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 September 30, 2000


          [  ] 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)

                             (202) 835-4309
                             --------------
           (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                            28,380,666
-----------------------------                            ----------
     (Title of Class)                         (Outstanding at October 31, 2000)



<PAGE>



                    RIGGS NATIONAL CORPORATION

                         TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION                                          PAGE NO.

Item 1. Financial Statements-Unaudited

        Consolidated Statements of Income
        Three and nine months ended September 30, 2000 and 1999              3

        Consolidated Statements of Condition
        September 30, 2000 and 1999, and December 31, 1999                   4

        Consolidated Statements of Changes in Shareholders' Equity
        Nine months ended September 30, 2000 and 1999                        5

        Consolidated Statements of Cash Flows
        Nine months ended September 30, 2000 and 1999                        6

        Notes to the Consolidated Financial Statements                    7-12

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                              13-19

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


PART II.OTHER INFORMATION

Item 1. Legal Proceedings                                                   23

Item 2. Change in Securities                                                23

Item 3. Defaults Upon Senior Securities                                     23

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

Item 5. Other Information                                                   23

Item 6. Exhibits and Reports on Form 8-K                                    23

Signatures                                                                  23







                                        2
<PAGE>

                           PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS-UNAUDITED

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
                                                                                     THREE MONTHS ENDED       NINE MONTHS ENDED
(UNAUDITED)                                                                             SEPTEMBER 30,           SEPTEMBER 30,
                                                                                   ------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)                                              2000        1999        2000        1999
===================================================================================================================================
<S>                                                                                   <C>         <C>        <C>         <C>
INTEREST INCOME
  Interest and Fees on Loans                                                          $ 58,232    $ 57,699   $ 176,948   $ 171,977
  Interest and Dividends on Securities Available for Sale                               19,955      19,031      59,872      50,369
  Interest on Time Deposits with Other Banks                                             5,575       4,954      16,671      18,347
  Interest on Federal Funds Sold and Reverse Repurchase Agreements                       4,603       2,965      14,767       6,292
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Income                                                                 88,365      84,649     268,258     246,985
INTEREST EXPENSE
  Interest on Deposits:
      Savings and NOW Accounts                                                             482         631       1,670       1,944
      Money Market Deposit Accounts                                                      9,982       8,206      29,449      25,153
      Time Deposits in Domestic Offices                                                 11,780      10,876      34,886      30,837
      Time Deposits in Foreign Offices                                                   9,401       8,172      26,754      24,091
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Deposits                                                            31,645      27,885      92,759      82,025
-----------------------------------------------------------------------------------------------------------------------------------
  Interest on Short-Term Borrowings and Long-Term Debt:
      Repurchase Agreements and Other Short-Term Borrowings                              8,058       7,165      25,861      14,961
      Long-Term Debt                                                                     1,605       2,238       4,815      10,974
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Short-Term Borrowings and Long-Term Debt                             9,663       9,403      30,676      25,935
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Expense                                                                41,308      37,288     123,435     107,960
-----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income                                                                   47,057      47,361     144,823     139,025
  Less:  Provision for Loan Losses                                                      16,491           -      17,494           -
-----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income after Provision for Loan Losses                                   30,566      47,361     127,329     139,025
NONINTEREST INCOME
  Trust and Investment Advisory Income                                                  13,790      13,093      41,252      38,383
  Service Charges and Fees                                                              10,890      10,289      30,940      29,619
  Venture Capital Investment Gains, Net                                                  2,682           -      15,298           -
  Gain on Sale of Fixed Assets                                                              45       3,805          56       3,805
  Other Noninterest Income                                                               2,667       2,382       7,021       6,339
  Securities Gains, Net                                                                      3          47         324       1,151
-----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Income                                                              30,077      29,616      94,891      79,297
NONINTEREST EXPENSE
  Salaries and Employee Benefits                                                        25,315      23,318      74,599      67,387
  Occupancy, Net                                                                         4,950       4,625      14,853      13,846
  Data Processing Services                                                               4,949       4,594      15,386      13,877
  Furniture and Equipment                                                                3,060       2,575       9,093       7,798
  Other Real Estate Owned Expense (Income), Net                                             27        (116)          4         (78)
  Other Noninterest Expense                                                             17,646      16,638      51,472      49,168
-----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Expense                                                             55,947      51,634     165,407     151,998
-----------------------------------------------------------------------------------------------------------------------------------
  Income before Taxes, Minority Interest and Extraordinary Loss                          4,696      25,343      56,813      66,324
  Applicable Income Tax Expense                                                          3,600       8,089      22,155      21,807
  Minority Interest in Income of Subsidiaries, Net of Taxes                              5,348       4,987      17,028      14,960
===================================================================================================================================
  Income (Loss) before Extraordinary Loss                                             $ (4,252)   $ 12,267    $ 17,630    $ 29,557
  Extraordinary Loss, Net of Taxes                                                           -      (5,061)          -      (5,061)
===================================================================================================================================
  Net Income (Loss)                                                                   $ (4,252)    $ 7,206    $ 17,630    $ 24,496

EARNINGS PER SHARE-     Basic before Extraordinary Loss                               $  (0.15)    $   .43    $    .62    $   1.04
                        Diluted before Extraordinary Loss                                (0.15)        .42         .62        1.01
EARNINGS PER SHARE-     Basic                                                         $  (0.15)    $   .25    $    .62    $    .86
                        Diluted                                                          (0.15)        .25         .62         .84

DIVIDENDS DECLARED AND PAID PER SHARE                                                 $    .05     $   .05    $    .15    $    .15
</TABLE>
                                        3
<PAGE>

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
(UNAUDITED)                                                                      SEPTEMBER 30,  SEPTEMBER 30, DECEMBER 31,
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)                                                   2000         1999         1999
=======================================================================================================================
<S>                                                                                 <C>         <C>         <C>
ASSETS
  Cash and Due from Banks                                                           $  143,373  $  145,518  $  149,712
  Federal Funds Sold and Reverse Repurchase Agreements                                 150,000     253,000     346,000
-----------------------------------------------------------------------------------------------------------------------
  Total Cash and Cash Equivalents                                                      293,373     398,518     495,712

  Time Deposits with Other Banks                                                       379,052     376,554     413,528
  Securities Available for Sale (at Market Value)                                    1,283,171   1,298,251   1,289,884
  Venture Capital Investments                                                           82,775           -      39,525

  Loans                                                                              3,034,839   3,250,797   3,201,981
  Reserve for Loan Losses                                                              (37,147)    (51,379)    (41,455)
-----------------------------------------------------------------------------------------------------------------------
  Total Net Loans                                                                    2,997,692   3,199,418   3,160,526

  Premises and Equipment, Net                                                          199,726     201,841     202,840
  Other Real Estate Owned                                                                1,133         908         908
  Other Assets                                                                         236,239     234,365     227,226
=======================================================================================================================
  Total Assets                                                                       $5,473,161  $5,709,855  $5,830,149

LIABILITIES
  Deposits:
  Noninterest-Bearing Demand Deposits                                                $ 610,060   $ 641,209   $ 729,030
  Interest-Bearing Deposits:
      Savings and NOW Accounts                                                         272,438     344,315     395,024
      Money Market Deposit Accounts                                                  1,709,724   1,503,612   1,489,690
      Time Deposits in Domestic Offices                                                916,511     956,514   1,068,920
      Time Deposits in Foreign Offices                                                 568,435     643,352     492,669
-----------------------------------------------------------------------------------------------------------------------
  Total Interest-Bearing Deposits                                                    3,467,108   3,447,793   3,446,303
-----------------------------------------------------------------------------------------------------------------------
  Total Deposits                                                                     4,077,168   4,089,002   4,175,333

  Repurchase Agreements and Other Short-Term Borrowings                                492,602     786,170     832,202
  Other Liabilities                                                                    121,682      75,036      68,376
  Long-Term Debt                                                                        66,525      66,525      66,525
-----------------------------------------------------------------------------------------------------------------------
  Total Liabilities                                                                  4,757,977   5,016,733   5,142,436

