289           | ) |            | $      | 979    |      |            | $     | 13,021  |   |            |      
|Adjustments to Reconcile Net Income (Loss) to Net Cash |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |      
|                                                       | Provided by Operating Activities: |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |       | 
|                                                       |                                   | Depreciation Expense and Amortization                                                                             |                   |   | (1,160     | )      |        |      | (861       | )     |         |   | (1,485     | )     |  | 
|                                                       |                                   | Increase in Other Assets, excluding Premises and Equipment                                                        |                   |   | (33,922    | )      |        |      | (10,517    | )     |         |   | (13,728    | )     |  | 
|                                                       |                                   | Equity in Undistributed Loss of Subsidiaries                                                                      |                   |   | 55,784     |        |        |      | 15,174     |       |         |   | 23,329     |       |  | 
|                                                       |                                   | Increase (Decrease) in Other Liabilities                                                                          |                   |   | 52,019     |        |        |      | (471       | )     |         |   | (1,563     | )     |  | 
|                                                      
|                                                       |                                   |                                                                                                                   | Total Adjustments |   |            | 72,721 |        |      |            | 3,325 |         |   |            | 6,553 |  |  | 
|                                                      
|Net Cash Provided by (Used in) Operating Activities    |                                   |                                                                                                                   | (25,568           | ) |            |        | 4,304  |      |            |       | 19,574  |   |            |      
|                                                      
|Cash Flows from Investing Activities:                  |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |      
|                                                       |                                   | Purchase of Securities Available for Sale                                                                         |                   |   | (8,484,780 | )      |        |      | (1,515,155 | )     |         |   | (1,318,461 | )     |  | 
|                                                       |                                   | Proceeds from Maturities of Securities Available for Sale                                                         |                   |   | 8,493,000  |        |        |      | 1,516,000  |       |         |   | 1,338,000  |       |  | 
|                                                       |                                   | Contribution to Capital of Riggs Bank N.A.                                                                        |                   |   | (69,500    | )      |        |      |           |       |         |   |           |       |  | 
|                                                       |                                   | Net Decrease in Loans                                                                                             |                   |   |           |        |        |      | 12,500     |       |         |   |           |       |  | 
|                                                       |                                   | Net Decrease in Premises and Equipment                                                                            |                   |   |           |        |        |      | 1          |       |         |   | 2          |       |  | 
|                                                       |                                   | Net Decrease in Investments in Subsidiaries                                                                       |                   |   | 3,636      |        |        |      | 18,350     |       |         |   | 519        |       |  | 
|                                                       |                                   | Net Increase in Investments in Unconsolidated Subsidiaries                                                        |                   |   | (580       | )      |        |      | (17,376    | )     |         |   |           |       |  | 
|                                                      
|Net Cash (Used in) Provided by Investing Activities    |                                   |                                                                                                                   | (58,224           | ) |            |        | 14,320 |      |            |       | 20,060  |   |            |      
|                                                      
|Cash Flows from Financing Activities:                  |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |      
|                                                       |                                   | Issuance of Common Stock                                                                                          |                   |   | 48,442     |        |        |      | 3,526      |       |         |   | 215        |       |  | 
|                                                       |                                   | Dividend Payments                                                                                                 |                   |   | (2,896     | )      |        |      | (5,713     | )     |         |   | (5,701     | )     |  | 
|                                                       |                                   | Repurchase of Common Stock                                                                                        |                   |   | (370       | )      |        |      | (254       | )     |         |   | (12        | )     |  | 
|                                                       |                                   | Repurchase of Guaranteed Preferred Beneficial Interests in
    Junior Subordinated Deferrable Interest Debentures |                   |   | (20,055    | )      |        |      | (6,475     | )     |         |   | (87,849    | )     |  | 
|                                                      
|Net Cash Provided by (Used in) Financing Activities    |                                   |                                                                                                                   | 25,121            |   |            |        | (8,916 | )    |            |       | (93,347 | ) |            |      
|                                                      
|Effect of Exchange Rate Change                         |                                   |                                                                                                                   | 2                 |   |            |        | 1      |      |            |       |        |   |            |      
|                                                      
|Net Increase (Decrease) in Cash and Cash Equivalents   |                                   |                                                                                                                   | (58,669           | ) |            |        | 9,709  |      |            |       | (53,713 | ) |            |      
|Cash and Cash Equivalents at Beginning of Year         |                                   |                                                                                                                   | 61,762            |   |            |        | 52,053 |      |            |       | 105,766 |   |            |      
|                                                      
|Cash and Cash Equivalents at End of Year               |                                   | $                                                                                                                 | 3,093             |   |            | $      | 61,762 |      |            | $     | 52,053  |   |            |      
|                                                      
|Supplemental Disclosures:                              |                                   |                                                                                                                   |                   |   |            |        |        |      |            |       |         |   |            |      
|                                                       |                                   | Interest Paid                                                                                                     |                   | $ | 22,237     |        |        | $    | 38,042     |       |         | $ | 33,558     |       |  | 
|                                                       |                                   | Income Tax Payments                                                                                               |                   |   |           |        |        |      |           |       |         |   |           |       |  | 
|                                                      

90



---



##### 



NOTE 18:     SEGMENT
INFORMATION


DECEMBER 31, 2004


|                                                 |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |          |             |  |   |            |   |  |   |           |   |  | 
|------------------------------------------------ |  | ------- | --------- | ------------- | ------- | - | ------- | -------- | ------- | - | --------- | - |  | ----- | ------ | -------- | -------------- | - | -------- | ----------- |  | - | ---------- | - |  | - | --------- | - |  | 
|                                                 |  |         |           |               |         |   |         | RIGGS    |         |   |           |   |  |       | RIGGS  |          |                |  
|                                                 |  |         |           | INTERNATIONAL |         |   |         |          | CAPITAL |   |           |   |  |       |        | NATIONAL |                |   |         
|(IN THOUSANDS)                                   |  | BANKING |           |               | BANKING |   |         | TREASURY |         |   | PARTNERS  |   |  | OTHER |        |          | RECONCILIATION |   |          | CORPORATION |  |   |           
|                                                
|NET INTEREST INCOME                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |          |             |  |   |            |   |  |   |           |   |  | 
|Interest Income                                  |  | $       | 151,780   |               |         | $ | 13,824  |          |         | $ | 72,704    |   |  | $     | 1      |          |                | $ | 24,270   |             |  | $ | (32,350    | ) |  | $ | 230,229   |   |  | 
|Interest Expense                                 |  |         | 14,233    |               |         |   | 9,662   |          |         |   | 45,303    |   |  |       |       |          |                |   | 43,744   |             |  |   | (32,350    | ) |  |   | 80,592    |   |  | 
|Funds Transfer Income (Expense)                  |  |         | (2,418    | )             |         |   | 20,116  |          |         |   | (20,720   | ) |  |       |       |          |                |   | 3,022    |             |  |   |           |   |  |   |          |   |  | 
|                                                
|Net Interest Income (Loss), Tax- Equivalent      |  |         | 135,129   |               |         |   | 24,278  |          |         |   | 6,681     |   |  |       | 1      |          |                |   | (16,452  | )           |  |   |           |   |  |   | 149,637   |   |  | 
|Provision for Loan Losses                        |  |         | (1,262    | )             |         |   | 1,213   |          |         |   |          |   |  |       |       |          |                |   |         |             |  |   |           |   |  |   | (49       | ) |  | 
|                                                
|Net Interest Income (Loss) After Provision       |  |         | 133,867   |               |         |   | 25,491  |          |         |   | 6,681     |   |  |       | 1      |          |                |   | (16,452  | )           |  |   |           |   |  |   | 149,588   |   |  | 
|                                                
|NONINTEREST INCOME                               |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |          |             |  |   |            |   |  |   |           |   |  | 
|Noninterest Income-External Customers            |  |         | 82,268    |               |         |   | 3,515   |          |         |   | 3,655     |   |  |       | 3,579  |          |                |   | 5,603    |             |  |   |           |   |  |   | 98,620    |   |  | 
|Intersegment Noninterest Income                  |  |         | 1,891     |               |         |   | 6,629   |          |         |   |          |   |  |       |       |          |                |   | 1,123    |             |  |   | (9,643     | ) |  |   |          |   |  | 
|                                                
|Total Noninterest Income                         |  |         | 84,159    |               |         |   | 10,144  |          |         |   | 3,655     |   |  |       | 3,579  |          |                |   | 6,726    |             |  |   | (9,643     | ) |  |   | 98,620    |   |  | 
|                                                
|NONINTEREST EXPENSE                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |          |             |  |   |            |   |  |   |           |   |  | 
|Depreciation and Amortization                    |  |         | 5,854     |               |         |   | 1,141   |          |         |   | 5         |   |  |       | 13     |          |                |   | 11,520   |             |  |   |           |   |  |   | 18,533    |   |  | 
|Direct Expense                                   |  |         | 86,951    |               |         |   | 38,961  |          |         |   | 3,962     |   |  |       | 595    |          |                |   | 225,917  |             |  |   | (9,643     | ) |  |   | 346,743   |   |  | 
|Overhead and Support                             |  |         | 103,269   |               |         |   | 60,959  |          |         |   | 2,319     |   |  |       |       |          |                |   | (166,547 | )           |  |   |           |   |  |   |          |   |  | 
|                                                
|Total Noninterest Expense                        |  |         | 196,074   |               |         |   | 101,061 |          |         |   | 6,286     |   |  |       | 608    |          |                |   | 70,890   |             |  |   | (9,643     | ) |  |   | 365,276   |   |  | 
|                                                
|Income (Loss) Before Taxes and Minority Interest |  |         | 21,952    |               |         |   | (65,426 | )        |         |   | 4,050     |   |  |       | 2,972  |          |                |   | (80,616  | )           |  |   |           |   |  |   | (117,068  | ) |  | 
|                                                
|Applicable Income Tax Expense                    |  |         | 4,721     |               |         |   | (19,569 | )        |         |   | 1,101     |   |  |       |       |          |                |   | (7,183   | )           |  |   |            |   |  |   | (20,930   | ) |  | 
|Minority Interest                                |  |         |          |               |         |   |        |          |         |   |          |   |  |       | 22     |          |                |   | 3,799    |             |  |   |            |   |  |   | 3,821     |   |  | 
|                                                
|Income (Loss) from Continuing Operations         |  | $       | 17,231    |               |         | $ | (45,857 | )        |         | $ | 2,949     |   |  | $     | 2,950  |          |                | $ | (77,232  | )           |  | $ |           |   |  | $ | (99,959   | ) |  | 
|                                                
|Income (Loss) from Discontinued Operations       |  |         |          |               |         |   | 961     |          |         |   |          |   |  |       |       |          |                |   |         |             |  |   |           |   |  |   | 961       |   |  | 
|Tax Expense (Benefit)                            |  |         |          |               |         |   | (709    | )        |         |   |          |   |  |       |       |          |                |   |         |             |  |   |           |   |  |   | (709      | ) |  | 
|Net Income (Loss) from Discontinued Operations   |  |         |          |               |         |   | 1,670   |          |         |   |          |   |  |       |       |          |                |   |         |             |  |   |           |   |  |   | 1,670     |   |  | 
|                                                
|Net Income (Loss)                                |  | $       | 17,231    |               |         | $ | (44,187 | )        |         | $ | 2,949     |   |  | $     | 2,950  |          |                | $ | (77,232  | )           |  | $ |           |   |  | $ | (98,289   | ) |  | 
|                                                
|                                                
|                                                
|Total Average Assets                             |  | $       | 3,624,931 |               |         | $ | 603,615 |          |         | $ | 2,581,787 |   |  | $     | 45,818 |          |                | $ | 641,602  |             |  | $ | (1,342,542 | ) |  | $ | 6,155,211 |   |  | 
|                                                







91



---



##### 





DECEMBER 31, 2003


|                                                 |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |         |             |  |   |            |   |  |   |           |   |  | 
|------------------------------------------------ |  | ------- | --------- | ------------- | ------- | - | ------- | -------- | ------- | - | --------- | - |  | ----- | ------ | -------- | -------------- | - | ------- | ----------- |  | - | ---------- | - |  | - | --------- | - |  | 
|                                                 |  |         |           |               |         |   |         | RIGGS    |         |   |           |   |  |       | RIGGS  |          |                |  
|                                                 |  |         |           | INTERNATIONAL |         |   |         |          | CAPITAL |   |           |   |  |       |        | NATIONAL |                |   |        
|(IN THOUSANDS)                                   |  | BANKING |           |               | BANKING |   |         | TREASURY |         |   | PARTNERS  |   |  | OTHER |        |          | RECONCILIATION |   |         | CORPORATION |  |   |           
|                                                
|NET INTEREST INCOME                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |         |             |  |   |            |   |  |   |           |   |  | 
|Interest Income                                  |  | $       | 143,715   |               |         | $ | 19,128  |          |         | $ | 76,148    |   |  | $     | 13     |          |                | $ | 33,010  |             |  | $ | (40,082    | ) |  | $ | 231,932   |   |  | 
|Interest Expense                                 |  |         | 19,263    |               |         |   | 17,795  |          |         |   | 23,288    |   |  |       |       |          |                |   | 42,376  |             |  |   | (40,082    | ) |  |   | 62,640    |   |  | 
|Funds Transfer Income (Expense)                  |  |         | 14,670    |               |         |   | 43,118  |          |         |   | (74,385   | ) |  |       | (2,738 | )        |                |   | 19,335  |             |  |   |           |   |  |   |          |   |  | 
|                                                
|Net Interest Income (Loss), Tax- Equivalent      |  |         | 139,122   |               |         |   | 44,451  |          |         |   | (21,525   | ) |  |       | (2,725 | )        |                |   | 9,969   |             |  |   |           |   |  |   | 169,292   |   |  | 
|Provision for Loan Losses                        |  |         | (5,533    | )             |         |   | 390     |          |         |   |          |   |  |       |       |          |                |   | (3      | )           |  |   |           |   |  |   | (5,146    | ) |  | 
|                                                
|Net Interest Income (Loss) After Provision       |  |         | 133,589   |               |         |   | 44,841  |          |         |   | (21,525   | ) |  |       | (2,725 | )        |                |   | 9,966   |             |  |   |           |   |  |   | 164,146   |   |  | 
|                                                
|                                                
|NONINTEREST INCOME                               |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |         |             |  |   |            |   |  |   |           |   |  | 
|Noninterest Income-External Customers            |  |         | 83,414    |               |         |   | 5,312   |          |         |   | 16,494    |   |  |       | (4,206 | )        |                |   | 8,176   |             |  |   |           |   |  |   | 109,190   |   |  | 
|Intersegment Noninterest Income                  |  |         | 4,589     |               |         |   | 5,868   |          |         |   |          |   |  |       |       |          |                |   | 2,955   |             |  |   | (13,412    | ) |  |   |          |   |  | 
|                                                
|Total Noninterest Income                         |  |         | 88,003    |               |         |   | 11,180  |          |         |   | 16,494    |   |  |       | (4,206 | )        |                |   | 11,131  |             |  |   | (13,412    | ) |  |   | 109,190   |   |  | 
|                                                
|                                                
|NONINTEREST EXPENSE                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |        |          |                |   |         |             |  |   |            |   |  |   |           |   |  | 
|Depreciation and Amortization                    |  |         | 4,761     |               |         |   | 1,072   |          |         |   | 8         |   |  |       | 15     |          |                |   | 10,212  |             |  |   |           |   |  |   | 16,068    |   |  | 
|Direct Expense                                   |  |         | 93,735    |               |         |   | 38,304  |          |         |   | 3,752     |   |  |       | 800    |          |                |   | 118,312 |             |  |   | (13,412    | ) |  |   | 241,491   |   |  | 
|Overhead and Support                             |  |         | 78,986    |               |         |   | 17,123  |          |         |   | 2,577     |   |  |       | 145    |          |                |   | (98,831 | )           |  |   |           |   |  |   |          |   |  | 
|                                                
|Total Noninterest Expense                        |  |         | 177,482   |               |         |   | 56,499  |          |         |   | 6,337     |   |  |       | 960    |          |                |   | 29,693  |             |  |   | (13,412    | ) |  |   | 257,559   |   |  | 
|                                                
|Income (Loss) Before Taxes and Minority Interest |  |         | 44,110    |               |         |   | (478    | )        |         |   | (11,368   | ) |  |       | (7,891 | )        |                |   | (8,596  | )           |  |   |           |   |  |   | 15,777    |   |  | 
|                                                
|                                                
|Applicable Income Tax Expense                    |  |         | 12,849    |               |         |   | 1,095   |          |         |   | (3,629    | ) |  |       |       |          |                |   | (5,822  | )           |  |   |            |   |  |   | 4,493     |   |  | 
|Minority Interest                                |  |         |          |               |         |   |        |          |         |   |          |   |  |       | (33    | )        |                |   | 10,612  |             |  |   |            |   |  |   | 10,579    |   |  | 
|                                                
|Income (Loss) from Continuing Operations         |  | $       | 31,261    |               |         | $ | (1,573  | )        |         | $ | (7,739    | ) |  | $     | (7,858 | )        |                | $ | (13,386 | )           |  | $ |           |   |  | $ | 705       |   |  | 
|                                                
|Income (Loss) from Discontinued Operations       |  |         |          |               |         |   | 167     |          |         |   |          |   |  |       |       |          |                |   |        |             |  |   |           |   |  |   | 167       |   |  | 
|Tax Expense (Benefit)                            |  |         |          |               |         |   | (107    | )        |         |   |          |   |  |       |       |          |                |   |        |             |  |   |           |   |  |   | (107      | ) |  | 
|Net Income (Loss) from Discontinued Operations   |  |         |          |               |         |   | 274     |          |         |   |          |   |  |       |       |          |                |   |        |             |  |   |           |   |  |   | 274       |   |  | 
|                                                
|Net Income (Loss)                                |  | $       | 31,261    |               |         | $ | (1,299  | )        |         | $ | (7,739    | ) |  | $     | (7,858 | )        |                | $ | (13,386 | )           |  | $ |           |   |  | $ | 979       |   |  | 
|                                                
|                                                
|Total Average Assets                             |  | $       | 3,331,843 |               |         | $ | 802,550 |          |         | $ | 2,853,641 |   |  | $     | 49,158 |          |                | $ | 887,467 |             |  | $ | (1,615,162 | ) |  | $ | 6,309,497 |   |  | 
|                                                



