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

                            FORM 10-Q

(Mark One)[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934


             For the quarterly period ended June 30, 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                        28,360,666
     -----------------------------                        ----------
          (Title of Class)                       (Outstanding at July 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 six months ended June 30, 2000 and 1999                 3

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

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

          Consolidated Statements of Cash Flows
          Six months ended June 30, 2000 and 1999                           6

          Notes to the Consolidated Financial Statements                 7-11

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

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


PART II.OTHER INFORMATION

Item 1. Legal Proceedings                                                  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                                                  24

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

Signatures                                                                 24



                                         2
<PAGE>


                   PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS-UNAUDITED

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(UNAUDITED)                                                                          THREE MONTHS ENDED       SIX MONTHS ENDED
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)                                                  JUNE 30,                JUNE 30,
                                                                                    -----------------------------------------------
                                                                                       2000        1999        2000        1999
===================================================================================================================================
<S>                                                                                   <C>         <C>        <C>         <C>
INTEREST INCOME
  Interest and Fees on Loans                                                          $ 59,368    $ 56,404   $ 118,716   $ 114,278
  Interest and Dividends on Securities Available for Sale                               19,578      17,025      39,917      31,338
  Interest on Time Deposits with Other Banks                                             5,507       6,159      11,096      13,393
  Interest on Federal Funds Sold and Reverse Repurchase Agreements                       5,359       1,221      10,164       3,327
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Income                                                                 89,812      80,809     179,893     162,336

INTEREST EXPENSE
  Interest on Deposits:
      Savings and NOW Accounts                                                             562         626       1,188       1,313
      Money Market Deposit Accounts                                                      9,969       8,591      19,467      16,947
      Time Deposits in Domestic Offices                                                 10,864       9,948      23,106      19,961
      Time Deposits in Foreign Offices                                                   9,454       7,620      17,353      15,919
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Deposits                                                            30,849      26,785      61,114      54,140
-----------------------------------------------------------------------------------------------------------------------------------
  Interest on Short-Term Borrowings and Long-Term Debt:
      Repurchase Agreements and Other Short-Term Borrowings                              8,612       3,818      17,777       7,796
      Long-Term Debt                                                                     1,618       4,368       3,236       8,736
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Short-Term Borrowings and Long-Term Debt                            10,230       8,186      21,013      16,532
-----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Expense                                                                41,079      34,971      82,127      70,672
-----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income                                                                   48,733      45,838      97,766      91,664
  Less:  Provision for Loan Losses                                                         403           -       1,003           -
-----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income after Provision for Loan Losses                                   48,330      45,838      96,763      91,664

NONINTEREST INCOME
  Trust and Investment Advisory Income                                                  13,864      12,685      27,462      25,290
  Service Charges and Fees                                                              10,442       9,879      20,050      19,330
  Venture Capital Investment Gains, Net                                                  5,579           -      12,616           -
  Other Noninterest Income                                                               2,377       1,769       4,365       3,957
  Securities Gains, Net                                                                     11       1,018         321       1,104
-----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Income                                                              32,273      25,351      64,814      49,681

NONINTEREST EXPENSE
  Salaries and Employee Benefits                                                        24,756      21,811      49,284      44,069
  Occupancy, Net                                                                         4,972       4,555       9,903       9,221
  Data Processing Services                                                               5,237       4,722      10,437       9,283
  Furniture and Equipment                                                                2,974       2,658       6,033       5,223
  Other Real Estate Owned Expense (Income), Net                                             14          22         (23)         38
  Other Noninterest Expense                                                             17,663      16,441      33,826      32,530
-----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Expense                                                             55,616      50,209     109,460     100,364
-----------------------------------------------------------------------------------------------------------------------------------

  Income before Taxes and Minority Interest                                             24,987      20,980      52,117      40,981
  Applicable Income Tax Expense                                                          8,915       6,420      18,555      13,718
  Minority Interest in Income of Subsidiaries, Net of Taxes                              5,742       4,986      11,680       9,973
===================================================================================================================================
  Net Income                                                                          $ 10,330     $ 9,574    $ 21,882    $ 17,290

EARNINGS PER SHARE-     Basic                                                         $    .36     $   .34    $    .77    $    .60
                        Diluted                                                            .36         .33         .77         .59

DIVIDENDS DECLARED AND PAID PER SHARE                                                 $    .05     $   .05    $    .10    $    .10
</TABLE>
                                        3
<PAGE>