GUARANTEED  PREFERRED  BENEFICIAL  INTERESTS  IN  JUNIOR
  SUBORDINATED  DEFERRABLE  INTEREST  DEBENTURES                                       350,000     350,000     350,000
=======================================================================================================================
SHAREHOLDERS' EQUITY
  Common Stock-$2.50 Par Value
      Shares Authorized - 50,000,000 at September 30, 2000 and 1999, and
         December 31, 1999
      Shares Issued - 31,681,464 at September 30, 2000, 31,612,995 at
         September 30, 1999 and 31,615,495 at December 31, 1999                         79,204      79,032      79,039
  Surplus - Common Stock                                                               162,004     161,418     161,439
  Undivided Profits                                                                    224,063     205,001     210,682
  Accumulated Other Comprehensive Loss                                                 (28,730)    (30,972)    (42,090)
  Treasury Stock - 3,300,798 shares at September 30, 2000 and 1999, and
         December 31, 1999                                                             (71,357)    (71,357)    (71,357)
-----------------------------------------------------------------------------------------------------------------------
  Total Shareholders' Equity                                                           365,184     343,122     337,713
=======================================================================================================================
  Total Liabilities and Shareholders' Equity                                        $5,473,161  $5,709,855  $5,830,149
</TABLE>



                                        4
<PAGE>

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

                                                                 COMMON                          ACCUMULATED
                                                                 STOCK                             OTHER                  TOTAL
                                                                 $2.50               UNDIVIDED  COMPREHENSIVE TREASURY SHAREHOLDERS'
                                                                  PAR     SURPLUS     PROFITS   INCOME (LOSS)   STOCK     EQUITY
===================================================================================================================================
<S>                                                           <C>         <C>        <C>          <C>        <C>         <C>
Balance, December 31, 1998                                    $ 78,888    $160,760   $ 184,794    $ (2,548)  $ (29,166)  $ 392,728

Comprehensive Income:
   Net Income                                                                           24,496                              24,496
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale, Net
      of Reclassification Adjustments                                                              (27,890)                (27,890)
    Foreign Exchange
      Translation Adjustments                                                                         (534)                   (534)
                                                                                                                       ------------
   Total Other Comprehensive
     Income (Loss)                                                                                                         (28,424)
                                                                                                                       ============
Total Comprehensive Income (Loss)                                                                                           (3,928)

Issuance of Common Stock for
  Stock Option Plans-57,650 Shares                                 144         658                                             802

Cash Dividends -
  Common Stock, $.15 per Share                                                          (4,289)                             (4,289)

Common Stock Repurchase-
   2,125,000 shares                                                                                            (42,191)    (42,191)
===================================================================================================================================
Balance, September 30, 1999                                   $ 79,032    $161,418   $ 205,001   $ (30,972)  $ (71,357)  $ 343,122

Balance, December 31, 1999                                    $ 79,039    $161,439   $ 210,682   $ (42,090)  $ (71,357)  $ 337,713

Comprehensive Income:
   Net Income                                                                           17,630                              17,630
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale, Net
      of Reclassification Adjustments                                                               15,750                  15,750
    Foreign Exchange
      Translation Adjustments                                                                       (2,390)                 (2,390)
                                                                                                                       ------------
   Total Other Comprehensive
     Income (Loss)                                                                                                          13,360
                                                                                                                       ============
Total Comprehensive Income (Loss)                                                                                           30,990

Issuance of Common Stock for
  Stock Option Plans-65,969 Shares                                 165         565                                             730

Cash Dividends -
  Common Stock, $.15 per Share                                                          (4,249)                             (4,249)
===================================================================================================================================
Balance, September 30, 2000                                   $ 79,204    $162,004   $ 224,063   $ (28,730)  $ (71,357)  $ 365,184
</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)                                                                                                NINE MONTHS ENDED
                                                                                                                SEPTEMBER 30,
                                                                                                           ------------------------
                                                                                                              2000        1999
===================================================================================================================================
<S>                                                                                                         <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                                                                                  $   17,630  $   24,496
  Adjustments to Reconcile Net Income to Cash
    Provided By Operating Activities:
     Provision for Loan Losses                                                                                  17,494           -
     Provision for Other Real Estate Owned Writedowns                                                                -          16
     Depreciation Expense and Amortization of Leasehold Improvements                                            10,427       8,716
     Gains on Sale of Securities Available for Sale                                                               (324)     (1,151)
     Gains on Sale of Other Real Estate Owned                                                                        -         (61)
     Increase in Other Assets                                                                                  (17,493)    (22,359)
     Increase in Other Liabilities                                                                              53,306      26,186
-----------------------------------------------------------------------------------------------------------------------------------
  Total Adjustments                                                                                             63,410      11,347
-----------------------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By Operating Activities                                                                     81,040      35,843
-----------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Net Decrease In Time Deposits with Other Banks                                                                34,476     319,627
  Principal Collections and Maturities of Securities Available for Sale                                        899,171   2,898,637
  Proceeds from Sales of Securities Available for Sale                                                         212,046      81,337
  Purchases of Securities Available for Sale                                                                (1,079,950) (3,349,254)
  Net Decrease in Loans                                                                                        145,705       4,356
  Net Increase in Venture Capital Investments                                                                  (43,250)          -
  Proceeds from Sale and Other Payments of Other Real Estate Owned                                                   -         816
  Net Increase in Premises and Equipment                                                                        (7,313)     (7,486)
  Other, Net                                                                                                      (590)        (93)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash Provided By (Used In) Investing Activities                                                            160,295     (52,060)
-----------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net (Decrease) Increase  in:
    Demand, NOW, Savings and Money Market Deposit Accounts                                                     (21,522)    (91,890)
    Time Deposits                                                                                              (76,643)     36,044
    Repurchase Agreements and Other Short-Term Borrowings                                                     (339,600)    411,790
  Repayment of Long-Term Debt                                                                                        -    (125,000)
  Proceeds from the Issuance of Common Stock                                                                       730         802
  Dividend Payments - Common                                                                                    (4,249)     (4,289)
  Repurchase of Common Shares                                                                                        -     (42,191)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash (Used In) Provided By Financing Activities                                                           (441,284)    185,266
-----------------------------------------------------------------------------------------------------------------------------------
Effect of Exchange Rate Changes                                                                                 (2,390)       (534)
-----------------------------------------------------------------------------------------------------------------------------------
Net  (Decrease) Increase  in Cash and Cash Equivalents                                                        (202,339)    168,515
Cash and Cash Equivalents at Beginning of Period                                                               495,712     230,003
===================================================================================================================================
Cash and Cash Equivalents at End of Period                                                                  $  293,373  $  398,518

SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES:

NONCASH ACTIVITIES:
  Loans Transferred to Other Real Estate Owned                                                              $      225  $        -

CASH PAID DURING  THE YEAR FOR:
  Interest Paid (Net of Amount Capitalized)                                                                 $  124,047  $  109,700
  Income Tax Payments                                                                                            7,198         128
</TABLE>



                                        6
<PAGE>

 RIGGS NATIONAL CORPORATION

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

NOTE 1.     BASIS OF PRESENTATION

In our opinion,  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  estimates.  These
statements  should be read in  conjunction  with the  financial  statements  and
accompanying notes included in our Annual Report on Form 10-K for the year ended
December  31, 1999.  Certain  reclassifications  have been made to  prior-period
amounts  to conform  with the  current  period's  presentation.  The  results of
operations for the first nine months of 2000 are not  necessarily  indicative of
the results to be expected for the full 2000 year.