Banking






92



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International Banking






DECEMBER 31, 2002


|                                                 |  |         |           |               |         |   |         |          |         |   |           |   |  |       |         |          |                |   |         |             |  |   |            |   |  |   |           |  
|------------------------------------------------ |  | ------- | --------- | ------------- | ------- | - | ------- | -------- | ------- | - | --------- | - |  | ----- | ------- | -------- | -------------- | - | ------- | ----------- |  | - | ---------- | - |  | - | --------- | -
|                                                 |  |         |           |               |         |   |         | RIGGS    |         |   |           |   |  |       | RIGGS   |         
|                                                 |  |         |           | INTERNATIONAL |         |   |         |          | CAPITAL |   |           |   |  |       |         | NATIONAL |               
|(IN THOUSANDS)                                   |  | BANKING |           |               | BANKING |   |         | TREASURY |         |   | PARTNERS  |   |  | OTHER |         |          | RECONCILIATION |   |         | CORPORATION | 
|                                                 | 
|NET INTEREST INCOME                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |         |          |                |   |         |             |  |   |            |   |  |   |           |  
|Interest Income                                  |  | $       | 163,697   |               |         | $ | 26,994  |          |         | $ | 92,195    |   |  | $     | 216     |          |                | $ | 34,324  |             |  | $ | (61,312    | ) |  | $ | 256,114   |  
|Interest Expense                                 |  |         | 46,942    |               |         |   | 23,483  |          |         |   | 17,615    |   |  |       |        |          |                |   | 38,390  |             |  |   | (61,312    | ) |  |   | 65,118    |  
|Funds Transfer Income (Expense)                  |  |         | 23,389    |               |         |   | 43,783  |          |         |   | (77,220   | ) |  |       | (3,600  | )        |                |   | 13,648  |             |  |   |           |   |  |   |          |  
|                                                
|Net Interest Income (Loss), Tax- Equivalent      |  |         | 140,144   |               |         |   | 47,294  |          |         |   | (2,640    | ) |  |       | (3,384  | )        |                |   | 9,582   |             |  |   |           |   |  |   | 190,996   |  
|Provision for Loan Losses                        |  |         | (3,644    | )             |         |   | 4,663   |          |         |   |          |   |  |       |        |          |                |   | (1,440  | )           |  |   |           |   |  |   | (421      | )
|                                                
|Net Interest Income (Loss) After Provision       |  |         | 136,500   |               |         |   | 51,957  |          |         |   | (2,640    | ) |  |       | (3,384  | )        |                |   | 8,142   |             |  |   |           |   |  |   | 190,575   |  
|                                                
|                                                
|NONINTEREST INCOME                               |  |         |           |               |         |   |         |          |         |   |           |   |  |       |         |          |                |   |         |             |  |   |            |   |  |   |           |  
|Noninterest Income-External Customers            |  |         | 89,188    |               |         |   | 4,454   |          |         |   | 13,147    |   |  |       | (14,505 | )        |                |   | 302     |             |  |   |           |   |  |   | 92,586    |  
|Intersegment Noninterest Income                  |  |         | 6,446     |               |         |   | 6,922   |          |         |   |          |   |  |       |        |          |                |   | 1,980   |             |  |   | (15,348    | ) |  |   |          |  
|                                                
|Total Noninterest Income                         |  |         | 95,634    |               |         |   | 11,376  |          |         |   | 13,147    |   |  |       | (14,505 | )        |                |   | 2,282   |             |  |   | (15,348    | ) |  |   | 92,586    |  
|                                                
|                                                
|NONINTEREST EXPENSE                              |  |         |           |               |         |   |         |          |         |   |           |   |  |       |         |          |                |   |         |             |  |   |            |   |  |   |           |  
|Depreciation and Amortization                    |  |         | 4,293     |               |         |   | 906     |          |         |   | 13        |   |  |       | 27      |          |                |   | 8,837   |             |  |   |           |   |  |   | 14,076    |  
|Direct Expense                                   |  |         | 109,032   |               |         |   | 35,740  |          |         |   | 3,538     |   |  |       | 2,658   |          |                |   | 88,192  |             |  |   | (15,348    | ) |  |   | 223,812   |  
|Overhead and Support                             |  |         | 66,837    |               |         |   | 10,801  |          |         |   | 2,332     |   |  |       | 454     |          |                |   | (80,424 | )           |  |   |           |   |  |   |          |  
|                                                
|Total Noninterest Expense                        |  |         | 180,162   |               |         |   | 47,447  |          |         |   | 5,883     |   |  |       | 3,139   |          |                |   | 16,605  |             |  |   | (15,348    | ) |  |   | 237,888   |  
|                                                
|Income (Loss) Before Taxes and Minority Interest |  |         | 51,972    |               |         |   | 15,886  |          |         |   | 4,624     |   |  |       | (21,028 | )        |                |   | (6,181  | )           |  |   |           |   |  |   | 45,273    |  
|                                                
|                                                
|Applicable Income Tax Expense                    |  |         | 19,791    |               |         |   | 923     |          |         |   | 1,615     |   |  |       | (7,361  | )        |                |   | 240     |             |  |   |           |   |  |   | 15,208    |  
|Minority Interest                                |  |         |          |               |         |   |        |          |         |   |          |   |  |       | (112    | )        |                |   | 17,023  |             |  |   |           |   |  |   | 16,911    |  
|                                                
|Income (Loss) from Continuing Operations         |  | $       | 32,181    |               |         | $ | 14,963  |          |         | $ | 3,009     |   |  | $     | (13,555 | )        |                | $ | (23,444 | )           |  | $ |           |   |  | $ | 13,154    |  
|                                                
|Income (Loss) from Discontinued Operations       |  |         |          |               |         |   | 130     |          |         |   |          |   |  |       |        |          |                |   |        |             |  |   |           |   |  |   | 130       |  
|Tax Expense (Benefit)                            |  |         |          |               |         |   | 263     |          |         |   |          |   |  |       |        |          |                |   |        |             |  |   |           |   |  |   | 263       |  
|Net Income (Loss) from Discontinued Operations   |  |         |          |               |         |   | (133    | )        |         |   |          |   |  |       |        |          |                |   |        |             |  |   |           |   |  |   | (133      | )
|                                                
|Net Income (Loss)                                |  | $       | 32,181    |               |         | $ | 14,830  |          |         | $ | 3,009     |   |  | $     | (13,555 | )        |                | $ | (23,444 | )           |  | $ |           |   |  | $ | 13,021    |  
|                                                
|                                                
|                                                
|Total Average Assets                             |  | $       | 3,241,492 |               |         | $ | 783,207 |          |         | $ | 3,148,078 |   |  | $     | 72,510  |          |                | $ | 785,376 |             |  | $ | (1,997,460 | ) |  | $ | 6,033,203 |  
|                                                

93



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Treasury




Riggs Capital Partners




Other






|         |                                  
|-------- | ---------------------------------
|NOTE 19: | OTHER COMPREHENSIVE INCOME (LOSS)

|                                         |                                                              |            |         |         |               |   |        |            |   |   |         |        |  
|---------------------------------------- | ------------------------------------------------------------ | ---------- | ------- | ------- | ------------- | - | ------ | ---------- | - | - | ------- | ------ | -
|                                         |                                                              | BEFORE TAX |         |         | TAX (EXPENSE) |   |        | NET OF TAX |  
|(IN THOUSANDS)                           |                                                              | AMOUNT     |         |         | BENEFIT       |   |        | AMOUNT     |  
|                                         |                                                             
|Twelve Months Beginning January 1, 2002: |                                                              |            |         |         |               |   |        |            |   |   |         |       
|Foreign Currency Translation Adjustments |                                                              | $          | 2,346   |         |               | $ | (821   | )          |   | $ | 1,525   |       
|Unrealized Gain (Loss) on Securities:    |                                                              |            |         |         |               |   |        |            |   |   |         |       
|                                         | Unrealized Holding Gain Arising During Period                |            |         | 28,879  |               |   |        | (10,108    | ) |   |         | 18,771 |  
|                                         | Reclassification Adjustment for Gains Included in Net Income |            |         | (9,163  | )             |   |        | 3,207      |   |   |         | (5,956 | )
|                                        
|Net Unrealized Gain on Securities        |                                                              |            | 19,716  |         |               |   | (6,901 | )          |   |   | 12,815  |       
|                                        
|                                         | Unrealized Gain (Loss) on Derivatives:                       |            |         |         |               |   |        |            |   |   |         |        |  
|                                         | Unrealized Holding Gain (Loss) Arising During Period         |            |         | (4,013  | )             |   |        | 1,405      |   |   |         | (2,608 | )
|                                         | Reclassification Adjustment for Gains Included in Net Income |            |         | 2,639   |               |   |        | (924       | ) |   |         | 1,715  |  
|                                        
|Net Unrealized Loss on Derivatives       |                                                              |            | (1,374  | )       |               |   | 481    |            |   |   | (893    | )     
|                                        
|Other Comprehensive Income               |                                                              | $          | 20,688  |         |               | $ | (7,241 | )          |   | $ | 13,447  |       
|                                        
|Twelve Months Beginning January 1, 2003: |                                                              |            |         |         |               |   |        |            |   |   |         |       
|Foreign Currency Translation Adjustments |                                                              | $          | 2,257   |         |               | $ | (790   | )          |   | $ | 1,467   |       
|Unrealized Gain (Loss) on Securities:    |                                                              |            |         |         |               |   |        |            |   |   |         |       
|                                         | Unrealized Holding Gain Arising During Period                |            |         | (14,159 | )             |   |        | 4,875      |   |   |         | (9,284 | )
|                                         | Reclassification Adjustment for Gains Included in Net Income |            |         | (13,331 | )             |   |        | 4,666      |   |   |         | (8,665 | )
|                                        
|Net Unrealized Gain on Securities        |                                                              |            | (27,490 | )       |               |   | 9,541  |            |   |   | (17,949 | )     
|                                        
|Unrealized Gain (Loss) on Derivatives:   |                                                              |            |         |         |               |   |        |            |   |   |         |       
|                                         | Unrealized Holding Gain Arising During Period                |            |         | 2,514   |               |   |        | (880       | ) |   |         | 1,634  |  
|                                        
|Net Unrealized Loss on Derivatives       |                                                              |            | 2,514   |         |               |   | (880   | )          |   |   | 1,634   |       
|                                        
|Other Comprehensive Income               |                                                              | $          | (22,719 | )       |               | $ | 7,871  |            |   | $ | (14,848 | )     
|                                        

94



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##### 



|                                         |                                                              |            |        |        |               |   |       |            |   |   |        |        |  
|---------------------------------------- | ------------------------------------------------------------ | ---------- | ------ | ------ | ------------- | - | ----- | ---------- | - | - | ------ | ------ | -
|                                         |                                                              | BEFORE TAX |        |        | TAX (EXPENSE) |   |       | NET OF TAX |  
|(IN THOUSANDS)                           |                                                              | AMOUNT     |        |        | BENEFIT       |   |       | AMOUNT     |  
|                                         |                                                             
|Twelve Months Beginning January 1, 2004: |                                                              |            |        |        |               |   |       |            |   |   |        |       
|Foreign Currency Translation Adjustments |                                                              | $          | 448    |        |               | $ | (157  | )          |   | $ | 291    |       
|Unrealized Gain (Loss) on Securities:    |                                                              |            |        |        |               |   |       |            |   |   |        |       
|                                         | Unrealized Holding Loss Arising During Period                |            |        | (5,815 | )             |   |       | 2,035      |   |   |        | (3,780 | )
|                                         | Reclassification Adjustment for Gains Included in Net Income |            |        | 89     |               |   |       | (31        | ) |   |        | 58     |  
|                                        
|Net Unrealized Loss on Securities        |                                                              |            | (5,726 | )      |               |   | 2,004 |            |   |   | (3,722 | )     
|                                        
|Unrealized Gain (Loss) on Derivatives:   |                                                              |            |        |        |               |   |       |            |   |   |        |       
|                                         | Unrealized Holding Gain Arising During Period                |            |        | 2,209  |               |   |       | (773       | ) |   |        | 1,436  |  
|                                        
|Net Unrealized Gain on Derivatives       |                                                              |            | 2,209  |        |               |   | (773  | )          |   |   | 1,436  |       
|                                        
|Other Comprehensive Income               |                                                              | $          | (3,069 | )      |               | $ | 1,074 |            |   | $ | (1,995 | )     
|                                        

ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS) BALANCES


|                                      |  |             |        |   |             |   |         |                |  |             |               |   |  |   |         |   |  | 
|------------------------------------- |  | ----------- | ------ | - | ----------- | - | ------- | -------------- |  | ----------- | ------------- | - |  | - | ------- | - |  | 
|                                      |  | FOREIGN     |        |   | UNREALIZED  |   |         |                |  | ACCUMULATED |               |   | 
|                                      |  | CURRENCY    |        |   | GAIN (LOSS) |   |         | UNREALIZED     |  |             | OTHER         |   |  |  
|                                      |  | TRANSLATION |        |   | ON          |   |         | GAIN (LOSS) ON |  |             | COMPREHENSIVE |   |  |  
|(IN THOUSANDS)                        |  | ADJUSTMENT  |        |   | SECURITIES  |   |         | DERIVATIVES    |  |             | INCOME (LOSS) |   |  |  
|                                     
|Twelve Months Ended December 31, 2002 |  |             |        |   |             |   |         |                |  |             |               |   |  |   |         |   |  | 
|Balance, January 1, 2002              |  | $           | (5,679 | ) |             | $ | (69     | )              |  | $           | (2,231        | ) |  | $ | (7,979  | ) |  | 
|Current Period Change                 |  |             | 1,525  |   |             |   | 12,815  |                |  |             | (893          | ) |  |   | 13,447  |   |  | 
|                                     
|Balance, December 31, 2002            |  |             | (4,154 | ) |             |   | 12,746  |                |  |             | (3,124        | ) |  |   | 5,468   |   |  | 
|                                     
|Twelve Months Ended December 31, 2003 |  |             |        |   |             |   |         |                |  |             |               |   |  |   |         |   |  | 
|Balance, January 1, 2003              |  | $           | (4,154 | ) |             | $ | 12,746  |                |  | $           | (3,124        | ) |  | $ | 5,468   |   |  | 
|Current Period Change                 |  |             | 1,467  |   |             |   | (17,949 | )              |  |             | 1,634         |   |  |   | (14,848 | ) |  | 
|                                     
|Balance, December 31, 2003            |  |             | (2,687 | ) |             |   | (5,203  | )              |  |             | (1,490        | ) |  |   | (9,380  | ) |  | 
|                                     
|Twelve Months Ended December 31, 2004 |  |             |        |   |             |   |         |                |  |             |               |   |  |   |         |   |  | 
|Balance, January 1, 2004              |  | $           | (2,687 | ) |             | $ | (5,203  | )              |  | $           | (1,490        | ) |  | $ | (9,380  | ) |  | 
|Current Period Change                 |  |             | 291    |   |             |   | (3,722  | )              |  |             | 1,436         |   |  |   | (1,995  | ) |  | 
|                                     
|Balance, December 31, 2004            |  | $           | (2,396 | ) |             | $ | (8,925  | )              |  | $           | (54           | ) |  | $ | (11,375 | ) |  | 
|                                     

NOTE 20:     INTEREST RATE AND
FOREIGN EXCHANGE RISK MANAGEMENT








95



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##### 











NOTE 21:     INTANGIBLE
ASSETS






|                                     |  |                   |        |  |                   |   |         |          |  |   |              |  |  |   |         |  
|------------------------------------ |  | ----------------- | ------ |  | ----------------- | - | ------- | -------- |  | - | ------------ |  |  | - | ------- | -
|                                     |  | DECEMBER 31, 2004 |        |  | DECEMBER 31, 2003 |  
|                                     |  |                   |       
|                                     |  | GROSS             |        |  |                   |   | GROSS   |          |  |  
|                                     |  | CARRYING          |        |  | ACCUMULATED       |   |         | CARRYING |  |   | ACCUMULATED  | 
|                                     |  | VALUE             |        |  | AMORTIZATION      |   |         | VALUE    |  |   | AMORTIZATION | 
|                                     |  |                   |       
|Amortizable Core Deposit Intangibles |  | $                 | 10,881 |  |                   | $ | (10,865 | )        |  | $ | 10,881       |  |  | $ | (10,829 | )
|Amortizable Leasehold Improvements   |  |                   | 3,955  |  |                   |   | (3,912  | )        |  |   | 3,955        |  |  |   | (3,838  | )
|Unamortizable Goodwill               |  |                   | 10,802 |  |                   |   | (5,908  | )        |  |   | 11,652       |  |  |   | (5,908  | )

|                             |  |              |    |  |              |   |    |          |  |   |   | 
|---------------------------- |  | ------------ | -- |  | ------------ | - | -- | -------- |  | - | - | 
|                             |  | LEASEHOLD    |    |  | CORE DEPOSIT |   |    |         
|Amortization Expense:        |  | IMPROVEMENTS |    |  | INTANGIBLES  |   |    | GOODWILL
|                             |  |             
|Actual:                      |  |              |    |  |              |   |    |          |  |   |   | 
|Year Ended December 31, 2004 |  | $            | 74 |  |              | $ | 36 |          |  | $ |  | 
|Year Ended December 31, 2003 |  |              | 74 |  |              |   | 64 |          |  |   |  | 
|Year Ended December 31, 2002 |  |              | 74 |  |              |   | 92 |          |  |   |  | 
|Expected:                    |  |              |    |  |              |   |    |          |  |   |   | 
|Year Ended December 31, 2005 |  | $            | 22 |  |              | $ | 16 |          |  | $ |  | 
|Year Ended December 31, 2006 |  |              | 21 |  |              |   |   |          |  |   |  | 
|Year Ended December 31, 2007 |  |              |   |  |              |   |   |          |  |   |  | 

96



---



##### 



NOTE 22:     LITIGATION
















97



---



##### 















98



---



##### 













NOTE 23:     SUBSEQUENT
EVENTS






Litigation




99



---



##### 











Other






100



---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


THE BOARD OF DIRECTORS AND STOCKHOLDERS


RIGGS NATIONAL CORPORATION:








Internal Control  Integrated
Framework


KPMG LLP






101



---



##### 



SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)


QUARTERLY FINANCIAL INFORMATION


|                                                          |                                                   |         |        |   |         |   |         |         |       |   |         |   |       |   |         |   |       |   |  | 
|--------------------------------------------------------- | ------------------------------------------------- | ------- | ------ | - | ------- | - | ------- | ------- | ----- | - | ------- | - | ----- | - | ------- | - | ----- | - |  | 
|                                                          |                                                   | 2004   
|                                                          |                                                   |        
|For the Years Ended December 31, 2004, 2003 and 2002      |                                                   | FIRST   |        |   | SECOND  |   |         | THIRD   |       |   | FOURTH  |   |       |  
|(In Thousands, Except Per Share Amounts)                  |                                                   | QUARTER |        |   | QUARTER |   |         | QUARTER |       |   | QUARTER |   |       |  
|                                                         
|Interest Income                                           |                                                   | $       | 58,145 |   |         | $ | 57,114  |         |       | $ | 57,333  |   |       | $ | 57,637  |   |       |  
|Interest Expense                                          |                                                   |         | 17,779 |   |         |   | 17,017  |         |       |   | 20,985  |   |       |   | 24,811  |   |       |  
|                                                         
|Net Interest Income                                       |                                                   |         | 40,366 |   |         |   | 40,097  |         |       |   | 36,348  |   |       |   | 32,826  |   |       |  
|Less: Provision for Loan Losses                           |                                                   |         |       |   |         |   |        |         |       |   | 750     |   |       |   | (701    | ) |       |  
|                                                         
|Net Interest Income after Provision for Loan Losses       |                                                   |         | 40,366 |   |         |   | 40,097  |         |       |   | 35,598  |   |       |   | 33,527  |   |       |  
|Noninterest Income                                        |                                                   |         | 25,247 |   |         |   | 25,980  |         |       |   | 23,673  |   |       |   | 23,720  |   |       |  
|Noninterest Expense                                       |                                                   |         | 59,530 |   |         |   | 105,278 |         |       |   | 79,980  |   |       |   | 120,488 |   |       |  
|                                                         
|Income (Loss) before Taxes and Minority Interest          |                                                   |         | 6,083  |   |         |   | (39,201 | )       |       |   | (20,709 | ) |       |   | (63,241 | ) |       |  
|Applicable Income Tax Expense (Benefit)                   |                                                   |         | 1,643  |   |         |   | (5,331  | )       |       |   | (11,633 | ) |       |   | (5,609  | ) |       |  
|Minority Interest in Income of Subsidiaries, Net of Taxes |                                                   |         | 743    |   |         |   | 1,031   |         |       |   | 1,024   |   |       |   | 1,023   |   |       |  
|                                                         
|Net Income-Continuing Operations                          |                                                   |         | 3,697  |   |         |   | (34,901 | )       |       |   | (10,100 | ) |       |   | (58,655 | ) |       |  
|                                                         
|Income (Loss) from Discontinued Operations                |                                                   |         | 202    |   |         |   | 337     |         |       |   | (260    | ) |       |   | 682     |   |       |  
|Applicable Income Tax Benefit                             |                                                   |         | (16    | ) |         |   | (189    | )       |       |   | (362    | ) |       |   | (142    | ) |       |  
|Net Income from Discontinued Operations                   |                                                   |         | 218    |   |         |   | 526     |         |       |   | 102     |   |       |   | 824     |   |       |  
|                                                         
|Net Income (Loss)                                         |                                                   |         | 3,915  |   |         |   | (34,375 | )       |       |   | (9,998  | ) |       |   | (57,831 | ) |       |  
|                                                         
|                                                          | Earnings (Loss) Per Share-Continuing Operations   |         |        |   |         |   |         |         |       |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ | 0.13    |   |         | $       | (1.20 | ) |         | $ | (0.33 | ) |         | $ | (1.85 | ) |  | 
|                                                          |                                                   | Diluted |        |   | 0.12    |   |         |         | (1.20 | ) |         |   | (0.33 | ) |         |   | (1.85 | ) |  | 
|                                                          | Earnings (Loss) Per Share-Discontinued Operations |         |        |   |         |   |         |         |       |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ | 0.01    |   |         | $       | 0.02  |   |         | $ |      |   |         | $ | 0.03  |   |  | 
|                                                          |                                                   | Diluted |        |   | 0.01    |   |         |         | 0.02  |   |         |   |      |   |         |   | 0.03  |   |  | 
|                                                          | Earnings (Loss) Per Share                         |         |        |   |         |   |         |         |       |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ | 0.14    |   |         | $       | (1.18 | ) |         | $ | (0.33 | ) |         | $ | (1.82 | ) |  | 
|                                                          |                                                   | Diluted |        |   | 0.13    |   |         |         | (1.18 | ) |         |   | (0.33 | ) |         |   | (1.82 | ) |  | 
|                                                         

102



---



##### 



|                                                          |                                                   |         |        |   |         |   |        |         |      |   |         |   |       |   |         |   |       |   |  | 
|--------------------------------------------------------- | ------------------------------------------------- | ------- | ------ | - | ------- | - | ------ | ------- | ---- | - | ------- | - | ----- | - | ------- | - | ----- | - |  | 
|                                                          |                                                   | 2003   
|                                                          |                                                   |        
|                                                          |                                                   | FIRST   |        |   | SECOND  |   |        | THIRD   |      |   | FOURTH  |   |       |  
|                                                          |                                                   | QUARTER |        |   | QUARTER |   |        | QUARTER |      |   | QUARTER |   |       |  
|                                                         
|Interest Income                                           |                                                   | $       | 63,340 |   |         | $ | 55,385 |         |      | $ | 53,488  |   |       | $ | 59,719  |   |       |  
|Interest Expense                                          |                                                   |         | 15,598 |   |         |   | 13,198 |         |      |   | 12,624  |   |       |   | 21,220  |   |       |  
|                                                         
|Net Interest Income                                       |                                                   |         | 47,742 |   |         |   | 42,187 |         |      |   | 40,864  |   |       |   | 38,499  |   |       |  
|Less: Provision for Loan Losses                           |                                                   |         | 926    |   |         |   | 1,289  |         |      |   | 106     |   |       |   | 2,825   |   |       |  
|                                                         
|Net Interest Income after Provision for Loan Losses       |                                                   |         | 46,816 |   |         |   | 40,898 |         |      |   | 40,758  |   |       |   | 35,674  |   |       |  
|Noninterest Income                                        |                                                   |         | 25,897 |   |         |   | 28,230 |         |      |   | 29,180  |   |       |   | 25,883  |   |       |  
|Noninterest Expense                                       |                                                   |         | 58,212 |   |         |   | 55,156 |         |      |   | 72,436  |   |       |   | 71,755  |   |       |  
|                                                         
|Income (Loss) before Taxes and Minority Interest          |                                                   |         | 14,501 |   |         |   | 13,972 |         |      |   | (2,498  | ) |       |   | (10,198 | ) |       |  
|Applicable Income Tax Expense (Benefit)                   |                                                   |         | 5,033  |   |         |   | 4,273  |         |      |   | (1,765  | ) |       |   | (3,048  | ) |       |  
|Minority Interest in Income of Subsidiaries, Net of Taxes |                                                   |         | 3,531  |   |         |   | 3,544  |         |      |   | 3,542   |   |       |   | (38     | ) |       |  
|                                                         
|Net Income (Loss)-Continuing Operations                   |                                                   |         | 5,937  |   |         |   | 6,155  |         |      |   | (4,275  | ) |       |   | (7,112  | ) |       |  
|                                                         
|Income (Loss) from Discontinued Operations                |                                                   |         | (44    | ) |         |   | 16     |         |      |   | 72      |   |       |   | 123     |   |       |  
|Applicable Income Tax Expense (Benefit)                   |                                                   |         | (36    | ) |         |   | (20    | )       |      |   | 33      |   |       |   | (84     | ) |       |  
|Net Income (Loss) from Discontinued Operations            |                                                   |         | (8     | ) |         |   | 36     |         |      |   | 39      |   |       |   | 207     |   |       |  
|                                                         
|Net Income (Loss)                                         |                                                   |         | 5,929  |   |         |   | 6,191  |         |      |   | (4,236  | ) |       |   | (6,905  | ) |       |  
|                                                         
|                                                          | Earnings (Loss) Per Share-Continuing Operations   |         |        |   |         |   |        |         |      |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ | 0.21    |   |        | $       | 0.22 |   |         | $ | (0.15 | ) |         | $ | (0.25 | ) |  | 
|                                                          |                                                   | Diluted |        |   | 0.20    |   |        |         | 0.21 |   |         |   | (0.15 | ) |         |   | (0.25 | ) |  | 
|                                                          | Earnings (Loss) Per Share-Discontinued Operations |         |        |   |         |   |        |         |      |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ |        |   |        | $       |     |   |         | $ |      |   |         | $ | 0.01  |   |  | 
|                                                          |                                                   | Diluted |        |   |        |   |        |         |     |   |         |   |      |   |         |   | 0.01  |   |  | 
|                                                          | Earnings (Loss) Per Share                         |         |        |   |         |   |        |         |      |   |         |   |       |   |         |   |       |   | 
|                                                          |                                                   | Basic   |        | $ | 0.21    |   |        | $       | 0.22 |   |         | $ | (0.15 | ) |         | $ | (0.24 | ) |  | 
|                                                          |                                                   | Diluted |        |   | 0.20    |   |        |         | 0.21 |   |         |   | (0.15 | ) |         |   | (0.24 | ) |  | 
|                                                         

Note to Quarterly Tables: The sum of quarterly earnings per
share may not equal year-to-date earnings per share due to
continuous changes in average shares outstanding.


