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 June 30, 1999


               [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                       OF THE SECURITIES EXCHANGE ACT OF 1934

              For the transition period from ________ to _________

                          Commission File Number 0-9756

                           RIGGS NATIONAL CORPORATION
                           --------------------------
             (Exact name of registrant as specified in its charter)

                 Delaware                         52-1217953
                 --------                         ----------
        (State or other jurisdiction of       (I.R.S. Employer
         incorporation or organization)      Identification No.)

             1503 Pennsylvania Avenue, N.W., Washington, D.C. 20005
             ------------------------------------------------------
             (Address of principal executive offices)    (Zip Code)

                                 (301) 887-6000
                                 --------------
              (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 .

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                          28,312,197 shares
   -----------------------------                   ---------------------------
         (Title of Class)                        (Outstanding at August 6, 1999)

<PAGE>



                           RIGGS NATIONAL CORPORATION


                                TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION                                         PAGE NO.


Item 1. Financial Statements-Unaudited

           Consolidated Statements of Income
           Three and six months ended June 30, 1999 and 1998                3

           Consolidated Statements of Condition
           June 30, 1999 and 1998, and December 31, 1998                    4

           Consolidated Statements of Changes in Stockholders' Equity
           Six months ended June 30, 1999 and 1998                          5

           Consolidated Statements of Cash Flows
           Six months ended June 30, 1999 and 1998                          6

           Notes to the Consolidated Financial Statements                7-11


Item 2. Management's Discussion and Analysis of Financial
           Condition and Results of Operations                          12-19


Item 3. Quantitative and Qualitative Disclosures About Market Risk      20-22


PART II.OTHER INFORMATION


Item 1. Legal Proceedings                                                None

Item 2. Change in Securities                                             None

Item 3. Defaults Upon Senior Securities                                  None

Item 4. Submission of Matters to a Vote of Security Holders                23

Item 5. Other Information                                                None

Item 6. Exhibits and Reports on Form 8-K                                   24


Signatures                                                                 24




                                      -2-



<PAGE>



                          PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS-UNAUDITED

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(unaudited)                                                                  THREE MONTHS ENDED            SIX MONTHS ENDED
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)                                          JUNE 30,                     JUNE 30,
                                                                        ----------------------------------------------------------

                                                                               1999          1998           1999          1998
==================================================================================================================================
<S>                                                                           <C>           <C>          <C>            <C>

INTEREST INCOME
  Interest and Fees on Loans                                                  $56,404       $57,136      $114,278       $112,396
  Interest and Dividends on Securities Available for Sale                      17,025        17,926        31,338         38,811
  Interest on Time Deposits with Other Banks                                    6,159         8,648        13,393         14,616
  Interest on Federal Funds Sold and Reverse Repurchase Agreements              1,221         3,358         3,327          8,177
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Income                                                        80,809        87,068       162,336        174,000

INTEREST EXPENSE
  Interest on Deposits:
      Savings and NOW Accounts                                                    626         1,361         1,313          2,735
      Money Market Deposit Accounts                                             8,591        10,179        16,947         22,090
      Time Deposits in Domestic Offices                                         9,948        10,213        19,961         19,211
      Time Deposits in Foreign Offices                                          7,620         8,479        15,919         15,982
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Deposits                                                   26,785        30,232        54,140         60,018
----------------------------------------------------------------------------------------------------------------------------------
  Interest on Short-Term Borrowings and Long-Term Debt:
      Repurchase Agreements and Other Short-Term Borrowings                     3,818         5,106         7,796         10,199
      Long-Term Debt                                                            4,368         4,368         8,736          8,736
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Short-Term Borrowings and Long-Term Debt                    8,186         9,474        16,532         18,935
----------------------------------------------------------------------------------------------------------------------------------

  Total Interest Expense                                                       34,971        39,706        70,672         78,953
----------------------------------------------------------------------------------------------------------------------------------

  Net Interest Income                                                          45,838        47,362        91,664         95,047
  Less:  Provision for Loan Losses                                                  -             -             -              -
----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income after Provision for Loan Losses                          45,838        47,362        91,664         95,047

NONINTEREST INCOME
  Trust and Investment Advisory Income                                         12,685        11,904        25,290         23,024
  Service Charges and Fees                                                      9,879         9,663        19,330         18,757
  Other Noninterest Income                                                      1,769         2,203         3,957          4,802
  Securities Gains, Net                                                         1,018         1,457         1,104          6,781
----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Income                                                     25,351        25,227        49,681         53,364

NONINTEREST EXPENSE
  Salaries and Employee Benefits                                               21,811        21,076        44,069         41,715
  Data Processing Services                                                      4,722         3,891         9,283          9,157
  Occupancy, Net                                                                4,555         4,361         9,221          8,878
  Furniture and Equipment                                                       2,658         2,462         5,223          5,024
  Other Real Estate Owned Expense (Income), Net                                    22            13            38            (38)
  Other Noninterest Expense                                                    16,441        15,267        32,530         29,742
----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Expense                                                    50,209        47,070       100,364         94,478
----------------------------------------------------------------------------------------------------------------------------------

  Income before Taxes and Minority Interest                                    20,980        25,519        40,981         53,933
  Applicable Income Tax Expense                                                 6,420         5,987        13,718         13,779
  Minority Interest in Income of Subsidiaries, Net of Taxes                     4,986         4,986         9,973          9,973
==================================================================================================================================
  Net Income                                                                    9,574        14,546        17,290         30,181

  Dividends on Preferred Stock                                                      -        (2,687)            -         (5,375)
==================================================================================================================================
  Net Income Available for Common Stock                                       $ 9,574       $11,859      $ 17,290       $ 24,806

EARNINGS PER COMMON SHARE-Basic                                               $   .34       $   .39      $    .60       $    .81
                          Diluted                                                 .33           .37           .59            .78

DIVIDENDS DECLARED AND PAID PER COMMON SHARE                                  $   .05       $   .05      $    .10       $    .10
</TABLE>

                                      -3-

<PAGE>



RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
(unaudited)
                                                                                    JUNE 30,          JUNE 30,       DECEMBER 31,
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)                                                   1999             1998             1998
==================================================================================================================================
<S>                                                                                <C>              <C>               <C>

ASSETS
  Cash and Due from Banks                                                          $  158,225       $  151,348        $  155,003
  Federal Funds Sold and Reverse Repurchase Agreements                                 55,000          265,000            75,000
----------------------------------------------------------------------------------------------------------------------------------
  Total Cash and Cash Equivalents                                                     213,225          416,348           230,003

  Time Deposits with Other Banks                                                      511,541          745,385           696,181
  Securities Available for Sale (at Market Value)                                   1,167,418        1,163,627           970,728

  Loans                                                                             3,186,045        3,149,932         3,258,135
  Reserve for Loan Losses                                                             (52,174)         (52,235)          (54,455)
----------------------------------------------------------------------------------------------------------------------------------
  Total Net Loans                                                                   3,133,871        3,097,697         3,203,680

  Premises and Equipment, Net                                                         203,273          183,878           203,071
  Other Real Estate Owned, Net                                                          1,678            2,569             1,680
  Other Assets                                                                        222,874          182,759           196,988
==================================================================================================================================
  Total                                                                            $5,453,880       $5,792,263        $5,502,331

LIABILITIES
  Deposits:
  Noninterest-Bearing Demand Deposits                                              $  674,175       $  943,011        $  732,099
  Interest-Bearing Deposits:
      Savings and NOW Accounts                                                        383,054          339,385           434,649
      Money Market Deposit Accounts                                                 1,500,861        1,331,041         1,414,278
      Time Deposits in Domestic Offices                                               976,431        1,050,904           917,442
      Time Deposits in Foreign Offices                                                604,943          599,340           646,380
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest-Bearing Deposits                                                   3,465,289        3,320,670         3,412,749
----------------------------------------------------------------------------------------------------------------------------------
  Total Deposits                                                                    4,139,464        4,263,681         4,144,848

  Repurchase Agreements and Other Short-Term Borrowings                               369,291          450,692           374,380
  Other Liabilities                                                                    62,908           49,916            48,850
  Long-Term Debt                                                                      191,525          191,525           191,525
----------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities                                                                 4,763,188        4,955,814         4,759,603

GUARANTEED PREFERRED BENEFICIAL INTERESTS IN JUNIOR
  SUBORDINATED DEFERRABLE INTEREST DEBENTURES                                         350,000          350,000           350,000
==================================================================================================================================

STOCKHOLDERS' EQUITY
  Preferred Stock-$1.00 Par Value
      Shares Authorized - None at June 30, 1999 and December 31, 1998,
          and 25,000,000 at June 30, 1998:
          Liquidation Preference - $25 per share
      Shares Issued - Noncumulative Perpetual Series B - None at June 30,
          1999 and December 31, 1998, and 4,000,000 at June 30, 1998                       --            4,000                --
  Common Stock-$2.50 Par Value
      Shares Authorized - 50,000,000 at June 30, 1999 and 1998, and
          December 31, 1998
      Shares Issued - 31,557,995 at June 30, 1999, 31,523,544 at
          June 30, 1998 and 31,555,345 at December 31, 1998                            78,895           78,809            78,888
  Surplus - Preferred Stock                                                                --           91,192                --
  Surplus - Common Stock                                                              160,789          159,956           160,760
  Undivided Profits                                                                   199,208          174,481           184,794
  Accumulated Other Comprehensive Income                                              (26,843)           1,734            (2,548)
  Treasury Stock - 3,300,798 shares at June 30, 1999, 900,798 shares at
          June 30, 1998, and 1,175,798 shares at December 31, 1998                    (71,357)         (23,723)          (29,166)
----------------------------------------------------------------------------------------------------------------------------------
  Total Stockholders' Equity                                                          340,692          486,449           392,728
==================================================================================================================================
  Total Liabilities and Stockholders' Equity                                       $5,453,880       $5,792,263        $5,502,331
</TABLE>