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
(UNAUDITED)                                                                          JUNE 30,    JUNE 30,    DECEMBER 31,
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)                                                   2000        1999          1999
=======================================================================================================================
<S>                                                                                 <C>         <C>         <C>

ASSETS
  Cash and Due from Banks                                                           $  147,108  $  158,225  $  149,712
  Federal Funds Sold and Reverse Repurchase Agreements                                 398,000      55,000     346,000
-----------------------------------------------------------------------------------------------------------------------
  Total Cash and Cash Equivalents                                                      545,108     213,225     495,712

  Time Deposits with Other Banks                                                       326,029     511,541     413,528
  Securities Available for Sale (at Market Value)                                    1,310,150   1,167,418   1,289,884
  Venture Capital Investments                                                           76,266      15,219      39,525

  Loans                                                                              3,140,441   3,186,045   3,201,981
  Reserve for Loan Losses                                                              (37,036)    (52,174)    (41,455)
-----------------------------------------------------------------------------------------------------------------------
  Total Net Loans                                                                    3,103,405   3,133,871   3,160,526

  Premises and Equipment, Net                                                          200,597     203,273     202,840
  Other Real Estate Owned                                                                  908       1,678         908
  Other Assets                                                                         230,308     207,655     227,226
=======================================================================================================================
  Total Assets                                                                      $5,792,771  $5,453,880 $ 5,830,149

LIABILITIES
  Deposits:
  Noninterest-Bearing Demand Deposits                                                $ 653,968   $ 674,175   $ 729,030
  Interest-Bearing Deposits:
      Savings and NOW Accounts                                                         326,012     383,054     395,024
      Money Market Deposit Accounts                                                  1,661,356   1,500,861   1,489,690
      Time Deposits in Domestic Offices                                                876,094     976,431   1,068,920
      Time Deposits in Foreign Offices                                                 734,934     604,943     492,669
-----------------------------------------------------------------------------------------------------------------------
  Total Interest-Bearing Deposits                                                    3,598,396   3,465,289   3,446,303
-----------------------------------------------------------------------------------------------------------------------
  Total Deposits                                                                     4,252,364   4,139,464   4,175,333

  Repurchase Agreements and Other Short-Term Borrowings                                636,377     369,291     832,202
  Other Liabilities                                                                    124,430      62,908      68,376
  Long-Term Debt                                                                        66,525     191,525      66,525
-----------------------------------------------------------------------------------------------------------------------
  Total Liabilities                                                                  5,079,696   4,763,188   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 June 30, 2000 and 1999, and
         December 31, 1999
      Shares Issued - 31,651,464 at June 30, 2000, 31,557,995 at
         June 30, 1999 and 31,615,495 at December 31, 1999                              79,129      78,895      79,039
  Surplus - Common Stock                                                               161,744     160,789     161,439
  Undivided Profits                                                                    229,734     199,208     210,682
  Accumulated Other Comprehensive Loss                                                 (36,175)    (26,843)    (42,090)
  Treasury Stock - 3,300,798 shares at June 30, 2000 and 1999, and
         December 31, 1999                                                             (71,357)    (71,357)    (71,357)
-----------------------------------------------------------------------------------------------------------------------
  Total Shareholders' Equity                                                           363,075     340,692     337,713
=======================================================================================================================
  Total Liabilities and Shareholders' Equity                                        $5,792,771  $5,453,880 $ 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                                                                           17,290                              17,290
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale, Net
      of Reclassification Adjustments                                                              (22,355)                (22,355)
    Foreign Exchange
      Translation Adjustments                                                                       (1,940)                 (1,940)

                                                                                                                       ------------
   Total Other Comprehensive
     Income (Loss)                                                                                                         (24,295)

                                                                                                                       ============
Total Comprehensive Income (Loss)                                                                                           (7,005)

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

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

Common Stock Repurchase-
   2,125,000 shares                                                                                            (42,191)    (42,191)
===================================================================================================================================
Balance, June 30, 1999                                        $ 78,895   $ 160,789   $ 199,208   $ (26,843)  $ (71,357)  $ 340,692

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

Comprehensive Income:
   Net Income                                                                           21,882                              21,882
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for Sale, Net
      of Reclassification Adjustments                                                                7,684                   7,684
    Foreign Exchange
      Translation Adjustments                                                                       (1,769)                 (1,769)