NOTE 2.     EARNINGS PER SHARE

Earnings per share computations are as follows:
<TABLE>
<CAPTION>
                                                                                      NINE MONTHS ENDED       NINE MONTHS ENDED
                                                                                     SEPTEMBER 30, 2000      SEPTEMBER 30, 1999
                                                                                   ================================================
                                                                                      BASIC      DILUTED      BASIC      DILUTED
                                                                                       EPS         EPS         EPS         EPS
                                                                                   ================================================
<S>                                                                                 <C>         <C>         <C>         <C>
Income before Extraordinary Loss                                                      $ 17,630    $ 17,630    $ 29,557    $ 29,557
Extraordinary Loss, Net of Tax                                                               -           -      (5,061)     (5,061)
                                                                                   ------------------------------------------------
Net Income Available to Common Shareholders                                           $ 17,630    $ 17,630    $ 24,496    $ 24,496

Weighted-Average Shares Outstanding                                                 28,337,017  28,337,017  28,514,728  28,514,728
Weighted-Average Dilutive Effect
   of Stock Option Plans                                                                   n/a     112,932         n/a     607,025
                                                                                    ------------------------------------------------
Adjusted Weighted-Average Shares Outstanding                                        28,337,017  28,449,949  28,514,728  29,121,753

Basic EPS before Extraordinary Loss                                                   $    .62                $   1.04
Diluted EPS before Extraordinary Loss                                                             $    .62                $   1.01

Basic EPS                                                                             $    .62                 $   .86
Diluted EPS                                                                                       $    .62                $    .84

                                                                                     THREE MONTHS ENDED      THREE MONTHS ENDED
                                                                                     SEPTEMBER 30, 2000      SEPTEMBER 30, 1999
                                                                                   ================================================
                                                                                      BASIC      DILUTED      BASIC      DILUTED
                                                                                       EPS         EPS         EPS         EPS
                                                                                   ------------------------------------------------
Income Before Extraordinary Loss                                                      $ (4,252)   $ (4,252)   $ 12,267    $ 12,267
Extraordinary Loss, Net of Tax                                                               -           -      (5,061)     (5,061)
                                                                                   ------------------------------------------------
Income Available to Common Shareholders                                               $ (4,252)   $ (4,252)   $  7,206    $  7,206

Weighted-Average Shares Outstanding                                                 28,363,275  28,363,275  28,300,240  28,300,240
Weighted-Average Dilutive Effect
   of Stock Option Plans                                                                   n/a     132,279         n/a     632,275
                                                                                   ------------------------------------------------
Adjusted Weighted-Average Shares Outstanding                                        28,363,275  28,495,554  28,300,240  28,932,515

Basic EPS before Extraordinary Loss                                                   $   (.15)               $    .43
Diluted EPS before Extraordinary Loss                                                             $   (.15)               $    .42

Basic EPS                                                                             $   (.15)               $    .25
Diluted EPS                                                                                       $   (.15)               $    .25
</TABLE>



                                        7
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 3.     OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>
                                                                                                  BEFORE -       TAX
                                                                                                    TAX       (EXPENSE)  NET-OF-TAX
                                                                                                   AMOUNT      BENEFIT     AMOUNT
===================================================================================================================================
<S>                                                                                               <C>          <C>        <C>
NINE MONTHS ENDED SEPTEMBER 30, 2000:
Foreign Currency Translation Adjustments                                                          $ (3,677)    $ 1,287    $ (2,390)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                                           24,554      (8,593)     15,961
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income                         (324)        113        (211)
-----------------------------------------------------------------------------------------------------------------------------------
  Net Unrealized Gains (Losses)                                                                     24,230      (8,480)     15,750
===================================================================================================================================
Other Comprehensive Income (Loss)                                                                 $ 20,553     $(7,193)   $ 13,360

NINE MONTHS ENDED SEPTEMBER 30, 1999:
Foreign Currency Translation Adjustments                                                          $   (822)    $   288    $   (534)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                                          (41,757)     14,615     (27,142)
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income                       (1,151)        403        (748)
-----------------------------------------------------------------------------------------------------------------------------------
  Net Unrealized Gains (Losses)                                                                    (42,908)     15,018     (27,890)
===================================================================================================================================
Other Comprehensive Income (Loss)                                                                 $(43,730)    $15,306    $(28,424)
</TABLE>

<TABLE>
<CAPTION>


ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES
                                                                                                 FOREIGN   UNREALIZED  ACCUMULATED
                                                                                                CURRENCY   GAIN (LOSS)    OTHER
                                                                                               TRANSLATION     ON      COMPREHENSIVE
                                                                                               ADJUSTMENTS SECURITIES  INCOME (LOSS)
===================================================================================================================================
<S>                                                                                               <C>        <C>         <C>
NINE MONTHS ENDED SEPTEMBER 30, 2000:
Balance, December 31, 1999                                                                        $ (2,597)  $ (39,493)  $ (42,090)
Current-Period Change                                                                               (2,390)     15,750      13,360
===================================================================================================================================
Balance, September 30, 2000                                                                       $ (4,987)  $ (23,743)  $ (28,730)

NINE MONTHS ENDED SEPTEMBER 30, 1999:
Balance, December 31, 1998                                                                        $ (1,349)  $  (1,199)  $  (2,548)
Current-Period Change                                                                                 (534)    (27,890)    (28,424)
===================================================================================================================================
Balance, September 30, 1999                                                                       $ (1,883)  $ (29,089)  $ (30,972)
</TABLE>

















                                        8
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 4.     SEGMENT PROFITABILITY
<TABLE>
<CAPTION>
===================================================================================================================================
NINE MONTHS                                                                           RIGGS                                 RIGGS
ENDED                                          INTERNATIONAL RIGGS &                 CAPITAL                              NATIONAL
SEPTEMBER 30, 2000                   BANKING     BANKING     COMPANY    TREASURY    PARTNERS      OTHER   RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>           <C>         <C>       <C>           <C>         <C>         <C>        <C>
NET INTEREST INCOME
Interest Income                     $  148,441    $ 47,392    $  4,459  $  113,250    $     34    $ 35,337
Interest Expense                        46,549      62,654       9,262      43,284           -      40,693
Funds Transfer Income (Expense)         (8,038)     43,342      13,389     (61,461)     (2,155)     14,923
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        93,854      28,080       8,586       8,505      (2,121)      9,567
Provision for Loan Losses               (4,160)    (13,334)          -           -           -           -
Tax Equivalent Adjustment               (1,648)          -           -           -           -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   88,046    $ 14,746    $  8,586  $    8,505    $ (2,121)   $  9,567 $         -   $ 127,329
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   29,845    $  3,245    $ 43,589  $    2,536    $ 15,050    $    626
Intersegment Noninterest Income          2,654       4,304         177           1         248       2,167
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   32,499    $  7,549    $ 43,766  $    2,537    $ 15,298    $  2,793 $    (9,551)  $  94,891
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    5,205    $    790    $    660  $       13        $ 15    $  6,680
Direct Expense                          50,376      24,779      27,163       3,050       1,503      54,723
Overhead and Support                    39,291       9,335       9,282       1,279          59     (59,245)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   94,872    $ 34,904    $ 37,105  $    4,342    $  1,577    $  2,158 $    (9,551)  $ 165,407
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $   25,673    $(12,609)   $ 15,247  $    6,700    $ 11,600    $ 10,202 $         -   $  56,813
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,806,172    $921,332    $102,080  $2,420,691    $ 68,568    $932,073 $(1,586,485)$ 5,664,431
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
NINE MONTHS                                                                           RIGGS                                RIGGS
ENDED                                          INTERNATIONAL RIGGS &                 CAPITAL                             NATIONAL
SEPTEMBER 30, 1999                   BANKING     BANKING     COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>           <C>         <C>       <C>           <C>       <C>        <C>          <C>
NET INTEREST INCOME
Interest Income                     $  140,518    $ 44,414    $  4,315  $   75,801    $      2  $   38,547
Interest Expense                        43,670      51,803       6,792      22,157           -      37,774
Funds Transfer Income (Expense)         (1,885)     31,205       9,943     (45,122)       (620)      6,479
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        94,963      23,816       7,466       8,522        (618)      7,252
Provision for Loan Losses                    -           -           -           -           -           -
Tax Equivalent Adjustment               (1,948)          -           -        (428)          -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   93,015    $ 23,816    $  7,466  $    8,094    $   (618) $    7,252 $         -  $  139,025
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   29,793    $  2,957    $ 39,391  $    1,843    $    434  $    4,879
Intersegment Noninterest Income          1,674       3,243         338           1           -       2,342
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   31,467    $  6,200    $ 39,729  $    1,844    $    434  $    7,221 $    (7,598) $   79,297
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    5,636       $ 560       $ 618  $       10         $ 8  $    5,332
Direct Expense                          46,093      17,499      24,113       2,292       1,480      55,955
Overhead and Support                    41,402       8,836       9,155       1,264           9     (60,666)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   93,131    $ 26,895    $ 33,886  $    3,566    $  1,497  $      621 $    (7,598) $  151,998
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $   31,351    $  3,121    $ 13,309  $    6,372    $ (1,681) $   13,852 $         -  $   66,324
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,749,055    $935,864    $100,900  $1,840,020    $ 14,190  $1,075,175 $(1,185,334) $5,529,870
===================================================================================================================================
</TABLE>
                                        9
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

Our  reportable  segments are  strategic  business  units that  provide  diverse
products  and  services  within the  financial  services  industry.  We have six
reportable segments: Banking,  International Banking, Riggs & Company, Treasury,
Riggs  Capital  Partners 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 our Washington,
D.C.- based embassy banking  business and our London-based  banking  subsidiary,
Riggs Bank  Europe  Limited.  Riggs & Company  is our  private  client  services
division  that  provides  trust and  investment  management  services to a broad
customer  base.  The Treasury  segment is  responsible  for asset and  liability
management  throughout  our  operations.  Riggs Capital  Partners is our venture
capital  subsidiary,  and  specializes in equity  investments in  privately-held
high-growth companies. "Other" consists of our unallocated parent-company income
and expense,  net interest  income from  unallocated  equity and foreclosed real
estate activities of Riggs Bank N.A., our principal banking subsidiary.

