Bloomberg News

WASHINGTON — Riggs National Corp. reported that bad loans reduced third-quarter earnings by $13.3 million after taxes, or 47 cents a share, causing a net loss of $4.3 million, or 15 cents a share.

The Washington banking company, with 52 branches in metropolitan Washington and offices in Miami, London, and Berlin, had been expected to earn 19 cents a share, according to a First Call/Thomson Financial survey of two analysts.

Riggs, which has $5.5 billion of assets, said the loss includes its previously disclosed discovery of fraud related to a borrower in London. Excluding loan losses, Riggs’ third-quarter operating results would improved by 25% from a year earlier, to $9 million, or 32 cents a share.

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