##### 



UNITED STATES  SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 10-Q

|           |  |   |  |                                                                                        
|---------- |  | - |  | ---------------------------------------------------------------------------------------
|(Mark One) |  | x |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2003

| |  |   |  |                                                                                         
| |  | - |  | ----------------------------------------------------------------------------------------
|
| |  | 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

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(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. 20005

---

(Address of principal executive offices)          
       (Zip Code)


(202) 835-4309

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(Registrants telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes  x  
No  o

Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act). Yes
  x   No   o.

Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of the latest practicable date.

|                              |  |                                
|----------------------------- |  | -------------------------------
|Common Stock, $2.50 par value |  | 28,533,918                     
|                              |  |                                
|(Title of Class)              |  | (Outstanding at April 30, 2003)





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RIGGS NATIONAL CORPORATION

TABLE OF CONTENTS

|                              |  |                                                                                       |                                                                                                                   |          |       |      | 
|----------------------------- |  | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -------- | ----- | ---- | 
|PART I.                       |  | FINANCIAL INFORMATION                                                                 |                                                                                                                   | PAGE NO.
|                              |  |                                                                                      
|                             
|Item 1.                       |  | Financial Statements                                                                  |                                                                                                                   |          |       |     
|                             
|                              |  |                                                                                       | Consolidated Statements of Operations (Unaudited)
Three months ended March 31, 2003 and 2002                      |          |       | 3    | 
|                             
|                              |  |                                                                                       | Consolidated Statements of Condition (Unaudited)
March 31, 2003 and 2002, and December 31, 2002                   |          |       | 4    | 
|                             
|                              |  |                                                                                       | Consolidated Statements of Changes in Shareholders Equity (Unaudited)
Three months ended March 31, 2003 and 2002 |          |       | 5    | 
|                             
|                              |  |                                                                                       | Consolidated Statements of Cash Flows (Unaudited)
Three months ended March 31, 2003 and 2002                      |          |       | 6    | 
|                             
|                              |  |                                                                                       | Notes to the Consolidated Financial Statements (Unaudited)                                                        |          |       | 7-15 | 
|                             
|Item 2.                       |  | Managements Discussion
and Analysis of Financial Condition and Results of Operations |                                                                                                                   |          | 16-25 |     
|                             
|Item 3.                       |  | Quantitative and Qualitative Disclosures about Market Risk                            |                                                                                                                   |          | 25-27 |     
|                             
|Item 4.                       |  | Controls and Procedures                                                               |                                                                                                                   |          | 27    |     
|                             
|PART II.                      |  | OTHER INFORMATION                                                                     |                                                                                                                   |          |       |     
|                             
|Item 1.                       |  | Legal Proceedings                                                                     |                                                                                                                   |          | 28    |     
|                             
|Item 2.                       |  | Change in Securities                                                                  |                                                                                                                   |          | 28    |     
|                             
|Item 3.                       |  | Defaults Upon Senior Securities                                                       |                                                                                                                   |          | 28    |     
|                             
|Item 4.                       |  | Submission of Matters to a Vote of Security Holders                                   |                                                                                                                   |          | 28    |     
|                             
|Item 5.                       |  | Other Information                                                                     |                                                                                                                   |          | 28    |     
|                             
|Item 6.                       |  | Exhibits and Reports on Form 8-K                                                      |                                                                                                                   |          | 28    |     
|                             
|Signatures and Certifications |  |                                                                                       | 28                                                                                                                |         

Unless otherwise indicated, all references in this Quarterly Report on form 10-Q
to we, us, our, Riggs and the Company refer to Riggs National
Corporation and its subsidiaries.

2



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##### 



PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS-UNAUDITED

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

|                                      |                                                                  |                                                       |         |        |                    |      |      |        |       |      | 
|------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------- | ------- | ------ | ------------------ | ---- | ---- | ------ | ----- | ---- | 
|                                      |                                                                  |                                                       |         |        | THREE MONTHS ENDED
|                                      |                                                                  |                                                       |         |        | MARCH 31,         
|                                      |                                                                  |                                                       |         |        |                   
|                                      |                                                                  |                                                       |         |        | 2003               |      | 2002
|                                      |                                                                  |                                                       |         |        |                    |      |     
|INTEREST INCOME                       |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Interest and Fees on Loans                                       |                                                       | $       | 41,769 |                    |      | $    | 43,691 |      
|                                      | Interest and Dividends on Securities Available for Sale          |                                                       |         | 18,971 |                    |      |      | 17,458 |      
|                                      | Interest on Time Deposits with Other Banks                       |                                                       |         | 1,329  |                    |      |      | 731    |      
|                                      | Interest on Federal Funds Sold and Reverse Repurchase Agreements |                                                       |         | 2,184  |                    |      |      | 2,541  |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Interest Income                                            |                                                       |         | 64,253 |                    |      |      | 64,421 |      
|INTEREST EXPENSE                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Interest on Deposits:                                            |                                                       |         |        |                    |      |      |        |      
|                                      |                                                                  | Savings and NOW Accounts                              |         |        | 177                |      |      |        | 291   |     
|                                      |                                                                  | Money Market Deposit Accounts                         |         |        | 3,393              |      |      |        | 4,538 |     
|                                      |                                                                  | Time Deposits in Domestic Offices                     |         |        | 5,931              |      |      |        | 6,380 |     
|                                      |                                                                  | Time Deposits in Foreign Offices                      |         |        | 1,402              |      |      |        | 2,364 |     
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Interest on Deposits                                       |                                                       |         | 10,903 |                    |      |      | 13,573 |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Interest on Short-Term Borrowings and Long-Term Debt:            |                                                       |         |        |                    |      |      |        |      
|                                      |                                                                  | Repurchase Agreements and Other Short-Term Borrowings |         |        | 1,237              |      |      |        | 1,988 |     
|                                      |                                                                  | Long-Term Debt                                        |         |        | 3,913              |      |      |        | 1,618 |     
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Interest on Short-Term Borrowings and Long-Term Debt       |                                                       |         | 5,150  |                    |      |      | 3,606  |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Interest Expense                                           |                                                       |         | 16,053 |                    |      |      | 17,179 |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Net Interest Income                                              |                                                       |         | 48,200 |                    |      |      | 47,242 |      
|                                      | Provision for Loan Losses                                        |                                                       |         | 926    |                    |      |      | (1,668 | )    
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Net Interest Income after Provision for Loan Losses              |                                                       |         | 47,274 |                    |      |      | 48,910 |      
|NONINTEREST INCOME                    |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Trust and Investment Advisory Income                             |                                                       |         | 9,406  |                    |      |      | 11,839 |      
|                                      | Service Charges and Fees                                         |                                                       |         | 12,067 |                    |      |      | 11,050 |      
|                                      | Venture Capital Investment Losses, Net                           |                                                       |         | (2,222 | )                  |      |      | (6,866 | )    
|                                      | Other Noninterest Income                                         |                                                       |         | 2,251  |                    |      |      | 2,218  |      
|                                      | Securities Gains, Net                                            |                                                       |         | 4,627  |                    |      |      | 287    |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Noninterest Income                                         |                                                       |         | 26,129 |                    |      |      | 18,528 |      
|NONINTEREST EXPENSE                   |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Salaries and Employee Benefits                                   |                                                       |         | 28,466 |                    |      |      | 27,463 |      
|                                      | Occupancy, Net                                                   |                                                       |         | 5,355  |                    |      |      | 5,028  |      
|                                      | Data Processing Services                                         |                                                       |         | 5,207  |                    |      |      | 5,259  |      
|                                      | Furniture, Equipment and Software                                |                                                       |         | 3,869  |                    |      |      | 4,051  |      
|                                      | Other Noninterest Expense                                        |                                                       |         | 16,049 |                    |      |      | 14,981 |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Total Noninterest Expense                                        |                                                       |         | 58,946 |                    |      |      | 56,782 |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Income before Taxes and Minority Interest                        |                                                       |         | 14,457 |                    |      |      | 10,656 |      
|                                      | Applicable Income Tax Expense                                    |                                                       |         | 4,997  |                    |      |      | 4,315  |      
|                                      | Minority Interest in Income of Subsidiaries, Net of Taxes        |                                                       |         | 3,531  |                    |      |      | 4,916  |      
|                                      |                                                                  |                                                       |         |        |                    |      |      |       
|                                      | Net Income                                                       |                                                       | $       | 5,929  |                    |      | $    | 1,425  |      
|                                     
|EARNINGS PER SHARE-                   | Basic                                                            |                                                       | $       | 0.21   |                    |      | $    | 0.05   |      
|                                      |                                                                  |                                                       | Diluted |        |                    | 0.20 |      |        |       | 0.05 | 
|                                     
|DIVIDENDS DECLARED AND PAID PER SHARE |                                                                  | $                                                     | 0.05    |        |                    | $    | 0.05 |       

The Accompanying Notes Are An Integral Part Of These Statements

3



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##### 



RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)

|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |           |           |        | 
|----------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | ---------------------------------------- | --------- | --------- | ------ | ------------ | --------- | --------- | ------ | ------- | --------- | --------- | ------ | 
|                                                                                                |                                                                                                                                   |                                   |                                          |           | MARCH 31, |        | DECEMBER 31, |           | MARCH 31,
|                                                                                                |                                                                                                                                   |                                   |                                          |           | 2003      |        | 2002         |           | 2002     
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |          
|ASSETS                                                                                          |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Cash and Due from Banks                                                                                                           |                                   | $                                        | 122,640   |           |        | $            | 244,703   |           |        | $       | 160,328   |          
|                                                                                                | Federal Funds Sold and Reverse Repurchase Agreements                                                                              |                                   |                                          | 670,000   |           |        |              | 610,000   |           |        |         | 546,000   |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Cash and Cash Equivalents                                                                                                   |                                   |                                          | 792,640   |           |        |              | 854,703   |           |        |         | 706,328   |          
|                                                                                                | Time Deposits with Other Banks                                                                                                    |                                   |                                          | 267,348   |           |        |              | 203,267   |           |        |         | 211,903   |          
|                                                                                                | Securities Available for Sale (at Market Value)                                                                                   |                                   |                                          | 2,454,165 |           |        |              | 2,319,917 |           |        |         | 1,759,492 |          
|                                                                                                | Venture Capital Investments                                                                                                       |                                   |                                          | 47,192    |           |        |              | 49,419    |           |        |         | 52,200    |          
|                                                                                                | Loans                                                                                                                             |                                   |                                          | 3,084,225 |           |        |              | 3,007,905 |           |        |         | 2,771,840 |          
|                                                                                                | Reserve for Loan Losses                                                                                                           |                                   |                                          | (25,797   | )         |        |              | (25,958   | )         |        |         | (26,718   | )        
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Net Loans                                                                                                                   |                                   |                                          | 3,058,428 |           |        |              | 2,981,947 |           |        |         | 2,745,122 |          
|                                                                                                | Premises and Equipment, Net                                                                                                       |                                   |                                          | 191,300   |           |        |              | 190,684   |           |        |         | 194,795   |          
|                                                                                                | Other Assets                                                                                                                      |                                   |                                          | 226,111   |           |        |              | 225,758   |           |        |         | 190,632   |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Assets                                                                                                                      |                                   | $                                        | 7,037,184 |           |        | $            | 6,825,695 |           |        | $       | 5,860,472 |          
|                                                                                               
|LIABILITIES                                                                                     |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Deposits:                                                                                                                         |                                   |                                          |           |           |        |              |           |           |        |         |           |          
|                                                                                                | Noninterest-Bearing Demand Deposits                                                                                               |                                   | $                                        | 744,803   |           |        | $            | 683,338   |           |        | $       | 675,249   |          
|                                                                                                | Interest-Bearing Deposits:                                                                                                        |                                   |                                          |           |           |        |              |           |           |        |         |           |          
|                                                                                                |                                                                                                                                   | Savings and NOW Accounts          |                                          |           | 346,026   |        |              |           | 331,656   |        |         |           | 295,217   |       
|                                                                                                |                                                                                                                                   | Money Market Deposit Accounts     |                                          |           | 2,096,537 |        |              |           | 2,165,449 |        |         |           | 1,887,457 |       
|                                                                                                |                                                                                                                                   | Time Deposits in Domestic Offices |                                          |           | 1,739,208 |        |              |           | 1,723,474 |        |         |           | 1,329,060 |       
|                                                                                                |                                                                                                                                   | Time Deposits in Foreign Offices  |                                          |           | 363,534   |        |              |           | 335,080   |        |         |           | 357,721   |       
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Interest-Bearing Deposits                                                                                                   |                                   |                                          | 4,545,305 |           |        |              | 4,555,659 |           |        |         | 3,869,455 |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Deposits                                                                                                                    |                                   |                                          | 5,290,108 |           |        |              | 5,238,997 |           |        |         | 4,544,704 |          
|                                                                                                | Repurchase Agreements and Other Short-Term Borrowings                                                                             |                                   |                                          | 461,723   |           |        |              | 470,372   |           |        |         | 457,472   |          
|                                                                                                | Other Liabilities                                                                                                                 |                                   |                                          | 184,275   |           |        |              | 119,976   |           |        |         | 139,066   |          
|                                                                                                | FHLB Borrowings and Other Long-Term Debt                                                                                          |                                   |                                          | 460,525   |           |        |              | 358,525   |           |        |         | 66,525    |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Liabilities                                                                                                                 |                                   |                                          | 6,396,631 |           |        |              | 6,187,870 |           |        |         | 5,207,767 |          
|                                                                                               
|GUARANTEED PREFERRED BENEFICIAL INTERESTS IN JUNIOR
SUBORDINATED DEFERRABLE INTEREST DEBENTURES |                                                                                                                                   |                                   | 248,584                                  |           |           |        | 248,584      |           |           |        | 294,284 |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|COMMITMENTS AND CONTINGENCIES                                                                   |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|SHAREHOLDERS EQUITY                                                                            |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Common Stock-$2.50 Par Value                                                                                                      |                                   |                                          |           |           |        |              |           |           |        |         |           |          
|                                                                                                |                                                                                                                                   |                                   | 3/31/2003
     12/31/2002     3/31/2002  |           |           |        |              |           |           |        |         |           |           |        | 
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |           |           |        | 
|                                                                                                |                                                                                                                                   | Authorized                        | 50,000,000
    50,000,000
    50,000,000 |           |           |        |              |           |           |        |         |           |           |        | 
|                                                                                                |                                                                                                                                   | Issued                            | 31,850,006
    31,812,022
    31,806,448 |           |          
|                                                                                                |                                                                                                                                   | Outstanding                       | 28,533,918
    28,510,224
    28,505,650 |           |           | 79,625 |              |           |           | 79,530 |         |           |           | 79,516 | 
|                                                                                                | Additional Paid in Capital                                                                                                        |                                   |                                          | 171,245   |           |        |              | 170,747   |           |        |         | 168,360   |          
|                                                                                                | Retained Earnings                                                                                                                 |                                   |                                          | 209,367   |           |        |              | 204,865   |           |        |         | 197,544   |          
|                                                                                                | Accumulated Other Comprehensive Income (Loss)                                                                                     |                                   |                                          | 3,323     |           |        |              | 5,468     |           |        |         | (15,642   | )        
|                                                                                                | Treasury Stock - 3,316,088 shares at March 31, 2003, 3,301,798 shares at
December 31, 2002 and 3,300,798 shares at March 31, 2002 |                                   |                                          | (71,591   | )         |        |              | (71,369   | )         |        |         | (71,357   | )        
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Shareholders Equity                                                                                                        |                                   |                                          | 391,969   |           |        |              | 389,241   |           |        |         | 358,421   |          
|                                                                                                |                                                                                                                                   |                                   |                                          |           |           |        |              |           |           |        |         |          
|                                                                                                | Total Liabilities and Shareholders Equity                                                                                        |                                   | $                                        | 7,037,184 |           |        | $            | 6,825,695 |           |        | $       | 5,860,472 |          