                                      -4-

<PAGE>



RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>

                                       PREFERRED     COMMON                             ACCUMULATED
                                         STOCK       STOCK                                 OTHER                         TOTAL
                                         $1.00       $2.50                UNDIVIDED    COMPREHENSIVE     TREASURY    STOCKHOLDERS'
                                          PAR         PAR      SURPLUS     PROFITS     INCOME (LOSS)      STOCK          EQUITY
==================================================================================================================================

<S>                                    <C>         <C>         <C>         <C>            <C>            <C>             <C>

Balance, December 31, 1997             $  4,000    $ 78,654    $250,352    $152,732       $  1,167       $(23,723)       $463,182

Comprehensive Income:
   Net Income                                                                30,181                                      $ 30,181
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale,
      Net of Reclassification                                                                  581                            581
      Adjustments
    Foreign Exchange
      Translation Adjustments                                                                  (14)                           (14)
                                                                                                                  -----------------
   Total Other Comprehensive
     Income (Loss)                                                                                                            567
                                                                                                                  =================
Total Comprehensive Income                                                                                               $ 30,748

Issuance of Common Stock for
  Stock Option Plans, 61,758 Shares                     155         796                                                       951

Cash Dividends -
  Series B Preferred Stock,
   $1.34375 per Share                                                        (5,375)                                       (5,375)
  Common Stock, $.10 per Share                                               (3,057)                                       (3,057)
===================================================================================================================================

Balance, June 30, 1998                 $  4,000    $ 78,809    $251,148    $174,481       $  1,734       $(23,723)       $486,449



Balance, December 31, 1998             $     --    $ 78,888    $160,760    $184,794       $ (2,548)      $(29,166)       $392,728

Comprehensive Income:
   Net Income                                                                17,290                                      $ 17,290
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale,
      Net of Reclassification                                                              (22,355)                       (22,355)
      Adjustments
    Foreign Exchange
      Translation Adjustments                                                               (1,940)                        (1,940)
                                                                                                                    ---------------
   Total Other Comprehensive
     Income (Loss)                                                                                                        (24,295)
                                                                                                                    ===============
Total Comprehensive Income                                                                                                $(7,005)

Issuance of Common Stock for
  Stock Option Plans, 2,650 Shares                        7          29                                                        36

Cash Dividends -
  Common Stock, $.10 per Share                                               (2,876)                                       (2,876)

Common Stock Repurchase-
  2,125,000 shares                                                                                        (42,191)        (42,191)
===================================================================================================================================

Balance, June 30, 1999                 $     --    $ 78,895    $160,789    $199,208       $(26,843)      $(71,357)       $340,692

</TABLE>

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

                                      -5-

<PAGE>

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(UNAUDITED)
(in thousands)                                                                                         SIX MONTHS ENDED
                                                                                                           JUNE 30,
                                                                                                 -----------------------------
                                                                                                        1999          1998
==============================================================================================================================
<S>                                                                                                 <C>           <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                                                                          $   17,290    $   30,181
  Adjustments to Reconcile Net Income to Cash
    Provided By Operating Activities:
     Provision for Other Real Estate Owned Writedowns                                                       --           500
     Depreciation Expense and Amortization of Leasehold Improvements                                     5,839         5,684
     Gains on Sale of Securities Available for Sale                                                     (1,104)       (6,781)
     Gains on Sale of Other Real Estate Owned                                                               --          (434)
     (Increase) Decrease in Other Assets                                                               (13,848)       11,455
     Increase (Decrease) in Other Liabilities                                                           14,058      (141,377)
------------------------------------------------------------------------------------------------------------------------------
  Total Adjustments                                                                                      4,945      (130,953)
------------------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By (Used In) Operating Activities                                                   22,235      (100,772)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Net Decrease (Increase) In Time Deposits with Other Banks                                            184,640      (503,572)
  Principal Collections and Maturities of Securities Available for Sale                              2,080,310     2,567,232
  Proceeds from Sales of Securities Available for Sale                                                  55,985       937,074
  Purchases of Securities Available for Sale                                                        (2,366,274)   (2,987,708)
  Net Decrease (Increase) in Loans                                                                      70,260      (265,858)
  Proceeds from Sale and Other Payments of Other Real Estate Owned                                           1         2,442
  Net Increase in Premises and Equipment                                                                (6,041)      (24,185)
  Other, Net                                                                                              (450)          152
------------------------------------------------------------------------------------------------------------------------------
Net Cash Provided By (Used In) Investing Activities                                                     18,431      (274,423)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net (Decrease) Increase in:
    Demand, NOW, Savings and Money Market Deposit Accounts                                             (22,936)     (298,607)
    Time Deposits                                                                                       17,552       264,370
    Repurchase Agreements and Other Short-Term Borrowings                                               (5,089)       98,184
  Proceeds from the Issuance of Common Stock                                                                36           951
  Dividend Payments - Preferred                                                                             --        (5,375)
                    - Common                                                                            (2,876)       (3,057)
  Repurchase of Common Shares                                                                          (42,191)           --
------------------------------------------------------------------------------------------------------------------------------
Net Cash (Used in) Provided By Financing Activities                                                    (55,504)       56,466
------------------------------------------------------------------------------------------------------------------------------
Effect of Exchange Rate Changes                                                                         (1,940)          (14)
------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Cash and Cash Equivalents                                                              (16,778)     (318,743)
Cash and Cash Equivalents at Beginning of Period                                                       230,003       735,091
==============================================================================================================================
Cash and Cash Equivalents at End of Period                                                         $   213,225   $   416,348


SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES:

NONCASH ACTIVITIES:
  Loans Transferred to Other Real Estate Owned                                                     $        --   $        --

CASH PAID DURING  THE YEAR FOR:
  Interest Paid (Net of Amount Capitalized)                                                        $    72,168   $    77,249
  Income Tax Payments                                                                                        1         8,067
</TABLE>

                                      -6-

<PAGE>




RIGGS NATIONAL CORPORATION

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


NOTE 1. BASIS OF PRESENTATION

In the opinion of management,  the accompanying  unaudited financial  statements
contain all normal recurring  adjustments  necessary for a fair  presentation of
the interim period  results,  in conformity with generally  accepted  accounting
principles applied on a consistent basis and which require the use of management
estimates.  These  statements  should be read in conjunction  with the financial
statements and accompanying notes included in the Corporation's Annual Report on
Form 10-K for the year ended December 31, 1998. Certain  reclassifications  have
been  made  to  prior-period  amounts  to  conform  with  the  current  period's
presentation. The results of operations for the first six months of 1999 are not
necessarily indicative of the results to be expected for the full 1999 year.

NOTE 2. EARNINGS PER COMMON SHARE

Earnings per share computations are as follows:

<TABLE>
<CAPTION>

                                                               SIX MONTHS ENDED                   SIX MONTHS ENDED
                                                                JUNE 30, 1999                       JUNE 30, 1998
                                                      ================================== ===================================
                                                              BASIC            DILUTED           BASIC            DILUTED
                                                               EPS               EPS              EPS               EPS
                                                      ----------------- ---------------- ----------------- -----------------
<S>                                                        <C>              <C>               <C>               <C>

Net Income                                                    $17,290          $17,290           $30,181           $30,181
Dividends on Preferred Stock                                       --               --            (5,375)           (5,375)
                                                      ----------------- ---------------- ----------------- -----------------
Income Available to Common Shareholders                       $17,290          $17,290           $24,806           $24,806

Weighted-Average Shares Outstanding                        28,623,632       28,623,632        30,581,020        30,581,020
Weighted-Average Dilutive Effect
   of Stock Option Plans                                          n/a          587,079               n/a         1,111,997
                                                      ----------------- ---------------- ----------------- -----------------
Adjusted Weighted-Average Shares Outstanding               28,623,632       29,210,711        30,581,020        31,693,017

Basic EPS                                                     $   .60                            $   .81
Diluted EPS                                                                    $   .59                             $   .78
</TABLE>


NOTE 3. RESERVE FOR LOAN LOSS

Changes in the reserve for loan losses are summarized as follows:
<TABLE>
<CAPTION>

                                                                                                         SIX MONTHS ENDED
                                                                                                             JUNE 30,
                                                                                           -------------------------------------
                                                                                                     1999              1998
================================================================================================================================
<S>                                                                                                 <C>               <C>

Balance, beginning of period                                                                        $ 54,455          $ 52,381
Provision for loan losses                                                                                 --                --
Loan charge-off activity:
   Loans charged-off                                                                                   2,770             1,379
   Recoveries on charged-off loans                                                                       940             1,080
--------------------------------------------------------------------------------------------------------------------------------
   Net loan charge-offs (recoveries)                                                                   1,830               299
Foreign exchange translation adjustments                                                                (451)              153