103



---



##### 



|                                                          |                                                   |         |        |   |         |   |        |         |      |   |         |   |      |   |        |   |      |  |  | 
|--------------------------------------------------------- | ------------------------------------------------- | ------- | ------ | - | ------- | - | ------ | ------- | ---- | - | ------- | - | ---- | - | ------ | - | ---- |  |  | 
|                                                          |                                                   | 2002   
|                                                          |                                                   |        
|                                                          |                                                   | FIRST   |        |   | SECOND  |   |        | THIRD   |      |   | FOURTH  |   |      |  
|(In Thousands, Except Per Share Amounts)                  |                                                   | QUARTER |        |   | QUARTER |   |        | QUARTER |      |   | QUARTER |   |      |  
|                                                         
|Interest Income                                           |                                                   | $       | 63,855 |   |         | $ | 64,067 |         |      | $ | 63,890  |   |      | $ | 64,302 |   |      | 
|Interest Expense                                          |                                                   |         | 16,815 |   |         |   | 15,875 |         |      |   | 17,070  |   |      |   | 15,358 |   |      | 
|                                                         
|Net Interest Income                                       |                                                   |         | 47,040 |   |         |   | 48,192 |         |      |   | 46,820  |   |      |   | 48,944 |   |      | 
|Less: Provision for Loan Losses                           |                                                   |         | (1,668 | ) |         |   |       |         |      |   | 1,400   |   |      |   | 689    |   |      | 
|                                                         
|Net Interest Income after Provision for Loan Losses       |                                                   |         | 48,708 |   |         |   | 48,192 |         |      |   | 45,420  |   |      |   | 48,255 |   |      | 
|Noninterest Income                                        |                                                   |         | 18,311 |   |         |   | 22,858 |         |      |   | 26,931  |   |      |   | 24,486 |   |      | 
|Noninterest Expense                                       |                                                   |         | 56,164 |   |         |   | 59,276 |         |      |   | 58,698  |   |      |   | 63,750 |   |      | 
|                                                         
|Income before Taxes and Minority Interest                 |                                                   |         | 10,855 |   |         |   | 11,774 |         |      |   | 13,653  |   |      |   | 8,991  |   |      | 
|Applicable Income Tax Expense                             |                                                   |         | 4,255  |   |         |   | 3,747  |         |      |   | 4,335   |   |      |   | 2,871  |   |      | 
|Minority Interest in Income of Subsidiaries, Net of Taxes |                                                   |         | 4,916  |   |         |   | 4,074  |         |      |   | 4,015   |   |      |   | 3,906  |   |      | 
|                                                         
|Net Income-Continuing Operations                          |                                                   |         | 1,684  |   |         |   | 3,953  |         |      |   | 5,303   |   |      |   | 2,214  |   |      | 
|                                                         
|Income (Loss) from Discontinued Operations                |                                                   |         | (199   | ) |         |   | 123    |         |      |   | 177     |   |      |   | 29     |   |      | 
|Applicable Income Tax Expense                             |                                                   |         | 60     |   |         |   | 74     |         |      |   | 89      |   |      |   | 40     |   |      | 
|Net Income (Loss) from Discontinued Operations            |                                                   |         | (259   | ) |         |   | 49     |         |      |   | 88      |   |      |   | (11    | ) |      | 
|                                                         
|Net Income                                                |                                                   |         | 1,425  |   |         |   | 4,002  |         |      |   | 5,391   |   |      |   | 2,203  |   |      | 
|                                                         
|                                                          | Earnings (Loss) Per Share-Continuing Operations   |         |        |   |         |   |        |         |      |   |         |   |      |   |        |   |      |  | 
|                                                          |                                                   | Basic   |        | $ | 0.06    |   |        | $       | 0.14 |   |         | $ | 0.19 |   |        | $ | 0.08 |  |  | 
|                                                          |                                                   | Diluted |        |   | 0.06    |   |        |         | 0.14 |   |         |   | 0.18 |   |        |   | 0.08 |  |  | 
|                                                          | Earnings (Loss) Per Share-Discontinued Operations |         |        |   |         |   |        |         |      |   |         |   |      |   |        |   |      |  | 
|                                                          |                                                   | Basic   |        | $ | (0.01   | ) |        | $       |     |   |         | $ |     |   |        | $ |     |  |  | 
|                                                          |                                                   | Diluted |        |   | (0.01   | ) |        |         |     |   |         |   |     |   |        |   |     |  |  | 
|                                                          | Earnings (Loss) Per Share                         |         |        |   |         |   |        |         |      |   |         |   |      |   |        |   |      |  | 
|                                                          |                                                   | Basic   |        | $ | 0.05    |   |        | $       | 0.14 |   |         | $ | 0.19 |   |        | $ | 0.08 |  |  | 
|                                                          |                                                   | Diluted |        |   | 0.05    |   |        |         | 0.14 |   |         |   | 0.19 |   |        |   | 0.08 |  |  | 
|                                                         

CONSOLIDATED FINANCIAL RATIOS AND OTHER INFORMATION


|                                       |  |      |            |    |      |   |            |      |  |   |            |   |  |      |            |    |  |   |            |   |  | 
|-------------------------------------- |  | ---- | ---------- | -- | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | ---------- | -- |  | - | ---------- | - |  | 
|                                       |  | 2004 |            |    | 2003 |   |            | 2002 |  |   | 2001       |   |  | 2000 |            |    | 
|                                      
|Net Income to Average:                 |  |      |            |    |      |   |            |      |  |   |            |   |  |      |            |    |  |   |            |   |  | 
|Earning Assets                         |  |      | (1.88      | )% |      |   | 0.02       | %    |  |   | 0.24       | % |  |      | (0.48      | )% |  |   | 0.44       | % |  | 
|Total Assets                           |  |      | (1.64      | )  |      |   | 0.02       |      |  |   | 0.22       |   |  |      | (0.42      | )  |  |   | 0.39       |   |  | 
|Shareholders Equity                   |  |      | (26.93     | )  |      |   | 0.26       |      |  |   | 3.48       |   |  |      | (5.92      | )  |  |   | 6.06       |   |  | 
|                                      
|Average:                               |  |      |            |    |      |   |            |      |  |   |            |   |  |      |            |    |  |   |            |   |  | 
|Loans to Deposits                      |  |      | 78.08      | %  |      |   | 66.09      | %    |  |   | 60.42      | % |  |      | 70.88      | %  |  |   | 75.12      | % |  | 
|Shareholders Equity to Loans          |  |      | 11.83      |    |      |   | 13.07      |      |  |   | 13.33      |   |  |      | 13.70      |    |  |   | 11.59      |   |  | 
|Shareholders Equity to Deposits       |  |      | 9.23       |    |      |   | 8.64       |      |  |   | 8.06       |   |  |      | 9.71       |    |  |   | 8.70       |   |  | 
|Shareholders Equity to Assets         |  |      | 5.93       |    |      |   | 6.06       |      |  |   | 6.21       |   |  |      | 7.15       |    |  |   | 6.39       |   |  | 
|                                      
|At December 31:                        |  |      |            |    |      |   |            |      |  |   |            |   |  |      |            |    |  |   |            |   |  | 
|Reserve for Loan Losses to Total Loans |  |      | 0.82       | %  |      |   | 0.88       | %    |  |   | 0.86       | % |  |      | 1.03       | %  |  |   | 1.23       | % |  | 
|Common Shareholders                    |  |      | 1,574      |    |      |   | 1,753      |      |  |   | 1,868      |   |  |      | 2,016      |    |  |   | 2,162      |   |  | 
|Employees                              |  |      | 1,307      |    |      |   | 1,450      |      |  |   | 1,522      |   |  |      | 1,613      |    |  |   | 1,558      |   |  | 
|Banking Offices                        |  |      | 58         |    |      |   | 56         |      |  |   | 57         |   |  |      | 59         |    |  |   | 60         |   |  | 
|                                      
|Per Share Data:                        |  |      |            |    |      |   |            |      |  |   |            |   |  |      |            |    |  |   |            |   |  | 
|Dividend Payout Ratio                  |  |      | N/A        |    |      |   | 583.55     | %    |  |   | 43.78      | % |  |      | N/A        |    |  |   | 26.32      | % |  | 
|Average Common Shares Outstanding      |  |      | 29,941,191 |    |      |   | 28,609,296 |      |  |   | 28,505,405 |   |  |      | 28,470,953 |    |  |   | 28,348,699 |   |  | 
|Book Value per Common Share            |  | $    | 10.03      |    |      | $ | 13.02      |      |  | $ | 13.65      |   |  | $    | 12.66      |    |  | $ | 13.48      |   |  | 
|                                      

104



---



##### 





ITEM 9A.     CONTROLS AND
PROCEDURES




| |                                                          
| | ---------------------------------------------------------
| | (a) Evaluation of Disclosure Controls and
    Procedures.





| |                                                                          
| | -------------------------------------------------------------------------
| | (b) Managements Report on Internal Control over
    Financial Reporting.





Internal
Control-Integrated Framework,






| |                                                                 
| | ----------------------------------------------------------------
| | Control Environment and Internal Control Monitoring
    Function



|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During 2004, the Company experienced high levels of employee
    turnover in key management and staff positions, including
    certain positions supporting financial reporting roles and had
    limited ability to appropriately address deficiencies in
    personnel in a timely manner. This turnover resulted in a lack
    of appropriate management supervision as of December 31,
    2004 of employees fulfilling key functions in internal control
    over financial reporting;                                       
| 
| | As of December 31, 2004, the Company did not employ
    accounting personnel possessing an appropriate level of
    technical expertise in key roles related to internal control
    over financial reporting. Specifically, the Companys
    accounting function did not employ personnel with adequate
    expertise related to accounting for and reporting of the
    Companys non-routine transactions; and                                                                                                                
| 
| | As of December 31, 2004, the Companys internal audit
    program was not sufficient to provide management a basis to
    assess the quality of the Companys internal control
    performance over time. Accordingly, management concluded that
    the monitoring component of the Companys internal control
    over financial reporting was not effective. Internal control
    monitoring involves assessing the design and operation of
    internal control on a timely basis and taking necessary
    corrective actions.



| |                               
| | ------------------------------
| | Regulatory Compliance Function



|  |                                                                                                                                                                                                                                                       
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys regulatory compliance function was
    ineffective over an extended period of time, insofar as it
    directly relates to those aspects of regulatory compliance in
    which associated violations of laws and regulations could have a

105



---



##### 



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | material effect on the reliability of the Companys
    financial reporting. As of December 31, 2004 the
    Companys regulatory compliance function had not been in
    operation for a sufficient period of time to demonstrate
    operating effectiveness as of that date. Such deficiencies in
    the Companys regulatory compliance function represent a
    material weakness in internal control over financial reporting.
    Specifically, the Companys policies and procedures were
    not effective in ensuring that instances of non-compliance with
    the relevant provisions of applicable regulations are reflected
    in the Companys financial information on a timely basis.
    During the early part of 2004, the Company identified instances
    of non-compliance with the provisions of the Bank Secrecy Act
    (BSA). These instances of non-compliance with the rules and
    regulations of the BSA resulted in the Company entering into a
    Consent Order of Civil Money Penalty with the Office of the
    Comptroller of the Currency and a Consent to the Assessment of
    Civil Money Penalty with the Financial Crimes Enforcement
    Network and paying a civil money penalty in 2004. Reference is
    made to footnote 10 to the Companys consolidated financial
    statements for further discussion of the financial statement
    implications associated with non-compliance with the
    aforementioned laws and regulations.



| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Processes and Activities Associated with Accounting for
    Deferred Tax Asset Valuation Allowances



|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During its evaluation of the Companys internal control
    over financial reporting as of December 31, 2004,
    management identified a material weakness due to deficiencies in
    the Companys processes and activities related to the
    determination of valuation allowances of deferred tax assets.
    Specifically, as of December 31, 2004, the Company did not
    maintain adequate documentation and lacked an adequate review
    process to ensure the reasonableness of assumptions underlying
    determinations regarding the recoverability of recorded deferred
    tax assets. This material weakness in internal control over
    financial reporting resulted in a material error in the
    Companys income tax expense, which was corrected prior to
    issuance of the Companys 2004 consolidated financial
    statements.









| |                                                                 
| | ----------------------------------------------------------------
| | (c) Report of Independent Registered Public
    Accounting Firm.





Managements Report on Internal Control
over Financial Reporting Internal Control  Integrated
Framework




106



---



##### 











| |                                                                 
| | ----------------------------------------------------------------
| | Control Environment and Internal Control Monitoring
    Function



|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During 2004, the Company experienced high levels of employee
    turnover in key management and staff positions, including
    certain positions supporting financial reporting roles and had
    limited ability to appropriately address deficiencies in
    personnel in a timely manner. This turnover resulted in a lack
    of appropriate management supervision as of December 31,
    2004 of employees fulfilling key functions in internal control
    over financial reporting;        
| 
| | As of December 31, 2004, the Company did not employ
    accounting personnel possessing an appropriate level of
    technical expertise in key roles related to internal control
    over financial reporting. Specifically, the Companys
    accounting function did not employ personnel with adequate
    expertise related to accounting for and reporting of the
    Companys non-routine transactions; and                                                                                 
| 
| | As of December 31, 2004, the Companys internal audit
    program was not sufficient to provide management a basis to
    assess the quality of the Companys internal control
    performance over time. Accordingly the monitoring component of
    the Companys internal control over financial reporting was
    not effective. Internal control monitoring involves assessing
    the design and operation of internal control on a timely basis
    and taking necessary corrective actions.



| |                               
| | ------------------------------
| | Regulatory Compliance Function



|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys regulatory compliance policies and procedures
    in place at December 31, 2004 had not been in operation for
    a sufficient period of time to demonstrate operating
    effectiveness as of that date. Accordingly, as of
    December 31, 2004, under the provisions of PCAOB Standard
    No. 2, the Companys regulatory compliance function
    was ineffective, insofar as it relates to those aspects of
    regulatory compliance in which associated violations of laws and
    regulations could have a material effect on the reliability of
    the Companys financial reporting.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys regulatory compliance policies and procedures
    are intended to ensure that instances of non-compliance with the
    relevant provisions of applicable regulations are reflected in
    the Companys financial information on a timely basis.
    During 2004, the Company identified instances of non-compliance
    with the provisions of the Bank Secrecy Act (BSA). These
    instances of non-compliance with the rules and regulations of
    the BSA resulted in the Company entering into a Consent Order of
    Civil Money Penalty with the Office of the Comptroller of the
    Currency and a Consent to the Assessment of Civil Money Penalty
    with the Financial Crimes Enforcement Network, and paying a
    civil money penalty. Reference is made to footnote 10 to the
    Companys consolidated financial statements for further
    discussion of the financial statement implications associated
    with non-compliance with the aforementioned laws and regulations.



| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Processes and Activities Associated with Accounting for
    Deferred Tax Asset Valuation Allowances



|  |                                                                                                                                                                                                                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As of December 31, 2004, a material weakness existed in the
    Companys processes and activities related to the
    determination of valuation allowances of deferred tax assets.
    Specifically, as of December 31, 2004, the Company did not
    maintain adequate documentation and lacked an adequate review
    process to ensure the reasonableness of assumptions

107



---



##### 



| |                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | underlying determinations regarding the recoverability of
    recorded deferred tax assets. This material weakness in internal
    control over financial reporting resulted in a material error in
    the Companys income tax expense, which was corrected prior
    to issuance of the Companys 2004 consolidated financial
    statements.