We evaluate  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.  We account
for intercompany transactions as if the transactions were to third parties under
market conditions. Overhead and support expenses are allocated to each operating
segment based on number of employees,  service usage and other factors  relevant
to the expense incurred.

Reconciliations  are  provided  from  the  segment  totals  to our  consolidated
financial statements.  The reconciliations of noninterest income and noninterest
expense offset, as these items result from intercompany transactions.  For years
in which we have  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.
<TABLE>
<CAPTION>

===================================================================================================================================
THREE MONTHS                                                                          RIGGS                                RIGGS
ENDED                                          INTERNATIONAL RIGGS &                 CAPITAL                             NATIONAL
SEPTEMBER 30, 2000                   BANKING     BANKING     COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>           <C>         <C>       <C>           <C>         <C>      <C>          <C>
NET INTEREST INCOME
Interest Income                     $   49,713    $ 15,293    $  1,512  $   38,451    $     34    $ 11,748
Interest Expense                        17,398      21,326       3,408      13,687           -      13,332
Funds Transfer Income (Expense)           (517)     15,877       4,638     (24,488)       (725)      5,215
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        31,798       9,844       2,742         276        (691)      3,631
Provision for Loan Losses               (3,860)    (12,631)          -           -           -           -
Tax Equivalent Adjustment                 (543)          -           -           -           -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   27,395    $ (2,787)   $  2,742  $      276    $   (691)   $  3,631 $         -  $   30,566
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   10,174    $  1,198    $ 14,965  $      753    $  2,597    $    390
Intersegment Noninterest Income            876       2,233          45           -          85         722
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   11,050    $  3,431    $ 15,010  $      753    $  2,682    $  1,112 $    (3,961) $   30,077
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    1,424       $ 301    $    215  $        4    $      6    $  2,254
Direct Expense                          16,995      10,149       8,870       1,011         450      18,229
Overhead and Support                    12,953       3,219       3,020         424          19     (19,635)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   31,372   $  13,669    $ 12,105  $    1,439    $    475    $    848 $    (3,961) $   55,947
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $    7,073   $ (13,025)   $  5,647  $     (410)   $  1,516    $  3,895 $         -  $    4,696
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,813,902   $ 869,842    $ 99,914  $2,384,700    $ 83,837    $918,936 $(1,619,026) $5,552,105
===================================================================================================================================
</TABLE>






                                       10
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>

===================================================================================================================================
THREE MONTHS                                                                          RIGGS                                RIGGS
ENDED                                          INTERNATIONAL RIGGS &                 CAPITAL                             NATIONAL
SEPTEMBER 30, 1999                   BANKING     BANKING     COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>         <C>        <C>           <C>        <C>       <C>          <C>
NET INTEREST INCOME
Interest Income                     $   47,616   $  13,577   $   2,737  $   28,506    $      2   $  11,955
Interest Expense                        13,501      15,259       4,006      10,260           -      13,205
Funds Transfer Income (Expense)         (3,270)      9,042       4,348     (13,759)       (288)      3,927
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        30,845       7,360       3,079       4,487        (286)      2,677
Provision for Loan Losses                    -           -           -           -           -           -
Tax Equivalent Adjustment                 (801)          -           -           -           -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   30,044   $   7,360   $   3,079  $    4,487    $   (286)  $   2,677 $         -  $   47,361
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   10,307   $     730   $  13,697  $      958    $     50   $   3,874
Intersegment Noninterest Income          1,415       1,182          69           -           -         561
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   11,722   $   1,912   $  13,766  $      958    $     50   $   4,435 $    (3,227) $   29,616
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization          $ 1,849   $     170       $ 228  $        4    $      4   $   1,771
Direct Expense                          15,099       5,609       8,524       1,533         469      19,601
Overhead and Support                    15,024       2,900       3,354         492           7     (21,777)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   31,972   $   8,679   $  12,106  $    2,029    $    480   $    (405)$    (3,227) $   51,634
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $    9,794   $     593   $   4,739  $    3,416    $   (716)  $   7,517 $         -  $   25,343
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,792,640   $ 832,585   $ 202,657  $2,001,130    $ 19,084   $ 999,122 $(1,235,959) $5,611,259
===================================================================================================================================
</TABLE>

NOTE 5.     NEW FINANCIAL ACCOUNTING STANDARDS

SFAS No. 133,  "Accounting for Derivative  Instruments and Hedging  Activities,"
was issued in June  1998.  SFAS No.  133 will  require  us 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 we treat 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.
137, issued in June 1999, deferred the effective date for implementation of SFAS
No. 133 to January 1, 2001. We do not  anticipate  any material  impact from the
implementation of SFAS No. 133.

















                                       11
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 6.    VALUATION POLICY OF VENTURE CAPITAL INVESTMENTS

Investments in the portfolio of our venture  capital  subsidiary,  Riggs Capital
Partners, LLC ("RCP"),  are carried at fair value with gains and losses included
in the Consolidated Statements of Income. Fair value is based upon quoted market
prices when available.  If quoted markets prices are not available,  information
and techniques that estimate the market price determine fair value.  Permanently
impaired  investments are  written-down as necessary.  We apply discounts to the
market values of our investments to reflect various factors.

Direct investments are investments in individual  companies with their financial
returns exclusively dependent upon the particular companies' performance. Listed
securities  are  discounted  as  appropriate  from their quoted  market value to
reflect  the  effects  on the fair  market  value  because  of a lack of trading
history,  lock-up  provisions,  a potential lack of market liquidity,  and other
factors.  The  appropriate  discount is generally  determined by discounting our
capital gain on a publicly traded  security.  Warrants to purchase  publicly
traded shares in companies are valued using a similar  methodology to that
described  above.  In the event that the listed  value of an  investment  is
lower than the average cost basis of the fund's  investment  in the  security,
the  lower  valuation  will be  employed.  Alternatives to the above discounting
formulas may be necessary to account for extraordinary circumstances concerning
particular securities.

For direct  investments in securities that do not have readily  available market
prices, valuations are carried at cost until the occurrence of a material event,
such as a follow-on  round of financing or a strategic  sale.  If the price of a
security in its most recent  financing is higher than RCP's carrying value,  RCP
will  generally  use the higher  valuation  if new,  independent,  sophisticated
investors  purchased  securities  at  the  higher  price.  If no  new  investors
participated  in  the  funding,   then  the  previous   valuation  is  generally
maintained.  If we invest in the follow-on strategic financing round, these new
investments are valued at cost. If the most recent financing implies a lower
valuation than the previous  round, we use the lower valuation  regardless of
whether  new,  sophisticated  investors  participated  in the  funding.  If a
company has been  self-financing  and has had positive cash flow from operations
for at  least  the  past  two  fiscal  years,  the  company's  valuation  may be
increased,  in which case we would  consider  increasing  a company's  valuation
based on financial measures using price/earnings ratios, cash flow multiples, or
other financial  measures of similar companies,  appropriately  discounted for a
lack of liquidity.

Indirect  investments  represent  investments  made in other investment funds in
which the investment  decisions are made by the funds' management.  We generally
rely on quarterly values reported by the Investment  Manager/General  Partner of
the  partnership  as the basis for valuing our  ownership  interests  in private
equity limited partnerships.  To account for the dilutive  effects of
management  fees,  partnership  expenses,  and General Partners' "carried
interest" (i.e., share of profits),  once a fund's gains have exceeded its
preferred return threshold to its limited partners, we discount the reported
value of its limited  partnership  interests in private equity funds as
appropriate.