================================================================================================================================
Balance, end of period                                                                              $ 52,174          $ 52,235

</TABLE>

                                      -7-


<PAGE>



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 4. OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>
                                                                                    Before -Tax       Tax
                                                                                       Amount      (Expense)     Net-of-Tax
                                                                                                    Benefit        Amount
=============================================================================================================================
SIX MONTHS ENDED JUNE 30, 1999:
<S>                                                                                   <C>           <C>            <C>
Foreign Currency Translation Adjustments (1)                                          $   (287)     $ (1,653)      $ (1,940)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                              (33,288)       11,651        (21,637)
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income           (1,104)          386           (718)
---------------------------------------------------------------------------------- ------------- ------------- --------------
  Net Unrealized Gains (Losses)                                                        (34,392)       12,037        (22,355)
=============================================================================================================================

Other Comprehensive Income (Loss)                                                     $(34,679)     $ 10,384       $(24,295)

SIX MONTHS ENDED JUNE 30, 1998:
Foreign Currency Translation Adjustments (1)                                          $   (583)     $    569       $    (14)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                                7,675        (2,686)         4,989
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income           (6,781)        2,373         (4,408)
---------------------------------------------------------------------------------- ------------- ------------- --------------
  Net Unrealized Gains (Losses)                                                            894          (313)           581
=============================================================================================================================

Other Comprehensive Income (Loss)                                                     $    311       $   256       $    567
</TABLE>

(1) Tax  (expense)  benefit  on  foreign  currency  translation  adjustments  is
calculated on the hedge contracts only.  Before-tax  amounts include activity on
hedge contracts and the foreign currency translation adjustment.



ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES
<TABLE>
<CAPTION>
                                                                              Foreign       Unrealized       Accumulated
                                                                             Currency       Gain(Loss)          Other
                                                                            Translation    on Securities    Comprehensive
                                                                            Adjustments                     Income (Loss)
============================================================================================================================
SIX MONTHS ENDED JUNE  30, 1999:
<S>                                                                             <C>           <C>                <C>
Balance, December 31, 1998                                                      $ (1,349)     $  (1,199)         $  (2,548)
Current-Period Change                                                             (1,940)       (22,355)           (24,295)
============================================================================================================================
Balance, June 30, 1999                                                          $ (3,289)     $ (23,554)         $ (26,843)

SIX MONTHS ENDED JUNE 30, 1998:
Balance, December 31, 1997                                                      $   (872)     $   2,039          $   1,167
Current-Period Change                                                                (14)           581                567
============================================================================================================================
Balance, June 30, 1998                                                          $   (886)     $   2,620          $   1,734

</TABLE>

                                      -8-




<PAGE>




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 5. SEGMENT PROFITABILITY

<TABLE>
<CAPTION>

===================================================================================================================================
                                                 INTERN-                                                                  RIGGS
SIX MONTHS ENDED                                 ATIONAL       RIGGS &                                   RECON-          NATIONAL
JUNE 30, 1999                        BANKING     BANKING       COMPANY      TREASURY        OTHER      CILIATION       CORPORATION
------------------------------- -------------- ----------- ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>           <C>           <C>        <C>           <C>           <C>               <C>
Interest Income                   $   92,500    $ 26,803      $  5,509   $   47,220    $   26,587
Interest Expense                      30,170      31,537         7,792       11,897        24,200
Funds Transfer Income                  1,370      19,216         8,520      (31,265)        2,158
(Expense)
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           63,700      14,482         6,237        4,058         4,545
Tax-Equivalent
Tax Equivalent Adjustment             (1,005)         --            --         (353)           --
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   62,695    $ 14,482      $  6,237   $    3,705    $    4,545    $        --       $   91,664
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   19,483    $  1,400      $ 26,521   $      885    $    1,392
Customers
Intersegment Noninterest                 259       1,968           343            1         1,799
Income
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   19,742    $  3,368      $ 26,864   $      886    $    3,191    $    (4,370)      $   49,681
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    3,723    $    326      $    455   $        6    $    3,627
Direct Expense                        28,725       9,929        17,373          759        39,811
Overhead and Support                  30,279       5,341         5,834          830       (42,284)
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   62,727    $ 15,596      $ 23,662   $    1,595    $    1,154    $    (4,370)      $  100,364
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $   19,710    $  2,254      $  9,439   $    2,996    $    6,582    $        --       $   40,981
and Minority Interest
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,726,574    $828,128      $205,918   $1,758,127    $1,129,354    $(1,159,600)      $5,488,501
===================================================================================================================================
</TABLE>


The Corporation's  reportable segments are strategic business units that provide
diverse  products and  services  within the  financial  services  industry.  The
Corporation has five reportable segments: Banking,  International Banking, Riggs
& Company,  Treasury and Other. The Banking segment provides traditional banking
services such as lending and deposit taking to retail,  corporate and commercial
customers.   The  International   Banking  segment  includes  the  Corporation's
Washington,  D.C. based  embassy-banking  business and the London-based  banking
subsidiary,  Riggs  Bank  Europe  Limited.  The Riggs and  Company  segment is a
division of the Corporation  providing trust and investment  management services
to a broad  customer base.  The Treasury  segment is  responsible  for asset and
liability  management  throughout  the  Corporation.  "Other"  consists  of  the
Corporation's unallocated parent company income and expense, net interest income
from unallocated equity and foreclosed real estate activities.

The Corporation  evaluates segment  performance based on net income before taxes
and minority interest. The accounting policies of the segments are substantially
the same as those described in the summary of significant  accounting  policies.
The Corporation  accounts 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.

Reconciliations  are  provided  from the  segment  totals  to the  Corporation's
consolidated financial statements. The reconciliations of noninterest income and
noninterest expense offset as these items result from intercompany transactions.
For years in which the  Corporation has either no provision for loan losses or a
reduction  to the reserve for loan  losses,  an  allocation  of loan loss is not
provided to the segments.  The reconciliation of total average assets represents
the elimination of intercompany transactions.

                                      -9-



<PAGE>


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

<TABLE>
<CAPTION>

====================================================================================================================================
                                                  INTER-                                                                 RIGGS
SIX MONTHS ENDED                                 NATIONAL       RIGGS &                                  RECON-         NATIONAL
JUNE 30, 1998                      BANKING       BANKING        COMPANY      TREASURY       OTHER      CILIATION      CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>        <C>           <C>           <C>               <C>
Interest Income                   $   91,005      $ 24,125     $  6,297   $   58,325    $   31,916
Interest Expense                      36,717        31,003        6,329       16,415        24,569
Funds Transfer Income                 11,191        21,172        5,924      (41,842)        3,555
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           65,479        14,294        5,892           68        10,902
Tax-Equivalent
Tax Equivalent Adjustment               (525)           --           --       (1,063)           --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   64,954      $ 14,294     $  5,892   $     (995)   $   10,902    $        --       $   95,047
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   19,649      $  1,832     $ 24,139   $    7,509    $      235
Customers
Intersegment Noninterest                  --         1,901          221            1           845
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   19,649      $  3,733     $ 24,360   $    7,510    $    1,080    $    (2,968)      $   53,364
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    3,511      $    310     $    805   $        7    $    3,412
Direct Expense                        26,999         9,903       14,314          756        37,429
Overhead and Support                  31,390         4,569        5,119          654       (41,732)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   61,900      $ 14,782     $ 20,238   $    1,417    $     (891)   $    (2,968)      $   94,478
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $   22,703      $  3,245     $ 10,014   $    5,098    $   12,873    $        --       $   53,933
and Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,526,922      $647,519     $203,326   $2,013,617    $1,188,627    $(1,083,207)      $5,496,804
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>


====================================================================================================================================
                                                  INTER-                                                                RIGGS
THREE MONTHS ENDED                               NATIONAL       RIGGS &                                  RECON-        NATIONAL
JUNE 30, 1999                      BANKING       BANKING        COMPANY      TREASURY       OTHER      CILIATION      CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>         <C>          <C>           <C>               <C>
Interest Income                   $   46,045      $ 13,069     $  2,734   $   24,308    $   13,256
Interest Expense                      15,072        15,488        3,877        6,320        12,293
Funds Transfer Income                    358         9,660        4,250      (15,499)        1,231
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           31,331         7,241        3,107        2,489         2,194
Tax-Equivalent
Tax Equivalent Adjustment               (524)           --           --           --            --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   30,807      $  7,241     $  3,107   $    2,489    $    2,194    $        --       $   45,838
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $    9,902      $    686     $ 13,291   $      488    $      984
Customers
Intersegment Noninterest                 259           988          172           --           920
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   10,161      $  1,674     $ 13,463   $      488    $    1,904    $    (2,339)      $   25,351
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    1,857      $    164     $    232   $        3    $    1,824
Direct Expense                        14,686         4,971        8,343          383        20,085
Overhead and Support                  14,633         2,635        3,333          367       (20,968)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   31,176      $  7,770     $ 11,908   $      753    $      941    $    (2,339)      $   50,209
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $    9,792      $  1,145     $  4,662   $    2,224    $    3,157    $        --       $   20,980
and Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,731,290      $833,102     $204,356   $1,799,237    $1,127,371    $(1,216,101)      $5,479,255
====================================================================================================================================
</TABLE>