                                                                                                                       ------------
   Total Other Comprehensive
     Income (Loss)                                                                                                           5,915

                                                                                                                       ============
Total Comprehensive Income (Loss)                                                                                           27,797

Issuance of Common Stock for
  Stock Option Plans, 33,000 Shares                                 90         305                                             395

Cash Dividends -
  Common Stock, $.10 per Share                                                          (2,830)                             (2,830)
===================================================================================================================================
Balance, June 30, 2000                                        $ 79,129   $ 161,744   $ 229,734   $ (36,175)  $ (71,357)  $ 363,075
</TABLE>

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

                                        5
<PAGE>

RIGGS NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(UNAUDITED)
(IN THOUSANDS)                                                                                                SIX MONTHS ENDED
                                                                                                                   JUNE 30,
                                                                                                           ------------------------
                                                                                                              2000        1999
===================================================================================================================================
<S>                                                                                                           <C>         <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                                                                                    $ 21,882    $ 17,290
  Adjustments to Reconcile Net Income to Cash
    Provided By Operating Activities:
     Provision for Loan Losses                                                                                   1,003           -
     Depreciation Expense and Amortization of Leasehold Improvements                                             6,884       5,839
     Gains on Sale of Securities Available for Sale                                                               (321)     (1,104)
     Increase in Other Assets                                                                                   (7,219)    (13,848)
     Increase in Other Liabilities                                                                              56,054      14,058
-----------------------------------------------------------------------------------------------------------------------------------
  Total Adjustments                                                                                             56,401       4,945
-----------------------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By Operating Activities                                                                     78,283      22,235
-----------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Net Decrease In Time Deposits with Other Banks                                                                87,499     184,640
  Principal Collections and Maturities of Securities Available for Sale                                        593,201   2,080,310
  Proceeds from Sales of Securities Available for Sale                                                         207,942      55,985
  Purchases of Securities Available for Sale                                                                  (809,267) (2,366,274)
  Net Decrease in Loans                                                                                         56,547      70,260
  Net Increase in Venture Capital Investments                                                                  (36,741)          -
  Proceeds from Sale and Other Payments of Other Real Estate Owned                                                   -           1
  Net Increase in Premises and Equipment                                                                        (4,641)     (6,041)
  Other, Net                                                                                                      (429)       (450)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash Provided By Investing Activities                                                                       94,111      18,431
-----------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net Increase (Decrease) in:
    Demand, NOW, Savings and Money Market Deposit Accounts                                                      27,592     (22,936)
    Time Deposits                                                                                               49,439      17,552
    Repurchase Agreements and Other Short-Term Borrowings                                                     (195,825)     (5,089)
  Proceeds from the Issuance of Common Stock                                                                       395          36
  Dividend Payments - Common                                                                                    (2,830)     (2,876)
  Repurchase of Common Shares                                                                                        -     (42,191)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash Used in Financing Activities                                                                         (121,229)    (55,504)
-----------------------------------------------------------------------------------------------------------------------------------
Effect of Exchange Rate Changes                                                                                 (1,769)     (1,940)
-----------------------------------------------------------------------------------------------------------------------------------
Net  Increase (Decrease) in Cash and Cash Equivalents                                                           49,396     (16,778)
Cash and Cash Equivalents at Beginning of Period                                                               495,712     230,003
===================================================================================================================================
Cash and Cash Equivalents at End of Period                                                                   $ 545,108   $ 213,225


SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES:

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

CASH PAID DURING  THE YEAR FOR:
  Interest Paid (Net of Amount Capitalized)                                                                  $  82,378   $  72,168
  Income Tax Payments                                                                                            1,102           1
</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 six 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>

                                                                                     THREE MONTHS ENDED      THREE MONTHS ENDED
                                                                                        JUNE 30, 2000           JUNE 30, 1999
                                                                                   ================================================
                                                                                      BASIC      DILUTED      BASIC      DILUTED
                                                                                       EPS         EPS         EPS         EPS
                                                                                   ================================================
<S>                                                                                 <C>         <C>         <C>         <C>
Net Income Available to Common Shareholders                                           $ 10,330    $ 10,330     $ 9,574     $ 9,574

Weighted-Average Shares Outstanding                                                 28,331,857  28,331,857  28,256,902  28,256,902
Weighted-Average Dilutive Effect
   of Stock Option Plans                                                                   n/a     219,217         n/a     533,816
                                                                                   ------------------------------------------------
Adjusted Weighted-Average Shares Outstanding                                        28,331,857  28,551,074  28,256,902  28,790,718