The Accompanying Notes Are An Integral Part Of These Statements

4



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##### 



RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)

|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |        |        |  
|----------------------------------------------------------------------- | ---------------------------------------- | ------------------------------------------------------------------------------------- | ------ | ------ |  | ---------- | ------- | -------- |  | ------------- | ------- | -------- |  | ------------- | ------- | - | ------ | ----- | ------- | - |  | - | ------- | ------ | ------ | -
|                                                                        |                                          |                                                                                       |        | COMMON |  |            |         |          |  |               |         |          |  | ACCUMULATED   |         |   |        |       |         |   |  |  
|                                                                        |                                          |                                                                                       |        | STOCK  |  | ADDITIONAL |         |          |  |               |         | OTHER    |  |               |         |   |        | TOTAL
|                                                                        |                                          |                                                                                       |        | $2.50  |  | PAID IN    |         | RETAINED |  | COMPREHENSIVE |         | TREASURY |  | SHAREHOLDERS
|                                                                        |                                          |                                                                                       |        | PAR    |  | CAPITAL    |         | EARNINGS |  | INCOME (LOSS) |         | STOCK    |  | EQUITY       
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |              
|Balance, December 31, 2001                                              |                                          | $                                                                                     | 79,489 |        |  | $          | 163,125 |          |  | $             | 197,545 |          |  | $             | (7,979  | ) |        | $     | (71,357 | ) |  | $ | 360,823 |       
|Comprehensive Income:                                                   |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|                                                                        | Net Income                               |                                                                                       |        |        |  |            |         |          |  |               |         | 1,425    |  |               |         |   |        |       |         |   |  |   |         | 1,425  |       
|                                                                        | Other Comprehensive Loss
Net of Tax: (1) |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |        |       
|                                                                        |                                          | Unrealized Loss on
Securities Available for Sale, Net
of Reclassification Adjustments |        |        |  |            |         |          |  |               |         |          |  |               |         |   | (7,205 | )     |         |   |  |   |         |        | (7,205 | )
|                                                                        |                                          | Unrealized Gain on Derivatives,
Net of Reclassification Adjustments                   |        |        |  |            |         |          |  |               |         |          |  |               |         |   | 255    |       |         |   |  |   |         |        | 255    |  
|                                                                        |                                          | Foreign Exchange
Translation Adjustments                                              |        |        |  |            |         |          |  |               |         |          |  |               |         |   | (713   | )     |         |   |  |   |         |        | (713   | )
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|                                                                        | Total Other Comprehensive
Loss           |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         | (7,663 | )     
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|Total Comprehensive Loss                                                |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   | (6,238  | )     
|Issuance of Common Stock for
Stock Option Plans-10,745 Shares           |                                          |                                                                                       | 27     |        |  |            | 113     |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   | 140     |       
|Repurchase of
Trust Preferred Securities, Net                           |                                          |                                                                                       |        |        |  |            | 5,122   |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   | 5,122   |       
|Cash Dividends -
Common Stock, $.05 per Share                           |                                          |                                                                                       |        |        |  |            |         |          |  |               | (1,426  | )        |  |               |         |   |        |       |         |   |  |   | (1,426  | )     
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|Balance, March 31, 2002                                                 |                                          | $                                                                                     | 79,516 |        |  | $          | 168,360 |          |  | $             | 197,544 |          |  | $             | (15,642 | ) |        | $     | (71,357 | ) |  | $ | 358,421 |       
|Balance, December 31, 2002                                              |                                          | $                                                                                     | 79,530 |        |  | $          | 170,747 |          |  | $             | 204,865 |          |  | $             | 5,468   |   |        | $     | (71,369 | ) |  | $ | 389,241 |       
|Comprehensive Income:                                                   |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|                                                                        | Net Income                               |                                                                                       |        |        |  |            |         |          |  |               |         | 5,929    |  |               |         |   |        |       |         |   |  |   |         | 5,929  |       
|                                                                        | Other Comprehensive Loss
Net of Tax: (1) |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |        |       
|                                                                        |                                          | Unrealized Loss on                                                                    |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |        |        |  
|                                                                        |                                          | Securities Available for Sale, Net
of Reclassification Adjustments                    |        |        |  |            |         |          |  |               |         |          |  |               |         |   | (1,859 | )     |         |   |  |   |         |        | (1,859 | )
|                                                                        |                                          | Unrealized Gain on Derivatives,
Net of Reclassification Adjustments                   |        |        |  |            |         |          |  |               |         |          |  |               |         |   | 483    |       |         |   |  |   |         |        | 483    |  
|                                                                        |                                          | Foreign Exchange
Translation Adjustments                                              |        |        |  |            |         |          |  |               |         |          |  |               |         |   | (769   | )     |         |   |  |   |         |        | (769   | )
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|                                                                        | Total Other Comprehensive
Loss           |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         | (2,145 | )     
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|Total Comprehensive Income                                              |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   | 3,784   |       
|Issuance of Common Stock for
Stock Option and Award Plans-37,984 Shares |                                          |                                                                                       | 95     |        |  |            | 498     |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   | 593     |       
|Common Stock Repurchase-14,290 shares                                   |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       | (222    | ) |  |   | (222    | )     
|Cash Dividends -
Common Stock, $.05 per Share                           |                                          |                                                                                       |        |        |  |            |         |          |  |               | (1,427  | )        |  |               |         |   |        |       |         |   |  |   | (1,427  | )     
|                                                                        |                                          |                                                                                       |        |        |  |            |         |          |  |               |         |          |  |               |         |   |        |       |         |   |  |   |         |       
|Balance, March 31, 2003                                                 |                                          | $                                                                                     | 79,625 |        |  | $          | 171,245 |          |  | $             | 209,367 |          |  | $             | 3,323   |   |        | $     | (71,591 | ) |  | $ | 391,969 |       



---

|(1) - |  | See Notes to the Consolidated Financial Statements for gross
unrealized gains or losses arising during each period and the tax
effect on each item of comprehensive income.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Accompanying Notes Are An Integral Part Of These Statements

5



---



##### 



RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)

|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |            |   |        |  
|--------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | --------------------------------- | --------------------------------------------------------------- | ---------- | ------------------ | ------ | -------- | ---------- | - | ------ | -
|                                                    |                                                                                                                                |                                   |                                                                 |            | THREE MONTHS ENDED
|                                                    |                                                                                                                                |                                   |                                                                 |            | MARCH 31,         
|                                                    |                                                                                                                                |                                   |                                                                 |            |                   
|                                                    |                                                                                                                                |                                   |                                                                 |            | 2003               |        | 2002    
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |         
|CASH FLOWS FROM OPERATING ACTIVITIES:               |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Net Income                                          |                                                                                                                                | $                                 | 5,929                                                           |            |                    | $      | 1,425    |           
|                                                    | Adjustments to Reconcile Net Income to Cash                                                                                    |                                   |                                                                 |            |                    |        |          |            |  
|                                                    |                                                                                                                                | Provided By Operating Activities: |                                                                 |            |                    |        |          |            |   |       
|                                                    |                                                                                                                                |                                   | Provision for Loan Losses                                       |            |                    | 926    |          |            |   | (1,668 | )
|                                                    |                                                                                                                                |                                   | Losses on Venture Capital Investments                           |            |                    | 2,222  |          |            |   | 6,866  |  
|                                                    |                                                                                                                                |                                   | Depreciation Expense and Amortization of Leasehold Improvements |            |                    | 4,473  |          |            |   | 4,182  |  
|                                                    |                                                                                                                                |                                   | Net Gains on Sales of Securities Available for Sale             |            |                    | (4,627 | )        |            |   | (287   | )
|                                                    |                                                                                                                                |                                   | Increase in Other Assets                                        |            |                    | (467   | )        |            |   | (205   | )
|                                                    |                                                                                                                                |                                   | Increase in Other Liabilities                                   |            |                    | 6,501  |          |            |   | 11,951 |  
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|                                                    | Total Adjustments                                                                                                              |                                   |                                                                 | 9,028      |                    |        |          | 20,839     |  
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Net Cash Provided By (Used In) Operating Activities |                                                                                                                                |                                   | 14,957                                                          |            |                    |        | 22,264   |           
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|CASH FLOWS FROM INVESTING ACTIVITIES:               |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|                                                    | Net (Increase) Decrease in Time Deposits with Other Banks                                                                      |                                   |                                                                 | (64,081    | )                  |        |          | 77,561     |  
|                                                    | Proceeds from Maturities of Securities Available for Sale                                                                      |                                   |                                                                 | 2,704,580  |                    |        |          | 2,772,466  |  
|                                                    | Proceeds from Sales of Securities Available for Sale                                                                           |                                   |                                                                 | 175,666    |                    |        |          | 520        |  
|                                                    | Purchases of Securities Available for Sale                                                                                     |                                   |                                                                 | (2,953,267 | )                  |        |          | (2,899,813 | )
|                                                    | Purchases of Venture Capital Investments                                                                                       |                                   |                                                                 | (897       | )                  |        |          | (2,801     | )
|                                                    | Proceeds from Sale of Venture Capital Investments                                                                              |                                   |                                                                 | 901        |                    |        |          | 55         |  
|                                                    | Net (Increase) Decrease in Loans                                                                                               |                                   |                                                                 | (77,942    | )                  |        |          | 94,270     |  
|                                                    | Proceeds from Sale of OREO                                                                                                     |                                   |                                                                 | 504        |                    |        |          |           |  
|                                                    | Net Increase in Premises and Equipment                                                                                         |                                   |                                                                 | (5,074     | )                  |        |          | (1,959     | )
|                                                    | Other, Net                                                                                                                     |                                   |                                                                 | (47        | )                  |        |          | 188        |  
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Net Cash (Used In) Provided By Investing Activities |                                                                                                                                |                                   | (219,657                                                        | )          |                    |        | 40,487   |           
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|CASH FLOWS FROM FINANCING ACTIVITIES:               |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|                                                    | Net Increase (Decrease) in Non-Time Deposits                                                                                   |                                   |                                                                 | 6,923      |                    |        |          | (65,222    | )
|                                                    | Net Increase in Time Deposits                                                                                                  |                                   |                                                                 | 44,188     |                    |        |          | 87,643     |  
|                                                    | Net Increase (Decrease) in Short-Term Borrowings                                                                               |                                   |                                                                 | (8,649     | )                  |        |          | (139,148   | )
|                                                    | Proceeds from Federal Home Loan Bank Borrowings                                                                                |                                   |                                                                 | 102,000    |                    |        |          |           |  
|                                                    | Proceeds from the Issuance of Common Stock                                                                                     |                                   |                                                                 | 593        |                    |        |          | 140        |  
|                                                    | Dividend Payments                                                                                                              |                                   |                                                                 | (1,427     | )                  |        |          | (1,426     | )
|                                                    | Repurchase of Common Stock                                                                                                     |                                   |                                                                 | (222       | )                  |        |          |           |  
|                                                    | Repurchase of Guaranteed Preferred Beneficial Interests in Junior
Subordinated Deferrable Interest Debentures and Common Stock |                                   |                                                                 |           |                    |        |          | (46,440    | )
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Net Cash Provided By (Used In) Financing Activities |                                                                                                                                |                                   | 143,406                                                         |            |                    |        | (164,453 | )         
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Effect of Exchange Rate Changes                     |                                                                                                                                |                                   | (769                                                            | )          |                    |        | (713     | )         
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Net Decrease in Cash and Cash Equivalents           |                                                                                                                                |                                   | (62,063                                                         | )          |                    |        | (102,415 | )         
|Cash and Cash Equivalents at Beginning of Period    |                                                                                                                                |                                   | 854,703                                                         |            |                    |        | 808,743  |           
|                                                    |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|Cash and Cash Equivalents at End of Period          |                                                                                                                                | $                                 | 792,640                                                         |            |                    | $      | 706,328  |           
|SUPPLEMENTAL DISCLOSURES:                           |                                                                                                                                |                                   |                                                                 |            |                    |        |          |           
|                                                    | Trade Dated Securities                                                                                                         |                                   | $                                                               | 59,460     |                    |        | $        | 25,012     |  
|                                                    | Interest Paid                                                                                                                  |                                   |                                                                 | 14,131     |                    |        |          | 16,192     |  

The Accompanying Notes Are An Integral Part Of These Statements

6



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##### 



RIGGS NATIONAL CORPORATION (UNAUDITED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (UNAUDITED)
(TABLES IN THOUSANDS, EXCEPT SHARE AMOUNTS)

NOTE 1.   BASIS OF PRESENTATION

The interim consolidated financial statements presented in this Quarterly Report
on Form 10-Q are in conformity with accounting principles generally accepted in
the United States of America and follow general practice within the banking
industry. These principles have been applied on a consistent basis and include
all normal recurring adjustments necessary to fairly present our results of
operations, financial condition and cash flows. The preparation of financial
statements requires the use of estimates and assumptions that affect the amounts
reported. Actual results could differ from those estimates and the results of
operations for the three months ended March 31, 2003 are not necessarily
indicative of the results to be expected for all of 2003. For comparability,
certain prior period amounts have been reclassified to conform with current
period presentation. The financial statements contained herein should be read in
conjunction with the audited financial statements and accompanying notes in our
Annual Report on Form 10-K for the year ended December 31, 2002.

NOTE 2.   CRITICAL ACCOUNTING POLICIES AND ESTIMATES

As noted above, management has prepared the consolidated financial statements in
conformity with accounting principles generally accepted in the United States of
America. Accordingly, management is required to make certain estimates,
judgments and assumptions that it believes to be reasonable based upon the
information available. These estimates, judgments and assumptions affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of net interest income, noninterest income
and noninterest expense. The following accounting policies comprise those that
management believes involve estimates, judgments and assumptions that are the
most critical to aid in fully understanding and evaluating our reported
financial results. Because of the uncertainty inherent in these matters, actual
results could differ.

Reserve for Loan Losses
The reserve for loan losses is maintained at a level that we believe is adequate
to absorb probable losses in the loan portfolio. The determination of the
adequacy of the reserve for loan losses is based upon an on-going, analytical
review of the loan portfolio. This analysis requires application of judgment,
evaluation of economic uncertainties and assessment of business conditions that
may change. Because of these and other factors, adjustments to the reserve for
loan losses may be required.

The analytical review of the loan portfolio performed to determine the adequacy
of the reserve for loan losses includes a review of loans with balances over
$500 thousand for impairment, an analysis of historical loss experience by loan
type and, for groups of loans with similar characteristics, an evaluation of
current economic conditions and all other factors we consider pertinent to the
analysis. Impaired loans are defined as specifically reviewed loans for which it
is probable that we will be unable to collect all amounts due in accordance with
the loan agreement. Impaired loans are generally commercial and financial loans
and commercial real estate loans and are usually on non-accrual status. Each
impaired loan with an outstanding balance equal to or greater than $500 thousand
has a specific, identified loan loss reserve associated with it. Impaired loans
do not include large groups of smaller balance homogeneous loans with similar
collateral characteristics, such as residential mortgage and home equity loans.
Loss reserves for these types of loans are established on an aggregate basis
using historical loss experience. Balances related to impaired loans for which
there are specific reserves are excluded when applying historical loss ratios to
determine loan loss reserves.

The specific reserves for impaired loans are included in the reserve for loan
losses. Impaired loans are valued based upon the fair value of the related
collateral if the loans are collateral dependent. For all other impaired loans,
the specific reserves are based on the present values of expected cash flows
discounted at each loans initial effective interest rate.

Provisions to the reserve for loan losses are charged against, or credited to,
earnings in amounts necessary to maintain an adequate reserve for loan losses.
Commercial loans are charged-off when it is determined that they cannot be fully
recovered and non-commercial loans are generally charged-off or loan foreclosure
proceedings begun upon becoming 120 days delinquent or at such time as permitted
by law or other regulations. Recoveries of loans previously charged-off are
credited to the reserve for loan losses.

The Company maintains its reserve for loan losses in accordance with a policy
approved by the Board of Directors. The Company has an established methodology
for analyzing its reserve for loan losses that includes an internal loan
classification policy. The Company periodically reviews its methodology.
Domestic and international loans are subjected to similar review procedures.