                                      -10-

<PAGE>


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

<TABLE>
<CAPTION>

====================================================================================================================================
                                                  INTER-                                                                 RIGGS
THREE MONTHS ENDED                               NATIONAL      RIGGS &                                 RECON-           NATIONAL
JUNE 30, 1998                      BANKING       BANKING       COMPANY      TREASURY       OTHER      CILIATION        CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>        <C>           <C>           <C>               <C>
Interest Income                   $   45,971      $ 12,734     $  3,180   $   27,051    $   15,990
Interest Expense                      18,445        15,341        3,297        7,449        12,285
Funds Transfer Income                  5,216         9,643        3,171      (19,791)        1,761
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           32,742         7,036        3,054         (189)        5,466
Tax-Equivalent
Tax Equivalent Adjustment               (261)           --           --         (486)           --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   32,481      $  7,036     $  3,054   $     (675)   $    5,466    $        --       $   47,362
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   10,002      $    751     $ 12,484   $    1,497    $      493
Customers
Intersegment Noninterest                  --           920          115           --           423
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   10,002      $  1,671     $ 12,599   $    1,497    $      916    $    (1,458)      $   25,227
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    1,742      $    162     $    404   $        3    $    1,706
Direct Expense                        13,481         5,118        7,286          381        18,245
Overhead and Support                  15,298         2,154        2,594          278       (20,324)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   30,521      $  7,434     $ 10,284   $      662    $     (373)   $    (1,458)      $   47,070
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $   11,962      $  1,273     $  5,369   $      160    $    6,755    $        --       $   25,519
and Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,567,767      $679,785     $200,474   $1,856,319    $1,202,157    $(1,013,193)      $5,493,309
====================================================================================================================================
</TABLE>



NOTE 6. NEW FINANCIAL ACCOUNTING STANDARDS


SFAS No. 133,  "Accounting for Derivative  Instruments and Hedging  Activities,"
was issued in June 1998.  SFAS No. 133 will  require the  Corporation  to record
derivative   instruments,   such  as   interest-rate   swap  agreements  on  the
Consolidated  Statement of Condition as assets or liabilities,  measured at fair
value.  Currently the Corporation  treats such instruments as  off-balance-sheet
items. Gains or losses resulting from changes in the values of those derivatives
would  be  accounted  for  depending  on the  specific  use of  each  derivative
instrument and whether it qualifies for hedge accounting  treatment as stated in
the standard.  SFAS No. 133 will be effective for the  Corporation on January 1,
2001.  The  Corporation  does  not  anticipate  any  material  impact  from  the
implementation of SFAS No. 133.

NOTE 7. SUBSEQUENT EVENT

On June 16,  1999,  the  Corporation  filed a  registration  statement  with the
Securities and Exchange  Commission to issue $200 million of variable rate Trust
Preferred  Securities.  On July 22,  1999,  because  of market  volatility,  the
Corporation  announced its decision to postpone the issuance. On that same date,
the  Corporation  completed its redemption of $125 million of 8.5%  subordinated
notes due in 2006,  at the price of 104.25%,  using general  corporate  funds to
retire the debt.  Subsequently,  the Corporation  borrowed $200 million from the
Federal  Home Loan Bank of  Atlanta,  at a rate of 5.01%.  $100  million  of the
borrowing, callable in one year, has a final maturity of ten years. Another $100
million, also callable in one year, has a final maturity of five years.

                                      -11-

<PAGE>




RIGGS NATIONAL CORPORATION

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


RESULTS OF OPERATIONS

$9.6 million of net income was earned for the second quarter of 1999 compared to
$14.5  million  for the same  period a year ago.  Earnings  per share  were $.33
compared to $.37 for the same  period in the prior  year.  For the first half of
1999,  the  Corporation  had net income of $17.3  million,  or $.59 per  diluted
share,  compared  with  $30.2  million , or $.78 a share,  for the first half of
1998. A variety of factors including  nonrecurring  securities gains and a lower
income tax rate in the second half of 1998,  together with a reduction in second
quarter  1999  net  interest  income  due to  the  Corporation's  redemption  of
preferred  stock and  repurchase  of common  stock,  reduced  net income for the
second  quarter and first half of 1999 as compared  with the same periods a year
earlier.

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 $46.4 million in
the second quarter of 1999,  decreasing  $1.7 million from the second quarter of
1998. Net interest  income on a  tax-equivalent  basis was $93.0 million for the
first half of 1999, compared with $96.6 million for the same period in 1998. The
decreases from the prior year's quarter and year-to-date  periods were primarily
due to funds expended in redeeming Preferred Stock in the fourth quarter of 1998
and  Common  Stock in both the fourth  quarter of 1998 and the first  quarter of
1999.


NET INTEREST INCOME CHANGES (1)
<TABLE>
<CAPTION>

                                               Three Months Ended                          Six Months Ended
                                              JUNE 30, 1999 VS 1998                      JUNE 30, 1999 VS 1998
                                        ---------------------------------          ----------------------------------
                                          DUE TO      DUE TO     TOTAL               DUE TO      DUE TO     TOTAL
(IN THOUSANDS)                             RATE       VOLUME     CHANGE               RATE       VOLUME     CHANGE
=====================================================================================================================
<S>                                        <C>        <C>        <C>                  <C>        <C>        <C>

Interest Income:
   Loans, Including Fees                   $(4,298)   $ 3,829    $  (469)             $(8,013)   $10,375    $ 2,362
   Securities Available for Sale              (943)      (444)    (1,387)              (2,229)    (5,954)    (8,183)
   Time Deposits with Other Banks           (1,167)    (1,322)    (2,489)              (1,898)       675     (1,223)
   Federal Funds Sold and Reverse
    Repurchase Agreements                     (406)    (1,731)    (2,137)                (977)    (3,873)    (4,850)
---------------------------------------------------------------------------------------------------------------------

Total Interest Income                       (6,814)       332     (6,482)             (13,117)     1,223    (11,894)

Interest Expense:
   Interest-Bearing Deposits                (6,420)     2,973     (3,447)             (12,664)     6,786     (5,878)
   Repurchase Agreements and Other
      Short-Term Borrowings                   (895)      (393)    (1,288)              (1,974)      (429)    (2,403)
   Long-Term Debt                               --         --         --                   --         --         --
---------------------------------------------------------------------------------------------------------------------

Total Interest Expense                      (7,315)     2,580     (4,735)             (14,638)     6,357     (8,281)
=====================================================================================================================

Net Interest Income                        $   501    $(2,248)   $(1,747)             $ 1,521    $(5,134)   $(3,613)
</TABLE>

(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.


                                      -12-



<PAGE>


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


AVERAGE CONSOLIDATED STATEMENTS OF CONDITION AND RATES
<TABLE>
<CAPTION>

                                                               THREE MONTHS ENDED                  THREE MONTHS ENDED
                                                                 JUNE 30, 1999                        JUNE 30, 1998
                                                         -------------------------------    ----------------------------------
(TAX-EQUIVALENT BASIS) (1)                                 AVERAGE     INCOME/                AVERAGE     INCOME/
(IN THOUSANDS)                                             BALANCE     EXPENSE    RATE        BALANCE     EXPENSE     RATE
==============================================================================================================================
<S>                                                       <C>            <C>       <C>       <C>            <C>          <C>

ASSETS

  Loans, Including Fees (2)                               $3,173,289     $56,928   7.20 %    $2,972,175     $57,397      7.75 %
  Securities Available for Sale (3)                        1,178,835      17,025   5.79       1,208,352      18,412      6.11
  Time Deposits with Other Banks                             518,610       6,159   4.76         621,730       8,648      5.58
  Federal Funds Sold and Reverse Repurchase Agreements       101,179       1,221   4.84         240,512       3,358      5.60
-------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned           4,971,913      81,333   6.56       5,042,769      87,815      6.98

  Reserve for Loan Losses                                    (52,750)                           (52,295)
  Cash and Due from Banks                                    148,266                            148,046
  Other Assets                                               411,826                            354,789

===============================================================================================================================
  Total Assets                                            $5,479,255                         $5,493,309

LIABILITIES, MINORITY INTEREST AND
    STOCKHOLDERS' EQUITY

  Interest-Bearing Deposits                               $3,554,151     $26,785   3.02 %    $3,151,605     $30,232      3.85 %
  Repurchase Agreements and Other Short-Term Borrowings      382,782       3,818   4.00         416,472       5,106      4.92
  Long-Term Debt                                             191,525       4,368   9.15         191,525       4,368      9.15
------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid     4,128,458      34,971   3.40       3,759,602      39,706      4.24

  Demand Deposits                                            587,393                            835,962
  Other Liabilities                                           67,974                             71,328
  Minority Interest in Preferred Stock of Subsidiaries       350,000                            350,000
  Stockholders' Equity                                       345,430                            476,417

------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities, Minority Interest and
     Stockholders' Equity                                 $5,479,255                         $5,493,309

==============================================================================================================================
  NET INTEREST INCOME AND SPREAD                                         $46,362   3.16 %                   $48,109      2.74 %

==============================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                            3.74 %                                3.83 %
</TABLE>

(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) - 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.