Basic EPS                                                                             $    .36                 $   .34
Diluted EPS                                                                                       $    .36                 $   .33
</TABLE>

<TABLE>
<CAPTION>
                                                                                      SIX MONTHS ENDED        SIX MONTHS ENDED
                                                                                        JUNE 30, 2000           JUNE 30, 1999
                                                                                   ================================================
                                                                                      BASIC      DILUTED      BASIC      DILUTED
                                                                                       EPS         EPS         EPS         EPS
                                                                                   ------------------------------------------------
<S>                                                                                 <C>         <C>         <C>         <C>
Net Income Available to Common Shareholders                                           $ 21,882    $ 21,882    $ 17,290    $ 17,290

Weighted-Average Shares Outstanding                                                 28,323,744  28,323,744  28,623,632  28,623,632
Weighted-Average Dilutive Effect
   of Stock Option Plans                                                                   n/a     105,109         n/a     587,079
                                                                                   ------------------------------------------------
Adjusted Weighted-Average Shares Outstanding                                        28,323,744  28,428,853  28,623,632  29,210,711

Basic EPS                                                                             $    .77                $    .60
Diluted EPS                                                                                       $    .77                $    .59
</TABLE>

                                        7
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 3.     OTHER COMPREHENSIVE INCOME
<TABLE>
<CAPTION>

OTHER COMPREHENSIVE INCOME (LOSS)                                                                 BEFORE -       TAX
                                                                                                    TAX       (EXPENSE)  NET-OF-TAX
                                                                                                   AMOUNT      BENEFIT     AMOUNT
===================================================================================================================================
SIX MONTHS ENDED JUNE 30, 2000:
<S>                                                                                               <C>         <C>         <C>
Foreign Currency Translation Adjustments                                                          $ (2,722)   $    953    $ (1,769)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                                           12,142      (4,249)      7,893
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income                         (321)        112        (209)
-----------------------------------------------------------------------------------------------------------------------------------
  Net Unrealized Gains (Losses)                                                                     11,821      (4,137)      7,684
===================================================================================================================================

Other Comprehensive Income (Loss)                                                                 $  9,099    $ (3,184)   $  5,915

SIX MONTHS ENDED JUNE 30, 1999:
Foreign Currency Translation Adjustments                                                          $ (2,985)   $  1,045    $ (1,940)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                                          (33,288)     11,651     (21,637)
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income                       (1,104)        386        (718)
-----------------------------------------------------------------------------------------------------------------------------------
  Net Unrealized Gains (Losses)                                                                    (34,392)     12,037     (22,355)
===================================================================================================================================

Other Comprehensive Income (Loss)                                                                 $(37,377)   $ 13,082    $(24,295)
</TABLE>



ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES
<TABLE>
<CAPTION>
                                                                                                  FOREIGN   UNREALIZED  ACCUMULATED
                                                                                                 CURRENCY   GAIN (LOSS)    OTHER
                                                                                               TRANSLATION     ON      COMPREHENSIVE
                                                                                               ADJUSTMENTS SECURITIES  INCOME (LOSS)
===================================================================================================================================
<S>                                                                                               <C>        <C>         <C>
SIX MONTHS ENDED JUNE 30, 2000:
Balance, December 31, 1999                                                                        $ (2,597)  $ (39,493)  $ (42,090)
Current-Period Change                                                                               (1,769)      7,684       5,915
===================================================================================================================================
Balance, June 30, 2000                                                                            $ (4,366)  $ (31,809)  $ (36,175)

SIX MONTHS ENDED JUNE 30, 1999:
Balance, December 31, 1998                                                                        $ (1,349)  $  (1,199)  $  (2,548)
Current-Period Change                                                                               (1,940)    (22,355)    (24,295)
===================================================================================================================================
Balance, June 30, 1999                                                                            $ (3,289)  $ (23,554)  $ (26,843)
</TABLE>

                                        8
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 4.     SEGMENT PROFITABILITY
<TABLE>
<CAPTION>