Internal
Control  Integrated Framework Internal Control  Integrated Framework




| |             
| | ------------
| | /s/ KPMG LLP







| |                                 
| | --------------------------------
| | (d) Changes in Internal Controls









108



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##### 













|         |                  
|-------- | -----------------
|ITEM 9B. | OTHER INFORMATION



PART III




|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT





|    |                                        
|--- | ---------------------------------------
|(a) | Directors of Riggs National Corporation

|                         |  |     |    |  |                                |                                            
|------------------------ |  | --- | -- |  | ------------------------------ | -------------------------------------------
|Name                     |  | Age |    |  | Positions with the Corporation
|                        
|Robert L. Allbritton     |  |     | 35 |  |                                | Former Chairman and Chief Executive Officer
|J. Carter Beese, Jr.     |  |     | 48 |  |                                | Director                                   
|Charles A. Camalier, III |  |     | 53 |  |                                | Director                                   
|Lawrence I. Hebert       |  |     | 58 |  |                                | Director                                   
|Steven B. Pfeiffer       |  |     | 57 |  |                                | Director                                   
|Robert L. Sloan          |  |     | 58 |  |                                | Director                                   
|Anthony P. Terracciano   |  |     | 66 |  |                                | Director                                   
|Jack Valenti             |  |     | 83 |  |                                | Director                                   
|William L. Walton        |  |     | 55 |  |                                | Director                                   
|Eddie N. Williams        |  |     | 72 |  |                                | Director                                   
|Stuart J. Yarbrough      |  |     | 54 |  |                                | Director                                   

Robert L. Allbritton


109



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##### 





J. Carter Beese, Jr.


Charles A. Camalier, III


Lawrence I. Hebert


Steven B. Pfeiffer


Robert L. Sloan


Anthony P. Terracciano


110



---



##### 



Jack Valenti


William L. Walton


Eddie N. Williams


Stuart J. Yarbrough


Board Committee Membership




Audit Committee












Nominating/ Corporate Governance Committee








Compensation Committee








Executive Committee








111



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##### 



Bank Secrecy Act Compliance Committee












|                      |  |     |    |  |                                           |                                                                                                                       
|--------------------- |  | --- | -- |  | ----------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Name                  |  | Age |    |  | Positions with Riggs National Corporation
|                     
|Robert L. Allbritton* |  |     | 35 |  |                                           | Former Chairman and Chief Executive Officer of Riggs                                                                  
|Janell Blue           |  |     | 58 |  |                                           | Executive Vice President and Interim Chief Risk Officer of Riggs
    Bank                                             
|Ernest D. Brita       |  |     | 61 |  |                                           | Executive Vice President and Internal Audit Liaison Manager of
    Riggs Bank                                         
|David B. Caruso       |  |     | 35 |  |                                           | Executive Vice President, Compliance and Security, of Riggs Bank                                                      
|Lawrence Connell      |  |     | 68 |  |                                           | Vice Chairman and Chief Operating Officer of Riggs Bank                                                               
|Lawrence I. Hebert*   |  |     | 58 |  |                                           | President and Chief Executive Officer of Riggs Bank                                                                   
|Mark N. Hendrix       |  |     | 45 |  |                                           | Executive Vice President and Chief Brand Officer of Riggs Bank                                                        
|Shaun V. Kelley       |  |     | 51 |  |                                           | Divisional Senior Vice President and Chief Credit Officer of
    Riggs Bank                                           
|Glenn E. Kinard       |  |     | 57 |  |                                           | Executive Vice President, Community Banking, of Riggs Bank                                                            
|Robert L. Klivans     |  |     | 58 |  |                                           | Executive Vice President and General Counsel of Riggs Bank                                                            
|Henry D. Morneault    |  |     | 54 |  |                                           | Executive Vice President, Wholesale Banking of Riggs Bank                                                             
|Steven T. Tamburo     |  |     | 36 |  |                                           | Chief Financial Officer and Treasurer of Riggs; Executive Vice
    President and Chief Financial Officer of Riggs Bank



|  |                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------
|* | Mr. Allbrittons and Mr. Heberts
    backgrounds are set forth above under the caption
    Directors of Riggs National Corporation

Janell Blue


Ernest D. Brita


David B. Caruso


Lawrence Connell


112



---



##### 



Mark N. Hendrix


Shaun V. Kelley


Glenn E. Kinard


Robert L. Klivans


Henry D. Morneault


Steven T. Tamburo


CODE OF BUSINESS CONDUCT AND ETHICS




SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE




113



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##### 





|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION



Summary Compensation Table


|                            |                                            |                     |      |           |                     |  |         |             |     |  |                 |         |  |           |        |         |            |  |   |                 |  |  |   |         |  |  |        |        | 
|--------------------------- | ------------------------------------------ | ------------------- | ---- | --------- | ------------------- |  | ------- | ----------- | --- |  | --------------- | ------- |  | --------- | ------ | ------- | ---------- |  | - | --------------- |  |  | - | ------- |  |  | ------ | ------ | 
|                            |                                           
|                            |                                            |                     |      | Long-Term |                     |  |        
|                            |                                            | Annual Compensation |      |           | Compensation Awards |  |         |            
|                            |                                           
|                            |                                            | Restricted          |      |           | Securities          |  |         |            
|                            |                                            | Other Annual        |      |           | Stock               |  |         | Underlying  |     |  | All Other       |        
|Name and Principal Position |                                            | Year                |      |           | Salary($)           |  |         | Bonus($)(2) |     |  | Compensation($) |         |  | Awards($) |        |         | Options(#) |  |   | Compensation($) | 
|                            |                                           
|Robert L. Allbritton        |                                            |                     | 2004 |           |                     |  | 375,000 |             |     |  |                |         |  |           | 16,451 | (3)     |            |  |  | (4)             |  |  |  |         |  |  | 800    | (5)   
|                            | Former Chairman of the Board and Chief     |                     |      | 2003      |                     |  |         | 375,000     |     |  |                 | 166,360 |  |           |        | 64,214  |            |  |   | 132,720         |  |  |   | 285,000 |  |  |        | 899    | 
|                            | Executive Officer of the Corporation;      |                     |      | 2002      |                     |  |         | 343,269     |     |  |                 | 100,000 |  |           |        |        |            |  |   | 659,500         |  |  |   | 500,000 |  |  |        | 662    | 
|                            | Chairman of the Board of Riggs
    Bank(1) |                     |      |           |                     |  |         |             |     |  |                 |         |  |           |        |         |            |  |   |                 |  |  |   |         |  |  |        |        | 
|                           
|David B. Caruso             |                                            |                     | 2004 |           |                     |  | 225,000 |             |     |  | 75,000          | (7)     |  |           | 14,283 | (8)     |            |  |  | (4)             |  |  |  |         |  |  | 14,157 | (9)   
|                            | Executive Vice President of Riggs Bank     |                     |      | 2003      |                     |  |         | 131,154     | (6) |  |                 | 95,057  |  |           |        | 8,869   |            |  |   | 369,864         |  |  |   | 25,000  |  |  |        | 3,680  | 
|                           
|Lawrence I. Hebert          |                                            |                     | 2004 |           |                     |  | 460,000 |             |     |  |                |         |  |           | 11,932 | (10)    |            |  |  | (4)             |  |  |  |         |  |  | 17,289 | (11)  
|                            | President and Chief Executive Officer      |                     |      | 2003      |                     |  |         | 464,247     |     |  |                 | 134,508 |  |           |        |        |            |  |   | 119,000         |  |  |   | 53,801  |  |  |        | 16,741 | 
|                            | of Riggs Bank                              |                     |      | 2002      |                     |  |         | 434,616     |     |  |                 | 75,000  |  |           |        |        |            |  |   | 527,600         |  |  |   | 50,857  |  |  |        | 14,660 | 
|                           
|Henry D. Morneault          |                                            |                     | 2004 |           |                     |  | 300,000 |             |     |  |                |         |  |           | 16,935 | (12)    |            |  |  | (4)             |  |  |  |         |  |  | 22,522 | (13)  
|                            | Executive Vice President of Riggs Bank     |                     |      | 2003      |                     |  |         | 304,245     |     |  |                 | 57,158  |  |           |        |        |            |  |   | 54,332          |  |  |   | 24,561  |  |  |        | 18,108 | 
|                            |                                            |                     |      | 2002      |                     |  |         | 228,846     |     |  |                 | 30,000  |  |           |        | 136,965 |            |  |   | 395,700         |  |  |   | 19,348  |  |  |        | 12,920 | 
|                           
|Steven T. Tamburo           |                                            |                     | 2004 |           |                     |  | 220,000 |             |     |  | 80,000          | (14)    |  |           | 13,222 | (15)    |            |  |  | (4)             |  |  |  |         |  |  | 13,476 | (16)  
|                            | Chief Financial Officer and Executive      |                     |      | 2003      |                     |  |         | 220,000     |     |  |                 | 50,725  |  |           |        | 9,832   |            |  |   | 39,833          |  |  |   | 18,012  |  |  |        | 12,910 | 
|                            | Vice President of Riggs Bank               |                     |      | 2002      |                     |  |         | 200,000     |     |  |                 | 40,896  |  |           |        | 13,108  |            |  |   | 263,800         |  |  |   | 15,478  |  |  |        | 12,738 | 
|                           

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On March 7, 2005, Mr. Allbritton resigned from his
    positions with Riggs, Riggs Bank N.A., and Riggs Bank Europe,
    Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(2) | On July 7, 2004, the Board approved a resolution to
    discontinue the Riggs Executive Managerial Bonus Program (the
    Program). Pursuant to this resolution, the Program
    was discontinued for the 2004 calendar year and all future years
    and no bonuses were paid under the Program with respect to the
    2004 calendar year and no bonuses will be paid under the Program
    in any future years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(3) | This amount includes $15,181 in incremental cost associated
    with Mr. Allbrittons personal use of the corporate
    aircraft and $1,270 for parking benefits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(4) | No grants of performance shares, deferred stock or restricted
    stock were made to any named executive officer with respect to
    performance in fiscal 2004. The values of the performance shares
    and deferred stock awards, shown as compensation in fiscal years
    2003 and 2002, were determined by multiplying the number of
    shares granted times the closing price of a share of our common
    stock on the date of grant. As of December 31, 2004:
    (a) Mr. Allbritton held 8,000 unvested performance shares
    and 30,000 unvested deferred shares having an aggregate value of
    $807,880; (b) Mr. Caruso held 2,418 unvested
    performance shares and 20,000 unvested deferred shares having an
    aggregate value of $476,604; (c) Mr. Hebert held 7,173
    unvested performance shares and 24,000 unvested deferred shares
    having an aggregate value of $662,748;
    (d) Mr. Morneault held 3,275 unvested performance
    shares and 18,000 unvested deferred shares having an aggregate
    value of $452,303; (e) Mr. Tamburo held 2,402 unvested
    performance shares and 12,000 unvested deferred shares having an
    aggregate value of $306,177. The performance shares are
    scheduled to vest over the next two fiscal years and the
    deferred shares are scheduled to vest over the next three fiscal
    years, provided that each respective named executive officer is
    then-employed by Riggs Bank. The unvested performance shares and
    unvested deferred shares do not have voting or dividend rights.
    Mr. Allbritton forfeited his unvested performance shares
    and unvested deferred shares when he resigned on March 7,
    2005.
|(5) | This amount includes $449 of economic benefit attributable to
    the Split Dollar Life Insurance Plan, and $351 of economic
    benefit attributable to the Group Term Life Insurance Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(6) | This amount reflects Mr. Carusos salary from June 2003,
    when he joined Riggs, to December 31, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(7) | This amount is a special cash payment made to Mr. Caruso
    in November 2004 in recognition of his performance during the
    year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(8) | This amount includes $5,000 of benefits attributable to the
    Medical Expense Reimbursement Plan (MERP), $5,662 of
    benefits attributable to a medical expense subsidy, $1,270 for
    parking benefits, $1,351 reimbursement for mileage, and $1,000
    for tax preparation or financial planning fees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|    |                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(9) | This amount includes $698 of economic benefit attributable to
    the Split Dollar Life Insurance Plan, and $459 of economic
    benefit attributable to the Group Term Life Insurance Plan.
    Additionally, $13,000 of the amount is attributable to matching
    contributions to the Riggs Bank 401(k) plan of
    Mr. Caruso.

|     |                                                                                                                                                                        
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | This amount includes $5,000 of benefits attributable to the
    MERP, $5,662 of benefits attributable to a medical expense
    subsidy and $1,270 for parking benefits.

|     |                                                                                                                                                                                                                                                                                                                                         
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(11) | This amount includes $2,112 of economic benefit attributable
    to the Split Dollar Life Insurance Plan, and $2,177 of economic
    benefit attributable to the Group Term Life Insurance Plan.
    Additionally, $13,000 of this amount is attributable to matching
    contributions to the Riggs Bank 401(k) plan of
    Mr. Hebert.