NONINTEREST INCOME

Noninterest  income  for  the  three  months  ended  June  30,  1999,  excluding
securities gains,  totaled $24.3 million,  an increase of $563 thousand from the
same period a year ago.  This  increase was mostly due to increases in trust and
investment  advisory  income of Riggs & Company,  Riggs' private client services
division,  partially offset by a decrease in other noninterest  income.  For the
first six months of 1999,  noninterest income excluding securities gains totaled
$48.6  million,  an increase of $2.0  million from the first six months of 1998.
The increase in noninterest  income for the six month period was mostly due to a
10%  increase  in trust  and  investment  advisory  income  of Riggs &  Company,
partially  offset by a decrease of $845  thousand in other  noninterest  income.
This  decrease  was partly the result of lower fee income  from ATM and  deposit
account fees.

                                      -13-

<PAGE>




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


AVERAGE CONSOLIDATED STATEMENTS OF CONDITION AND RATES
<TABLE>
<CAPTION>

                                                                SIX MONTHS ENDED                    SIX MONTHS ENDED
                                                                 JUNE 30, 1999                        JUNE 30, 1998
                                                         -------------------------------    ----------------------------------
(TAX-EQUIVALENT BASIS) (1)                                 AVERAGE     INCOME/                AVERAGE      INCOME/
(IN THOUSANDS)                                             BALANCE     EXPENSE    RATE        BALANCE      EXPENSE     RATE
==============================================================================================================================
<S>                                                       <C>           <C>        <C>       <C>           <C>           <C>

ASSETS

  Loans, Including Fees (2)                               $3,185,659    $115,283   7.30 %    $2,904,744    $112,921      7.84 %
  Securities Available for Sale (3)                        1,098,346      31,691   5.82       1,301,705      39,874      6.18
  Time Deposits with Other Banks                             566,836      13,393   4.76         541,023      14,616      5.45
  Federal Funds Sold and Reverse Repurchase Agreements       138,552       3,327   4.84         294,819       8,177      5.59
------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned           4,989,393     163,694   6.62       5,042,291     175,588      7.02

  Reserve for Loan Losses                                    (53,478)                           (52,370)
  Cash and Due from Banks                                    146,542                            151,817
  Other Assets                                               406,044                            355,066

==============================================================================================================================
  Total Assets                                            $5,488,501                         $5,496,804

LIABILITIES, MINORITY INTEREST AND
    STOCKHOLDERS' EQUITY

  Interest-Bearing Deposits                               $3,535,864    $ 54,140   3.09 %    $3,163,472    $ 60,018      3.83 %
  Repurchase Agreements and Other Short-Term Borrowings      391,819       7,796   4.01         409,623      10,199      5.02
  Long-Term Debt                                             191,525       8,736   9.20         191,525       8,736      9.20
------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid     4,119,208      70,672   3.46       3,764,620      78,953      4.23

  Demand Deposits                                            604,404                            843,254
  Other Liabilities                                           60,589                             67,362
  Minority Interest in Preferred Stock of Subsidiaries       350,000                            350,000
  Stockholders' Equity                                       354,300                            471,568

------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities, Minority Interest and
     Stockholders' Equity                                 $5,488,501                         $5,496,804

==============================================================================================================================
  NET INTEREST INCOME AND SPREAD                                        $ 93,022   3.16 %                  $ 96,635      2.79 %

==============================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                            3.76 %                                3.86 %
</TABLE>

(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) - 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.


NONINTEREST EXPENSE

Noninterest  expense for the three months ended June 30, 1999 was $50.2 million,
up 7% from the $47.1 million  reported for the three months ended June 30, 1998.
For the six months ended June 30, 1999,  noninterest expense was $100.4 million,
an increase of $5.9 million from the same period a year ago. The increases  were
due to added personnel costs during the year,  primarily related to new business
initiatives, and increases in other noninterest expense, such as a $500 thousand
charitable contribution and increased advertising costs in 1999.

                                      -14-


<PAGE>




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


FINANCIAL CONDITION

SECURITIES

Securities  available for sale totaled $1.17 billion at June 30, 1999,  compared
to $970.7  million at year-end  1998,  and $1.16  billion at June 30, 1998.  The
activity for the first six months included purchases of securities available for
sale  totaling  $2.37  billion,  which were  partially  offset by  maturities of
securities  available  for sale totaling  $2.08  billion.  The  weighted-average
durations and yields for the portfolio,  adjusted for  anticipated  prepayments,
were approximately 4.2 years and 5.80%, respectively, at June 30, 1999.
<TABLE>
<CAPTION>

                                        JUNE 30, 1999                     JUNE 30, 1998                DECEMBER 31, 1998
                                -------------------------------  ------------------------------  -------------------------------
                                  AMORTIZED        MARKET/         AMORTIZED       MARKET/         AMORTIZED        MARKET/
      AVAILABLE FOR SALE             COST        BOOK VALUE           COST        BOOK VALUE          COST        BOOK VALUE
================================================================================================================================
(IN THOUSANDS)
<S>                                 <C>             <C>              <C>            <C>              <C>             <C>

U.S. Treasury Securities            $  213,476      $  200,348       $  403,306     $  404,736       $  113,677      $  111,750
Government Agencies Securities         418,326         416,098          705,483        705,454          391,165         391,344
Mortgage-Backed Securities             530,233         509,352            7,514          7,566          424,152         423,503
Other Securities                        41,620          41,620           43,294         45,871           43,577          44,131
================================================================================================================================

Total                               $1,203,655      $1,167,418       $1,159,597     $1,163,627       $  972,571      $  970,728
</TABLE>


LOANS

At June 30, 1999, total loans outstanding amounted to $3.19 billion,  decreasing
$72.1 million from the December 31, 1998 total of $3.26 billion. The decrease in
loans  from  December  31,  1998,  was  primarily  attributed  to  decreases  in
residential  mortgage loans of $52.0 million and foreign loans of $24.5 million,
partially  offset by an increase of $8.0  million in  commercial  and  financial
loans.
<TABLE>
<CAPTION>

                                                           JUNE 30,             JUNE 30,           DECEMBER 31,
(IN THOUSANDS)                                               1999                 1998                 1998
================================================================================================================
<S>                                                       <C>                  <C>                  <C>

Commercial and Financial                                  $  676,769           $  593,024           $  668,778
Real Estate - Commercial/Construction                        409,707              412,141              409,586
Residential Mortgage                                       1,224,250            1,316,741            1,276,257
Home Equity                                                  312,681              324,973              314,347
Consumer                                                      69,101               67,114               69,419
Foreign                                                      497,540              436,941              522,032
----------------------------------------------------------------------------------------------------------------

Total Loans                                                3,190,048            3,150,934            3,260,419

Net Deferred Loan Fees,
 Premiums and Discounts                                       (4,003)              (1,002)              (2,284)
================================================================================================================

Loans                                                     $3,186,045           $3,149,932           $3,258,135

</TABLE>

                                      -15-

<PAGE>



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 owned (net of  reserves),  totaled  $29.5  million at June 30,
1999, a $1.9 million (6%) decrease from the year-end 1998 total of $31.4 million
and a $14.4 million (95%) increase from the June 30, 1998 total. The increase in
nonaccrual  loans from June 1998 was mainly  due to a $25.0  million  commercial
loan placed on nonaccrual  during the fourth quarter of 1998 partially offset by
repayment of another large nonperforming loan.

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
are accruing  interest.  Past-due loans decreased $16.7 million during the first
six  months  of 1999 to $8.6  million,  mostly  due to  repayment  of a  foreign
government overdraft of $15.8 million.

At June 30, 1999,  the  Corporation  had  identified  $15.9 million in potential
problem loans that are currently  performing but that  management  believes have
certain  attributes  that  may lead to  nonaccrual  or past  due  status  in the
foreseeable  future.  The increase in problem  loans from  December 31, 1998 was
primarily a result of a $13.5 million  commercial  loan  classified as a problem
loan  during  the  second  quarter.  There were no  potential  problem  loans at
December 31, 1998.


NONPERFORMING ASSETS AND PAST-DUE LOANS
<TABLE>
<CAPTION>
                                                                           JUNE 30,        JUNE  30,      DECEMBER 31,
(IN THOUSANDS)                                                               1999             1998             1998
=======================================================================================================================

NONPERFORMING ASSETS:
<S>                                                                         <C>              <C>               <C>

Nonaccrual Loans (1)                                                        $26,389          $12,477           $26,831
Renegotiated Loans (2)                                                        1,452               90             2,920
Other Real Estate Owned, Net                                                  1,678            2,569             1,680
=======================================================================================================================

Total Nonperforming Assets                                                  $29,519          $15,136           $31,431


PAST-DUE LOANS (3)                                                          $ 8,574          $19,166           $25,269
</TABLE>
(1) - Loans  (other than  consumer)  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 for which terms have been  renegotiated  to provide a  reduction  of
      interest or principal as a result of a deterioration in the financial
      position of the borrower.  Renegotiated loans do not include $6.4 million
      in loans renegotiated at market terms that have performed in accordance
      with their respective renegotiated terms.