===================================================================================================================================
SIX MONTHS                                                                            RIGGS                                 RIGGS
ENDED                                          INTERNATIONAL  RIGGS &                CAPITAL                              NATIONAL
JUNE 30, 2000                        BANKING      BANKING     COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>         <C>        <C>           <C>       <C>         <C>          <C>
NET INTEREST INCOME
Interest Income                     $   98,749   $  31,958   $   2,947  $   74,799    $      -  $   23,729
Interest Expense                        29,151      41,328       5,854      29,597           -      27,361
Funds Transfer Income (Expense)         (7,520)     27,481       8,751     (38,480)        145       9,623
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        62,078      18,111       5,844       6,722         145       5,991
Provision for Loan Losses                 (300)       (703)          -           -           -           -
Tax Equivalent Adjustment               (1,125)          -           -           -           -           -
                                     -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   60,653   $  17,408   $   5,844  $    6,722    $    145   $   5,991  $        -   $   96,763
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   19,670   $   2,030   $  28,624  $    1,783    $ 12,418       $ 289
Intersegment Noninterest Income          1,778       2,070         132           1         162       1,446
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   21,448   $   4,100   $  28,756  $    1,784    $ 12,580   $   1,735  $   (5,589)  $   64,814
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    3,781       $ 488       $ 444         $ 9        $ 10   $   4,426
Direct Expense                          33,366      14,649      18,276       2,039       1,052      36,509
Overhead and Support                    26,150       6,261       6,241         852          39     (39,543)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   63,297   $  21,398   $  24,961  $    2,900    $  1,101   $   1,392  $   (5,589)  $  109,460
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $   18,804   $     110   $   9,639  $    5,606    $ 11,624   $   6,334  $         -  $   52,117
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,804,332   $ 944,652   $ 103,316  $2,438,887    $ 60,854   $ 941,686  $(1,572,515) $5,721,212
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>

===================================================================================================================================
SIX MONTHS                                                                             RIGGS                                RIGGS
ENDED                                          INTERNATIONAL  RIGGS &                 CAPITAL                             NATIONAL
JUNE 30, 1999                        BANKING     BANKING      COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>          <C>        <C>           <C>       <C>        <C>          <C>
NET INTEREST INCOME
Interest Income                     $   92,455  $   29,455   $   2,897  $   47,220    $      -  $   26,591
Interest Expense                        30,170      34,881       4,448      11,897           -      24,200
Funds Transfer Income (Expense)          1,352      21,220       6,591     (31,363)       (332)      2,532
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        63,637      15,794       5,040       3,960        (332)      4,923
Provision for Loan Losses                    -           -           -           -           -           -
Tax Equivalent Adjustment               (1,005)          -           -        (353)          -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   62,632  $   15,794   $   5,040  $    3,607    $   (332) $    4,923 $         -  $   91,664
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   19,486  $    1,978   $  25,942  $      885    $    384  $    1,006
Intersegment Noninterest Income            259       2,017         293           1           -       1,799
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   19,745  $    3,995   $  26,235  $      886    $    384  $    2,805 $    (4,369) $   49,681
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    3,765  $      369   $     411  $        6    $      4  $    3,580
Direct Expense                          30,304      10,982      16,377         759       1,011      37,165
Overhead and Support                    27,104       5,590       5,974         773           2     (39,443)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   61,173  $   16,941   $  22,762  $    1,538    $  1,017  $    1,302 $    (4,369) $  100,364
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $   21,204  $    2,848   $   8,513  $    2,955    $   (965) $    6,426 $         -  $   40,981
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,727,600  $  934,159   $ 101,351  $1,758,129    $ 11,702  $1,115,160 $(1,159,600) $5,488,501
===================================================================================================================================
</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
JUNE 30, 2000                        BANKING     BANKING     COMPANY    TREASURY    PARTNERS      OTHER  RECONCILIATION  CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>          <C>       <C>           <C>       <C>        <C>          <C>
NET INTEREST INCOME
Interest Income                     $   49,799   $  15,938    $  1,493  $   37,278    $      -  $   11,901
Interest Expense                        15,253      21,520       2,769      14,429           -      13,146
Funds Transfer Income (Expense)         (3,049)     14,599       4,146     (20,421)         93       4,632
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        31,497       9,017       2,870       2,428          93       3,387
Provision for Loan Losses                    -        (403)          -           -           -           -
Tax Equivalent Adjustment                 (559)          -           -           -           -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   30,938   $   8,614    $  2,870  $    2,428    $     93  $    3,387 $         -  $    48,330
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $   10,153   $     996   $  14,589  $      846    $  5,451   $     238
Intersegment Noninterest Income            892         983          45           -          85         723
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   11,045   $   1,979   $  14,634  $      846    $  5,536   $     961 $    (2,728) $    32,273
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    1,889   $     246   $     225  $        4    $      5   $   2,221
Direct Expense                          17,083       7,355       9,427       1,022         530      18,337
Overhead and Support                    13,401       3,128       3,061         455          22     (20,067)
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   32,373   $  10,729   $  12,713  $    1,481    $    557   $     491 $    (2,728) $    55,616
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $    9,610   $    (136)  $   4,791  $    1,793    $  5,072   $   3,857 $         -  $    24,987
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,795,051   $ 927,655   $ 107,253  $2,380,600    $ 70,745   $ 942,014 $(1,564,941) $ 5,658,377
===================================================================================================================================
</TABLE>