114



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##### 



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(12) | This amount includes $5,000 of benefits attributable to the
    MERP, $5,662 of benefits attributable to a medical expense
    subsidy, $3,065 for disability insurance, $1,270 for parking
    benefits, $733 reimbursement for mileage, $425 for tax
    preparation or financial planning fees, and $780 for a health
    club membership.                                                                                                                                                  
|(13) | This amount includes $3,000 for a charitable donation in
    Mr. Morneaults name, $1,023 of economic benefit
    attributable to the Split Dollar Life Insurance Plan, and $2,434
    of economic benefit attributable to the Group Term Life
    Insurance Plan. Additionally, $3,065 represents premiums paid by
    Riggs for a disability insurance policy for Mr. Morneault
    and $13,000 is attributable to matching contributions to the
    Riggs Bank 401(k) plan of Mr. Morneault.
|(14) | This amount is a special cash payment made to
    Mr. Tamburo in December 2004 in recognition of his
    performance during the year. This payment was made out of a
    discretionary pool established by the Riggs Board to reward
    employee excellence. See Interest of Named Executive
    Officers and Directors under the Merger Agreement.                                                                                                                                         
|(15) | This amount includes $5,000 of benefits attributable to the
    MERP, $5,662 of benefits attributable to a medical expense
    subsidy, $1,270 for parking benefits and a $1,290 reimbursement
    for mileage.                                                                                                                                                                                                                                                                                
|(16) | This amount includes $279 of economic benefit attributable to
    the Split Dollar Life Insurance Plan and $197 of economic
    benefit attributable to the Group Term Life Insurance Plan.
    Additionally, $13,000 of this amount is attributable to matching
    contributions to the Riggs Bank 401(k) plan of
    Mr. Tamburo.                                                                                                                                                           

115



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##### 



Option Grants in 2004




Option Exercises in 2004 and Fiscal Year-End Option Value




|                     |  |             |  |  |          |                      |                        |                       |                      |              |                          |  |  |             |        |  |               |  |           |  |  |  |         | 
|-------------------- |  | ----------- |  |  | -------- | -------------------- | ---------------------- | --------------------- | -------------------- | ------------ | ------------------------ |  |  | ----------- | ------ |  | ------------- |  | --------- |  |  |  | ------- | 
|                     |  |             |  |  |          | Number of Securities |                        |                       | Value of Unexercised |             
|                     |  | Shares      |  |  |          |                      | Underlying Unexercised |                       |                      | In-the-Money |                         
|                     |  | Acquired on |  |  | Value    |                      |                        | Options at FY-End (#) |                      |              | Options at FY-End ($)(1) | 
|                     |  | Exercise    |  |  | Realized |                      |                        |                       |                      |              |                          | 
|Name                 |  | (#)         |  |  | ($)      |                      |                        | Exercisable           |                      |              | Unexercisable            |  |  | Exercisable |        |  | Unexercisable | 
|                     | 
|Robert L. Allbritton |  |             |  |  |          |                      |                        |                       |                      |              | 1,000,000                |  |  |             | 0      |  |               |  | 7,321,225 |  |  |  | 0       | 
|David B. Caruso      |  |             |  |  |          |                      |                        |                       |                      |              | 8,333                    |  |  |             | 16,667 |  |               |  | 52,165    |  |  |  | 104,335 | 
|Lawrence I. Hebert   |  |             |  |  |          |                      |                        |                       |                      |              | 119,339                  |  |  |             | 52,819 |  |               |  | 671,421   |  |  |  | 402,936 | 
|Henry D. Morneault   |  |             |  |  |          |                      |                        |                       |                      |              | 71,086                   |  |  |             | 22,823 |  |               |  | 428,342   |  |  |  | 173,539 | 
|Steven T. Tamburo    |  |             |  |  |          |                      |                        |                       |                      |              | 47,323                   |  |  |             | 17,167 |  |               |  | 322,072   |  |  |  | 130,732 | 
|                    



|    |                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In-the-Money options are options whose exercise
    price is less than the $21.26 closing price of our common stock
    on The Nasdaq National Market on December 31, 2004. The
    value of such options was calculated based on the difference
    between that stock price and the exercise price.

Retirement Benefits


Pension Plan Table


|                 |         |  |   |  |       |    |  |  |        |  |  |    |        |  |    |  |        |    |  |  |        |  |  |  |        | 
|---------------- | ------- |  | - |  | ----- | -- |  |  | ------ |  |  | -- | ------ |  | -- |  | ------ | -- |  |  | ------ |  |  |  | ------ | 
|Years of Service |        
|                 |        
|Average          |         |  | 5 |  |       | 10 |  |  | 15     |  |  | 20 |        |  | 25 |  |        | 30 | 
|                 |        
|                 | 10,000  |  |   |  | 325   |    |  |  | 650    |  |  |    | 975    |  |    |  | 1,300  |    |  |  | 1,625  |  |  |  | 1,950  | 
|                 | 20,000  |  |   |  | 825   |    |  |  | 1,650  |  |  |    | 2,475  |  |    |  | 3,300  |    |  |  | 4,125  |  |  |  | 4,950  | 
|                 | 30,000  |  |   |  | 1,325 |    |  |  | 2,650  |  |  |    | 3,975  |  |    |  | 5,300  |    |  |  | 6,625  |  |  |  | 7,950  | 
|                 | 40,000  |  |   |  | 1,825 |    |  |  | 3,650  |  |  |    | 5,475  |  |    |  | 7,300  |    |  |  | 9,125  |  |  |  | 10,950 | 
|                 | 50,000  |  |   |  | 2,325 |    |  |  | 4,650  |  |  |    | 6,975  |  |    |  | 9,300  |    |  |  | 11,625 |  |  |  | 13,950 | 
|                 | 60,000  |  |   |  | 2,825 |    |  |  | 5,650  |  |  |    | 8,475  |  |    |  | 11,300 |    |  |  | 14,125 |  |  |  | 16,950 | 
|                 | 70,000  |  |   |  | 3,325 |    |  |  | 6,650  |  |  |    | 9,975  |  |    |  | 13,300 |    |  |  | 16,625 |  |  |  | 19,950 | 
|                 | 80,000  |  |   |  | 3,825 |    |  |  | 7,650  |  |  |    | 11,475 |  |    |  | 15,300 |    |  |  | 19,125 |  |  |  | 22,950 | 
|                 | 90,000  |  |   |  | 4,325 |    |  |  | 8,650  |  |  |    | 12,975 |  |    |  | 17,300 |    |  |  | 21,625 |  |  |  | 25,950 | 
|                 | 100,000 |  |   |  | 4,825 |    |  |  | 9,650  |  |  |    | 14,475 |  |    |  | 19,300 |    |  |  | 24,125 |  |  |  | 28,950 | 
|                 | 110,000 |  |   |  | 5,325 |    |  |  | 10,650 |  |  |    | 15,975 |  |    |  | 21,300 |    |  |  | 26,625 |  |  |  | 31,950 | 
|                 | 120,000 |  |   |  | 5,825 |    |  |  | 11,650 |  |  |    | 17,475 |  |    |  | 23,300 |    |  |  | 29,125 |  |  |  | 34,950 | 
|                 | 130,000 |  |   |  | 6,325 |    |  |  | 12,650 |  |  |    | 18,975 |  |    |  | 25,300 |    |  |  | 31,625 |  |  |  | 37,950 | 
|                 | 140,000 |  |   |  | 6,825 |    |  |  | 13,650 |  |  |    | 20,475 |  |    |  | 27,300 |    |  |  | 34,125 |  |  |  | 40,950 | 
|                 | 150,000 |  |   |  | 7,325 |    |  |  | 14,650 |  |  |    | 21,975 |  |    |  | 29,300 |    |  |  | 36,625 |  |  |  | 43,950 | 
|                 | 160,000 |  |   |  | 7,825 |    |  |  | 15,650 |  |  |    | 23,475 |  |    |  | 31,300 |    |  |  | 39,125 |  |  |  | 46,950 | 
|                 | 170,000 |  |   |  | 8,325 |    |  |  | 16,650 |  |  |    | 24,975 |  |    |  | 33,300 |    |  |  | 41,625 |  |  |  | 49,950 | 



116



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##### 







Employment Agreements




Change of Control Arrangements






117



---



##### 







Director Compensation








118



---



##### 









Interests of Named Executive Officers and Directors under the
Merger Agreement






Equity Compensation Awards




119



---



##### 





Deferred Compensation Plan and Split Dollar Life Insurance
Agreements




Compensation Committee Interlocks and Insider
Participation






|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Equity Compensation Plan Information




|                                                           |  |                      |           |  |                      |   |                         |                           |  |  |            | 
|---------------------------------------------------------- |  | -------------------- | --------- |  | -------------------- | - | ----------------------- | ------------------------- |  |  | ---------- | 
|                                                           | 
|                                                           |  | Number of securities |          
|                                                           |  | Number of securities |           |  |                      |   | remaining available for |                          
|                                                           |  | to be issued upon    |           |  | Weighted-average     |   |                         | future issuance under     | 
|                                                           |  | exercise of          |           |  | exercise price of    |   |                         | equity compensation plans | 
|                                                           |  | outstanding options, |           |  | outstanding options, |   |                         | (excluding securities     | 
|Plan category                                              |  | warrants and rights  |           |  | warrants and rights  |   |                         | reflected in column (a))  | 
|                                                           |  | (a)                  |           |  | (b)                  |   |                         | (c)                       | 
|                                                           | 
|Equity compensation plans approved by security holders     |  |                      | 3,167,307 |  |                      | $ | 15.20                   |                           |  |  | 11,469,148 | 
|                                                          
|Equity compensation plans not approved by security holders |  |                      |          |  |                      |   |                        |                           |  |  |           | 
|                                                          
|Total                                                      |  |                      | 3,167,307 |  |                      | $ | 15.20                   |                           |  |  | 11,469,148 | 
|                                                          

120



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##### 



Stock Ownership of Principal Stockholders, Directors and
Management




|                                             |  |                                 |            |      |  |  |            |  |       | 
|-------------------------------------------- |  | ------------------------------- | ---------- | ---- |  |  | ---------- |  | ----- | 
|                                             | 
|                                             |  | Common Stock Beneficially Owned |           
|                                             | 
|                                             |  | Number of                       |            |      |  |  | Percent of | 
|Name of Beneficial Owner(1)                  |  | Shares                          |            |      |  |  | Class      | 
|                                             | 
|Greater than 5% Beneficial Owners            |  |                                 |            |      |  |  |            |  |       | 
|                                            
|Joe L. Allbritton                            |  |                                 | 11,602,952 | (3)  |  |  |            |  | 36.5% | 
|                                            
|Barbara B. Allbritton                        |  |                                 | 2,061,732  | (4)  |  |  |            |  | 6.5%  | 
|                                            
|Robert L.
    Allbritton(2)                  |  |                                 | 1,769,790  | (5)  |  |  |            |  | 5.6%  | 
|                                            
|Green & Smith Investment Management L.L.C.   |  |                                 | 2,258,042  | (6)  |  |  |            |  | 7.1%  | 
|100 Summit Drive, Valhalla, NY 10595         |  |                                 |            |      |  |  |            |  |       | 
|                                            
|C.S. McKee, LP                               |  |                                 | 2,220,400  | (7)  |  |  |            |  | 7.0%  | 
|One Gateway Center, 8th Floor                |  |                                 |            |      |  |  |            |  |       | 
|Pittsburgh, PA 15222                         |  |                                 |            |      |  |  |            |  |       | 
|                                            
|Dimension Fund Advisors Inc.                 |  |                                 | 2,177,966  | (8)  |  |  |            |  | 6.8%  | 
|1299 Ocean Avenue, 11th Floor                |  |                                 |            |      |  |  |            |  |       | 
|Santa Monica, CA 90401                       |  |                                 |            |      |  |  |            |  |       | 
|                                            
|Westchester Capital Management, Inc.         |  |                                 | 1,960,899  | (9)  |  |  |            |  | 6.2%  | 
|100 Summit Drive, Valhalla, NY 10595         |  |                                 |            |      |  |  |            |  |       | 
|                                            
|                                            
|Directors and Director Nominees              |  |                                 |            |      |  |  |            |  |       | 
|                                            
|J. Carter Beese, Jr.                         |  |                                 | 56,197     | (10) |  |  |            |  | *     | 
|                                            
|Charles A. Camalier, III                     |  |                                 | 329,769    | (11) |  |  |            |  | 1.0%  | 
|                                            
|Lawrence I. Hebert                           |  |                                 | 179,673    | (12) |  |  |            |  | *     | 
|                                            
|Steven B. Pfeiffer                           |  |                                 | 46,638     | (13) |  |  |            |  | *     | 
|                                            
|Robert L. Sloan                              |  |                                 | 56,572     | (14) |  |  |            |  | *     | 
|                                            
|Anthony P. Terracciano                       |  |                                 | 1,542      | (15) |  |  |            |  | *     | 
|                                            
|Jack Valenti                                 |  |                                 | 51,710     | (16) |  |  |            |  | *     | 
|                                            
|William L. Walton                            |  |                                 | 17,068     | (17) |  |  |            |  | *     | 
|                                            
|Eddie N. Williams                            |  |                                 | 48,864     | (18) |  |  |            |  | *     | 
|                                            
|Stuart J. Yarbrough                          |  |                                 | 400        | (19) |  |  |            |  | *     | 
|                                            
|                                            
|Named Executive Officers                     |  |                                 |            |      |  |  |            |  |       | 
|                                            
|David B. Caruso                              |  |                                 | 20,751     | (20) |  |  |            |  | *     | 
|                                            
|Henry D. Morneault                           |  |                                 | 99,011     | (21) |  |  |            |  | *     | 
|                                            
|Steven T. Tamburo                            |  |                                 | 64,841     | (22) |  |  |            |  | *     | 
|                                            
|                                            
|All of the executive officers and directors  |  |                                 |            |      |  |  |            |  |       | 
|(including nominees) as a group (21 persons) |  |                                 | 2,876,202  |      |  |  |            |  | 9.0%  | 
|                                            



| |   |              
| | - | -------------
| | * | Less than 1%.



| |     |                                                                                                                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Unless otherwise set forth in the footnotes to this table,
    the address of the named beneficial owners is c/o Riggs
    National Corporation, 1503 Pennsylvania Avenue, N.W., Washington
    D.C. 20005.
| | (2) | On March 7, 2005, Mr. Allbritton resigned from his
    positions with Riggs, Riggs Bank N.A., and Riggs Bank Europe,
    Ltd.                                                                              