7



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##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

While the Company believes its credit monitoring procedures are adequate, credit
losses are, however, inherent to our business, and it is possible there may be
unidentified losses in the loan portfolio at March 31, 2003 that may become
apparent at a later date pursuant to our analysis or pursuant to comment
following regulatory examination. In addition, collateral values, which are
conservatively valued in the loan underwriting process, may deteriorate such
that a loss exposure develops after the loan is made. The establishment of loan
loss reserves for problem credits that are currently unidentified or
unanticipated would negatively impact future earnings. A charge, if any is
needed, would generally be recorded in the segment in which the loan is
recorded.

Venture Capital Investments
Venture capital investments are accounted for at fair value with gains and
losses included in noninterest income in the Consolidated Statements of
Operations.

At March 31, 2003, the Company valued its venture capital portfolio at $47.2
million. This valuation was arrived at using a variety of factors including, but
not limited to: market prices, where available and discounted, if necessary, to
reflect trading history, lock-up provisions, lack of market liquidity and other
factors; cost, if there is no readily determinable market price and there has
not been a material event, such as a follow-on round of financing or strategic
sale; a value higher than cost if indicated by additional financing which
fulfills certain requirements; and analysis and commentary from a funds
Investment Manager/General Partner.

Since the Company has no present intention to sell or liquidate the venture
capital portfolio, the valuation of venture capital investments is subject to
uncertainties in that it does not represent a negotiated value between the
Company, as seller, and an independent, willing buyer that has the necessary
knowledge and financial ability to complete the purchase. Additionally, if the
Company attempted to sell its venture capital portfolio, particularly if we
deemed it necessary to liquidate our investment within a short period of time,
the actual proceeds from the sale could differ significantly from our carrying
value. The market for the type of venture capital investments we hold has been
impacted by a slowing economy, a depressed domestic equity market in which the
values of publicly traded technology companies have declined drastically, and,
because of these market conditions, a decline in the number of initial public
offerings and acquisitions of private companies by publicly traded firms.
Although these and other factors have been assessed in determining current
values, because of the subjectivity in determining values, it is possible that
the Company would experience a material loss if it chose to liquidate its
venture capital portfolio, particularly if it attempted to do so quickly. The
loss, if any, would be recorded in the Riggs Capital Partners segment.

Deferred Tax Assets on Venture Capital Losses
We record a provision for income taxes based upon the amounts of current taxes
payable (or refundable) and the change in net deferred tax assets or liabilities
during the year. Deferred tax assets and liabilities are recognized for the tax
effects of differing carrying values of assets and liabilities for tax and
financial statement reporting purposes that will reverse in future periods. When
substantial uncertainty exists concerning the recoverability of a deferred tax
asset, the carrying value of the asset is reduced by a valuation allowance.
Establishing a valuation allowance results in an increase in income tax expense.

Realized and unrealized losses in our venture capital operations have resulted
in the establishment of $13.8 million of deferred tax assets as of March 31,
2003. Of this amount, $826 thousand was established in 2003. These assets can be
utilized to reduce taxes payable on future capital gains but must be utilized
within five years of the year in which the loss is realized for tax return
purposes. Because of continuing losses in our venture capital portfolio and the
lack of current suitability of alternatives to generate capital gains, Riggs has
established a valuation allowance of $6.2 million against the deferred tax asset
at March 31, 2003. Of this amount, $826 thousand was established in 2003. The
Company believes that the unreserved deferred tax asset balance of $7.6 million
at March 31, 2003, which includes a deferred tax asset related to realized
losses of $1.7 million, will be realized through generation of future net
capital gains within its venture capital operations or the implementation of
alternative business strategies that generate net capital gains. Management has
identified several alternative business strategies that we expect could produce
sufficient capital gains to allow the deferred tax asset balance to be realized.

If sufficient net capital gains within the Companys venture capital operations
are not realized in a timely manner, or if business conditions or other factors
make it impossible, impractical or imprudent to implement the identified
alternative strategies, an additional valuation allowance, resulting in a charge
against income, for that portion of the deferred tax asset which will not be
utilized, will be recorded in the Other segment.

Impairment of Long-Lived Assets
The Company tests for impairment in the carrying value of any asset or group of
assets whenever events or changes in circumstances indicate that the carrying
value may not be recoverable.

In prior periods the Company recorded $9.4 million in impairment charges in the
Banking segment related to a long-term, fixed-price, non- cancelable project
contract due to cost overruns that could not be passed on to subcontractors or
other parties to the contract. This contract

8



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##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

involves the construction, implementation and maintenance of a computer system
to be utilized by the federal government in its cash management and reporting.
The contract continues to have significant uncertainties as to the costs to
complete and revenues resulting from the contract.

We are continuing to negotiate with the contractual counterparty to limit the
scope of the project and for additional funding. Since the recoverability of
future costs may be dependent upon the willingness of the contractual
counterparty to fund future costs, there may be additional impairment associated
with this contract. The amount of such losses, if any, cannot be reasonably
estimated at this time. Likewise, there could be additional revenue at the
discretion of the counterparty. At March 31, 2003, the Company has an asset of
$6.8 million related to this contract.

NOTE 3.   EARNINGS PER SHARE

Earnings per share computations are as follows:

|                                                       |  |                    |            |                    |  |       |            |         |  |   |            |  |  |   |            | 
|------------------------------------------------------ |  | ------------------ | ---------- | ------------------ |  | ----- | ---------- | ------- |  | - | ---------- |  |  | - | ---------- | 
|                                                       |  | THREE MONTHS ENDED |            | THREE MONTHS ENDED
|                                                       |  | MARCH 31, 2003     |            | MARCH 31, 2002    
|                                                       |  |                    |            |                   
|                                                       |  | BASIC              |            | DILUTED            |  | BASIC |            | DILUTED
|                                                       |  | EPS                |            | EPS                |  | EPS   |            | EPS    
|                                                       |  |                    |            |                    |  |       |            |        
|Net Income Available to Common Shareholders            |  | $                  | 5,929      |                    |  | $     | 5,929      |         |  | $ | 1,425      |  |  | $ | 1,425      | 
|Weighted-Average Shares Outstanding                    |  |                    | 28,528,109 |                    |  |       | 28,528,109 |         |  |   | 28,502,828 |  |  |   | 28,502,828 | 
|Weighted-Average Dilutive Effect
of Stock Option Plans |  |                    | n/a        |                    |  |       | 437,289    |         |  |   | n/a        |  |  |   | 324,735    | 
|                                                       |  |                    |            |                    |  |       |            |         |  |   |            |  |  |   |            | 
|Adjusted Weighted-Average Shares Outstanding           |  |                    | 28,528,109 |                    |  |       | 28,965,398 |         |  |   | 28,502,828 |  |  |   | 28,827,563 | 
|Earnings Per Share                                     |  | $                  | .21        |                    |  | $     | .20        |         |  | $ | .05        |  |  | $ | .05        | 

Approximately 3.7 million and 3.8 million stock options were outstanding at the
end of March 2003 and 2002, respectively, but were not included in the
computation of diluted earnings per share because the exercise prices of these
options were greater than the average market price of the common shares for the
period and, therefore, the effect would be antidilutive. The weighted average
exercise price for these options was $18.79 per share and $18.83 per share at
the end of the same respective periods.

Stock-Based Employee Compensation Plans
At March 31, 2003, the Company had five stock-based employee compensation plans,
which are described more fully in Note 14 of Notes to Consolidated Financial
Statements in our 2002 Form 10-K. The Company accounts for these plans under the
recognition and measurement principles of APB Opinion No. 25, Accounting for
Stock Issued to Employees, SFAS 148, Accounting for Stock-Based Compensation-
Transition and Disclosure, an amendment of FASB Statement 123, and related
Interpretations. No stock-based employee compensation cost for these plans is
reflected in net income on the Consolidated Statements of Operations, as all
options granted under these plans had an exercise price equal to the market
value of the underlying common stock on the date of grant.

During 2002, the Company awarded 370,000 shares of its common stock to certain
key executives (see Note 14 of Notes to Consolidated Financial Statements in our
2002 Form 10-K). The award will vest in equal amounts through December 2006. The
Company accounts for this plan under the recognition and measurement principles
of APB Opinion No. 25, SFAS 148, and related Interpretations. For the quarter
ended March 31, 2003, we recorded $323 thousand of expense related to this
award.

The following table illustrates the effect on net income and earnings per share
if the Company had applied the fair value recognition provisions of SFAS 123,
Accounting for Stock-Based Compensation, to stock-based employee compensation.

9



---



##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

|                                                                                                                                            |                     |      |                              |      |  |   |       |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | ------------------- | ---- | ---------------------------- | ---- |  | - | ----- | ---- | 
|                                                                                                                                            |                     |      | THREE MONTHS ENDED MARCH 31,
|                                                                                                                                            |                     |      |                             
|(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)                                                                                                     |                     | 2003 |                              | 2002
|                                                                                                                                            |                     |      |                              |     
|Net income, as reported                                                                                                                     |                     | $    | 5,929                        |      |  | $ | 1,425 |     
|Add: Stock-based employee compensation expense included in reported
net income, net of related tax effects                                  |                     |      | 210                          |      |  |   |      |     
|Deduct: Total stock-based employee compensation expense determined
under fair value based method for all awards, net of related tax effects |                     |      | (911                         | )    |  |   | (548  | )   
|                                                                                                                                            |                     |      |                              |      |  |   |       |     
|Pro forma net income                                                                                                                        |                     | $    | 5,228                        |      |  | $ | 877   |     
|                                                                                                                                            |                     |      |                              |      |  |   |       |     
|Earnings per share:                                                                                                                         |                     |      |                              |      |  |   |       |     
|                                                                                                                                            | Basic-as reported   |      | $                            | 0.21 |  |   | $     | 0.05 | 
|                                                                                                                                            | Basic-pro forma     |      | $                            | 0.18 |  |   | $     | 0.03 | 
|                                                                                                                                            | Diluted-as reported |      | $                            | 0.20 |  |   | $     | 0.05 | 
|                                                                                                                                            | Diluted-pro forma   |      | $                            | 0.18 |  |   | $     | 0.03 | 

There were no options granted in the first quarters of 2003 or 2002.

The fair values of the stock options outstanding are used to determine the
proforma impact of the options on compensation expense.

NOTE 4. OTHER COMPREHENSIVE INCOME (LOSS)

|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |        |  
|---------------------------------------- | ------------------------------------------------------------ | - | -------- | ------- | --------- | - | ---------- | ----- | - | - | ------ | ------ | -
|                                         |                                                              |   | BEFORE - |         | TAX       |   |            |       |  
|                                         |                                                              |   | TAX      |         | (EXPENSE) |   | NET-OF-TAX
|                                         |                                                              |   | AMOUNT   |         | BENEFIT   |   | AMOUNT    
|                                         |                                                              |   |          |         |           |   |           
|THREE MONTHS ENDED MARCH 31, 2002:       |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Foreign Currency Translation Adjustments |                                                              | $ | (1,097   | )       |           | $ | 384        |       |   | $ | (713   | )     
|Unrealized Losses on Securities:         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Unrealized Holding Losses Arising During Period              |   |          | (10,797 | )         |   |            | 3,779 |   |   |        | (7,018 | )
|                                         | Reclassification Adjustment for Gains Realized in Net Income |   |          | (287    | )         |   |            | 100   |   |   |        | (187   | )
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Net Unrealized Losses on Securities                          |   |          | (11,084 | )         |   |            | 3,879 |   |   |        | (7,205 | )
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Unrealized Gains on Derivatives:         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Unrealized Holding Gains Arising During Period               |   |          | 1,980   |           |   |            | (693  | ) |   |        | 1,287  |  
|                                         | Reclassification Adjustment for Gains Realized in Net Income |   |          | (1,587  | )         |   |            | 555   |   |   |        | (1,032 | )
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Net Unrealized Gains on Derivatives                          |   |          | 393     |           |   |            | (138  | ) |   |        | 255    |  
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Other Comprehensive Loss                 |                                                              | $ | (11,788  | )       |           | $ | 4,125      |       |   | $ | (7,663 | )     
|                                        
|THREE MONTHS ENDED MARCH 31, 2003:       |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Foreign Currency Translation Adjustments |                                                              | $ | (1,183   | )       |           | $ | 414        |       |   | $ | (769   | )     
|Unrealized Losses on Securities:         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Unrealized Holding Gains Arising During Period               |   |          | 1,767   |           |   |            | (618  | ) |   |        | 1,149  |  
|                                         | Reclassification Adjustment for Gains Realized in Net Income |   |          | (4,627  | )         |   |            | 1,619 |   |   |        | (3,008 | )
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Net Unrealized Losses on Securities                          |   |          | (2,860  | )         |   |            | 1,001 |   |   |        | (1,859 | )
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Unrealized Gains on Derivatives:         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Unrealized Holding Gains Arising During Period               |   |          | 743     |           |   |            | (260  | ) |   |        | 483    |  
|                                         | Reclassification Adjustment for Gains Realized in Net Income |   |          |        |           |   |            |      |   |   |        |       |  
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|                                         | Net Unrealized Gains on Derivatives                          |   |          | 743     |           |   |            | (260  | ) |   |        | 483    |  
|                                         |                                                              |   |          |         |           |   |            |       |   |   |        |       
|Other Comprehensive Loss                 |                                                              | $ | (3,300   | )       |           | $ | 1,155      |       |   | $ | (2,145 | )     

10



---



##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES

|                                   |  |             |        |             |  |             |        |               |  |   |        |   |  |   |         |  
|---------------------------------- |  | ----------- | ------ | ----------- |  | ----------- | ------ | ------------- |  | - | ------ | - |  | - | ------- | -
|                                   |  | FOREIGN     |        | UNREALIZED  |  | UNREALIZED  |        | ACCUMULATED  
|                                   |  | CURRENCY    |        | GAIN (LOSS) |  | GAIN (LOSS) |        | OTHER        
|                                   |  | TRANSLATION |        | ON          |  | ON          |        | COMPREHENSIVE
|                                   |  | ADJUSTMENTS |        | SECURITIES  |  | DERIVATIVES |        | INCOME (LOSS)
|                                   |  |             |        |             |  |             |        |              
|THREE MONTHS ENDED MARCH 31, 2002: |  |             |        |             |  |             |        |               |  |   |        |   |  |   |         |  
|Balance, December 31, 2001         |  | $           | (5,679 | )           |  | $           | (69    | )             |  | $ | (2,231 | ) |  | $ | (7,979  | )
|Period Change                      |  |             | (713   | )           |  |             | (7,205 | )             |  |   | 255    |   |  |   | (7,663  | )
|                                   |  |             |        |             |  |             |        |               |  |   |        |   |  |   |         |  
|Balance, March 31, 2002            |  | $           | (6,392 | )           |  | $           | (7,274 | )             |  | $ | (1,976 | ) |  | $ | (15,642 | )
|                                  
|THREE MONTHS ENDED MARCH 31, 2003: |  |             |        |             |  |             |        |               |  |   |        |   |  |   |         |  
|Balance, December 31, 2002         |  | $           | (4,154 | )           |  | $           | 12,746 |               |  | $ | (3,124 | ) |  | $ | 5,468   |  
|Period Change                      |  |             | (769   | )           |  |             | (1,859 | )             |  |   | 483    |   |  |   | (2,145  | )
|                                   |  |             |        |             |  |             |        |               |  |   |        |   |  |   |         |  
|Balance, March 31, 2003            |  | $           | (4,923 | )           |  | $           | 10,887 |               |  | $ | (2,641 | ) |  | $ | 3,323   |  

NOTE 5:   SEGMENT PROFITABILITY

Our reportable segments are strategic business units that provide diverse
products and services within the financial services industry. We have six
reportable segments: Banking, International Banking, Riggs & Co. (wealth
management), Treasury, Riggs Capital Partners (venture capital) and Other.