                                       10
<PAGE>

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

===================================================================================================================================
THREE MONTHS                                                                           RIGGS                               RIGGS
ENDED                                          INTERNATIONAL  RIGGS &                 CAPITAL                            NATIONAL
JUNE 30, 1999                        BANKING     BANKING     COMPANY     TREASURY    PARTNERS     OTHER  RECONCILIATION CORPORATION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>          <C>        <C>          <C>       <C>         <C>          <C>
NET INTEREST INCOME
Interest Income                     $   46,000  $   14,394   $   1,451  $   24,308   $       - $    13,259
Interest Expense                        15,072      17,148       2,217       6,320           -      12,293
Funds Transfer Income (Expense)            349      10,681       3,290     (15,584)       (202)      1,466
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss),
  Tax-Equivalent                        31,277       7,927       2,524       2,404        (202)      2,432
Provision for Loan Losses                    -           -           -           -           -           -
Tax Equivalent Adjustment                 (524)          -           -           -           -           -
                                    -----------------------------------------------------------------------------------------------
Net Interest Income (Loss)          $   30,753  $    7,927   $   2,524  $    2,404    $   (202)$     2,432 $        -   $    45,838
                                    -----------------------------------------------------------------------------------------------

NONINTEREST INCOME
Noninterest Income-External
  Customers                         $    9,903  $      947   $  13,031  $      488    $    211 $       771
Intersegment Noninterest Income            259       1,014         145           -           -         920
                                    -----------------------------------------------------------------------------------------------
Total Noninterest Income            $   10,162  $    1,961   $  13,176  $      488    $    211 $     1,691 $    (2,338) $    25,351
                                    -----------------------------------------------------------------------------------------------

NONINTEREST EXPENSE
Depreciation and Amortization       $    1,878  $      186   $     209  $        3    $      4 $     1,799
Direct Expense                          15,422       5,533       7,817         383         514      18,799
Overhead and Support                    13,046       2,861       3,325         338           1     (19,571)
                                     -----------------------------------------------------------------------------------------------
Total Noninterest Expense           $   30,346  $    8,580   $  11,351  $      724    $    519 $     1,027 $    (2,338) $    50,209
                                    -----------------------------------------------------------------------------------------------

Income (Loss) Before Taxes and
  Minority Interest                 $   10,569  $    1,308   $   4,349  $    2,168    $   (510)$     3,096 $         -  $    20,980
                                    -----------------------------------------------------------------------------------------------

                                    -----------------------------------------------------------------------------------------------
Total Average Assets                $2,731,372  $  938,613   $ 101,849  $1,799,240    $ 13,766 $ 1,110,517 $(1,216,102) $ 5,479,255
===================================================================================================================================
</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>

RIGGS NATIONAL CORPORATION

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

RESULTS OF OPERATIONS

We earned  $10.3  million  of net income  for the  second  quarter  of 2000,  an
increase of 7% over the $9.6  million  for the same  period a year ago.  Diluted
earnings  per share for the second  quarter of 2000 were $.36  compared  to $.33
reported in the second quarter of 1999.

For the first  half of 2000,  we had net  income of $21.9  million,  or $.77 per
diluted share,  compared with net income of $17.3  million,  or $.59 per diluted
share for the first half of 1999.

The  increase  in net income for the second  quarter  and first half of 2000 was
primarily due to $5.6 and $12.6 million,  respectively, in venture capital gains
from our venture capital subsidiary, Riggs Capital Partners.  Noninterest income
also was  enhanced by 9%  increases  for both  periods in trust and advisory fee
income at Riggs & Company, our private client services division. These increases
in noninterest income were partially offset by increases in noninterest  expense
of $5.4 and $9.1  million for the second  quarter and six months  ended June 30,
2000.