(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 the primary and most stable  source of funds for the  Corporation.
Deposits  totaled $4.14 billion at June 30, 1999,  decreasing  $5.4 million from
the December 31, 1998 deposit total,  and $124.2 million from June 30, 1998. The
decreases  from the  year-end  and prior year  balances  were due  primarily  to
decreases in demand deposit  accounts,  partially offset by overall increases in
interest bearing deposit accounts, particularly money market accounts. Decreases
in demand  deposit  accounts  from June 30, 1998 and December 31, 1998,  totaled
$268.8 and $57.9  million,  respectively,  while money  market  deposit  account
balances   increased  by  $169.8  and  $86.6   million  for  the  same  periods,
respectively.  The  decrease in demand  deposits  and  increase in money  market
accounts  from June 1998 was partly due to a program  introduced in July 1998 in
which certain  noninterest-bearing  accounts are transferred to the money market
classification, thereby reducing the level of required reserves.


                                      -16-

<PAGE>

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


SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term  borrowings  decreased by $5.1 million, or 1%, from the year-end 1998
balance,  and $81.4  million  (18%) from the June 30, 1998  balance.  Short-term
borrowings are an additional  source of funds that the  Corporation has utilized
to meet certain  asset/liability and daily cash management  objectives,  and are
used to help the  Corporation  generate  cash and  maintain  adequate  levels of
liquidity.
<TABLE>
<CAPTION>

                                                                   JUNE 30,            JUNE 30,         DECEMBER 31,
(IN THOUSANDS)                                                       1999                1998                1998
======================================================================================================================
<S>                                                                <C>                 <C>                 <C>

Repurchase Agreements and Other Short-Term Borrowings              $369,291            $450,692            $374,380

Subordinated Debentures due 2009                                     66,525              66,525              66,525
Subordinated Notes due 2006                                         125,000             125,000             125,000
----------------------------------------------------------- ---------------- -- ---------------- --- -----------------
Total Long-Term Debt                                                191,525             191,525             191,525
======================================================================================================================

Total Short-Term Borrowings and Long-Term Debt                     $560,816            $642,217            $565,905
</TABLE>


LIQUIDITY

The  Corporation  seeks to maintain  sufficient  liquidity  to meet the needs of
depositors,  borrowers  and  creditors  at a reasonable  cost and without  undue
stress on the operations of the  Corporation and its banking  subsidiaries.  The
Corporation's  Asset/Liability Committee actively analyzes and manages liquidity
in coordination with other areas of the organization (see "Sensitivity to Market
Risk").  At June 30, 1999, the  Corporation's  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 $1.89 billion (35% of total assets).  This compares with
$1.90  billion  (34%) at December 31, 1998,  and $2.33 billion (40%) at June 30,
1998. At June 30, 1999, $824.5 million of the Corporation's  assets were pledged
to secure  deposits and other  borrowings.  This compares with pledged assets of
$727.4 million at December 31, 1998, and $811.7 million at June 30, 1998.

The Corporation's  liquidity  position is maintained by a stable source of funds
from the  Corporation's  core deposit  relationships.  The Corporation has other
sources of funds, such as short-term credit lines available from several Federal
Home Loan Banks and other financial  institutions.  In addition, the Corporation
had a line of credit  available  through its membership in the Federal Home Loan
Bank of Atlanta (FHLB  Atlanta).  At June 30, 1999,  December 31, 1998, and June
30, 1998,  short-term credit lines and the FHLB Atlanta line of credit available
totaled   approximately  $1.69  billion,   $1.50  billion,   and  $690  million,
respectively.  Of this  availability,  $31.6 million,  $31.7 million,  and $34.3
million were outstanding at June 30, 1999, December 31, 1998, and June 30, 1998.


STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL

Total  stockholders'  equity at June 30, 1999 was $340.7 million,  a decrease of
$52.0 million from the year-end 1998 total and down $145.8 million from June 30,
1998.  The decreases  from both prior  periods were  primarily the result of the
redemption of Riggs' $100 million 10.75% Noncumulative Perpetual Preferred Stock
on October 1, 1998,  and  repurchases  of Common Stock in the fourth  quarter of
1998 and first  quarter  of 1999.  These  Common  Stock  repurchases  aggregated
2,400,000  shares for a cost of $47.6  million.  Book value per common share was
$12.06 as of June 30, 1999  compared  to $12.93 at  year-end  1998 and $12.78 at
June 30, 1998. On the following page are the capital  ratios of the  Corporation
and its banking subsidiary, Riggs Bank National Association (Riggs Bank N.A.) at
June 30, 1999 and 1998, and December 31, 1998.

                                      -17-


<PAGE>



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

<TABLE>
<CAPTION>


                                                       JUNE 30,        JUNE 30,      DECEMBER 31,      REQUIRED
                                                         1999            1998            1998          MINIMUMS
================================================================================================================
<S>                                                     <C>             <C>             <C>             <C>

RIGGS NATIONAL CORPORATION:
     Tier I                                             13.47%          17.82%          14.63%          4.00%
     Combined Tier I and Tier II                        26.59           29.73           27.51           8.00
     Leverage                                            8.70           11.60            9.33           4.00

RIGGS BANK N.A.:
     Tier I                                             12.89           12.50           12.17           4.00
     Combined Tier I and Tier II                        14.14           13.76           13.43           8.00
     Leverage                                            8.78            8.78            8.26           4.00
</TABLE>



YEAR 2000 READINESS DISCLOSURE

GENERAL
Advances  and  changes  in  technology  can  have a  significant  impact  on the
Corporation's  business.  Financial  institutions  are dependent on  information
systems and also have many external interdependencies with other companies. Many
computer  programs were designed to recognize  calendar  years by their last two
digits.  Calculations  performed  using these digits may not work  properly with
dates  beginning in the Year 2000 and beyond.  The Year 2000 issue  creates risk
for the Corporation  from unforeseen  problems in its computer  systems and from
Year  2000  issues  with  the  Corporation's  vendors,   service  providers  and
customers.

APPROACH AND RISKS
The  Corporation  began to identify the risks  associated  with the Year 2000 in
1995.  Management  established a corporate  oversight structure to ensure timely
risk  assessments,   remediation  plans,  systems  testing,   conversions,   and
centralized  management of the project.  The  structure of the effort  entails a
number of  groups,  each  addressing  a  different  aspect of the  project,  and
reporting to the Year 2000 Program  Manager.  Oversight of the entire project is
performed  by the Year  2000  Advisory  Group.  This is a  management  committee
appointed  by the Board of  Directors  that  reports to the Board on a quarterly
basis.

Management determined that an enterprise-wide  business risk-assessment approach
is most  appropriate  for addressing and  remediating  Year 2000 problems.  This
included an assessment of the  information  technology  resources of each of the
functional  areas  in the  Corporation,  as  well  as  separate  assessments  of
information  technology  vendors and suppliers,  mainframe  applications,  third
party  suppliers,  alternative  platforms,  and  non-information  technology and
facilities risks.

In addition to  systems-related  risks,  the  Corporation  undertook a review of
risks created by potential business  interruptions suffered by the Corporation's
major  business  counterparties,  both  domestic  and foreign.  The  Corporation
divided its business  counterparties  into three broad categories:  Funds Takers
(primarily  borrowers),  Funds Providers  (depositors and other funding sources)
and   Capital   Markets   partners   (trading   counterparties   and   fiduciary
relationships). For those business partners that would have a significant impact
on the Corporation's  liquidity,  income, or capital markets activities,  should
they  encounter   significant  business  interruption  due  to  the  Year  2000,
management has worked through the functional  areas involved to assess readiness
and contingency plans for recovering from an abrupt interruption.

After the  assessment  phase,  Year 2000  efforts  focused  on  remediation  and
verification.  The  Corporation  developed  detailed  action  plans  to  address
mainframe systems, third party servicers, embedded technology and facilities and
non-information  technology issues. For purchased systems and software and third
party  servicers,  the Year 2000  efforts  involved  contacting  the  vendors or
suppliers and determining the Year 2000 status of the various systems and of the
plans to bring the systems into compliance.  For in-house systems, the Year 2000
efforts  included  correction of the programs to ensure proper data  processing.
The Corporation's action plans also included testing mission-critical systems to
verify the  remediation  efforts.  Riggs records and tracks  information to keep
management  aware of the  status  of the  Corporation's  information  technology
systems. The Program Manager worked with the functional areas of the Corporation
to develop contingency plans for a variety of situations, such as the failure of
a vendor to  remediate  Year 2000  issues by a  particular  date or a system not
being available for processing.

                                      -18-

<PAGE>


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

Inherent  in the Year 2000,  the  failure to  correct a material  problem  could
result in an interruption  in or failure of certain  business  operations.  Year
2000 risks and uncertainties  include  increased credit losses,  service delays,
funding delays,  counterparty failures,  inaccurate information processing,  ATM
failures,  and problems with international  accounts.  There can be no assurance
that  the  Year  2000  issue  will not have a  material  adverse  impact  on the
Corporation's financial position,  results of operations,  or relationships with
customers, vendors, or others.

STATE OF READINESS
While there is general uncertainty inherent in the Year 2000 problem,  resulting
in part  from the  uncertainty  of the  readiness  of third  party  vendors  and
customers, the Corporation's progress toward completing the enterprise-wide risk
assessment  and  remediating  Year 2000 problems is on target.  The  Corporation
completed  remediation and verification of all mission critical internal systems
by December 31, 1998.  Mission-critical  third party service providers completed
their remediations by December 31, 1998, and Riggs  substantially  completed its
verification  of these  systems  at March 31,  1999.  As of June 30,  1999,  all
mission-critical systems have been assessed, remediated, and tested, and are now
in use serving our clients. This is in accordance with guidelines established by
Bank  regulatory  authorities.   Verification  of  non-mission  critical  system
changes,   including  non-information   technology  issues,  will  be  performed
throughout  1999. The  Corporation  presently  believes that the Year 2000 issue
will not cause significant operational problems.