121



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##### 



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) | Based on public disclosures made during fiscal 2004 by
    Mr. Joe L. Allbritton, this amount includes:
    9,097,441 shares, and 475,511 shares owned by Allwin,
    Inc., which Mr. Joe L. Allbritton directly owns, with
    respect to which Mr. Joe L. Allbritton has sole voting
    and dispositive power; 1,330,000 shares with respect to
    which Mr. Joe L. Allbritton shares voting and
    dispositive power with his spouse, Barbara B. Allbritton;
    and 700,000 shares owned by charitable foundations (the
    Foundations) with respect to which Mr. Joe L.
    Allbritton shares voting and dispositive power with his spouse
    and son, Robert L. Allbritton. This amount does not include
    31,732 shares beneficially owned by his spouse.                                                                                                                          
| | (4) | Based on public disclosures made during fiscal 2004 by
    Mrs. Allbritton, this amount includes: 31,732 shares
    with respect to which Mrs. Allbritton has sole voting and
    dispositive power, 22,500 of which may be acquired within
    60 days by exercising stock options; 1,330,000 shares
    with respect to which Mrs. Allbritton shares voting and
    dispositive power with her spouse, Joe L. Allbritton; and
    700,000 shares owned by the Foundations with respect to
    which Mrs. Allbritton shares voting and dispositive power
    with her spouse and son, Robert L. Allbritton. This amount
    does not include 9,097,441 shares beneficially owned by her
    spouse and 475,511 shares owned by Allwin, Inc., which her
    spouse directly owns.                                                                                                                  
| | (5) | This amount includes 1,069,790 shares with respect to which
    Mr. Robert Allbritton has sole voting and dispositive
    power, 1,000,000 of which may be acquired within 60 days by
    exercising stock options and 38,280 units of phantom stock in
    our Deferred Compensation Plan. This amount also includes
    700,000 shares owned by the Foundations with respect to which
    Mr. Allbritton shares voting and dispositive power with
    Mr. Joe L. Allbritton and Mrs. Barbara B. Allbritton.
    On March 4, 2005, Mr. Allbritton exercised 992,500 of
    the 1,000,000 stock options noted above. Mr. Allbritton
    forfeited 4,000 unvested performance shares and 20,000 unvested
    deferred shares when he resigned on March 7, 2005. Those
    24,000 shares are not reflected in the table. Units held in the
    Deferred Compensation Plan are not shares outstanding.
| | (6) | As reported in a Schedule 13G filed on February 10,
    2005 by Green & Smith Investment Management, Frederick
    W. Green and Bonnie L. Smith, this amount includes
    1,960,899 shares beneficially owned by The Merger Fund,
    which is managed by Westchester Capital Management, as those two
    entities reported in a Schedule 13G filed on
    February 10, 2005. Frederick W. Green and
    Bonnie L. Smith reported in that Schedule 13G shared
    voting and dispositive power with respect to these
    2,258,042 shares.                                                                                                                                                                                                                                                                                                                                                        
| | (7) | C.S. McKee LP reported in a Schedule 13G, Amendment
    No. 1, filed on February 11, 2005 that it has sole
    voting power with respect to 1,990,400 of these shares and sole
    dispositive power with respect to these
    2,220,400 shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (8) | Dimensional Fund Advisors Inc. reported in a
    Schedule 13G, Amendment No. 5, filed on
    February 9, 2005 that it has sole voting and dispositive
    power with respect to these shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (9) | Westchester Capital Management, Inc. and The Merger Fund
    reported in a Schedule 13G filed on February 10, 2005
    that they share voting and dispositive power with respect to
    these shares. These shares are also reported as beneficially
    owned by Green & Smith Investment Management and its
    affiliated persons in a Schedule 13G filed on
    February 10, 2005 by Green & Smith Investment
    Management and its affiliated persons named therein.                                                                                                                                                                                                                                                                                                                                                                                                                         

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | This amount includes 50,800 shares with respect to which
    Mr. Beese has sole voting and dispositive power and
    5,397 shares with respect to which Mr. Beese shares
    voting and dispositive power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(11) | This amount includes 148,109 shares with respect to
    which Mr. Camalier has sole voting and dispositive power,
    35,000 of which may be acquired within 60 days by
    exercising stock options, 13,197 units of phantom stock in our
    Non-Employee Director Deferred Compensation Plan (of which
    7,062 units can be settled in cash only); 1,019 units
    of phantom stock in our Deferred Compensation Plan. This amount
    also includes 181,660 shares owned by a family trust with
    respect to which Mr. Camalier shares voting and dispositive
    power. Units held in the deferred compensation plans are not
    shares outstanding.                                                                                                                                                                                                                                                                             
|(12) | Mr. Hebert has sole voting and dispositive power of
    these shares. This amount include: 137,272 shares of which may
    be acquired within 60 days by exercising stock options and
    19,814 units of phantom stock in our Deferred Compensation Plan.
    The merger agreement provides that each unvested deferred share
    award and each unvested performance share award outstanding
    under the Riggs 2002 Long-Term Incentive Plan will be terminated
    immediately prior to the effective time of the merger and
    settled with one share of Riggs common stock. Accordingly, upon
    shareholder approval of the merger, 3,586 performance shares and
    16,000 deferred shares will be converted into Riggs common
    stock. These 19,586 shares that would be received upon
    closing of the merger are not reflected in the table. Units held
    in the Deferred Compensation Plan are not shares outstanding.
|(13) | Mr. Pfeiffer has sole voting and dispositive power of
    these shares, 35,000 of which may be acquired within
    60 days by exercising stock options. Mr. Pfeiffer
    disclaims beneficial ownership of 100 shares beneficially
    owned by his son, Andrew S.B. Pfeiffer which are not reflected
    in the table.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(14) | This amount includes 35,000 shares which may be acquired
    within 60 days by exercising stock options, and
    12,891 units of phantom stock in our Non-Employee Director
    Deferred Compensation Plan (of which 7,353 units can be settled
    in cash only). This amount also includes 1,200 shares with
    respect to which Mr. Sloan shares voting and dispositive
    power. Units held in the Non-Employee Director Deferred
    Compensation Plan are not shares outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(15) | Mr. Terracciano has sole voting and dispositive power of
    these shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(16) | Mr. Valenti has sole voting and dispositive power of
    these shares. This amount includes 35,000 shares which may
    be acquired within 60 days by exercising stock options,
    11,225 units of phantom stock in our Non-Employee Director
    Deferred Compensation Plan (of which 4,923 units can be settled
    in cash only), and 539 units of phantom stock in our
    Deferred Compensation Plan. Units held in the deferred
    compensation plans are not shares outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(17) | Mr. Walton has sole voting and dispositive power of
    these shares. This amount includes 10,000 shares which may
    be acquired within 60 days by exercising stock options,
    6,667 units of phantom stock in our Non-Employee Director
    Deferred Compensation Plan which can be settled in cash only,
    Non-Employee Director Deferred Compensation Plan are not shares
    outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(18) | Mr. Williams has sole voting and dispositive power of
    these shares. This amount includes 30,000 shares which may
    be acquired within 60 days by exercising stock options,
    4,932 units of phantom stock in our Non-Employee Director
    Deferred Compensation Plan (of which 3,430 units can be
    settled in cash only), Non-Employee Director Deferred
    Compensation Plan are not shares outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(19) | Mr. Yarbrough has sole voting and dispositive power of
    these shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(20) | Mr. Caruso has sole voting and dispositive power of
    these shares. This amount includes 8,333 shares which may
    be acquired within 60 days by exercising stock options. The
    merger agreement provides that each unvested deferred share
    award and each unvested performance share award outstanding
    under the Riggs 2002 Long-Term Incentive Plan will be terminated
    immediately prior to the effective time of the merger and
    settled with one share of Riggs common stock. Accordingly, upon
    shareholder approval of the merger, 1,209 performance shares and
    15,000 deferred shares will be converted into Riggs common
    stock. These 16,209 shares that would be received upon
    closing of the merger are not reflected in the table.                                                                                                                                                          
|(21) | Mr. Morneault has sole voting and dispositive power of
    these shares. This amount includes 79,273 shares which may
    be acquired within 60 days by exercising stock options. The
    merger agreement provides that each unvested deferred share
    award and each unvested performance share award outstanding
    under the Riggs 2002 Long-Term Incentive Plan will be terminated
    immediately prior to the effective time of the merger and
    settled with one share of Riggs common stock. Accordingly, upon
    shareholder approval of the merger, 1,638 performance shares and
    12,000 deferred shares will be converted into Riggs common
    stock. These 13,638 shares that would be received upon
    closing of the merger are not reflected in the table.                                                                                                                                                      
|(22) | Mr. Tamburo has sole voting and dispositive power of
    these shares. This amount includes 53,327 shares which may
    be acquired within 60 days by exercising stock options. The
    merger agreement provides that each unvested deferred share
    award and each unvested performance share award outstanding
    under the Riggs 2002 Long-Term Incentive Plan will be terminated
    immediately prior to the effective time of the merger and
    settled with one share of Riggs common stock. Accordingly, upon
    shareholder approval of the merger, 1,200 performance shares and
    8,000 deferred shares will be converted into Riggs common stock.
    These 9,200 shares that would be received upon closing of
    the merger are not reflected in the table.                                                                                                                                                          

122



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##### 



ITEM 13.     CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS


Indebtedness of Directors, Executive Officers and Related
Persons






Other Related Party Transactions








123



---



##### 



ITEM 14.     PRINCIPAL
ACCOUNTANT FEES AND SERVICES


Audit Fees


AUDIT FIRM FEE SUMMARY




|                          |  |      |           |  |      |   |           | 
|------------------------- |  | ---- | --------- |  | ---- | - | --------- | 
|Category                  |  | 2003 |           |  | 2004 |  
|                          |  |      |           |  |      |  
|Audit
    Fees(1)         |  | $    | 443,500   |  |      | $ | 1,021,300 | 
|Audit-Related
    Fees(2) |  |      | 313,223   |  |      |   | 479,325   | 
|Tax
    Fees(3)           |  |      | 192,475   |  |      |   | 101,363   | 
|All Other
    Fees(4)     |  |      | 3,410,000 |  |      |   |          | 
|Total                     |  | $    | 4,359,198 |  |      | $ | 1,601,988 | 

|    |                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For fiscal year 2004, includes audit fees and Sarbanes-Oxley
    compliance fees.                                                                                                                                                                                                                                                                                  
|(2) | For fiscal years 2003 and 2004, includes audits of the
    Corporations employee benefits plans, services related to
    SAS 70, audits of the Corporations subsidiaries and other
    statutory audits. For fiscal year 2004, it also includes
    consents provided for a registration statement on Form S-4
    and assistance with acquisition due diligence.
|(3) | For fiscal year 2004, includes general tax compliance and
    consulting, tax return preparation, and filing reviews. For
    fiscal year 2003, it also includes international tax
    services.                                                                                                                                                                   
|(4) | For fiscal year 2003, includes services for regulatory
    compliance reviews under federal banking laws, services for
    forensic audits relating to compliance with BSA rules and
    regulations.                                                                                                                                                              

Audit Committee Pre-Approval




PART IV


ITEM 15.     EXHIBITS AND
FINANCIAL STATEMENT SCHEDULES










|                                                                                                                    |  |      |        | 
|------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | 
|                                                                                                                    |  | Page |       
|                                                                                                                    |  |      |       
|Report of Independent Registered Public Accounting Firm                                                             |  |      | 101    | 
|Consolidated Statements of Operations for the years ended
    December 31, 2004, 2003 and 2002                      |  |      | 50     | 
|Consolidated Statements of Condition as of December 31,
    2004 and 2003                                           |  |      | 51     | 
|Consolidated Statements of Changes in Shareholders Equity
    for the years ended December 31, 2004, 2003 and 2002 |  |      | 52     | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2004, 2003 and 2002                      |  |      | 53     | 
|Notes to Consolidated Financial Statements                                                                          |  |      | 54-100 | 





124



---



##### 







| |                                                                 
| | ----------------------------------------------------------------
| | Riggs National Corporation                                      
|
| | /s/ Lawrence I. Hebert                                          
| | _______________________________________ 
     Lawrence I. Hebert
| | Director and Principal Executive Officer                        
| | March 29, 2005                                                  



|                                                                                                               |  |                                                                                        |  | 
|-------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------- |  | 
|                                                                                                              
|/s/ Steven T. TamburoSteven
    T. Tamburo                                                                     |  | Chief Financial Officer and Treasurer (Principal Financial and
    Accounting Officer)
|                                                                                                              
|J. Carter Beese, Jr.*J.
    Carter Beese, Jr.                                                                  |  | Director                                                                              
|                                                                                                              
|Charles A.
    Camalier, III*Charles
    A. Camalier, III                                                      |  | Director                                                                              
|                                                                                                              
|Lawrence I. Hebert*Lawrence
    I. Hebert                                                                      |  | Director and Principal Executive Officer                                              
|                                                                                                              
|Steven B. Pfeiffer*Steven
    B. Pfeiffer                                                                      |  | Director                                                                              
|                                                                                                              
|Anthony P. Terracciano*Anthony
    P. Terracciano                                                              |  | Chairman of the Board                                                                 
|                                                                                                              
|Robert L. Sloan*Robert
    L. Sloan                                                                            |  | Vice Chairman of the Board                                                            
|                                                                                                              
|Jack Valenti*Jack
    Valenti                                                                                  |  | Director                                                                              
|                                                                                                              
|William L. Walton*William
    L. Walton                                                                        |  | Director                                                                              
|                                                                                                              
|Eddie N. Williams*Eddie
    N. Williams                                                                        |  | Director                                                                              
|                                                                                                              
|Stuart J. Yarbrough*Stuart
    J. Yarbrough                                                                    |  | Director                                                                              
|                                                                                                              
|*By: /s/ Robert L.
    KlivansRobert
    L. Klivans
    Robert L. Klivans, Attorney-in-Fact
    March 29, 2005 |  |                                                                                       

125



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##### 



INDEX TO EXHIBITS


|            |         |  |             |                                                                                                                                                                                                                                                                                                             |       |  |  | 
|----------- | ------- |  | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  |  | 
|Exhibit No. |         |  | Description |                                                                                                                                                                                                                                                                                                             | Pages | 
|            |        
|            | (2.1)   |  |             | Agreement and Plan of Merger between The PNC Financial Services
    Group, Inc. and Riggs National Corporation, dated as of
    July 16, 2004 (Incorporated by reference to the
    Registrants Form 10-Q dated June 30, 2004, SEC
    File No. 0-9756)                                                    |       |  |  | 
|           
|            | (2.2)   |  |             | Amended and Restated Agreement and Plan of Merger, dated as of
    February 10, 2005, between The PNC Financial Services
    Group, Inc. and Riggs National Corporation (Incorporated by
    reference to the Registrants Form 8-K dated
    February 10, 2005, SEC File No. 0-9756)                       |       |  |  | 
|           
|            | (3.1)   |  |             | Restated Certificate of Incorporation of Riggs National
    Corporation, dated April 19, 1999 (Incorporated by
    reference to the Registrants Form 10-Q for the
    quarter ended June 30, 1999, SEC File No. 0-9756)                                                                                    |       |  |  | 
|           
|            | (3.2)   |  |             | By-laws of the Registrant with amendments through March 15,
    2005                                                                                                                                                                                                                                        |       |  |  | 
|           
|            | (4.1)   |  |             | Indenture dated June 1, 1989 with respect to
    $100 million 9.65% Subordinated Debentures due 2009
    (Incorporated by reference to the Registrants
    Form 8-K dated June 20, 1989, SEC File No. 0-9756)                                                                                              |       |  |  | 
|           
|            | (4.2)   |  |             | Indenture dated December 13, 1996 with respect to
    $150 million, 8.625% Trust Preferred Securities,
    Series A due 2026 (Incorporated by reference to the
    Registrants S-3 dated February 6, 1997, SEC File
    No. 333-21297)                                                                     |       |  |  | 
|           
|            | (4.3)   |  |             | Indenture dated March 12, 1997, with respect to
    $200 million, 8.875% Trust Preferred Securities,
    Series C due 2027 (Incorporated by reference to the
    Registrants S-3 dated May 2, 1997, SEC File
    No. 333-26447)                                                                            |       |  |  | 
|           
|            | (10.1)  |  |             | Indemnification Agreement of Chief Executive Officer dated
    January 22, 2003 (Incorporated by reference to the
    Registrants Form 10-K for the year ended
    December 31, 2002, SEC File No. 0-9756)                                                                                                 |       |  |  | 
|           
|            | (10.2)  |  |             | Indemnification Agreement of Chief Financial Officer dated
    November 19, 2002 (Incorporated by reference to the
    Registrants Form 10-K for the year ended
    December 31, 2002, SEC File No. 0-9756)                                                                                                |       |  |  | 
|           
|            | (10.3)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.4)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.5)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.6)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.7)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.8)  |  |             | Indemnification Agreement of Director dated April 16, 2003
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2003, SEC
    File No. 0- 9756)                                                                                                                 |       |  |  | 
|           
|            | (10.9)  |  |             | Time Sharing Agreement for lease of Gulfstream V by Perpetual
    Corporation/ Lazy Lane Farms, Inc. and Allbritton Communications
    companies (Incorporated by reference to the Registrants
    Form 10-Q dated March 31, 2001, SEC File
    No. 0-9756)                                                |       |  |  | 
|           
|            | (10.10) |  |             | Time Sharing Agreement for the lease of the Gulfstream V between
    Perpetual Corporation/ Lazy Lane Farms, Inc, Allbritton
    Communications Company and Riggs Bank N.A. (Incorporated by
    reference to the Registrants Form 10-Q for the
    quarter ended September 30, 2002, SEC File No. 0-9756) |       |  |  | 
|           
|            | (10.11) |  |             | Time Sharing Agreement for lease of Beechcraft King Air 300
    between Allbritton Communications Company and Riggs Bank N.A.
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended June 30, 2001, SEC
    File No. 0-9756)                                                |       |  |  | 
|           
|            | (10.12) |  |             | Time Sharing Agreement for lease of the Beechcraft King Air 300
    between Allbritton Communications and Riggs Bank N.A.
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended September 30, 2002,
    SEC File No. 0-9756)                                               |       |  |  | 