In the  event  that a fund  holds  a  publicly  traded  security  in its
portfolio that it has not distributed, the security shall be valued at the lower
of the  closing  price of the  security  on the last  trading day of the quarter
and the last reported  value of the  security  by the fund.


NOTE 7.    RIGGS CAPITAL PARTNERS II

In  the  third   quarter   of  2000,   we  formed  a  second   venture   capital
subsidiary-Riggs  Capital  Partners  II in order to maintain new investment flow
as proceeds of old investments in Riggs Capital Partners, LLC are distributed to
investors. J.  Carter  Beese,  President  of Riggs Capital Partners,  LLC was
appointed  President of this second  subsidiary.  We have committed to providing
up to $100 million,  over a three-year  period,  to Riggs Capital  Partners  II.
We may rescind the commitments at any time based upon our review of investment
performance of the Fund and/or our determination that other uses of capital are
of greater priority.




                                       12
<PAGE>

RIGGS NATIONAL CORPORATION

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

RESULTS OF OPERATIONS

We recorded a loss of $4.3 million,  or $(.15) per diluted share,  for the third
quarter of 2000,  primarily  the result of a $16.5  million  provision  for loan
losses.  The  provision  included  an amount for the  discovery  of a fraud in a
commercial  facility to a borrower at our London  operations.  The third quarter
2000 loss compares to net income of $7.2 million,  or $.25 per diluted share, in
the third quarter of 1999.

For the first nine months of 2000, we had net income of $17.6  million,  or $.62
per  diluted  share,  compared  with net  income of $24.5  million,  or $.84 per
diluted  share for the first nine months of 1999.  The decrease in net income of
28% resulted primarily from the current quarter's loan loss provision.

The $16.5  million loan loss  provision  reflected an $11.0  million  charge-off
representing our total exposure to the London borrower previously mentioned,  as
well as a loss of $3.9 million incurred in the sale of a domestic loan.

Return on average assets was (.30)% and .42% for the three and nine months ended
September  30, 2000,  compared to .51% and .59% for the same periods a year ago.
Return on  average  shareholders'  equity  was 6.69% for the nine  months  ended
September  30, 2000,  compared to 9.43% for the nine months ended  September 30,
1999.

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 $47.6 million in
the third quarter of 2000,  almost unchanged from the $48.2 million for the same
quarter in 1999.  Net  interest  income was  $146.5  million  for the first nine
months of 2000,  compared to $141.4 for the same period a year ago. The increase
from the prior  year's  first nine months was  primarily  due to a reduction  in
interest expense due to the redemption of $125 million in subordinated  notes in
July 1999,  and increases in interest  income of $4.7,  $9.1,  and $8.5 million,
respectively,  on the loans,  securities,  and overnight investments portfolios.
These  items were  partially  offset by  increases  in  interest  expense on our
interest-bearing deposits and short-term borrowings.

NET INTEREST INCOME CHANGES (1)
<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                   NINE MONTHS ENDED
                                                               SEPTEMBER 30, 2000 VS 1999          SEPTEMBER 30, 2000 VS 1999
                                                           ------------------------------------------------------------------------
(TAX-EQUIVALENT BASIS)                                       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                                        $3,304     $(3,029)     $  275     $ 8,611     $(3,940)    $ 4,671
   Securities Available for Sale                                   727         197         924       3,390       5,685       9,075
   Time Deposits with Other Banks                                1,464        (843)        621       4,634      (6,310)     (1,676)
   Federal Funds Sold and Reverse
       Repurchase Agreements                                       860         778       1,638       1,823       6,652       8,475
-----------------------------------------------------------------------------------------------------------------------------------

Total Interest Income                                            6,355      (2,897)      3,458      18,458       2,087      20,545

Interest Expense:
   Interest-Bearing Deposits                                     5,071      (1,311)      3,760      11,784      (1,050)     10,734
   Repurchase Agreements and Other
      Short-Term Borrowings                                      1,821        (928)        893       5,301       5,599      10,900
   Long-Term Debt                                                   27        (660)       (633)        476      (6,635)     (6,159)
-----------------------------------------------------------------------------------------------------------------------------------

Total Interest Expense                                           6,919      (2,899)      4,020      17,561      (2,086)     15,475
===================================================================================================================================
Net Interest Income                                             $ (564)     $    2      $ (562)    $   897     $ 4,173     $ 5,070
</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.
                                       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>

                                                             THREE MONTHS ENDED                  THREE MONTHS ENDED
                                                             SEPTEMBER 30, 2000                  SEPTEMBER 30, 1999
                                                           ------------------------------------------------------------------------
(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)                                 $3,074,941     $58,775        7.60% $3,213,650    $ 58,500        7.22%
  Securities Available for Sale (3)                          1,269,559      19,955        6.25   1,255,783      19,031        6.01
  Time Deposits with Other Banks                               328,265       5,575        6.76     387,892       4,954        5.07
  Federal Funds Sold and Reverse Repurchase Agreements         277,315       4,603        6.60     224,509       2,965        5.24
-----------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned             4,950,080      88,908        7.15   5,081,834      85,450        6.67

  Reserve for Loan Losses                                      (36,860)                            (52,224)
  Cash and Due from Banks                                      128,591                             151,931
  Other Assets                                                 510,294                             429,718
===================================================================================================================================
    Total Assets                                            $5,552,105                          $5,611,259

LIABILITIES, MINORITY INTEREST AND
    SHAREHOLDERS' EQUITY

  Interest-Bearing Deposits                                 $3,474,879     $31,645        3.62% $3,564,923    $ 27,885        3.10%
  Repurchase Agreements and Other Short-Term Borrowings        545,662       8,058        5.87     624,094       7,165        4.55
  Long-Term Debt                                                66,525       1,605        9.60      93,699       2,238        9.48
-----------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid       4,087,066      41,308        4.02   4,282,716      37,288        3.45

  Demand Deposits                                              645,585                             579,101
  Other Liabilities                                            101,457                              65,965
  Minority Interest in Preferred Stock of Subsidiaries         350,000                             350,000
  Shareholders' Equity                                         367,997                             333,477
===================================================================================================================================
  Total Liabilities, Minority Interest and
     Shareholders' Equity                                   $5,552,105                          $5,611,259
===================================================================================================================================
  NET INTEREST INCOME AND SPREAD                                           $47,600       3.13%                $ 48,162       3.22%
===================================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                                  3.83%                               3.76%
</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 September 30, 2000, totaled $30.1
million, an increase of $.5 million from the $29.6 million for the same period a
year ago.  $2.7 million in venture  capital  investment  gains at Riggs  Capital
Partners  contributed  significantly to noninterest income for the third quarter
of 2000,  while in the third  quarter of 1999 we recorded  $3.8 million in gains
from the sale of the corporate aircraft, which was replaced.  Noninterest income
between the  periods was also  enhanced  by  increases  in trust and  investment
advisory income and service charges and fees of $697 thousand and $601 thousand,
respectively.