The accounting policies for the segments are substantially the same as those
described in Note 1 of Notes to Consolidated Financial Statements in our 2002
Form 10-K. We account for intercompany transactions as if the transactions were
to third parties under market conditions. Overhead and support expenses are
allocated to each operating segment based on number of employees, service usage
and other factors relevant to the expense incurred. Geographic financial
information is provided in Note 15 of Notes to Consolidated Financial Statements
in our 2002 Form 10-K.

Revenue and expense allocation formulas and funds transfer pricing methodologies
may change. If necessary, prior periods are restated to reflect material changes
in the components of the segments. Prior periods have not been restated to
reflect changes in our revenue and cost allocations and funds transfer pricing
methodologies. In addition, revenues and expenses which are unusual or
noncontrollable may be reflected in the Other segment, which is consistent with
internal financial reporting, if management believes such presentation most
accurately represents the remaining operating segments performance.

Reconciliations are provided from the segment totals to our consolidated
financial statements. The reconciliations of noninterest income and noninterest
expense offset as these items result from intercompany transactions and the
reconciliation of total average assets represents the elimination of
intercompany transactions.

Following are brief descriptions of our segments:

Banking
The Banking segment provides traditional banking services to retail, corporate
and commercial customers. This segment includes Corporate & Institutional
Banking, which concentrates its business in the corporate, commercial real
estate, government contracting and not-for-profit sectors. Its services include
lines of credit, secured and unsecured term loans, letters of credit, credit
support facilities and cash management. Also included within this segment is our
Community Banking Group. Community Banking provides traditional retail banking
services, such as deposit taking and mortgage and home equity lending, and it
continually expands its alternative delivery channels such as automated teller
machines and the telephone customer sales and service center. It primarily
conducts its business through 48 branches and 146 ATM locations in the
Washington, D.C., metropolitan area.

International Banking
The International Banking segment includes our Washington, D.C., based embassy
banking business, the London based banking subsidiary, Riggs Bank Europe Ltd.
(RBEL), and a branch in Berlin. Among the services provided are letters of
credit, foreign exchange, taking of deposits, private banking and cash
management. The International Banking segment also includes our international
private-client services division, which has offices in London and in Jersey
(Channel Islands), and Riggs Bank & Trust Company (Channel Islands), which
provides credit, treasury and investment management services to affluent
international clients.

11



---



##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

Riggs & Co.
Riggs & Co. is the domestic private client services division that provides trust, private banking and investment management services to a broad
customer base. Other services provided consist of tax planning, estate planning, and trust administration. Included in this division are our full-service
broker-dealer subsidiary, Riggs Securities Inc., our portfolio management business, and our investment management group, Riggs Investment
Advisors, Inc. (RIA).

Treasury
The Treasury segment is responsible for asset and liability management
throughout the Company including management of the securities portfolio, foreign
exchange activities, wholesale funding, overall management of interest rate
risk, and facilitation of the funds transfer pricing component for segments.

Riggs Capital Partners
Riggs Capital Partners represents our venture capital subsidiaries, which
specialize in equity investments in privately-held high-tech and high- growth
companies.

Other
The Other segment consists of our unallocated parent company income and expense,
net interest income from unallocated equity, long-term debt, trust preferred
securities, foreclosed real estate activities and other revenue or expenses not
attributable to one of the other segments.

|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|------------------------------------------------ |  | ------- | --------- | ------- |  | ------------- | ------- | -------- |  | -------- | ------- | ------- |  | -------------- | --------- | ----------- |  | ----- | ------ | - |  | -------- | ------- | - |  | - | ---------- | ----- |  | - | --------- | -
|THREE MONTHS                                     |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  | RIGGS |        |   |  |          |         |   |  |   |            | RIGGS
|ENDED                                            |  |         |           |         |  | INTERNATIONAL |         | RIGGS &  |  |          |         | CAPITAL |  |                |           |             |  |       |        |   |  | NATIONAL
|MARCH 31, 2003                                   |  | BANKING |           | BANKING |  | COMPANY       |         | TREASURY |  | PARTNERS |         | OTHER   |  | RECONCILIATION |           | CORPORATION
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |            
|NET INTEREST INCOME                              |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Interest Income                                  |  | $       | 38,588    |         |  | $             | 5,340   |          |  | $        | 1,260   |         |  | $              | 22,474    |             |  | $     | 4      |   |  | $        | 8,328   |   |  |   |            |       |  | $ | 75,994    |  
|Interest Expense                                 |  |         | 7,653     |         |  |               | 4,839   |          |  |          | 759     |         |  |                | 5,014     |             |  |       |       |   |  |          | 9,529   |   |  |   |            |       |  |   | 27,794    |  
|Funds Transfer Income (Expense)                  |  |         | 4,652     |         |  |               | 9,431   |          |  |          | 2,529   |         |  |                | (18,388   | )           |  |       | (786   | ) |  |          | 2,562   |   |  |   |            |       |  |   |          |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Net Interest Income (Loss),
Tax-Equivalent       |  |         | 35,587    |         |  |               | 9,932   |          |  |          | 3,030   |         |  |                | (928      | )           |  |       | (782   | ) |  |          | 1,361   |   |  |   |            |       |  |   | 48,200    |  
|Provision for Loan Losses                        |  |         | (1,295    | )       |  |               | 399     |          |  |          | (27     | )       |  |                |          |             |  |       |       |   |  |          | (3      | ) |  |   |            |       |  |   | (926      | )
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Net Interest Income (Loss)                       |  | $       | 34,292    |         |  | $             | 10,331  |          |  | $        | 3,003   |         |  | $              | (928      | )           |  | $     | (782   | ) |  | $        | 1,358   |   |  | $ |           |       |  | $ | 47,274    |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|NONINTEREST INCOME                               |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Noninterest Income-External
Customers            |  | $       | 11,008    |         |  | $             | 1,563   |          |  | $        | 10,517  |         |  | $              | 5,227     |             |  | $     | (2,185 | ) |  | $        | (1      | ) |  |   |            |       |  | $ | 26,129    |  
|Intersegment Noninterest Income                  |  |         | 709       |         |  |               | 1,750   |          |  |          | 748     |         |  |                |          |             |  |       |       |   |  |          | 520     |   |  |   | (3,727     | )     |  |   |          |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Total Noninterest Income                         |  | $       | 11,717    |         |  | $             | 3,313   |          |  | $        | 11,265  |         |  | $              | 5,227     |             |  | $     | (2,185 | ) |  | $        | 519     |   |  | $ | (3,727     | )     |  | $ | 26,129    |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|NONINTEREST EXPENSE                              |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Direct Depreciation and Amortization             |  | $       | 929       |         |  | $             | 320     |          |  | $        | 104     |         |  | $              | 3         |             |  | $     | 4      |   |  | $        | 2,335   |   |  |   |            |       |  | $ | 3,695     |  
|Direct Expense                                   |  |         | 17,671    |         |  |               | 8,173   |          |  |          | 9,290   |         |  |                | 978       |             |  |       | 222    |   |  |          | 22,644  |   |  |   | (3,727     | )     |  |   | 55,251    |  
|Overhead and Support                             |  |         | 15,910    |         |  |               | 3,525   |          |  |          | 3,175   |         |  |                | 747       |             |  |       | 94     |   |  |          | (23,451 | ) |  |   |            |       |  |   |          |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Total Noninterest Expense                        |  | $       | 34,510    |         |  | $             | 12,018  |          |  | $        | 12,569  |         |  | $              | 1,728     |             |  | $     | 320    |   |  | $        | 1,528   |   |  | $ | (3,727     | )     |  | $ | 58,946    |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Income (Loss) Before Taxes and
Minority Interest |  | $       | 11,499    |         |  | $             | 1,626   |          |  | $        | 1,699   |         |  | $              | 2,571     |             |  | $     | (3,287 | ) |  | $        | 349     |   |  | $ |           |       |  | $ | 14,457    |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Taxes                                            |  | $       | 3,234     |         |  | $             | 602     |          |  | $        | 599     |         |  | $              | 902       |             |  | $     |       |   |  | $        | (340    | ) |  |   |            |       |  | $ | 4,997     |  
|Minority Interest                                |  |         |          |         |  |               |        |          |  |          |        |         |  |                |          |             |  |       | (17    | ) |  |          | 3,548   |   |  |   |            |       |  |   | 3,531     |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Net Income                                       |  | $       | 8,265     |         |  | $             | 1,024   |          |  | $        | 1,100   |         |  | $              | 1,669     |             |  | $     | (3,270 | ) |  | $        | (2,859  | ) |  | $ |           |       |  | $ | 5,929     |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  
|Total Average Assets                             |  | $       | 3,215,911 |         |  | $             | 604,930 |          |  | $        | 237,190 |         |  | $              | 3,369,373 |             |  | $     | 61,209 |   |  | $        | 788,666 |   |  | $ | (1,501,375 | )     |  | $ | 6,775,904 |  
|                                                 |  |         |           |         |  |               |         |          |  |          |         |         |  |                |           |             |  |       |        |   |  |          |         |   |  |   |            |       |  |   |           |  

12



---



##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|------------------------------------------------ |  | ------- | --------- | ------- |  | ------------- | ------- | -------- |  | -------- | ------- | ----- |  | -------------- | --------- | ----------- |  | ----- | ------ | - |  | - | ------- | -------- |  | - | ---------- | ----- |  | - | --------- | 
|THREE MONTHS                                     |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  | RIGGS |        |   |  |   |         |          |  |   |            | RIGGS
|ENDED                                            |  |         |           |         |  | INTERNATIONAL |         | RIGGS &  |  |          |         |       |  | CAPITAL        |           |             |  |       |        |   |  |   |         | NATIONAL
|MARCH 31, 2002                                   |  | BANKING |           | BANKING |  | COMPANY       |         | TREASURY |  | PARTNERS |         | OTHER |  | RECONCILIATION |           | CORPORATION
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |            
|NET INTEREST INCOME                              |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Interest Income                                  |  | $       | 38,462    |         |  | $             | 7,708   |          |  | $        | 1,491   |       |  | $              | 23,988    |             |  | $     | 58     |   |  | $ | 8,784   |          |  |   |            |       |  | $ | 80,491    | 
|Interest Expense                                 |  |         | 10,054    |         |  |               | 7,339   |          |  |          | 1,148   |       |  |                | 4,907     |             |  |       |       |   |  |   | 9,801   |          |  |   |            |       |  |   | 33,249    | 
|Funds Transfer Income (Expense)                  |  |         | 3,629     |         |  |               | 9,180   |          |  |          | 3,100   |       |  |                | (19,041   | )           |  |       | (952   | ) |  |   | 4,084   |          |  |   |            |       |  |   |          | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Net Interest Income (Loss),
Tax-Equivalent       |  |         | 32,037    |         |  |               | 9,549   |          |  |          | 3,443   |       |  |                | 40        |             |  |       | (894   | ) |  |   | 3,067   |          |  |   |            |       |  |   | 47,242    | 
|Provision for Loan Losses                        |  |         |          |         |  |               |        |          |  |          |        |       |  |                |          |             |  |       |       |   |  |   | 1,668   |          |  |   |            |       |  |   | 1,668     | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Net Interest Income (Loss)                       |  | $       | 32,037    |         |  | $             | 9,549   |          |  | $        | 3,443   |       |  | $              | 40        |             |  | $     | (894   | ) |  | $ | 4,735   |          |  | $ |           |       |  | $ | 48,910    | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|NONINTEREST INCOME                               |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Noninterest Income-External
Customers            |  | $       | 10,282    |         |  | $             | 1,171   |          |  | $        | 12,879  |       |  | $              | 892       |             |  | $     | (6,781 | ) |  | $ | 85      |          |  |   |            |       |  | $ | 18,528    | 
|Intersegment Noninterest Income                  |  |         | 720       |         |  |               | 3,034   |          |  |          | 658     |       |  |                |          |             |  |       |       |   |  |   | 641     |          |  |   | (5,053     | )     |  |   |          | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Total Noninterest Income                         |  | $       | 11,002    |         |  | $             | 4,205   |          |  | $        | 13,537  |       |  | $              | 892       |             |  | $     | (6,781 | ) |  | $ | 726     |          |  | $ | (5,053     | )     |  | $ | 18,528    | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|NONINTEREST EXPENSE                              |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Direct Depreciation and Amortization             |  | $       | 985       |         |  | $             | 308     |          |  | $        | 125     |       |  | $              | 3         |             |  | $     | 7      |   |  | $ | 2,184   |          |  |   |            |       |  | $ | 3,612     | 
|Direct Expense                                   |  |         | 16,220    |         |  |               | 10,507  |          |  |          | 9,411   |       |  |                | 914       |             |  |       | 708    |   |  |   | 20,463  |          |  |   | (5,053     | )     |  |   | 53,170    | 
|Overhead and Support                             |  |         | 12,767    |         |  |               | 3,003   |          |  |          | 3,065   |       |  |                | 511       |             |  |       | 91     |   |  |   | (19,437 | )        |  |   |            |       |  |   |          | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Total Noninterest Expense                        |  | $       | 29,972    |         |  | $             | 13,818  |          |  | $        | 12,601  |       |  | $              | 1,428     |             |  | $     | 806    |   |  | $ | 3,210   |          |  | $ | (5,053     | )     |  | $ | 56,782    | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Income (Loss) Before Taxes and
Minority Interest |  | $       | 13,067    |         |  | $             | (64     | )        |  | $        | 4,379   |       |  | $              | (496      | )           |  | $     | (8,481 | ) |  | $ | 2,251   |          |  | $ |           |       |  | $ | 10,656    | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Taxes                                            |  | $       | 4,050     |         |  | $             | 14      |          |  | $        | 1,449   |       |  | $              | (176      | )           |  | $     | (1,484 | ) |  | $ | 462     |          |  |   |            |       |  | $ | 4,315     | 
|Minority Interest                                |  |         |          |         |  |               |        |          |  |          |        |       |  |                |          |             |  |       | (48    | ) |  |   | 4,964   |          |  |   |            |       |  |   | 4,916     | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Net Income                                       |  | $       | 9,017     |         |  | $             | (78     | )        |  | $        | 2,930   |       |  | $              | (320      | )           |  | $     | (6,949 | ) |  | $ | (3,175  | )        |  | $ |           |       |  | $ | 1,425     | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 
|Total Average Assets                             |  | $       | 2,949,793 |         |  | $             | 699,001 |          |  | $        | 230,310 |       |  | $              | 3,219,033 |             |  | $     | 76,571 |   |  | $ | 821,027 |          |  | $ | (2,046,306 | )     |  | $ | 5,949,429 | 
|                                                 |  |         |           |         |  |               |         |          |  |          |         |       |  |                |           |             |  |       |        |   |  |   |         |          |  |   |            |       |  |   |           | 

NOTE 6:  ACCOUNTING FOR DERIVATIVES

Under the provisions of SFAS 133, Accounting for Derivative Investments and
Hedging Activities, which was amended by SFAS 138, all derivatives must be
recognized as assets or liabilities in the Consolidated Statements of Condition
and must be measured at fair value through adjustments to either Other
Comprehensive Income or current earnings, depending on the purpose of the
derivative. When a derivative contract is entered into, we first determine
whether or not it qualifies as a hedge. If it does, we designate it as (1) a
hedge of the fair value of a recognized asset or liability, (2) a hedge of
actual or forecasted cash flows or (3) a hedge of a net investment in a foreign
operation. Changes in the fair value of a derivative that is designated a fair
value hedge and qualifies as a highly effective hedge, along with any gain or
loss on the hedged asset or liability attributable to the hedged risk, are
recorded in current period earnings. The effective portion of changes in fair
value of a derivative that is designated a cash flow hedge and that qualifies as
a highly effective hedge is recorded in Other Comprehensive Income until such
time as periodic settlements on a variable rate hedged item are recorded in
earnings. The ineffective portion of changes in fair value of cash flow
derivatives is recorded in current period earnings. Changes in the fair value of
a derivative designated as a foreign currency hedge and that qualifies as a
highly effective hedge are either recorded in current earnings, Other
Comprehensive Income, or both, depending on whether the transaction is a fair
value hedge or a cash flow hedge. If a derivative is used as a hedge of a net
investment in a foreign operation, changes in its fair value, to the extent
effective as a hedge, are recorded in Other Comprehensive Income. (See Note 4
for the impact to Other Comprehensive Income.)