COSTS
The  Corporation  estimates  the  total  cost of the Year 2000  project  will be
approximately  $7.7 million,  with $5.2 million  expended to date as of June 30,
1999.  The future cost of  completing  the Year 2000  project is estimated to be
$2.5  million.  The total  amount  expended for the first six months of 1999 was
$1.6  million.  The  most  significant  components  of the  $7.7  million  total
estimated cost consist of 65% for personnel  costs,  including  consultants  and
special  Year  2000  incentives,  and  26% for  data  processing  services.  The
Corporation  does not separately  track all internal costs incurred for the Year
2000 project.  Internal costs are principally the payroll-related  costs for the
information systems group.

The Year 2000 expense  represents  approximately 11% of the Corporation's  total
actual  information  technology  expenditures  for the first six months of 1999.
Other significant or critical non-Year 2000 information  technology efforts have
not been materially delayed or impacted by Year 2000 initiatives.

CONTINGENCY PLANS
To prepare for the possibility that certain  information  systems or third party
vendors and servicers will not be Year 2000 compliant, the Corporation developed
detailed  contingency plans. The Corporation has two types of contingency plans,
remediation plans and business resumption plans.

The remediation  plans addressed those  information  systems the Corporation had
determined  were not Year  2000  compliant  through  our  testing.  These  plans
described and scheduled alternative  provisions,  including,  if necessary,  the
replacement  of vendors  or third  party  servicers  to ensure  compliance.  The
remediation  plans are complete;  however,  implementation of these plans is not
expected to be necessary because of the Corporation's state of readiness.

The  business  resumption  plans  address  how  the  Corporation  will  continue
operations  in  the  event  a  Year  2000  related   interruption   occurs.  The
business-resumption  plans  for its  mission-critical  systems  and  third-party
servicers were substantially completed as of June 30, 1999. While implementation
of the business resumption plans is not expected to be necessary, it will ensure
the Corporation has the ability to process  transactions and serve its customers
under circumstances where a Year 2000 problem actually occurs.



The discussion of the  Corporation's  efforts and  expectations  related to Year
2000  compliance  are  forward-looking   statements  which  should  be  read  in
conjunction  with  the   Corporation's   disclosures  under  the  "Safe  Harbor"
provisions as discussed in this Form 10-Q  following  Item 3. The  Corporation's
ability  to achieve  Year 2000  compliance  and the  associated  costs  could be
adversely  impacted by, among other things,  the availability of programming and
verification  resources,  vendors' ability to modify proprietary  software,  and
problems identified in the ongoing project plan.

                                      -19-

<PAGE>



RIGGS NATIONAL CORPORATION

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

SENSITIVITY TO MARKET RISK

The  Corporation  is exposed to various  market risks.  It has  determined  that
interest-rate  risk  has  a  material  impact  on  the  Corporation's  financial
performance,  and as such has established the Asset/Liability Committee ("ALCO")
to manage  interest-rate risk. The role of this committee is to prudently manage
the  asset/liability  mix of the  Corporation  to provide a stable net  interest
margin while maintaining  liquidity and capital.  This entails the management of
the overall risk of the  Corporation in  conjunction  with the  acquisition  and
deployment  of  funds  based  upon  the  Committee's  view of both  current  and
prospective market and economic conditions.

The  Corporation  manages its  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.  The results are
compared to risk tolerance limits set by corporate  policy.  The model's results
as of June 30,  1999 and 1998 are  shown in the  tables  below.  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 and a 300 basis point (3%)  gradual  increase or decrease in rates over a
36-month time period.


INTEREST-RATE SENSITIVITY ANALYSIS (1)
<TABLE>
<CAPTION>
                                                                 MOVEMENTS IN INTEREST RATES FROM JUNE 30, 1999
============================================================================================================================
                                                         SIMULATED IMPACT OVER NEXT          SIMULATED IMPACT OVER NEXT
                                                                TWELVE MONTHS                    THIRTY-SIX MONTHS
----------------------------------------------------- ---------------------------------- -----------------------------------
(In Thousands)                                             +100BP           -100BP            +300BP            -300BP
----------------------------------------------------- ----------------- ---------------- ----------------- -----------------
<S>                                                          <C>              <C>              <C>                <C>
Simulated Impact Compared With a
  "Most Likely" Scenario:

  Net Interest Income Increase/(Decrease)                        (.9)%            2.2 %            (2.3)%             2.2 %

  Net Interest Income Increase/(Decrease)                    $(1,785)         $ 4,098          $(13,636)          $13,140
</TABLE>

<TABLE>
<CAPTION>



                                                                 MOVEMENTS IN INTEREST RATES FROM JUNE 30, 1998
----------------------------------------------------- ----------------------------------------------------------------------
                                                         SIMULATED IMPACT OVER NEXT          SIMULATED IMPACT OVER NEXT
                                                                TWELVE MONTHS                    THIRTY-SIX MONTHS
----------------------------------------------------- ---------------------------------- -----------------------------------
(In Thousands)                                             +100BP           -100BP            +300BP            -300BP
----------------------------------------------------- ----------------- ---------------- ----------------- -----------------
<S>                                                          <C>                <C>             <C>                <C>
Simulated Impact Compared With a
  "Most Likely" Scenario:

  Net Interest Income Increase/(Decrease)                        1.3 %           (0.4)%             4.3 %             0.5 %

  Net Interest Income Increase/(Decrease)                    $ 2,425            $(763)          $24,835            $2,799
</TABLE>

(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 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.

                                      -20-


<PAGE>



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


At June 30,  1999,  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 3%. For a 300 basis point  movement
in rates versus the "most likely" scenario over a 36-month period, the impact on
net interest  income also did not exceed 3%. The results of the  simulation  for
June 30, 1999 indicated that the Corporation was liability sensitive over the 12
and 36-month time horizons.  The Corporation was within  guidelines for interest
rates moving significantly in either direction.

In managing the Corporation's 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 the  interest-rate  risk of the
Corporation,  and can  effectively  alter the  sensitivity  of  segments  of the
statement of condition for specified  periods of time.  All of these  derivative
instruments are considered  off-balance-sheet,  as they do not materially affect
the level of assets or  liabilities  of the  Corporation.  Along with  financial
derivative   instruments,   the  income  simulation  model  includes  short-term
financial  instruments,   investment  securities,  loans,  deposits,  and  other
borrowings.  Interest-rate risk management strategies are discussed and approved
by ALCO prior to implementation.

Management finds that the methodologies discussed on the previous page provide a
meaningful  representation  of the  Corporation's  interest-rate and market risk
sensitivity, though 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  net  interest  income.  Management  believes  its  current
interest-rate  sensitivity  level is appropriate,  considering the Corporation's
economic outlook and conservative approach taken in the review and monitoring of
the  Corporation's  sensitivity  position.  No material changes have taken place
since December 31, 1998.

COMMITMENTS AND CONTINGENT LIABILITIES

Outstanding  commitments  and contingent  liabilities  that do not appear in the
consolidated  financial  statements at June 30, 1999 and 1998,  and December 31,
1998 are detailed in the table below.  At December 31, 1998,  the  Corporation's
financial  derivative  instruments  included  a $25  million  (notional  amount)
interest  rate swap,  which  converted  a portion of the fixed rate real  estate
mortgage loan portfolio into a floating rate asset. This swap matured in January
1999.

<TABLE>
<CAPTION>

                                                                    CONTRACTUAL OR NOTIONAL VALUE
                                                            -----------------------------------------------
                                                                 JUNE 30,       JUNE 30,      DECEMBER 31,
                                                                   1999           1998            1998
===========================================================================================================
<S>                                                             <C>             <C>             <C>

Commitments to Extend Credit                                    $1,093,187      $1,152,470      $1,169,670

Letters of Credit                                                  145,382         142,776         116,734

Derivative Instruments:
    Foreign Exchange Contracts:
         Commitments to Purchase                                $  109,009      $   88,117      $  138,727
         Commitments to Sell                                       193,770         170,150         225,846
    Interest-Rate Swap Agreements                                  100,250          90,260         115,343

</TABLE>






                                      -21-

<PAGE>




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


The Corporation's  interest-rate swap activity for the six months ended June 30,
1999, is as follows:
<TABLE>
<CAPTION>

                                                   BALANCE                                                         BALANCE
                                                 DECEMBER 31,                                                      JUNE 30,
                                                    1998         ADDITIONS     MATURITIES     TERMINATIONS          1999
============================================================================================================================
<S>                                                <C>           <C>           <C>              <C>               <C>

Interest-Rate Swaps:
     Receive fixed/pay variable                    $     --      $     --      $     --         $      --          $     --
     Receive variable/pay fixed                      25,000            --        25,000                --                --
     Riggs Bank Europe Limited                       90,343         9,907            --                --           100,250
============================================================================================================================

Total                                              $115,343      $  9,907       $25,000         $      --          $100,250
</TABLE>


                  --------------------------------------------------------

This Quarterly Report on Form 10-Q,  including the  Management's  Discussion and
Analysis of Financial Condition and Results of Operations,  and the Quantitative
and  Qualitative   Disclosures  About  Market  Risk,  contains   forward-looking
statements,  as defined in section 21E of the  Securities  Exchange Act of 1934,
that involve risk and uncertainty. In order to comply with the terms of the safe
harbor,  the  Corporation  notes  that a  variety  of  factors  could  cause the
Corporation's  actual  results and  experiences  to differ  materially  from the
anticipated  results  or  other  expectations  expressed  in  the  Corporation's
forward-looking  statements.  These  factors  include,  but are not  limited to,
certain risks and  uncertainties  that may affect the  operations,  performance,
development,  growth projections and results of the Corporation's  business such
as, the growth of the economy,  interest rate movements,  timely  development by
the  Corporation  of  technology  enhancements  for its products  and  operating
systems,  the impact of  competitive  products,  services and pricing,  customer
business requirements, Congressional legislation and similar matters. Readers of
this  report  are  cautioned  not to place  undue  reliance  on  forward-looking
statements  which are  subject  to  influence  by the  named  risk  factors  and
unanticipated future events. Actual results,  accordingly, may differ materially
from management expectations.