Noninterest  income for the nine months ended September 30, 2000,  totaled $94.9
million, an increase of $15.6 million from the $79.3 million earned for the same
period in 1999.  This  increase was  primarily  due to $15.3  million in venture
capital  investment  gains at Riggs  Capital  Partners,  and an increase of $2.9
million  in trust and  advisory  income  from  1999 to 2000 at Riggs &  Company.
Noninterest  income for the prior  year's nine months  ended was enhanced by the
$3.8 million gain discussed above.
                                       14
<PAGE>

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

                                                              NINE MONTHS ENDED                   NINE MONTHS ENDED
                                                             SEPTEMBER 30, 2000                  SEPTEMBER 30, 1999
                                                           ------------------------------------------------------------------------
(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)                                 $3,125,668    $178,596        7.63% $3,195,091   $ 173,925        7.28%
  Securities Available for Sale (3)                          1,274,350      59,872        6.28   1,151,402      50,797        5.90
  Time Deposits with Other Banks                               354,881      16,671        6.27     506,533      18,347        4.84
  Federal Funds Sold and Reverse Repurchase Agreements         316,113      14,767        6.24     167,519       6,292        5.02
-----------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned             5,071,012     269,906        7.11   5,020,545     249,361        6.64

  Reserve for Loan Losses                                      (38,820)                            (53,055)
  Cash and Due from Banks                                      137,973                             148,358
  Other Assets                                                 494,266                             414,022
===================================================================================================================================
    Total Assets                                            $5,664,431                          $5,529,870

LIABILITIES, MINORITY INTEREST AND
    SHAREHOLDERS' EQUITY

  Interest-Bearing Deposits                                 $3,544,256     $92,759        3.50% $3,545,657    $ 82,025        3.09%
  Repurchase Agreements and Other Short-Term Borrowings        629,212      25,861        5.49     470,094      14,961        4.26
  Long-Term Debt                                                66,525       4,815        9.67     158,558      10,974        9.25
-----------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid       4,239,993     123,435        3.89   4,174,309     107,960        3.46

  Demand Deposits                                              630,528                             595,877
  Other Liabilities                                             91,708                              62,401
  Minority Interest in Preferred Stock of Subsidiaries         350,000                             350,000
  Shareholders' Equity                                         352,202                             347,283
===================================================================================================================================
  Total Liabilities, Minority Interest and
     Shareholders' Equity                                   $5,664,431                          $5,529,870
===================================================================================================================================
  NET INTEREST INCOME AND SPREAD                                          $146,471       3.22%               $ 141,401       3.18%
===================================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                                  3.86%                               3.77%
</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  September  30, 2000,  was $55.9
million,  an increase of $4.3  million from the $51.6  million  reported for the
three  months ended  September  30,  1999.  This  increase was a result of added
personnel costs during the year, partially related to new business  initiatives,
and other  noninterest  expense,  such as data  processing  costs and  occupancy
expense related to these business initiatives. In addition, in the third quarter
of  2000,  we  incurred  legal  fees  related  to the  discovery  of  fraud in a
commercial  facility  to a borrower  at our London  operations  discussed  under
"Results of Operations" in the Management's Discussion and Analysis of this Form
10Q.

Noninterest  expense for the nine months ended  September  30, 2000,  was $165.4
million  compared to $152.0 million for the same period a year ago. The increase
for the nine month period was partially due to the new business  initiatives and
legal fees discussed in the preceding paragraph.



                                       15
<PAGE>

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


FINANCIAL CONDITION

SECURITIES

Securities  available  for sale totaled  $1.28  billion at  September  30, 2000,
compared to $1.29  billion at year-end  1999 and $1.30  billion at September 30,
1999.  The activity for the first nine months  included  purchases of securities
available  for sale  totaling  $1.08  billion,  which  were more than  offset by
maturities,  curtailments  and sales of  securities  available for sale totaling
$1.11  billion.  The  weighted-average  durations and yields for the  portfolio,
adjusted for anticipated  prepayments,  were  approximately 3.3 years and 6.14%,
respectively, at September 30, 2000.

<TABLE>
<CAPTION>

                                                             SEPTEMBER 30, 2000      SEPTEMBER 30, 1999       DECEMBER 31, 1999
                                                           ------------------------------------------------------------------------
                                                            AMORTIZED    MARKET/    AMORTIZED    MARKET/    AMORTIZED    MARKET/
AVAILABLE FOR SALE                                            COST     BOOK VALUE     COST     BOOK VALUE     COST     BOOK VALUE
===================================================================================================================================
<S>                                                         <C>         <C>         <C>         <C>         <C>         <C>
(IN THOUSANDS)

U.S. Treasury Securities                                    $  313,718  $  301,519  $  314,267  $  298,605  $  289,242  $  268,008
Government Agencies Securities                                 445,211     442,725     438,809     435,975     479,297     474,457
Mortgage-Backed Securities                                     513,285     491,442     526,640     500,384     518,418     483,734
Other Securities                                                47,485      47,485      63,287      63,287      63,685      63,685
===================================================================================================================================
Total                                                       $1,319,699  $1,283,171  $1,343,003  $1,298,251  $1,350,642  $1,289,884
</TABLE>

LOANS

At September 30, 2000, loans outstanding totaled $3.03 billion,  decreasing from
the  September  30,  1999 and  December  31,  1999  balances  of $3.25 and $3.20
billion, respectively. The decreases were primarily in commercial and financial,
residential  mortgage and foreign loans from both prior periods. The majority of
the decrease in commercial  and  financial  loans from both prior periods was in
syndicated  loans.  Syndicated  loan  commitments  decreased  $231  million from
September 30, 1999 and $171 million from December 31, 1999, respectively.  It is
part of our strategy generally to no longer participate in these types of loans.
These  decreases  were  partially  offset by  increases  in home equity and real
estate/commercial construction loans.

During the second quarter of 2000, we began originating  mortgage loans for sale
in the secondary  market.  At September 30, 2000,  residential real estate loans
originated and held for sale totaled $18.6 million.  There were no such loans at
either September 30, 1999, or December 31, 1999.
<TABLE>
<CAPTION>


                                                            SEPTEMBER 30,         SEPTEMBER 30,           DECEMBER 31,
(IN THOUSANDS)                                                  2000                    1999                    1999
=======================================================================================================================
<S>                                                         <C>                     <C>                     <C>
Commercial and Financial                                    $  538,718              $  713,081              $  667,393
Real Estate - Commercial/Construction                          450,862                 399,440                 415,304
Residential Mortgage                                         1,175,691               1,237,522               1,219,740
Loans Available for Sale                                        18,559                       -                       -
Home Equity                                                    339,557                 311,958                 315,520
Consumer                                                        69,951                  72,090                  73,158
Foreign                                                        446,685                 522,291                 517,012
-----------------------------------------------------------------------------------------------------------------------

Total Loans                                                  3,040,023               3,256,382               3,208,127

Net Deferred Loan Fees,
 Premiums and Discounts                                         (5,184)                 (5,585)                 (6,146)
=======================================================================================================================
Loans                                                       $3,034,839              $3,250,797              $3,201,981
</TABLE>



                                       16
<PAGE>

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

RESERVE FOR LOAN LOSSES

Changes in the reserve for loan losses are summarized as follows:
<TABLE>
<CAPTION>
                                                                                                              NINE MONTHS ENDED
                                                                                                                SEPTEMBER 30,
                                                                                                           ------------------------
                                                                                                                2000        1999
===================================================================================================================================
<S>                                                                                                           <C>         <C>
Balance, January 1                                                                                            $ 41,455    $ 54,455
Provision for loan losses                                                                                       17,494           -

Loans charged-off                                                                                               23,403       4,337
   Less: Recoveries on charged-off loans                                                                         2,191       1,355
-----------------------------------------------------------------------------------------------------------------------------------
Net loan charge-offs (recoveries)                                                                               21,212       2,982

Foreign exchange translation adjustments                                                                          (590)        (94)
===================================================================================================================================
Balance, September 30                                                                                         $ 37,147    $ 51,379
</TABLE>

ASSET QUALITY

NONPERFORMING ASSETS

Nonperforming  assets,  which include  nonaccrual loans,  renegotiated loans and
other real estate owned (net of  reserves),  totaled  $39.6 million at September
30, 2000, a $4.1 million  decrease from the year-end 1999 total of $43.7 million
and a $13.9 million  decrease from the September 30, 1999 total. The decrease in
nonperforming  assets  from  the  third  quarter  of  1999  was  mainly  due  to
charge-offs  on two  nonaccrual  loans,  which were placed on non-accrual in the
third  quarter  of that  year.  These  charge-offs  included  $8.8  million on a
computer  equipment  manufacturing  and servicing  company and $6.0 million on a
health  care  entity.  Another  charge-off  in  the  amount  of  $11.1  million,
representing our total exposure to the borrower, was made in September 2000 on a
loan  which  had  been  placed  on  nonaccrual  in  August  2000  at our  London
operations.  This  charge-off  was made as a result of the discovery of fraud in
the facility. We also charged-off $3.9 million to achieve a discounted sale of a
loan which,  although not a  nonperforming  asset,  made us doubtful  about full
repayment.   These  charge-offs  were  partially  offset  by  additions  to  the
non-accrual portfolio of several loans in London totaling $3.8 million.