The Company has the following hedging instruments at March 31, 2003:

Fair Value Hedges  We enter into pay fixed, receive floating interest rate
swaps to hedge changes in fair value of fixed rate loans attributable to changes
in benchmark interest rates. At March 31, 2002 we had 6 interest rate swaps
classified as fair value with a total notional value of $27.6 million. During
2002, all of the hedged loans were reclassified as Held For Sale. Upon
reclassification of these loans, the Company ceased hedge accounting. Since that
time, the Company has not entered into any fair value hedge contracts. For the
first three months of 2002, we recognized a net loss of $26 thousand which
represented the ineffective portion of the fair value hedges maintained at the
time. This amount was included in Other Noninterest Income in the Consolidated
Statements of Operations. At March 31, 2003 we had no fair value hedges.

13



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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

Cash Flow Hedges  We use interest rate swaps to hedge the exposure to
variability in expected future cash outflows on floating rate liabilities
attributable to changes in interest rates. At March 31, 2003 and 2002, we had 6
such interest rate swaps with a total notional value of $42.7 million. We also
use foreign currency forward contracts to hedge the foreign exchange risk
associated with principal and interest payments on loans denominated in a
foreign currency. At March 31, 2003 we had 2 such contracts with a total
notional value of $7.9 million compared to 36 contracts with a total notional
value of $135.5 million at March 31, 2002. The reduction in the number of these
contracts is related to the previously mentioned sale of loans at RBEL. For the
three months ending March 31, 2003 and 2002, there was no impact to Other
Noninterest Income in the Consolidated Statements of Operations for the
ineffective portion of all cash flow hedges.

Gains or losses on derivatives that are reclassified from Accumulated Other
Comprehensive Income to income are included in the line in the Consolidated
Statement of Operations in which the income or expense related to the hedged
item is recorded. At March 31, 2003, $15 thousand of deferred net losses on
derivative instruments in Accumulated Other Comprehensive Income is expected to
be reclassified as expense during the next twelve months compared to $388
thousand of deferred net losses at March 31, 2002. The maximum term over which
we were hedging our exposure to the variability of cash flows was 27 months as
of March 31, 2003 and 39 months as of March 31, 2002.

The Company uses forward exchange contracts to hedge substantially all of our
net investment in a foreign subsidiary. The purpose of this hedge is to protect
against adverse movements in currency exchange rates, in this case, for pounds
sterling. At March 31, 2003, $506 thousand of net losses related to the existing
net investment forward exchange contract are included in Accumulated Other
Comprehensive Income compared to $60 thousand of net gains at March 31, 2002.
The corresponding notional values for these periods was $72.0 million and $65.5
million, respectively.

As of March 31, 2003 and 2002, we had certain derivative instruments used to
manage interest rate risk that were not designated to specific hedge
relationships. The carrying value of these items was a net liability of $591
thousand and $755 thousand at March 31, 2003 and 2002, respectively. The impact
to the Consolidated Statements of Operations from these swaps was a loss of $10
thousand for the first three months of 2003 and a gain of $156 thousand for the
same period in 2002. At March 31, 2003, we had 24 interest rate contracts and 8
forward contracts with a total notional value of $88.5 million compared to 12
interest rate contracts and 2 forward contracts with a total notional value of
$40.1 million at March 31, 2002. These instruments are marked to market through
current period earnings.

NOTE 7:   ENHANCING PERFORMANCE AND SERVICE

In December 2001, the Company announced plans to implement a series of actions
intended to enhance its financial performance and customer service and better
position it for the current and long-term economic environment. This effort to
Enhance Performance and Service (Project EPS) consists of a technology
initiative, a re-design of operational processes and a realignment of our
European operations to focus on private banking and embassy banking. We intend
to standardize and upgrade our technology systems and infrastructure, which will
enable us to both operate more efficiently and provide better service to our
customers. During 2002 we selected a new core systems vendor, designed a new,
more efficient infrastructure, introduced new services, identified ways to
improve efficiency and sold substantially all of RBELs commercial real estate
and trade finance loans. The technology upgrade is expected to be substantially
completed in the third quarter of 2003.

Progress made on Project EPS during 2002 included the elimination of
approximately 100 employee positions, with the anticipation that more will be
eliminated during 2003. In the fourth quarter of 2002 and in January of 2003 we
also implemented a new fee structure which resulted in increased fee income of
approximately $408 thousand for the first quarter of 2003 compared to the first
quarter of 2002.

The Company is currently in the process of negotiating the contractual
arrangement with its new core systems vendor. As of March 31, 2003, the Company
has capitalized approximately $5.1 million of costs paid to this vendor since
the inception of the new core system implementation process. If the Company and
the new core systems vendor fail to reach a contractual agreement, which we
believe is unlikely, the Company will seek an alternative service provider and
the amount currently recorded as a deferred charge will be expensed.

The Company expects to capitalize approximately $40.0 million of Project EPS
costs that will be amortized over an average of approximately 5 years. In
addition, there will be project-related costs that will be expensed as incurred.
Management anticipates that these expenses will be offset by further expense
reductions and by additional fee income from the various Project EPS
initiatives. These expenses will be included in the appropriate categories of
Noninterest Expense in the Consolidated Statements of Operations and will impact
all segments excluding Riggs Capital Partners.

14



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##### 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 8:   RELATED PARTY TRANSACTIONS

Prior to and during the three months ended March 31, 2003, we entered into
various transactions with officers and directors of the Company and its
affiliates as well as with their associates. These transactions were of a
similar nature to those described in our Annual Report on Form 10-K for the year
ended December 31, 2002.

NOTE 9:   NEW FINANCIAL ACCOUNTING STANDARDS

SFAS 148, Accounting for Stock-Based Compensation-Transition and Disclosure, an
amendment of FASB Statement 123, was issued in December 2002. It amends SFAS
123, Accounting for Stock Based Compensation to provide alternative methods of
transition for an entity that voluntarily changes to the fair value based method
of accounting for stock-based employee compensation. It also amends the
disclosure provision of that statement to require prominent disclosure about the
effects on reported net income of an entitys accounting policy decisions with
respect to stock-based employee compensation. Finally, this statement amends APB
Opinion 28, Interim Financial Reporting, to require disclosure about those
effects in interim financial information. This interim disclosure is contained
in Note 2, Critical Accounting Policies and Estimates of this Form 10-Q. We
currently do not anticipate changing to the fair value based method of
accounting for stock based compensation.

On January 22, 2003, the FASB directed its staff to prepare a ballot draft of a
new standard, Accounting for Certain Financial Instruments with Characteristics
of Liabilities and Equity. The final Statement is expected to be issued in the
second quarter of 2003. The new standard establishes standards for issuers
classification as liabilities in the statement of financial position of
financial instruments that have characteristics of both liabilities and equity,
including financial instruments that are mandatorily redeemable on a fixed or
determinable date. Our trust preferred securities, currently classified on our
consolidated Statements of Condition as minority interest, meet that
description. The new standard will be effected by reporting the cumulative
effect of a change in an accounting principle for contracts created before the
issuance date of this statement and still existing at the beginning of the
reporting period. We will begin reporting our trust preferred securities as a
liability if the new standard becomes effective. The related interest expense,
currently classified as minority interest, net of taxes, on our Consolidated
Statements of Operations, will be reported as interest expense, thereby
decreasing net interest income.

In November 2002, the Financial Accounting Standards Board issued Interpretation
No. 45 (FIN 45), Guarantors Accounting and Disclosure Requirements for
Guarantors, including Indirect Guarantees of Indebtedness of Others: an
Interpretation of FASB Statements No. 5, 57 and 107 and rescission of FASB
Interpretation No. 34. Under FIN 45, a liability must be recognized at the
inception of certain guarantees whether or not payment is probable. When the
guarantor has assumed a stand-ready obligation, the fair value of the
guarantee must be recorded as a liability. This interpretation was effective at
December 31, 2002, with the disclosure provisions of FIN 45 effective in 2002
and the accounting provisions effective in 2003. At March 31, 2003, a liability
of $72 thousand was recorded in the Consolidated Statement of Condition for the
stand-by letters of credit.

In January 2003, the Financial Accounting Standards Board issued Interpretation
No. 46 (FIN 46), Consolidation of Variable Interest Entities: an
interpretation of ARB No. 51. This interpretation addresses the issue of
consolidation of variable interest entities, which were previously commonly
referred to as special-purpose entities (SPEs). Generally, in a variable
interest entity the equity investment at risk is not sufficient to allow the
entity to function without subordinated financial support from other parties
that absorb some of the expected losses and the equity investors do not have the
essential characteristics of a controlling financial interest, as defined.
According to FIN 46, if a business has a controlling financial interest in a
variable interest entity, the assets, liabilities and operating results of the
variable interest entity should be consolidated with the business, even if the
business does not have voting control of the variable interest entity. FIN 46
applies immediately to variable interest entities created after January 31, 2003
and to interests in variable interest entities acquired after that date. FIN 46
also applies to the first interim or fiscal periods beginning after June 15,
2003 for those variable interest entities in which a business holds an interest
that was acquired before February 1, 2003. Riggs currently has no variable
interest entities which require consolidation.

15



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##### 



RIGGS NATIONAL CORPORATION

ITEM 2.   MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

You should read the following discussion and analysis along with our
consolidated financial statements and related notes included in this Quarterly
Report on Form 10-Q. The following discussion and analysis contains
forward-looking statements that are subject to risks, uncertainties and other
factors that could cause our actual results, performance, prospects or
opportunities to differ materially from those expressed in, or implied by, these
forward-looking statements. See Cautionary Note Regarding Forward-Looking
Statements.

Riggs National Corporation is a bank holding company headquartered in
Washington, D.C. The Company engages in a variety of banking and financial
services including community, commercial and international banking, trust and
investment management services and venture capital investing. We conduct our
activities through six reportable segments: Banking, International Banking,
Riggs & Co. (wealth management), Treasury, Riggs Capital Partners (venture
capital) and Other. With the exception of venture capital investing, the
activities of the Company are conducted through its principal operating
subsidiary, Riggs Bank, and its subsidiaries and divisions. Venture capital
investing is performed through two subsidiaries of the Company, Riggs Capital
Partners and Riggs Capital Partners II.

We have 48 branch locations and 146 ATMs in the metropolitan Washington, D.C.
area and a bank in the United Kingdom. We have additional operations or
subsidiaries in London (England), Miami (Florida), Berlin (Germany), Jersey
(Channel Islands) and Nassau (Bahamas). We serve an array of customers including
individuals, partnerships, corporations, foundations, not-for-profit
organizations and foreign embassies and delegations.

The Company faces significant competitive pressure from local, regional,
national and international banking institutions as well as thrifts, finance
companies, credit unions, brokerage and insurance companies and other financial
intermediaries. Many of the Companys competitors are larger and have greater
financial resources than we have. We compete on the basis of our reputation,
localized decision-making, interest rates, convenient locations, hours of
operation and quality of customer service.

The Company also is affected by prevailing economic conditions, including
federal monetary and fiscal policies, federal regulation of financial
institutions and the perceptions of customers regarding stability of financial
markets and the financial services industry. These factors affect the operations
of all of the Companys segments. The International Banking segment also is
affected by the political, social and economic environments in those countries
in which it does business. While we strive to monitor and minimize risk, the
Company does in fact fund customers that have alternative, and in some instances
competing, goals and strategies. These competitive frictions may have future
negative consequences to the Company. In addition, the Companys international
presence exposes it to various political risks and the further risk that the
general public may look unfavorably upon some of its foreign customer
relationships.

The Office of the Comptroller of the Currency (OCC) is in the process of
completing an examination of Riggs Banks Bank Secrecy Act controls and
processes. Based on discussions with the OCC regarding this examination, the
Company believes that a formal regulatory action will be taken by the OCC that
will require Riggs Bank to take corrective measures regarding such controls and
processes.
The Company is already in the process of taking such measures, is
cooperating fully with the OCC and is committed to devoting the necessary
resources to this process.

RESULTS OF OPERATIONS

We recorded net income of $5.9 million, or $0.20 per diluted share, for the
first quarter of 2003, compared to net income of $1.4 million, or $0.05 per
diluted share, in the first quarter of 2002. The increase in earnings in the
first quarter of 2003 was due primarily to larger securities gains and smaller
venture capital losses than in the same period in 2002. Securities gains in the
first quarter of 2003 were $4.6 million compared to $287 thousand in 2002, and
venture capital losses were $2.2 million compared to $6.9 million a year ago.
Return on average assets was .35% for the three months ended March 31, 2003,
compared to .10% for the same period a year ago. Return on average shareholders
equity was 6.13%, compared to 1.59% for the three months ended March 31, 2002.

16



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

NET INTEREST INCOME

Net interest income on a tax-equivalent basis (net interest income plus an
amount equal to the tax savings on tax-exempt interest) totaled $49.4 million in
the first quarter of 2003, an increase of $1.4 million from the $48.0 million
for the same quarter in 2002. The increase was primarily due to a decrease in
interest expense (from $17.2 million to $16.1 million) that was significantly
larger than the increase in interest income (from $65.2 million to $65.5
million). Decreases in interest rates paid on deposits were the major
contributor to the decline in interest expense, although it was partially offset
by an increase in the amount of interest paid on borrowings with the Federal
Home Loan Bank of Atlanta (FHLB). Since mid- December 2002, the Company has
borrowed $394.0 million from the FHLB at rates ranging from .79% to 3.70%. The
average rate of FHLB borrowings outstanding at March 31, 2003 was 2.70%. As
interest rates have continued to decrease within the past year, loans and other
assets have repriced quickly. Due to market forces, however, the Company has
found it increasingly difficult to pass on these rate decreases to its deposit
customers. At the same time, deposit volumes have increased as the result of
customers seeking to place their money in more secure, insured fixed- income
products.

For the three months ended March 31, 2003, compared to the same quarter in the
prior year, the net interest margin decreased from 3.63% to 3.25%. The decrease
in interest rates noted previously was a significant reason for the margin
decline. In addition, margin is impacted by the amount of deposits that the U.S.
Government and its agencies place on deposit at Riggs. Since these deposits have
a lower spread relationship than that obtainable in the general marketplace, the
more kept on deposit at Riggs by these entities, the lower margin Riggs is
generally able to attain and, conversely, the lower the amount of deposits that
these institutions keep on deposit with us, generally, the higher the margin we
attain. These deposits have a lower spread relationship since the funds are
reinvested in short-term assets (generally 30 days or shorter) which generally
yield less than loans of comparable maturities.