                                      -22-

<PAGE>



RIGGS NATIONAL CORPORATION


                            PART II OTHER INFORMATION


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

               The Annual Meeting of the  shareholders  of the  Corporation  was
               held on April 14, 1999, in Washington D.C.  Chairman of the Board
               Joe L.  Allbritton  presided  and  26,409,549  of the  28,328,247
               shares  outstanding  as of the record date of February  26, 1999,
               were represented in person or by proxy.

               1-Elections of Directors
               ------------------------

               Nominees  for  membership  on  the  Board  of  Directors  of  the
               Corporation,  listed below, were elected by the shareholders. The
               following  schedule  lists the  number  of  shares  cast for each
               nominee:

<TABLE>
<CAPTION>

                                            ==================================================================================
                                                                                   Total                    Total
                                                                                   Votes For                Votes Withheld
                                            ==================================================================================
                                            ----------------------------------------------------------------------------------
                                            <S>                                    <C>                      <C>
                                            Joe L. Allbritton                      24,796,819               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Robert L. Allbritton                   24,786,406               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Timothy C. Coughlin                    24,833,368               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            John M. Fahey, Jr.                     24,829,843               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Lawrence I. Hebert                     24,827,992               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Steven B. Pfeiffer                     24,837,998               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            John E.V. Rose                         24,828,163               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Robert L. Sloan                        24,836,041               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Jack Valenti                           24,802,564               1,259,455
                                            ----------------------------------------------------------------------------------
                                            ----------------------------------------------------------------------------------
                                            Eddie N. Williams                      24,704,060               1,259,455
                                            ----------------------------------------------------------------------------------
</TABLE>


               2-Amendment to the 1996 Stock Option Plan
               -----------------------------------------

               By a vote of 15,079,499 For, to 6,628,370  Against,  with 216,285
               Abstaining, the Corporation's shareholders approved a proposal to
               amend the 1996 Stock Option Plan to increase the number of shares
               of the  Corporation's  common  stock  available  for stock option
               awards from four million to nine million shares.

               3-Amendment to the 1997 Non-Employee Directors Stock Option Plan
               ----------------------------------------------------------------

               By a vote of 15,657,118 For, to 6,037,450  Against,  with 229,586
               Abstaining, the Corporation's shareholders approved a proposal to
               amend  the  1997  Non-Employee  Directors  Stock  Option  Plan to
               increase the number of shares of the  Corporation's  common stock
               available for stock option awards from 350,000  shares to 600,000
               shares.

               4-Proposal to Elect the Corporation's Independent Accountants
                 Each Year
               -------------------------------------------------------------

               By a vote of 5,106,784 For, to 16,493,890  Against,  with 323,481
               Abstaining, the Corporation's shareholders rejected a proposal to
               implement   procedures  to  have  the   shareholders   elect  the
               Corporation's independent accountants each year.


                                      -23-


<PAGE>



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


        (a)    Exhibits
               --------

               The exhibits listed on pages 25 through 26 are incorporated by
               reference or filed herewith in response to this item.


        (b)    Reports on Form 8-K
               -------------------

                  On July 14, 1999, the  Corporation  filed a Form 8-K regarding
                  its second quarter 1999 press release dated July 8, 1999. This
                  press release updated financial  information filed in the June
                  16,  1999  Form  S-3,  which  was  in   anticipation   of  the
                  Corporation's  issuance of $200 million in variable rate Trust
                  Preferred Securities.







                                   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:     August 10, 1999                       /s/ TIMOTHY C. COUGHLIN
       ---------------------------             --------------------------------
                                                      Timothy C. Coughlin
                                                            President






  Date:     August 10, 1999                           /s/ JOHN L. DAVIS
       ---------------------------             --------------------------------
                                                          John L. Davis
                                                     Chief Financial Officer
                                                  (Principal Financial Officer)






  Date:     August 10, 1999                        /s/ ELEANOR L. RUTLAND
       ---------------------------             --------------------------------
                                                       Eleanor L. Rutland
                                                           Comptroller
                                                 (Principal Accounting Officer)



                                      -24-

<PAGE>

<TABLE>
<CAPTION>


                                INDEX TO EXHIBITS

  EXHIBIT NO.                                     DESCRIPTION                                       PAGES
============================================================================================================
    <S>          <C>                                                                             <C>

     (3.1)       Restated Certificate of Incorporation of Riggs National Corporation,            Exhibit 3.1
                 dated April 19, 1999.

     (3.2)       By-laws of the  Registrant  with  amendments  through April 10,
                 1996  (Incorporated by reference to the Registrant's  Form 10-K
                 for the year ended December 31, 1998, SEC File No. 09756.)

     (4.1)       Indenture dated June 1, 1989 with respect to $100 million 9.65%
                 Subordinated  Debentures due 2009 (Incorporated by reference to
                 the  Registrant's  Form 8-K dated June 20,  1989,  SEC File No.
                 09756.)

     (4.2)       Indenture  dated  January 1, 1994 with respect to $125 million,
                 8.5%   Subordinated   Debentures  due  2006   (Incorporated  by
                 reference to the  Registrant's  Form 10-Q for the quarter ended
                 March 31, 1994. SEC File No.
                 09756.)

     (4.3)       Indenture dated December 13, 1996 with respect to $150 million,
                 8.625%   Trust   Preferred   Securities,   Series  A  due  2026
                 (Incorporated  by  reference  to  the  Registrant's  S-3  dated
                 February 6, 1997, SEC File No. 333-21297.)

     (4.4)       Indenture  dated March 12, 1997,  with respect to $200 million,
                 8.875%   Trust   Preferred   Securities,   Series  C  due  2027
                 (Incorporated by reference to the Registrant's S-3 dated May 2,
                 1997, SEC File No. 333-26447.)

    (10.1)       Split Dollar Life Insurance Plan  Agreements  (Incorporated  by
                 reference  to the  Registrant's  Form  10-K for the year  ended
                 December 31, 1998, SEC File No.
                 09756.)

    (10.2)       The 1993 Stock Option Plan and the 1994 Stock  Option Plan,  as
                 amended  April  15,  1998  (Incorporated  by  reference  to the
                 Registrant's  Annual  Meeting Proxy  Statement  filed March 18,
                 1998), and the 1996 Stock Option Plan and the 1997 Non-Employee
                 Directors   Stock  Option  Plan,  as  amended  April  14,  1999
                 (Incorporated by reference to the  Registrant's  Annual Meeting
                 Proxy Statement filed March 17, 1999.)

    (10.3)       Deferred  Compensation  Plan  for  Directors  (Incorporated  by
                 reference  to the  Registrant's  Form  10-K for the year  ended
                 December 31, 1998, SEC File No.
                 09756.)

    (10.4)       Description of the 1998 General Incentive Plan (Incorporated by
                 reference  to the  Registrant's  Form  10-K for the year  ended
                 December 31, 1998, SEC File No.
                 09756.)

</TABLE>

                                      -25-


<PAGE>

<TABLE>
<CAPTION>

                          INDEX TO EXHIBITS, CONTINUED

  EXHIBIT NO.                                     DESCRIPTION                                       PAGES
============================================================================================================
    <S>          <C>                                                                              <C>


    (10.5)       Description of the 1999 General Incentive Plan (Incorporated by
                 reference  to the  Registrant's  Form  10-K for the year  ended
                 December 31, 1998, SEC File No.
                 09756.)

    (10.6)       Supplemental Executive Retirement Plan, as amended and restated
                 July 12, 1995  (Incorporated  by reference to the  Registrant's
                 Form 10-K for the year ended  December 31,  1998,  SEC File No.
                 09756.)

    (10.7)       Trust  Agreement,  dated July 12,  1995,  for the  Supplemental
                 Executive  Retirement  Plan and the Split Dollar Life Insurance
                 and Supplemental Death Benefit Plans (Incorporated by reference
                 to the  Registrant's  Form 10-K for the year ended December 31,
                 1998, SEC File No. 09756.)

     (27)        Financial Data Schedule                                                          Exhibit 27
</TABLE>

(Exhibits omitted are not required or not applicable.)

                                      -26-