The loans to the health care entity and  computer  equipment  manufacturing  and
servicing  company,  as well as several smaller loans, are considered  impaired.
Impaired loans totaled $37.4 million at September 30, 2000. The assigned reserve
for loan losses for impaired loans was $8.9 million at September 30, 2000.

PAST-DUE AND POTENTIAL PROBLEM LOANS

Past-due  loans  consist  of  residential  real  estate  loans,  commercial  and
industrial  loans,  and consumer loans that are in the process of collection and
that are accruing  interest.  Past-due  loans  increased $2.1 million during the
first nine months of 2000 to $9.6 million, with most of the increase in secured,
residential real estate loans.  Potential problem loans increased from September
30 and December 31, 1999, mostly due to a loan at our London operations.















                                       17
<PAGE>

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

NONPERFORMING ASSETS AND PAST-DUE LOANS
<TABLE>
<CAPTION>
                                                            SEPTEMBER 30,          SEPTEMBER 30,           DECEMBER 31,
(IN THOUSANDS)                                                2000                    1999                    1999
=======================================================================================================================
<S>                                                           <C>                     <C>                     <C>
NONPERFORMING ASSETS:

Nonaccrual Loans (1)                                          $ 37,547                $ 51,203                $ 41,534
Renegotiated Loans                                                 939                   1,409                   1,263
Other Real Estate Owned, Net                                     1,133                     908                     908
=======================================================================================================================
Total Nonperforming Assets                                    $ 39,619                $ 53,520                $ 43,705

PAST-DUE LOANS (2)                                            $  9,576                $  8,647                $  7,429

POTENTIAL PROBLEM LOANS                                       $  4,926                $      -                $  2,013
</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  contractually  past due 90 days or more in principal or
          interest that are well-secured and in the process of collection.


DEPOSITS

Deposits are our primary and most stable source of funds. Deposits totaled $4.08
billion at September 30, 2000, a decrease of $98.2 million from the December 31,
1999 total of $4.18 billion,  and a decrease of $11.8 million from the September
30, 1999 deposit total of $4.09 billion. For both periods, deposits decreased in
savings and NOW and time deposits in domestic offices accounts, and increased in
money market accounts.  Demand deposits  decreased as they were swept into money
market accounts in order to reduce reserve requirements.


SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term  borrowings  decreased  by  $339.6  million  from the  year-end  1999
balance,  and $293.6 million from the September 30, 1999 balance.  These changes
reflect  borrowings  and calls of $400 million in advances from the Federal Home
Loan Bank of Atlanta (FHLB). During 1999, we borrowed $400 million, all callable
during the year 2000,  at an average  rate of 4.99%.  $200 million was called by
the FHLB in the first quarter of 2000, with the remaining $200 million called in
July.  Short-term  borrowings  are an  additional  source of funds  that we have
utilized to meet certain  asset/liability  and daily cash management  objectives
and are used to generate cash and maintain adequate levels of liquidity.

In July 1999 we  redeemed  $125  million of our 8.5%  subordinated  notes due in
2006, at the price of 104.25%.  General  corporate funds were used to retire the
debt. We recorded an  extraordinary  expense of $5.1 million,  after tax, in the
third quarter of 1999 as a result of the redemption.
<TABLE>
<CAPTION>


                                                           SEPTEMBER 30,           SEPTEMBER 30,          DECEMBER 31,
(IN THOUSANDS)                                                2000                    1999                    1999
=======================================================================================================================
<S>                                                          <C>                     <C>                     <C>
Repurchase Agreements and Other Short-Term Borrowings        $ 492,602               $ 786,170               $ 832,202

Subordinated Debentures due 2009                                66,525                  66,525                  66,525
=======================================================================================================================
Total Short-Term Borrowings and Long-Term Debt               $ 559,127               $ 852,695               $ 898,727
</TABLE>








                                       18
<PAGE>

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

LIQUIDITY

We seek to  maintain  sufficient  liquidity  to meet the  needs  of  depositors,
borrowers  and  creditors at a reasonable  cost and without  undue stress on our
operations and those of our banking subsidiaries.  Our Asset/Liability Committee
actively  analyzes and manages liquidity in coordination with other areas of the
organization  (see  "Sensitivity  to Market  Risk").  At September 30, 2000, our
liquid assets, on a consolidated  basis,  which include cash and due from banks,
Government  obligations  and  other  securities,  federal  funds  sold,  reverse
repurchase  agreements  and time deposits at other banks,  totaled $1.96 billion
(36% of total  assets).  This  compares with $2.20 billion (38%) at December 31,
1999,  and $2.07  billion  (36%) at September  30, 1999.  At September 30, 2000,
$998.8  million  of our  assets  were  pledged  to  secure  deposits  and  other
borrowings.  This compares with pledged  assets of $1.02 billion at December 31,
1999, and $887.4 million at September 30, 1999.

Our  liquidity  position is maintained by a stable source of funds from our core
deposit relationships. We have other sources of funds, such as short-term credit
lines  available  from  several  Federal  Home Loan  Banks  and other  financial
institutions.  In  addition,  we have a line of  credit  available  through  our
membership in the FHLB. At September 30, 2000,  December 31, 1999, and September
30, 1999,  short-term credit lines and the FHLB Atlanta line of credit available
totaled   approximately  $1.75  billion,   $1.38  billion,  and  $1.41  billion,
respectively.  At September 30, 2000, December 31, 1999, and September 30, 1999,
the amounts outstanding were $15.0 million,  $423.2 million, and $431.9 million,
respectively.


SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL

Total  shareholders'  equity at  September  30,  2000,  was $365.2  million,  an
increase of $27.5  million from year-end 1999 and $22.1 million from a year ago.
The  increase  from  year-end  was  primarily  the result of net income of $17.6
million and a reduction in unrealized securities losses of $15.8 million,  after
tax. The increase from September 30, 1999 was primarily the result of net income
of $24.7  million,  and a  reduction  in  unrealized  securities  losses of $5.4
million.  For more information on our securities  portfolio,  see the discussion
under  "Securities"  in the  Management's  Discussion  and Analysis of Financial
Condition and Results of Operation in this Form 10-Q.

Book value per common  share was $12.87 as of September  30,  2000,  compared to
$11.93 at year-end 1999 and $12.12 at September 30, 1999.  The increases in book
value from September 30th and year-end 1999 were primarily the result of the net
income and net unrealized securities gains described in the preceding paragraph.

Following are our capital ratios and those of our banking subsidiary, Riggs Bank
National  Association  (Riggs Bank N.A.) at  September  30,  2000 and 1999,  and
December 31, 1999.

<TABLE>
<CAPTION>
                                                                                   SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, REQUIRED
                                                                                        2000         1999         1999      MINIMUMS
===================================================================================================================================
<S>                                                                                      <C>         <C>         <C>          <C>
RIGGS NATIONAL CORPORATION:
     Tier I                                                                              15.55%      13.76%      14.09%       4.00%
     Combined Tier I and Tier II                                                         25.41       23.25       23.55        8.00
     Leverage                                                                             9.17        8.67        8.59        4.00

RIGGS BANK N.A.:
     Tier I                                                                              13.47       13.36       12.63        4.00
     Combined Tier I and Tier II                                                         14.67       14.61       13.86        8.00
     Leverage                                                                             8.03        8.69        7.91        4.00
</TABLE>











                                       19
<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

SENSITIVITY TO MARKET RISK

We are exposed to various market risks. We have  determined  that  interest-rate
risk has a material  impact on our  financial  performance,  and as such we have
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 our
operations to provide a stable net interest margin while  maintaining  liquidity
and capital. This entails the management of our overall risk in conjunction with
the  acquisition  and deployment of funds based upon ALCO's view of both current
and prospective market and economic conditions.

We manage our interest-rate  risk through the use of an income simulation model,
which  forecasts  the impact on net  interest  income of a variety of  different
interest rate  scenarios.  A "most likely"  interest rate scenario is forecasted
based upon an analysis of current market conditions and expectations.  The model
then evaluates the impact on net interest  income of rates moving  significantly
higher or lower than the "most  likely"  scenario.  The results are  compared to
risk  tolerance  limits  set by  corporate  policy.  The  model's  results as of
September 30, 2000 and 1999 are shown in the following  tables.  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.