An analysis of the changes in interest income and expense attributable to volume
and rate changes follows:

NET INTEREST INCOME CHANGES (1)

|                       |                                                       |        |                         |        |   |        |       |       |   |   |        |        |  
|---------------------- | ----------------------------------------------------- | ------ | ----------------------- | ------ | - | ------ | ----- | ----- | - | - | ------ | ------ | -
|                       |                                                       |        | THREE MONTHS ENDED     
|                       |                                                       |        | MARCH 31, 2003 VS. 2002
|                       |                                                       |        |                        
|(TAX-EQUIVALENT BASIS) |                                                       | DUE TO |                         | DUE TO |   | TOTAL 
|(IN THOUSANDS)         |                                                       | RATE   |                         | VOLUME |   | CHANGE
|                       |                                                       |        |                         |        |   |       
|Interest Income:       |                                                       |        |                         |        |   |        |       |       |   |   |        |       
|                       | Loans, Including Fees                                 |        | $                       | (4,879 | ) |        | $     | 3,360 |   |   | $      | (1,519 | )
|                       | Securities Available for Sale                         |        |                         | (3,010 | ) |        |       | 4,540 |   |   |        | 1,530  |  
|                       | Time Deposits with Other Banks                        |        |                         | 722    |   |        |       | (124  | ) |   |        | 598    |  
|                       | Federal Funds Sold and Reverse
Repurchase Agreements  |        |                         | (827   | ) |        |       | 470   |   |   |        | (357   | )
|                       |                                                       |        |                         |        |   |        |       |       |   |   |        |       
|Total Interest Income  |                                                       |        | (7,994                  | )      |   |        | 8,246 |       |   |   | 252    |       
|Interest Expense:      |                                                       |        |                         |        |   |        |       |       |   |   |        |       
|                       | Interest-Bearing Deposits                             |        |                         | (4,449 | ) |        |       | 1,779 |   |   |        | (2,670 | )
|                       | Repurchase Agreements and Other
Short-Term Borrowings |        |                         | (487   | ) |        |       | (264  | ) |   |        | (751   | )
|                       | FHLB Borrowings and Other Long-Term Debt              |        |                         | (1,468 | ) |        |       | 3,763 |   |   |        | 2,295  |  
|                       |                                                       |        |                         |        |   |        |       |       |   |   |        |       
|Total Interest Expense |                                                       |        | (6,404                  | )      |   |        | 5,278 |       |   |   | (1,126 | )     
|                       |                                                       |        |                         |        |   |        |       |       |   |   |        |       
|Net Interest Income    |                                                       | $      | (1,590                  | )      |   | $      | 2,968 |       |   | $ | 1,378  |       



---

|(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.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

An analysis of the changes in our average Statements of Condition and changes to
our margin follows:

|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |      |      | 
|------------------------------------------------------- | ----------------------------------------------------- | -------------------------------------------------- | - | ------------------ | --------- | ------------------ | - | ------- | ------ | ------- |  | ------- | ---- |  | - | --------- | --------- |  | - | ------ | ------ |  |  | ---- | ---- | 
|                                                        |                                                       |                                                    |   | THREE MONTHS ENDED |           | THREE MONTHS ENDED
|                                                        |                                                       |                                                    |   | MARCH 31, 2003     |           | MARCH 31, 2002    
|                                                        |                                                       |                                                    |   |                    |           |                   
|(TAX-EQUIVALENT BASIS) (1)                              |                                                       | AVERAGE                                            |   | INCOME/            |           |                    |   |         |        | AVERAGE |  | INCOME/ |      |  |   |          
|(IN THOUSANDS)                                          |                                                       | BALANCE                                            |   | EXPENSE            |           | RATE               |   | BALANCE |        | EXPENSE |  | RATE   
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |        
|ASSETS                                                  |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        | Loans (2)                                             |                                                    | $ | 3,006,181          |           |                    | $ | 42,986  |        |         |  | 5.80    | %    |  | $ | 2,786,207 |           |  | $ | 44,505 |        |  |  | 6.48 | %   
|                                                        | Securities Available for Sale (3)                     |                                                    |   | 2,230,124          |           |                    |   | 18,971  |        |         |  | 3.45    |      |  |   | 1,727,729 |           |  |   | 17,441 |        |  |  | 4.09 |     
|                                                        | Time Deposits with Other Banks                        |                                                    |   | 223,126            |           |                    |   | 1,329   |        |         |  | 2.42    |      |  |   | 262,323   |           |  |   | 731    |        |  |  | 1.13 |     
|                                                        | Federal Funds Sold and Reverse Repurchase Agreements  |                                                    |   | 710,000            |           |                    |   | 2,184   |        |         |  | 1.25    |      |  |   | 586,830   |           |  |   | 2,541  |        |  |  | 1.76 |     
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        |                                                       | Total Earning Assets and Average Rate Earned (5)   |   |                    | 6,169,431 |                    |   |         | 65,470 |         |  |         | 4.30 |  |   |           | 5,363,089 |  |   |        | 65,218 |  |  |      | 4.93 | 
|                                                        | Reserve for Loan Losses                               |                                                    |   | (25,608            | )         |                    |   |         |        |         |  |         |      |  |   | (29,157   | )         |  |   |        |        |  |  |      |     
|                                                        | Cash and Due from Banks                               |                                                    |   | 167,005            |           |                    |   |         |        |         |  |         |      |  |   | 174,875   |           |  |   |        |        |  |  |      |     
|                                                        | Other Assets                                          |                                                    |   | 465,076            |           |                    |   |         |        |         |  |         |      |  |   | 440,622   |           |  |   |        |        |  |  |      |     
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        |                                                       | Total Assets                                       |   | $                  | 6,775,904 |                    |   |         |        |         |  |         |      |  |   | $         | 5,949,429 |  |   |        |        |  |  |      |      | 
|                                                       
|LIABILITIES, MINORITY INTEREST AND
SHAREHOLDERS EQUITY |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        | Interest-Bearing Deposits                             |                                                    | $ | 4,607,395          |           |                    | $ | 10,903  |        |         |  | 0.96    | %    |  | $ | 4,026,968 |           |  | $ | 13,573 |        |  |  | 1.37 | %   
|                                                        | Repurchase Agreements and Other Short-Term Borrowings |                                                    |   | 450,128            |           |                    |   | 1,237   |        |         |  | 1.11    |      |  |   | 528,559   |           |  |   | 1,988  |        |  |  | 1.53 |     
|                                                        | FHLB Borrowings and Other Long-Term Debt              |                                                    |   | 395,503            |           |                    |   | 3,913   |        |         |  | 4.01    |      |  |   | 66,525    |           |  |   | 1,618  |        |  |  | 9.86 |     
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        |                                                       | Total Interest-Bearing Funds and Average Rate Paid |   |                    | 5,453,026 |                    |   |         | 16,053 |         |  |         | 1.19 |  |   |           | 4,622,052 |  |   |        | 17,179 |  |  |      | 1.51 | 
|                                                        | Demand Deposits (4)                                   |                                                    |   | 557,074            |           |                    |   |         |        |         |  |         |      |  |   | 509,888   |           |  |   |        |        |  |  |      |     
|                                                        | Other Liabilities                                     |                                                    |   | 124,874            |           |                    |   |         |        |         |  |         |      |  |   | 105,433   |           |  |   |        |        |  |  |      |     
|                                                        | Minority Interest in Preferred Stock of Subsidiaries  |                                                    |   | 248,584            |           |                    |   |         |        |         |  |         |      |  |   | 348,143   |           |  |   |        |        |  |  |      |     
|                                                        | Shareholders Equity                                  |                                                    |   | 392,346            |           |                    |   |         |        |         |  |         |      |  |   | 363,913   |           |  |   |        |        |  |  |      |     
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        | Total Liabilities, Minority Interest and              |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |      |     
|                                                        |                                                       | Shareholders Equity                               |   | $                  | 6,775,904 |                    |   |         |        |         |  |         |      |  |   | $         | 5,949,429 |  |   |        |        |  |  |      |      | 
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        | NET INTEREST INCOME AND SPREAD                        |                                                    |   |                    |           |                    | $ | 49,417  |        |         |  | 3.11    | %    |  |   |           |           |  | $ | 48,039 |        |  |  | 3.42 | %   
|                                                        |                                                       |                                                    |   |                    |           |                    |   |         |        |         |  |         |      |  |   |           |           |  |   |        |        |  |  |     
|                                                        | NET INTEREST MARGIN ON EARNING ASSETS                 |                                                    |   |                    |           |                    |   |         |        |         |  | 3.25    | %    |  |   |           |           |  |   |        |        |  |  | 3.63 | %   



---

|(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.                                          
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     
|(2) - |  | Loans held for
sale and 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) - |  | Demand deposit balances for all periods presented exclude certain accounts
transferred to the money market classification to reduce the level of deposit
reserves required.
|     
|(5) - |  | Includes loans held for sale but excludes venture
capital investments                                                                                                      

18



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

The composition of average earning assets and average interest-bearing
liabilities is as follows:

|                                                    |  |                    |     |      |  |  |     |  
|--------------------------------------------------- |  | ------------------ | --- | ---- |  |  | --- | -
|                                                    |  | THREE MONTHS ENDED
|                                                    |  | MARCH 31,         
|                                                    |  |                   
|                                                    |  | 2003               |     | 2002
|                                                    |  |                    |     |     
|Total Loans                                         |  |                    | 49  | %    |  |  | 52  | %
|Securities Available for Sale                       |  |                    | 36  |      |  |  | 32  |  
|Time Deposits with Other Banks                      |  |                    | 4   |      |  |  | 5   |  
|Federal Funds Sold &
Reverse Repurchase Agreements  |  |                    | 11  |      |  |  | 11  |  
|                                                    |  |                    |     |      |  |  |     |  
|                                                    |  |                    | 100 | %    |  |  | 100 | %
|                                                    |  |                    |     |      |  |  |     |  
|Interest-Bearings Deposits                          |  |                    | 84  | %    |  |  | 87  | %
|Repurchase Agreements &
Other Short-Term Borrowings |  |                    | 9   |      |  |  | 11  |  
|Long-Term Debt                                      |  |                    | 7   |      |  |  | 2   |  
|                                                    |  |                    |     |      |  |  |     |  
|                                                    |  |                    | 100 | %    |  |  | 100 | %
|                                                    |  |                    |     |      |  |  |     |  

NONINTEREST INCOME

Noninterest income for the first quarter of 2003 totaled $26.1 million, an
increase of 41% from the $18.5 million in the first quarter of 2002. This
increase resulted primarily from securities gains of $4.6 million, compared to
securities gains of $287 thousand in the first quarter of 2002, and a $4.6
million reduction in venture capital losses compared to the prior year.
Securities gains increased as the Company sold high-coupon mortgage- backed
securities that were prepaying rapidly. The increased securities gains and lower
venture capital losses were partially offset by a decline in trust and
investment advisory income of $2.4 million.

The year to year decline in trust and investment advisory income was caused in
part by the lower market value of assets under management which decreased 5%
from $6.85 billion in March 2002 to $6.50 billion in March 2003. Another factor
impacting this business activity was the general uncertainty concerning the
performance of the stock market. New and existing clients were more inclined to
seek less volatile investments, such as fixed income products which typically
have lower fee schedules than equity products.

The decline in trust and investment advisory income for the three month period
also was attributable to the second quarter 2002 renegotiation of a 10-year
agreement with the real estate advisor to the Multi-Employer Property Trust, an
open commingled real estate fund. This advisor now will perform all asset
management for the fund, but we will continue as trustee, investment manager and
custodian, and will provide portfolio-level financial and valuation reporting.
The new agreement, which became effective on July 15, 2002, resulted in a
reduction in revenue for this business activity for the quarter ended March 31,
2003, of approximately $1.6 million from the same quarter of 2002.

These decreases in noninterest income were partially offset by an increase in
service charges and fees of $1.0 million, reflecting the initial successful
implementation of several new fee initiatives and increased advisory and foreign
exchange fees.

Trust and investment advisory income impacts the Riggs & Company segment while
venture capital losses impact the Riggs Capital Partners segment. Securities
gains impact the Other segment, and service charge income primarily impacts the
Banking segment.

NONINTEREST EXPENSE

Noninterest expense for the three months ended March 31, 2003, was $58.9
million, an increase of $2.1 million from the $56.8 million reported for the
three months ended March 31, 2002. This increase was due principally to
increased expenses of $1.0 million for various consultants related to Project
EPS and higher pension and other employee benefit costs of $1.0 million.
Partially offsetting these increases were decreases in outsourcing fees of $721
thousand and smaller decreases in purchased software and advertising and public
relations.

These consulting expenses primarily affect the Other segment. See Note
7-Enhancing Performance and Service, for further discussion of costs related to
this initiative. Pension and other employee benefit costs affect all segments
with the exception of Riggs Capital Partners.

19



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

In July 2002, the Company awarded 370,000 of its common shares to certain key
executives. This award vests in equal amounts through December 2006. In the
first quarter of 2003, we recorded $323 thousand of expense related to this
award which is recorded in salaries and employee benefits in the Consolidated
Statements of Operations. We anticipate recording $969 thousand of expense
related to this award for the remainder of 2003 and approximately $1.3 million
of expense in each of the next three calendar years. To obtain this award,
however, the individual to whom it was granted must be employed by the Company
on the date of distribution each year. Projected expense amounts, therefore,
could vary.

We periodically perform strategic reviews of our business operations including,
but not limited to, operating segments, sub-segments, products, delivery
channels and back-office operations to ensure that levels of performance are
adequate or can be modified in such a way and within a reasonable timeframe so
as to meet expected requirements. If it is determined that our requirements
cannot be met in a satisfactory way and timeframe, we may sell, wind-down,
abandon or take any other measures deemed necessary and prudent for the
long-term benefit of the Company.

FINANCIAL CONDITION

SECURITIES

Securities available for sale totaled $2.45 billion as of March 31, 2003,
compared to $2.32 billion as of year-end 2002 and $1.76 billion as of March 31,
2002. The activity for the first three months of 2003 included purchases of
securities available for sale totaling $3.01 billion, which were generally
offset by maturities and calls, principal payments and sales of securities
available for sale totaling $2.88 billion. The weighted- average duration and
yield for the portfolio, adjusted for anticipated prepayments, were
approximately 1.1 years and 3.62%, respectively, as of March 31, 2003. As of
March 31, 2002, the weighted-average duration and yield were approximately 2.7
years and 4.51%, respectively.

Details on securities available for sale follow:

|                                    |  |                |           |            |  |            |        |       |  |   |     |  |  |   |           | 
|----------------------------------- |  | -------------- | --------- | ---------- |  | ---------- | ------ | ----- |  | - | --- |  |  | - | --------- | 
|                                    |  | MARCH 31, 2003
|                                    |  |               
|                                    |  |                |           |            |  | GROSS      |        | GROSS |  |   |     | 
|                                    |  | AMORTIZED      |           | UNREALIZED |  | UNREALIZED |        | FAIR 
|(IN THOUSANDS)                      |  | COST           |           | GAINS      |  | LOSSES     |        | VALUE
|                                    |  |                |           |            |  |            |        |      
|U.S. Treasury Securities            |  | $              | 4,999     |            |  | $          |       |       |  | $ |    |  |  | $ | 4,999     | 
|Government Agencies Securities      |  |                | 1,332,523 |            |  |            | 4,670  |       |  |   | 11  |  |  |   | 1,337,182 | 
|Mortgage-Backed Securities          |  |                | 1,046,991 |            |  |            | 12,706 |       |  |   | 614 |  |  |   | 1,059,083 | 
|Other Securities                    |  |                | 52,903    |            |  |            |       |       |  |   | 2   |  |  |   | 52,901    | 
|                                    |  |                |           |            |  |            |        |       |  |   |     |  |  |   |           | 
|Total Securities Available for Sale |  | $              | 2,437,416 |            |  | $          | 17,376 |       |  | $ | 627 |  |  | $ | 2,454,165 | 
|                                    |  |                |           |            |  |            |        |       |  |   |     |  |  |   |           | 

|                                    |  |                |           |            |  |            |       |       |  |   |        |  |  |   |           | 
|----------------------------------- |  | -------------- | --------- | ---------- |  | ---------- | ----- | ----- |  | - | ------ |  |  | - | --------- | 
|                                    |  | MARCH 31, 2002
|                                    |  |               
|                                    |  |                |           |            |  | GROSS      |       | GROSS |  |   |        | 
|                                    |  | AMORTIZED      |           | UNREALIZED |  | UNREALIZED |       | FAIR 
|(IN THOUSANDS)                      |  | COST           |           | GAINS      |  | LOSSES     |       | VALUE
|                                    |  |                |           |            |  |            |       |      
|U.S. Treasury Securities            |  | $              | 89,967    |            |  | $          | 1     |       |  | $ | 1      |  |  | $ | 89,967    | 
|Government Agencies Securities      |  |                | 841,986   |            |  |            | 485   |       |  |   | 3,014  |  |  |   | 839,457   | 
|Mortgage-Backed Securities          |  |                | 787,329   |            |  |            | 1,446 |       |  |   | 10,122 |  |  |   | 778,653   | 
|Other Securities                    |  |                | 51,401    |            |  |            | 14    |       |  |   |       |  |  |   | 51,415    | 
|                                    |  |                |           |            |  |            |       |       |  |   |        |  |  |   |           | 
|Total Securities Available for Sale |  | $              | 1,770,683 |            |  | $          | 1,946 |       |  | $ | 13,137 |  |  | $ | 1,759,492 | 
|                                    |  |                |           |            |  |            |       |       |  |   |        |  |  |   |           | 

20



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

|                                    |  |                   |           |            |  |            |        |       |  |   |    |  |  |   |           | 
|----------------------------------- |  | ----------------- | --------- | ---------- |  | ---------- | ------ | ----- |  | - | -- |  |  | - | --------- | 
|                                    |  | DECEMBER 31, 2002
|                                    |  |                  
|                                    |  |                   |           |            |  | GROSS      |        | GROSS |  |   |    | 
|                                    |  | AMORTIZED         |           | UNREALIZED |  | UNREALIZED |        | FAIR 
|(IN THOUSANDS)                      |  | COST              |           | GAINS      |  | LOSSES     |        | VALUE
|                                    |  |                   |           |            |  |            |        |      
|U.S. Treasury Securities            |  | $                 | 4,998     |            |  | $          |       |       |  | $ |   |  |  | $ | 4,998     | 
|Government Agencies Securities      |  |                   | 1,268,874 |            |  |            | 4,499  |       |  |   | 9  |  |  |   | 1,273,364 | 
|Mortgage-Backed Securities          |  |                   | 970,386   |            |  |            | 15,109 |       |  |   | 11 |  |  |   | 985,484   | 
|Other Securities                    |  |                   | 56,049    |            |  |            | 22     |       |  |   |   |  |  |   | 56,071    | 
|                                    |  |                   |           |            |  |            |        |       |  |   |    |  |  |   |           | 
|Total Securities Available for Sale |  | $                 | 2,300,307 |            |  | $          | 19,630 |       |  | $ | 20 |  |  | $ | 2,319,917 | 
|                                    |  |                   |           |            |  |            |        |       |  |   |    |  |  |   |           | 

Realized gains from the sale of securities totaled $4.6 million for the period
ended March 31, 2003 and there were no realized losses. For the period ending
March 31, 2002, realized gains were $373 thousand and realized losses were $86
thousand.