126



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##### 



|            |         |   |             |                                                                                                                                                                                                                                                                                                                                       |       |  |  | 
|----------- | ------- | - | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  |  | 
|Exhibit No. |         |   | Description |                                                                                                                                                                                                                                                                                                                                       | Pages | 
|            |        
|           
|            | (10.13) |   |             | Time Sharing Agreement for the lease of the Gulfstream III
    between Perpetual Corporation/ Lazy Lane Farms, Inc. and Riggs
    Bank N.A. (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended September 30, 2002,
    SEC File No. 0-9756)                                                           |       |  |  | 
|           
|            | (10.14) | + |             | Joe L. Allbritton Settlement Agreement, dated December 31,
    2001 (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2001, SEC
    File No. 0-9756)                                                                                                                                       |       |  |  | 
|           
|            | (10.15) | + |             | Riggs National Corporations Senior Executive Change of
    Control and Retention Agreement (Incorporated by reference to
    the Registrants Form 10-K for the year ended
    December 31, 2001, SEC File No. 0-9756)                                                                                                               |       |  |  | 
|           
|            | (10.16) | + |             | Trust Under the Riggs National Corporations Senior
    Executive Change of Control and Retention Agreement, dated
    November 8, 2001 (Incorporated by reference to the
    Registrants Form 10-K for the year ended
    December 31, 2001, SEC File No. 0-9756)                                                                   |       |  |  | 
|           
|            | (10.17) | + |             | Riggs National Corporations Executive Deferred
    Compensation Plan (Incorporated by reference to the
    Registrants Form S-8 dated December 6, 2001, SEC
    File No. 333-74644)                                                                                                                                                 |       |  |  | 
|           
|            | (10.18) | + |             | Trust under the Riggs National Corporations Executive
    Deferred Compensation Plan (Incorporated by reference to the
    Registrants Form S-8 dated December 6, 2001, SEC
    File No. 333-74644)                                                                                                                                 |       |  |  | 
|           
|            | (10.19) |   |             | Second Amendment to Operating Agreement of Riggs Capital
    Partners LLC (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2001, SEC
    File No. 0-9756)                                                                                                                                 |       |  |  | 
|           
|            | (10.20) |   |             | Third Amendment and Joinder to the Operating Agreement of Riggs
    Capital Partners, LLC (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    September 30, 2002, SEC File No. 0-9756)                                                                                                             |       |  |  | 
|           
|            | (10.21) |   |             | Operating Agreement of Riggs Capital Partners II, LLC
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2001, SEC
    File No. 0- 9756)                                                                                                                                                |       |  |  | 
|           
|            | (10.22) |   |             | First Amendment and Joinder to the Operating Agreement of Riggs
    Capital Partners II, LLC (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    September 30, 2002, SEC File No. 0-9756)                                                                                                          |       |  |  | 
|           
|            | (10.23) |   |             | Riggs Capital Partners II, LLC Investment and Management
    Agreement (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2001, SEC
    File No. 0-9756)                                                                                                                                    |       |  |  | 
|           
|            | (10.24) |   |             | First Amendment and Joinder to the Investment and Management
    Agreement of Riggs Capital Partners II, LLC (Incorporated
    by reference to the Registrants Form 10-Q for the
    quarter ended September 30, 2002, SEC File No. 0-9756)                                                                                          |       |  |  | 
|           
|            | (10.25) |   |             | Riggs Capital Partners Operating and Services Agreement with RCP
    Investments L.P. (Incorporated by reference to the
    Registrants Form 10-K for the year ended
    December 31, 2001, SEC File No. 0-9756)                                                                                                                     |       |  |  | 
|           
|            | (10.26) |   |             | First Amendment to Riggs Capital Partners Operating and Services
    Agreement (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2001, SEC
    File No. 0-9756)                                                                                                                            |       |  |  | 
|           
|            | (10.27) |   |             | Second Amendment and Joinder to the Operating and Services
    Agreement between Riggs Bank N.A. and Riggs Capital Partners
    Investments, L.P. and Riggs Capital Partners
    Investments II, L.P. (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    September 30, 2002, SEC File No. 0-9756) |       |  |  | 
|           
|            | (10.28) |   |             | First Amendment and Joinder to the Investment and Management
    Agreement of Riggs Capital Partners, LLC (Incorporated by
    reference to the Registrants Form 10-Q for the
    quarter ended September 30, 2002, SEC File No. 0-9756)                                                                                             |       |  |  | 
|           
|            | (10.29) |   |             | Lease Agreement, dated February 1, 2002, between Allbritton
    Communications Company and Riggs National Corporation
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended March 31, 2002, SEC
    File No. 0-9756)                                                                                 |       |  |  | 
|           
|            | (10.30) | + |             | Riggs Bank N.A. 2002 Executive Managerial Bonus Program
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended June 30, 2002, SEC
    File No. 0-9756)                                                                                                                                                |       |  |  | 

127



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##### 



|            |         |   |             |                                                                                                                                                                                                                                                                            |       |  |  | 
|----------- | ------- | - | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  |  | 
|Exhibit No. |         |   | Description |                                                                                                                                                                                                                                                                            | Pages | 
|            |        
|           
|            | (10.31) |   |             | Real Estate Investment Advisory Agreement, dated May 24,
    2002, between Riggs Bank N.A. and Kennedy Associates Real Estate
    Counsel, Inc. (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    June 30, 2002, SEC File No. 0-9756) |       |  |  | 
|           
|            | (10.32) |   |             | Fourth Amendment to the Operating Agreement of Riggs Capital
    Partners, LLC, dated January 1, 2003 (Incorporated by
    reference to the Registrants Form 10-K for the year
    ended December 31, 2002, SEC File No. 0-9756)                                          |       |  |  | 
|           
|            | (10.33) |   |             | Second Amendment to the Operating Agreement of Riggs Capital
    Partners II, LLC, dated January 1, 2003 (Incorporated
    by reference to the Registrants Form 10-K for the
    year ended December 31, 2002, SEC File No. 0-9756)                                       |       |  |  | 
|           
|            | (10.34) |   |             | Master Professional Services Agreement between Crowe Chizek and
    Company LLP and Riggs Bank N.A. dated December 27, 2002
    (Incorporated by reference to the Registrants
    Form 10-K for the year ended December 31, 2002, SEC
    File No. 0-9756)                |       |  |  | 
|           
|            | (10.35) | + |             | Amendment to Riggs National Corporations Deferred
    Compensation Plan, dated April 1, 2003 (Incorporated by
    reference to the Registrants Form 10-Q for the
    quarter ended June 30, 2003, SEC File No. 0-9756)                                                   |       |  |  | 
|           
|            | (10.36) |   |             | Banking Information Technology Services Agreement between
    Fidelity Information Services Inc. and Riggs Bank N.A. dated
    June 13, 2003 (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    June 30, 2003, SEC File No. 0-9756)    |       |  |  | 
|           
|            | (10.37) | + |             | 2003 Riggs Executive Officer Short-Term Bonus Plan (Incorporated
    by reference to the Registrants Form  10-Q for
    the quarter ended June 30, 2003, SEC File No. 0-9756)                                                                                             |       |  |  | 
|           
|            | (10.38) | + |             | Amended and Restated Deferred Compensation Plan, dated
    January 21, 2004 (Incorporated by reference to the
    Registrants Form 10-Q for the quarter ended
    March 31, 2004, SEC File No. 0-9756)                                                                    |       |  |  | 
|           
|            | (10.39) |   |             | Third Amendment to the Operating Agreement of Riggs Capital
    Partners II, LLC, dated January 21, 2004 (Incorporated
    by reference to the Registrants Form 10-Q for the
    quarter ended March 31, 2004, SEC File No. 0-9756)                                       |       |  |  | 
|           
|            | (10.40) |   |             | Fifth Amendment to the Operating Agreement of Riggs Capital
    Partners, LLC, dated January 21, 2004 (Incorporated by
    reference to the Registrants Form 10-Q for the
    quarter ended March 31, 2004, SEC File No. 0-9756)                                          |       |  |  | 
|           
|            | (10.41) | + |             | Letter Agreement with Tim Coughlin, dated February 27, 2004
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended March 31, 2004, SEC
    File No. 0-9756)                                                                                |       |  |  | 
|           
|            | (10.42) | + |             | Lawrence Connell employment agreement, dated April 6, 2004
    (Incorporated by reference to the Registrants
    Form 10-Q for the quarter ended June 30, 2004, SEC
    File No. 0-9756)                                                                                  |       |  |  | 
|           
|            | (10.43) | + |             | Robert L. Klivans employment agreement, dated December 7,
    2004                                                                                                                                                                                                         |       |  |  | 
|           
|            | (10.44) | + |             | Ernest D. Brita employment agreement, dated December 7, 2004                                                                                                                                                                                                               |       |  |  | 
|           
|            | (10.45) | + |             | Resolution of the Boards of Directors of Riggs National
    Corporation and Riggs Bank N.A., dated July 7, 2004,
    approving the establishment of a discretionary bonus pool                                                                                             |       |  |  | 
|           
|            | (10.46) |   |             | Consent Order with the Office of the Comptroller of the
    Currency, dated July 16, 2003 (Incorporated by reference to
    the Registrants Form 8-K dated July 17, 2003,
    SEC File No. 0-9756)                                                                        |       |  |  | 
|           
|            | (10.47) |   |             | Consent Order with the Office of the Comptroller of the
    Currency, dated May 13, 2004 (Incorporated by reference to
    the Registrants Form 8-K dated May 13, 2004, SEC
    File No. 0-9756)                                                                          |       |  |  | 
|           
|            | (10.48) |   |             | Consent Order of Civil Money Penalty with the Office of the
    Comptroller of the Currency, dated May 13, 2004
    (Incorporated by reference to the Registrants
    Form 8-K dated May 13, 2004, SEC File No. 0-9756)                                                   |       |  |  | 
|           
|            | (10.49) |   |             | Consent to the Assessment of Civil Money Penalty with the
    Financial Crimes Enforcement Network, dated May 13, 2004
    (Incorporated by reference to the Registrants
    Form 8-K dated May 13, 2004, SEC File No. 0-9756)                                            |       |  |  | 

128



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##### 



|            |         |  |             |                                                                                                                                                                                                                                                                                                                      |       |  |  | 
|----------- | ------- |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  |  | 
|Exhibit No. |         |  | Description |                                                                                                                                                                                                                                                                                                                      | Pages | 
|            |        
|           
|            | (10.50) |  |             | Assessment of Civil Money Penalty with the Financial Crimes
    Enforcement Network, dated May 13, 2004 (Incorporated by
    reference to the Registrants Form 8-K dated
    May 13, 2004, SEC File No. 0-9756)                                                                                                     |       |  |  | 
|           
|            | (10.51) |  |             | Order with the Board of Governors of the Federal Reserve System,
    dated May 14, 2004 (Incorporated by reference to the
    Registrants Form 8-K dated May 13, 2004, SEC
    File No. 0-9756)                                                                                                                     |       |  |  | 
|           
|            | (10.52) |  |             | Agreement Among Riggs Bank N.A., the United States
    Attorneys Office for the District of Columbia and the
    Department of Justice, dated January 27, 2005 and certain
    other related documents (Incorporated by reference to the
    Registrants Form 8-K dated January 27, 2005, SEC
    File No. 0-9756) |       |  |  | 
|           
|            | (10.53) |  |             | Modification of Existing Consent Order with the Office of the
    Comptroller of the Currency, dated January 27, 2005
    (Incorporated by reference to the Registrants
    Form 8-K dated January 27, 2005, SEC File
    No. 0-9756)                                                                               |       |  |  | 
|            | (10.54) |  |             | Cease and Desist Order with the Board of Governors of the
    Federal Reserve System, dated January 27, 2005
    (Incorporated by reference to the Registrants
    Form 8-K dated January 27, 2005, SEC File No. 0-9756)                                                                                            |       |  |  | 
|           
|            | (11)    |  |             | Computation of Per Share Earnings                                                                                                                                                                                                                                                                                    |       |  |  | 
|           
|            | (14.1)  |  |             | Riggs National Corporation Employee Code of Conduct, as amended
    (Incorporated by reference to the Registrants
    Form 8-K dated July 8, 2004, SEC File No. 0-9756)                                                                                                                                             |       |  |  | 
|           
|            | (14.2)  |  |             | Riggs National Corporation Non-Employee Director Code of
    Conduct, as amended (Incorporated by reference to the
    Registrants Form 8-K dated July 8, 2004, SEC
    File No. 0-9756)                                                                                                                            |       |  |  | 
|           
|            | (21)    |  |             | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                       |       |  |  | 
|           
|            | (23)    |  |             | Consent of KPMG LLP                                                                                                                                                                                                                                                                                                  |       |  |  | 
|           
|            | (24)    |  |             | Powers of Attorney                                                                                                                                                                                                                                                                                                   |       |  |  | 
|           
|            | (31.1)  |  |             | Chief Executive Officer Certification pursuant to
    Rule 13a-14(a)/15d-14(a)                                                                                                                                                                                                                                       |       |  |  | 
|           
|            | (31.2)  |  |             | Chief Financial Officer Certification pursuant to
    Rule 13a-14(a)/15d-14(a)                                                                                                                                                                                                                                       |       |  |  | 
|           
|            | (32.1)  |  |             | Chief Executive Officer Certification pursuant to
    Section 1350                                                                                                                                                                                                                                                   |       |  |  | 
|           
|            | (32.2)  |  |             | Chief Financial Officer Certification pursuant to
    Section 1350                                                                                                                                                                                                                                                   |       |  |  | 





129