<TABLE>
<CAPTION>

INTEREST-RATE SENSITIVITY ANALYSIS (1)
                                                                           MOVEMENTS IN INTEREST RATES FROM SEPTEMBER 30, 2000
===================================================================================================================================
                                                                      SIMULATED IMPACT OVER                 SIMULATED IMPACT OVER
                                                                         NEXT TWELVE MONTHS                NEXT 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)                                     (0.2)%      3.7%                   (0.00)%      4.4%

  Net Interest Income Increase/(Decrease)                                  $  (300)    $ 7,111                $   (203)    $26,797


                                                                           MOVEMENTS IN INTEREST RATES FROM SEPTEMBER 30, 1999
===================================================================================================================================
                                                                       SIMULATED IMPACT OVER                SIMULATED IMPACT OVER
                                                                         NEXT TWELVE MONTHS                NEXT THIRTY-SIX MONTHS
-----------------------------------------------------------------------------------------------------------------------------------
(In Thousands)                                                           +100BP      -100BP                  +300BP      -300BP
-----------------------------------------------------------------------------------------------------------------------------------
Simulated Impact Compared With a
  "Most Likely" Scenario:

  Net Interest Income Increase/(Decrease)                                     (1.1)%      2.2%                    (3.5)%      0.9%

  Net Interest Income Increase/(Decrease)                                  $(2,180)    $ 4,294                $(21,642)    $ 5,586
</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 September  30,  2000,  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 4%. For a 300 basis point  movement
in rates versus the "most likely" scenario over a 36-month period, the impact on
net  interest  income  did not exceed 5%.  The  results  of the  simulation  for
September 30, 2000,  indicated that we were  "neutral" to "liability  sensitive"
over both the 12 and  36-month  time  horizons.  We were within  guidelines  for
interest rates moving significantly in either direction.

In managing our interest-rate risk, ALCO uses financial derivative  instruments,
such as interest-rate swaps. Financial derivatives are employed to assist in the
management and/or reduction of our interest-rate  risk and can effectively alter
the 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 our assets or liabilities.  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.

We find  that  the  methodologies  previously  discussed  provide  a  meaningful
representation of our 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. We believe our current  interest-rate  sensitivity level is
appropriate,  considering  our  economic  outlook  and  what  we  believe  is  a
conservative  approach  taken in the review and  monitoring  of our  sensitivity
position.


COMMITMENTS AND CONTINGENT LIABILITIES

Outstanding  commitments  and contingent  liabilities  that do not appear in the
consolidated  financial  statements at September 30, 2000 and 1999, and December
31, 1999 are detailed in the tables below.  At September 30, 2000, our financial
derivative  instruments included five generic swaps and three basis swaps with a
total notional amount of $141.5 million. The generic swaps extend the maturities
of certain short-term  liabilities at the current funding rates to protect these
liabilities  against rising interest rates.  These agreements were contracted in
October 1999,  December 1999, January 2000 and July 2000, and entail the payment
of a blended  6.87%  fixed  rate and the  receipt  of a  floating  rate equal to
three-month  LIBOR. These swaps reset quarterly and mature in 2004 and 2005. The
basis swaps lock in a spread  between the  3-month  T-bill and federal  funds to
protect against a narrowing of spreads for deposits that are tied to the 3-month
T-bill.  These agreements were contracted in July 2000 and effectively result in
the  payment of the  federal  funds  rate minus a spread and the  receipt of the
3-month T-bill rate. These swaps reset weekly and mature in July 2001.

We had  31  swaps  at  Riggs  Bank  Europe  Limited,  our  London-based  banking
subsidiary,  with a total  notional  amount of $96.2  million  that  entail  the
payment of a blended  6.59% fixed rate and the receipt of a floating  rate equal
to six-month LIBOR. These swaps have varying maturities extending until 2005 and
are entered into for the purpose of converting fixed rate loans to variable.

As a result of Riggs Capital Partners venture capital  investment  activity,  we
had venture capital  commitments of $13.1 million at September 30, 2000 of which
$358 thousand were less than one year.

<TABLE>
<CAPTION>

                                                                                     CONTRACTUAL OR NOTIONAL VALUE
                                                           ------------------------------------------------------------------------
                                                             SEPTEMBER 30,           SEPTEMBER 30,           DECEMBER 31,
                                                                 2000                    1999                    1999
===================================================================================================================================
<S>                                                          <C>                     <C>                    <C>
Commitments to Extend Credit                                 $ 944,225               $ 981,818              $1,035,644

Venture Capital Commitments                                     13,102                       -                  25,210

Letters of Credit                                              144,388                 155,207                 137,622

Derivative Instruments:
            Foreign Exchange Contracts:
                 Commitments to Purchase                      $ 69,155               $ 109,944              $  112,226
                 Commitments to Sell                           297,638                 195,075                 317,837
            Interest Rate Agreements
                       Swaps                                   237,668                 104,689                 126,786
                       Purchased Options                             -                       -                     629

</TABLE>


                                       21
<PAGE>

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

Our interest  rate  agreement  activity for the nine months ended  September 30,
2000, is as follows:
<TABLE>
<CAPTION>

                                                                          BALANCE                                         BALANCE
                                                                        DECEMBER 31,                                   SEPTEMBER 30,
                                                                           1999      ADDITIONS  MATURITIES  TERMINATIONS   2000
===================================================================================================================================
<S>                                                                       <C>        <C>          <C>              <C>   <C>
Interest Rate Agreements:
     Receive variable/pay fixed                                           $ 25,000   $ 116,500    $      -         $ -   $ 141,500
     Riggs Bank Europe Limited                                             101,786      11,836      17,454           -      96,168
===================================================================================================================================
Total                                                                     $126,786   $ 128,336    $ 17,454         $ -   $ 237,668
</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,   including  the  references  to  earnings  from  venture   capital,
implementation of our business  strategy,  hedging  activities and our trust and
investment  advisory income. A variety of factors could cause our actual results
and  experiences  to differ  materially  from those  expressed or implied by the
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 our business. These factors also
include the growth of the economy,  changes in credit quality or interest rates,
changes in value of venture  capital  investments  in the  technology  and other
sectors,  timing of technology  enhancements for products and operating systems,
the impact of  competitive  products,  services and pricing,  customer  business
requirements, Congressional legislation and similar matters.


































                                       22
<PAGE>

RIGGS NATIONAL CORPORATION


PART II OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

            Not applicable.

ITEM 2.     CHANGES IN SECURITIES

            Not applicable.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

            Not applicable.

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

            Not applicable.

ITEM 5.     OTHER INFORMATION

            Not applicable.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K


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

                        The  exhibits  listed  on  page 24 are  incorporated  by
                        reference or filed herewith in response to this item.


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

                        On August 23, 2000,  we filed a Form 8-K  regarding  our
                        press  release  issued  on the  same  date.  This  press
                        release  announced the discovery of potential fraud in a
                        commercial   facility   to  a  borrower  at  our  London
                        operation.


                               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:   November 13, 2000                /s/ TIMOTHY C. COUGHLIN
        -----------------                -----------------------
                                             Timothy C. Coughlin
                                                  President



Date:   November 13, 2000                  /s/ DAVID E. ISNER
        -----------------                  ------------------
                                               David E. Isner
                                            Assistant Treasurer
                                        (Chief Accounting Officer)

                                       23
<PAGE>
<TABLE>
<CAPTION>

   INDEX TO EXHIBITS

EXHIBIT                             DESCRIPTION                                                                        PAGES
NO.
===================================================================================================================================
<S>    <C>                                                                                                             <C>
       (3.1)Restated Certificate of Incorporation of Riggs National Corporation,
            dated April 19, 1999  (Incorporated by reference to the Registrant's
            Form 10-Q for the quarter ended June 30, 1999, SEC File No. 09756).

       (3.2)By-laws of the  Registrant  with  amendments  through April 12, 2000
            (Incorporated  by  reference to the  Registrant's  Form 10-Q for the
            quarter ended June 30, 2000, 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  December 13, 1996,  with respect to $150  million,
            8.625% Trust Preferred  Securities,  Series A due 2026 (Incorporated
            by reference to the  Registrant's  S-3 dated  February 6, 1997,  SEC
            File No. 333-21297.)

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

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

(Exhibits omitted are not required or not applicable.)
                                       24