Substantially all of our available for sale securities have been issued by the
U.S. Treasury, an agency of the U.S. Government or a government sponsored entity
(such as the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation) and, therefore, the repayment of substantially all of our
securities is either guaranteed by the government or a AAA rated entity. As a
result, we believe that timely payment of principal and interest is reasonably
assured and any unrealized gain or loss is, therefore, attributable to changes
in market interest rates.

The balance of securities available for sale fluctuates in part because of the
amount of deposits kept at Riggs by the U.S. Government, as these deposits are
collateralized by treasury and agency securities.

LOANS

As of March 31, 2003, loans outstanding totaled $3.08 billion, with residential
mortgage/home equity, commercial and financial, and real estate-
commercial/construction comprising 54%, 18% and 18% of the portfolio,
respectively. At March 31, 2002, these percentages were 49%, 17% and 18%,
respectively. The residential mortgage/home equity loans are fully secured with
approximately 10% having a loan to value ratio of 90% or greater.

As indicated in the following table, total loans increased from $2.77 billion
and $3.01 billion at March 31, 2002, and December 31, 2002, respectively. Since
March of 2002, the increases were primarily in the commercial and financial,
real estate-commercial/construction, and residential real estate loan
portfolios. These increases were partially offset by decreases in home equity,
consumer and foreign loans.

As of March 31, 2003, foreign loans outstanding totaled $260.0 million, a
decrease of $136.3 million from March 31, 2002. This decrease is primarily
attributable to the Companys continuing de-emphasis of commercial lending at
RBEL. As part of this strategy, we sold $138.3 million in loans and loan
commitments at RBEL in the third and fourth quarters of 2002.

We periodically purchase residential mortgage loans to utilize liquidity. Since
March 2002, we have purchased $473.0 million of these loans at a net premium of
approximately $8.8 million. This premium, along with a $3.1 million reduction in
net deferred loan costs associated with the sale of loans at RBEL described
previously, resulted in the $11.9 million change in the balance of net deferred
loan fees, premiums and discounts.

21



---



##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

|                                               |  |           |           |           |  |              |     |   |  |   |           |   |  |  |     |   |  |   |           |  |  |  |     |  
|---------------------------------------------- |  | --------- | --------- | --------- |  | ------------ | --- | - |  | - | --------- | - |  |  | --- | - |  | - | --------- |  |  |  | --- | -
|                                               |  | MARCH 31, |           | MARCH 31, |  | DECEMBER 31,
|                                               |  | 2003      |           | 2002      |  | 2002        
|                                               |  |           |           |           |  |             
|(IN THOUSANDS)                                 |  |           |           |           |  |              |     |   |  |   |           |   |  |  |     |   |  |   |           |  |  |  |     |  
|Commercial and Financial                       |  | $         | 555,942   |           |  |              | 18  | % |  | $ | 469,311   |   |  |  | 17  | % |  | $ | 613,786   |  |  |  | 20  | %
|Real Estate  Commercial/Construction          |  |           | 558,676   |           |  |              | 18  |   |  |   | 499,174   |   |  |  | 18  |   |  |   | 559,384   |  |  |  | 19  |  
|Residential Mortgage                           |  |           | 1,371,555 |           |  |              | 45  |   |  |   | 1,060,761 |   |  |  | 39  |   |  |   | 1,226,458 |  |  |  | 41  |  
|Home Equity                                    |  |           | 268,008   |           |  |              | 9   |   |  |   | 285,594   |   |  |  | 10  |   |  |   | 279,737   |  |  |  | 9   |  
|Consumer                                       |  |           | 61,183    |           |  |              | 2   |   |  |   | 63,729    |   |  |  | 2   |   |  |   | 65,437    |  |  |  | 2   |  
|Foreign                                        |  |           | 260,033   |           |  |              | 8   |   |  |   | 396,329   |   |  |  | 14  |   |  |   | 259,290   |  |  |  | 9   |  
|                                               |  |           |           |           |  |              |     |   |  |   |           |   |  |  |     |   |  |   |           |  |  |  |     |  
|Total Loans                                    |  | $         | 3,075,397 |           |  |              | 100 | % |  | $ | 2,774,898 |   |  |  | 100 | % |  | $ | 3,004,092 |  |  |  | 100 | %
|Net Deferred Loan Fees,
Premiums and Discounts |  |           | 8,828     |           |  |              |     |   |  |   | (3,058    | ) |  |  |     |   |  |   | 3,813     |  |  |  |     |  
|                                               |  |           |           |           |  |              |     |   |  |   |           |   |  |  |     |   |  |   |           |  |  |  |     |  
|Loans                                          |  | $         | 3,084,225 |           |  |              |     |   |  | $ | 2,771,840 |   |  |  |     |   |  | $ | 3,007,905 |  |  |  |     |  
|                                               |  |           |           |           |  |              |     |   |  |   |           |   |  |  |     |   |  |   |           |  |  |  |     |  

RESERVE FOR LOAN LOSSES

Changes in the reserve for loan losses are summarized as follows:

|                                         |                                       |      |                    |      |  |   |        |     | 
|---------------------------------------- | ------------------------------------- | ---- | ------------------ | ---- |  | - | ------ | --- | 
|                                         |                                       |      | THREE MONTHS ENDED
|                                         |                                       |      | MARCH 31,         
|                                         |                                       |      |                   
|(IN THOUSANDS)                           |                                       | 2003 |                    | 2002
|                                         |                                       |      |                    |     
|Balance, January 1                       |                                       | $    | 25,958             |      |  | $ | 29,540 |    
|Provision for loan losses                |                                       |      | 926                |      |  |   | (1,668 | )  
|Loans charged-off                        |                                       |      | 1,421              |      |  |   | 1,455  |    
|                                         | Less: Recoveries on charged-off loans |      |                    | 386  |  |   |        | 524 | 
|                                         |                                       |      |                    |      |  |   |        |    
|Net loan charge-offs                     |                                       |      | 1,035              |      |  |   | 931    |    
|Foreign exchange translation adjustments |                                       |      | (52                | )    |  |   | (223   | )  
|                                         |                                       |      |                    |      |  |   |        |    
|Balance, March 31                        |                                       | $    | 25,797             |      |  | $ | 26,718 |    

The reserve amount is determined based on the risk in the loan portfolio. For
the three month period ended March 31, 2003, we had a consolidated loan loss
provision of $926 thousand. A domestic provision was made to provide coverage
for the Companys increased residential real estate loan growth and continuing
uncertainties concerning the domestic economy.

Foreign loans and other credits may be adversely affected by political
instabilities, including military confrontations. The Company cannot estimate
the losses, if any, associated with any such instability. See Note 15 of Notes
to Consolidated Financial Statements in our 2002 Form 10-K.

Provisions to the reserve for loan losses are charged against, or credited to,
earnings in amounts necessary to maintain an adequate reserve for loan losses.
Commercial loans are charged off when it is determined that the loan cannot be
fully recovered. Consumer loans are charged off upon becoming 120 days
delinquent. Residential real estate loans are charged off to the extent
necessary when foreclosure occurs.

22



---



##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

ASSET QUALITY

NONPERFORMING ASSETS

Nonperforming assets, which include nonaccrual loans, renegotiated loans and
other real estate (net of reserves) and repossessed assets, totaled $4.4 million
as of March 31, 2003, a $3.7 million increase from the year-end 2002 total of
$670 thousand and a $486 thousand increase from the March 31, 2002 total of $3.9
million. Of the $4.4 million balance at March 31, 2003, $73 thousand is recorded
in our Banking segment, and $4.3 million is in our International Banking
segment. The increase in nonperforming assets from year-end 2002 was mainly due
to a commercial loan in the amount of $4.1 million at our London operations
being placed in the nonaccrual category, partially offset by payments on another
London based loan totaling $335 thousand.

In the second quarter of 2002, we sold the last remaining property in our real
estate owned portfolio previously held in the Other segment, which as of March
31, 2003, continued to have a balance of $0. The $97 thousand balance in other
assets owned is comprised of repossessed equipment and automobiles from our
commercial lease financing business in London, which is part of the
International Banking segment.

As of March 31, 2003, the Company had a specific reserve of $595 thousand
applied to the impaired $4.1 million commercial loan at RBEL mentioned
previously.

PAST-DUE AND POTENTIAL PROBLEM LOANS

Past-due loans consist of residential real estate loans, commercial and
industrial loans, and consumer loans that are in the process of collection and
that are accruing interest. Loans past-due over 90 days increased $238 thousand
from December 31, 2002 to $11.3 million at March 31, 2003 and decreased $3.4
million from March 31, 2002.

NONPERFORMING ASSETS AND PAST-DUE LOANS

|                                              |  |           |        |           |  |              |        |  |  |   |        | 
|--------------------------------------------- |  | --------- | ------ | --------- |  | ------------ | ------ |  |  | - | ------ | 
|                                              |  | MARCH 31, |        | MARCH 31, |  | DECEMBER 31,
|(IN THOUSANDS)                                |  | 2003      |        | 2002      |  | 2002        
|                                              |  |           |        |           |  |             
|NONPERFORMING ASSETS:                         |  |           |        |           |  |              |        |  |  |   |        | 
|                                             
|Nonaccrual Loans (1)                          |  | $         | 4,264  |           |  | $            | 625    |  |  | $ | 548    | 
|Renegotiated Loans                            |  |           |       |           |  |              | 568    |  |  |   |       | 
|Other Real Estate and Repossessed Assets, Net |  |           | 97     |           |  |              | 2,682  |  |  |   | 122    | 
|                                              |  |           |        |           |  |              |        |  |  |   |        | 
|Total Nonperforming Assets                    |  | $         | 4,361  |           |  | $            | 3,875  |  |  | $ | 670    | 
|                                             
|30-89 DAYS PAST-DUE LOANS (2)                 |  | $         | 25,924 |           |  | $            | 21,436 |  |  | $ | 35,593 | 
|                                             
|90+ DAYS PAST-DUE LOANS (3)                   |  | $         | 11,283 |           |  | $            | 14,690 |  |  | $ | 11,045 | 
|                                             
|POTENTIAL PROBLEM LOANS                       |  | $         | 119    |           |  | $            | 462    |  |  | $ | 5,302  | 



|(1) |  | Loans that are in default in either principal or interest for 90 days
or more that are not well-secured and in the process of collection,
or that are, in managements opinion, doubtful as to the
collectibility of either interest or principal.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Loans contractually past due 30-89 days or more in principal or interest.                                                                                                                                                                         
|   
|(3) |  | Loans contractually past due 90 days or more in principal or interest that
are well-secured and in the process of collection.                                                                                                                     

DEPOSITS

Deposits are our primary and most stable source of funds. Deposits totaled $5.29
billion as of March 31, 2003, an increase of $51.1 million from $5.24 billion at
December 31, 2002, and an increase of $745.4 million from $4.54 billion at March
31, 2002. Compared to the December 31, 2002, and March 31, 2002 totals, deposits
increased significantly in time deposits in domestic offices, primarily due to
increased compensating balances maintained by a large U.S. governmental
customer. Except for fluctuating balances in time deposits in foreign offices,
balances in all other categories of deposits increased from both December 31 and
March 31 of 2002.

23



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##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED

As a means of reducing deposit reserve requirements, we periodically sweep
excess demand funds into money market accounts. The average balances transferred
for the three months ended March 31, 2003 and 2002, which are not included in
demand deposits in our averages tables, were $472.0 million and $461.1 million,
respectively.

LIQUIDITY

We seek to maintain sufficient liquidity to meet the needs of depositors,
borrowers and creditors at a reasonable cost and without undue stress on our
operations. Our Asset/Liability Committee (ALCO) actively analyzes and manages
liquidity in coordination with other areas of the organization (see Sensitivity
to Market Risk). As of March 31, 2003, our liquid assets, on a consolidated
basis, which include cash and due from banks, Government obligations and other
securities, federal funds sold, reverse repurchase agreements and time deposits
at other banks, totaled $3.48 billion (49% of total assets). This compares to
$3.35 billion (49% of total assets) as of December 31, 2002, and $2.68 billion
(46% of total assets) as of March 31, 2002. As of March 31, 2003, $1.74 billion
of our assets were pledged to secure deposits and other borrowings. This
compares to pledged assets of $1.69 billion as of December 31, 2002, and $1.36
billion as of March 31, 2002.

Our liquidity position is maintained by a stable source of funds from our core
deposit relationships. We also have a line of credit available through our
membership in the FHLB Atlanta. As of March 31, 2003, December 31, 2002, and
March 31, 2002, short-term credit lines and the FHLB Atlanta line of credit
available totaled approximately $649.9 million, $743.8 million, and $963.0
million, respectively. As of March 31, 2003, December 31, 2002, and March 31,
2002, the amounts outstanding under these lines were $411.5 million, $312.4
million, and $16.1 million, respectively.

In the first quarter of 2003, we borrowed $102.0 million from our credit line at
the FHLB. These borrowings were in addition to the $292.0 million we borrowed in
December of 2002. These advances have maturity dates through 2007 and bear rates
of interest from .79% to 3.70 %.

Short-term borrowings are another source of funds that we utilize to meet
certain asset/liability and daily cash management objectives and also are used
to generate cash and to maintain adequate liquidity. As of March 31, 2003, the
Company believes it has sufficient liquidity to meet its future funding needs.
However, there are many factors which impact liquidity that are beyond our
ability to control or influence and, therefore, we cannot represent that future
liquidity will remain adequate.

SHAREHOLDERS EQUITY AND REGULATORY CAPITAL

Total shareholders equity as of March 31, 2003 was $392.0 million, an increase
of $2.7 million from year-end 2002 and an increase of $33.5 million from a year
ago. The increase from year-end was primarily the result of net income of $5.9
million, partially offset by payments of dividends on our common stock of $1.4
million and unrealized losses on our investment portfolio of $1.9 million. The
increase from March 31, 2002 was primarily the result of net income of $17.5
million, $18.2 million in net unrealized securities gains, $2.3 million from the
repurchase of trust preferred securities, and $1.5 million in foreign exchange
translation adjustments. These year to year increases were partially offset by
cash dividends of $5.7 million and unrealized losses on derivatives of $665
thousand.

Book value per common share was $13.74 as of March 31, 2003, compared to $13.65
as of year-end 2002 and $12.57 as of March 31, 2002. The increase in book value
from March 31 of the prior year and the increase from year-end 2002 were
primarily the result of the net income, dividends, net unrealized securities
gains, and repurchases of trust preferred securities described in the preceding
paragraph.

On July 24, 2002, we announced the resumption of our stock buyback program. The
Company has approved the purchase of up to 600,000 shares of its common stock in
the open market from time to time, subject to market conditions. Since that
date, we have repurchased 1,000 shares at a price of $12.25 and 14,290 shares at
a price of $15.47.

Following are our capital ratios (as defined in the regulations) and those of
our banking subsidiary, Riggs Bank National Association (Riggs Bank N.A.) as of
March 31, 2003 and 2002, and December 31, 2002. For comparative purposes, it
should be noted that our trust preferred securities, which at March 31, 2003
carried a blended interest rate of 8.79%, are included in the calculations for
Tier I, as allowed, and Combined Tier I and Tier II capital ratios. This rate
paid is significantly higher than the target federal funds rate at March 31,
2003, of 1.25%.

Both Riggs and Riggs Bank N.A. are classified as well-capitalized for purposes of federal banking regulations.

24



---



##### 



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, CONTINUED

|                            |                             |  |           |       |           |  |              |       |          |  |  |       |   |  |  |      |  
|--------------------------- | --------------------------- |  | --------- | ----- | --------- |  | ------------ | ----- | -------- |  |  | ----- | - |  |  | ---- | -
|                            |                             |  | MARCH 31, |       | MARCH 31, |  | DECEMBER 31, |       | REQUIRED
|                            |                             |  | 2003      |       | 2002      |  | 2002         |       | MINIMUMS
|                            |                             |  |           |       |           |  |              |       |         
|RIGGS NATIONAL CORPORATION: |                             |  |           |       |           |  |              |       |          |  |  |       |   |  |  |     
|                            | Tier I                      |  |           | 13.89 | %         |  |              | 15.24 | %        |  |  | 14.13 | % |  |  | 4.00 | %
|                            | Combined Tier I and Tier II |  |           | 19.80 |           |  |              | 23.60 |          |  |  | 20.25 |   |  |  | 8.00 |  
|                            | Leverage                    |  |           | 7.46  |           |  |              | 8.13  |          |  |  | 7.85  |   |  |  | 4.00 |  
|                           
|RIGGS BANK N.A.:            |                             |  |           |       |           |  |              |       |          |  |  |       |   |  |  |     
|                            | Tier I                      |  |           | 12.54 | %         |  |              | 14.48 | %        |  |  | 12.76 | % |  |  | 4.00 | %
|                            | Combined Tier I and Tier II |  |           | 13.27 |           |  |              | 15.36 |          |  |  | 13.52 |   |  |  | 8.00 |  
|                            | Leverage                    |  |           | 6.76  |           |  |              | 7.80  |          |  |  | 7.17  |   |  |  | 4.00 |  

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

SENSITIVITY TO MARKET RISK

We are exposed to various market risks. Some of these risks are discussed in our
Annual Report on Form 10-K. We have determined that interest- rate risk may have
a material impact on our financial performance, and as such we have established
the Asset/Liability Committee to manage interest-rate risk. The role of this
committee is to manage the asset/liability mix of our operations in an effort to
provide a stable net interest margin while maintaining liquidity and capital.
This entails the management of our overall risk in conjunction with the
acquisition and deployment of funds based upon ALCOs view of both current and
prospective market and economic conditions. We also have risk associated with
foreign currency exchange which we attempt to mitigate through various hedges.
See Note 6-Accounting for Derivatives.

We manage our interest-rate risk through the use of an income simulation model,
which forecasts the impact on net interest income of a variety of different
interest rate scenarios. A most likely interest rate scenario is forecasted
based upon an analysis of current market conditions and expectations. The model
then evaluates the impact on net interest income of rates moving significantly
higher or lower than the most likely scenario. Most likely is defined as the
outlook of the Banks Treasury Group on the path of future interest rates. As of
March 31, 2003, the most likely interest rate scenario calls for the federal
funds target rate to be flat at 1.25% through December 2003. The federal funds
target rate then rises gradually to 4.00% by April 2005, holding at that level
for the remainder of the forecast horizon. The results are compared to risk
tolerance limits set by corporate policy. The models results as of March 31,
2003 are shown on the following page. Current policy establishes limits for
possible changes in net interest income for 12 and 36 month horizons. The
interest rate scenarios monitored by ALCO are based upon a 100 basis point (1%)
gradual increase or decrease in rates over a 12-month time period versus the
most likely scenario and a 300 basis point (3%) gradual increase or decrease in
rates over a 36-month time period versus the most likely scenario.

25



---



##### 



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, CONTINUED

INTEREST-RATE SENSITIVITY ANALYSIS (1)

|                                                         |                                         |        |                                                 |        |                        |        |   |        |   |  |   |         |    |  |   |        |  
|-------------------------------------------------------- | --------------------------------------- | ------ | ----------------------------------------------- | ------ | ---------------------- | ------ | - | ------ | - |  | - | ------- | -- |  | - | ------ | -
|                                                         |                                         |        | MOVEMENTS IN INTEREST RATES FROM MARCH 31, 2003
|                                                         |                                         |        |                                                
|                                                         |                                         |        | SIMULATED IMPACT OVER                           |        | SIMULATED IMPACT OVER 
|                                                         |                                         |        | NEXT TWELVE MONTHS                              |        | NEXT THIRTY-SIX MONTHS
|                                                         |                                         |        |                                                 |        |                       
|(In Thousands)                                           |                                         | +100BP |                                                 | -100BP |                        | +300BP |   | -300BP
|                                                         |                                         |        |                                                 |        |                        |        |   |       
|Simulated Impact Compared With a
Most Likely Scenario: |                                         |        |                                                 |        |                        |        |   |        |   |  |   |         |    |  |   |       
|                                                        
|                                                         | Net Interest Income Increase/(Decrease) |        |                                                 | (1.1   | )%                     |        |   | 1.4    | % |  |   | (5.7    | )% |  |   | 2.5    | %
|                                                        
|                                                         | Net Interest Income Increase/(Decrease) |        | $                                               | (2,154 | )                      |        | $ | 2,682  |   |  | $ | (31,016 | )  |  | $ | 13,441 |  



|(1) |  | Key Assumptions:                                                                                                                                                                                                                                                                                                                       
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | Assumptions with respect to the models projections 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 the management of the various units of the Corporation.                                                                                                                                                                                              
|   
|2.  |  | Interest rate scenarios which are generated by ALCO for the most likely
scenario and are dictated by ALCOs policy for the alternative scenarios.                                                                                                                                                                                    
|   
|3.  |  | Spread relationships between various interest rate indices, which are
generated by the analysis of historical relationships and ALCO 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 the management of the various units of the Corporation.                                                                                                                                                                                           

As of March 31, 2003, the forecasted impact of rates rising or falling 100 basis
points versus the most likely scenario over a 12-month time period was a
change in net interest income not exceeding 2%. For a 300 basis point movement
in rates versus the most likely scenario over a 36- month period, the impact
on net interest income did not exceed 6%. The results of the simulation for
March 31, 2003 indicated that the Bank was liability sensitive due to a large
portion of its assets being comprised of fixed-rate instruments. Earnings
benefit in a declining rate environment from increasing spreads on fixed-rate
assets but are offset somewhat by floors on deposit rates and faster prepayment
rates on mortgage loans and mortgage backed securities.

In managing our interest-rate risk, ALCO uses financial derivative instruments,
such as interest-rate swaps. Financial derivatives are employed to assist in the
management and/or reduction of our interest-rate risk and can effectively alter
the interest-rate sensitivity of portions of the Statements of Condition for
specified periods of time. Along with financial derivative instruments, the
income simulation model includes short- term financial instruments, investment
securities, loans, deposits, and other borrowings.

Though we find that the methodologies previously discussed provide a meaningful
representation of our interest-rate and market risk sensitivity, factors other
than changes in the interest-rate environment, such as levels of non-earning
assets, and changes in the composition of earning assets, may affect our risk
sensitivity, and, therefore, our net interest income. As with any method of
measuring interest-rate risk, certain shortcomings are inherent in our model. As
such, the predictive value of our model is not guaranteed.

At March 31, 2003, December 31, 2002 and March 31, 2002, our cumulative one year
gap was $(65.6) million, $(51.0) million and $(919.0) million, respectively. A
small negative gap, such as that which exists at March 31, 2003, indicates that
the Companys interest rate position is balanced. A negative gap position
indicates that the Company would be adversely impacted by rising interest rates
since interest earning deposits would reprice more quickly than interest earning
assets.

COMMITMENTS

Various commitments to extend credit are made in the normal course of banking
business. Commitments to extend credit and letters of credit outstanding as of
March 31, 2003 and 2002, and December 31, 2002 are detailed below:

26



---



##### 



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, CONTINUED

|                             |  |           |           |           |  |              |         |  |  |   |           | 
|---------------------------- |  | --------- | --------- | --------- |  | ------------ | ------- |  |  | - | --------- | 
|                             |  | MARCH 31, |           | MARCH 31, |  | DECEMBER 31,
|                             |  | 2003      |           | 2002      |  | 2002        
|                             |  |           |           |           |  |             
|Commitments to extend credit |  | $         | 1,128,914 |           |  | $            | 989,126 |  |  | $ | 1,039,724 | 
|                            
|Commercial letters of credit |  |           | 67,129    |           |  |              | 81,983  |  |  |   | 70,479    | 
|                            
|Stand-by letters of credit   |  |           | 61,340    |           |  |              | 68,994  |  |  |   | 53,540    | 

At March 31, 2003, a liability of $72 thousand was recorded in the Consolidated
Statement of Condition for the stand-by letters of credit as required by FIN 45.
No liability was recorded at March 31, 2002 or December 31, 2002.

The above commitment amounts are not reflected in the Consolidated Statements of
Condition and many of the commitments will expire without being drawn upon. Such
commitments are issued only upon careful evaluation of the financial condition
of the customer.

The Company also was committed to fund venture capital investments in the amount
of $12.7 million and $22.2 million at March 31, 2003 and 2002, respectively.

ITEM 4.  CONTROLS AND PROCEDURES

With the participation and under the supervision of the Companys management,
including the Companys Chief Executive Officer and Chief Financial Officer, and
within 90 days of the filing date of this quarterly report, the Companys Chief
Executive Officer and Chief Financial Officer have evaluated the effectiveness
of the design and operation of the Companys disclosure controls and procedures
(as defined in Exchange Act Rules 13(a)-14(c) and 15(d)-14(c)) and, based on
their evaluation, have concluded that the disclosure controls and procedures are
effective. There were no significant changes in the Companys internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective action with regard to
significant deficiencies and material weaknesses.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Because we want to provide you with more meaningful and useful information, this
Quarterly Report on Form 10-Q includes forward-looking statements (as such term
is defined in Section 21E of the Securities Exchange Act of 1934, as amended)
that reflect our current expectations and projections about our future results,
performance, prospects and opportunities, and include, without limitation, the
references in this 10-Q to earnings from venture capital, implementation of our
business strategy, hedging activities and our trust and investment advisory
income. We have attempted to identify these forward-looking statements by using
words such as may, will, expect, anticipate, believe, intend,
estimate, could or similar expressions. These forward-looking statements are
based on information currently available to us and are subject to a number of
risks, uncertainties and other factors that could cause our actual results,
performance, prospects or opportunities in 2003 and beyond to differ materially
from those expressed in, or implied by, these forward-looking statements. These
risks include, but are not limited to, certain risks and uncertainties that may
affect the operations, performance, development, growth projections and results
of our business. More specifically, these risks include the growth of (or
decline in) the economy, changes in credit quality or interest rates, changes in
value of venture capital investments in the technology and other sectors, timing
of technology enhancements for products and operating systems, the impact of
competitive products, services and pricing, customer business requirements,
Congressional legislation, regulatory oversight, general economic
conditions-both domestic and international-and similar matters. In addition, the
continuing impact of the September 11, 2001 terrorist attacks on the U.S. and
global economy, the possibility of additional attacks, and international
political conditions also may be an important factor or make the occurrence of
one or more of the aforementioned risks or factors more likely.

You should not place undue reliance on any forward-looking statements. We
undertake no obligation to publicly update or revise any forward- looking
statements, whether as a result of new information, future events, changed
circumstances or any other reason after the date of this Quarterly Report on
Form 10-Q.

27



---



##### 



RIGGS NATIONAL CORPORATION

PART II OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

In the normal course of business we are involved in various types
of litigation and disputes that may lead to litigation. The Company
believes that pending or unasserted legal actions will not have a
material impact on its financial condition or future operations.

ITEM 2.   CHANGES IN SECURITIES

Not applicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

Not applicable.

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

Not applicable.

ITEM 5.   OTHER INFORMATION

Not applicable.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits

The exhibits listed on page 31 are incorporated by reference
or filed herewith in response to this item.

(b)     Reports
on Form 8-K

None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

RIGGS NATIONAL CORPORATION



|Date: May 14, 2003 | /s/ ROBERT L.
ALLBRITTON
Robert L. Allbritton
Chairman of the Board and Chief Executive Officer
|------------------ | -----------------------------------------------------------------------------------------------



|Date: May 14, 2003 | /s/ STEVEN T. TAMBURO

Steven T. Tamburo
Treasurer
(Chief Financial Officer)
|------------------ | ----------------------------------------------------------------------------

28



---



##### 



RIGGS NATIONAL CORPORATION

Certification
(Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended)



|   |  | I, Robert L. Allbritton, certify that:                                                                                                                                                                                                                                                                                        
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|1. |  | I have reviewed this quarterly report on Form 10-Q of Riggs National Corporation (the registrant);                                                                                                                                                                                                                          
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                   
|  
|4. |  | The registrants other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and we have:                                                                                                      



| | a) |  | designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls
and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The registrants other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrants auditors
and the audit committee of registrants board of directors (or
persons performing the equivalent function):
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to
record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants
internal controls; and                                                                                                                                        



|6. |  | The registrants other certifying officer and I have indicated in
this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Date: May 14, 2003 | /s/ Robert L. Allbritton

Robert L. Allbritton
Chief Executive Officer
|------------------ | ----------------------------------------------------------------------

29



---



##### 



RIGGS NATIONAL CORPORATION

Certification
(Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended)



|   |  | I, Steven T. Tamburo, certify that:                                                                                                                                                                                                                                                                                           
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|1. |  | I have reviewed this quarterly report on Form 10-Q of Riggs National Corporation (the registrant);                                                                                                                                                                                                                          
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                   
|  
|4. |  | The registrants other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and we have:                                                                                                      



| | a) |  | designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls
and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The registrants other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrants auditors
and the audit committee of registrants board of directors (or
persons performing the equivalent function):
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to
record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants
internal controls; and                                                                                                                                        



|6. |  | The registrants other certifying officer and I have indicated in
this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Date: May 14, 2003 | /s/ Steven T. Tamburo

Steven T. Tamburo
Chief Financial Officer
|------------------ | ----------------------------------------------------------------

30



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##### 



INDEX TO EXHIBITS

|            |  |                                                                        |  |       |    | 
|----------- |  | ---------------------------------------------------------------------- |  | ----- | -- | 
|EXHIBIT
NO. |  | DESCRIPTION                                                            |  | PAGES
|            |  |                                                                        |  |      
|(99.1)      |  | Chief Executive Officer Certification of Quarterly Report on Form 10-Q |  |       | 32 | 
|           
|(99.2)      |  | Chief Financial Officer Certification of Quarterly Report on Form 10-Q |  |       | 33 | 

(Exhibits omitted are not required or not applicable.)

31