Return on average  assets  was .73% and .77% for the three and six months  ended
June 30, 2000, compared to .70% and .64% for the same periods a year ago. Return
on average  stockholder's equity was 11.88% at June 30, 2000, compared to 11.12%
at June 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 $49.3 million in
the first  quarter of 2000,  and $98.9  million  for the first six months of the
year,  increasing $2.9 and $5.9 million,  respectively  from the same periods in
1999. The increase from the prior year's first six months was primarily due to a
reduction  in  interest  expense  due to  the  redemption  of  $125  million  in
subordinated  notes,  and increases in interest  income of $8.2,  $4.6, and $6.8
million,  respectively,  on the  securities,  loans,  and overnight  investments
portfolios.  These items were partially  offset by increases in interest expense
on our interest-bearing deposits and short-term borrowings.  The increase in net
interest income for the second quarter year to year was due to the same factors.

NET INTEREST INCOME CHANGES (1)
<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED                   SIX MONTHS ENDED
                                                                  JUNE 30, 2000 VS 1999               JUNE 30, 2000 VS 1999
                                                           ------------------------------------------------------------------------
                                                             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                                       $ 3,965     $  (966)    $ 2,999     $ 5,516     $  (958)    $ 4,558
   Securities Available for Sale                                 1,517       1,036       2,553       2,721       5,505       8,226
   Time Deposits with Other Banks                                1,649      (2,301)       (652)      3,108      (5,405)     (2,297)
   Federal Funds Sold and Reverse
       Repurchase Agreements                                       496       3,642       4,138       1,049       5,788       6,837
-----------------------------------------------------------------------------------------------------------------------------------

Total Interest Income                                            7,627       1,411       9,038      12,394       4,930      17,324

Interest Expense:
   Interest-Bearing Deposits                                     4,212        (148)      4,064       6,748         226       6,974
   Repurchase Agreements and Other
      Short-Term Borrowings                                      2,480       2,327       4,807       4,470       5,537      10,007
   Long-Term Debt                                                  248      (3,011)     (2,763)        456      (5,982)     (5,526)
-----------------------------------------------------------------------------------------------------------------------------------

Total Interest Expense                                           6,940        (832)      6,108      11,674        (219)     11,455
===================================================================================================================================

Net Interest Income                                            $   687     $ 2,243     $ 2,930     $   720     $ 5,149     $ 5,869
</TABLE>

(1)       - The dollar amount of changes in interest income and interest expense
          attributable  to changes in rate/volume  (change in rate multiplied by
          change in volume) has been allocated between rate and volume variances
          based on the percentage  relationship of such variances to each other.
          Income  and rates  are  computed  on a  tax-equivalent  basis  using a
          Federal income tax rate of 35% and local tax rates as applicable.

                                       12
<PAGE>

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

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

                                                                   THREE MONTHS ENDED                  THREE MONTHS ENDED
                                                                     JUNE 30, 2000                       JUNE 30, 1999
                                                           ------------------------------------------------------------------------
(TAX-EQUIVALENT BASIS) (1)                                   AVERAGE     INCOME/                 AVERAGE     INCOME/
(IN THOUSANDS)                                               BALANCE     EXPENSE      RATE       BALANCE     EXPENSE      RATE
===================================================================================================================================
ASSETS
<S>                                                        <C>            <C>             <C>   <C>           <C>             <C>

  Loans, Including Fees (2)                                $ 3,121,795    $ 59,927        7.72% $3,173,289    $ 56,928        7.20%
  Securities Available for Sale (3)                          1,249,821      19,578        6.30   1,178,835      17,025        5.79
  Time Deposits with Other Banks                               351,907       5,507        6.29     518,610       6,159        4.76
  Federal Funds Sold and Reverse Repurchase Agreements         337,812       5,359        6.38     101,179       1,221        4.84
-----------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned             5,061,335      90,371        7.18   4,971,913      81,333        6.56

  Reserve for Loan Losses                                      (38,102)                            (52,750)
  Cash and Due from Banks                                      140,758                             148,266
  Other Assets                                                 494,386                             411,826
===================================================================================================================================

    Total Assets                                           $ 5,658,377                          $5,479,255

LIABILITIES, MINORITY INTEREST AND
    SHAREHOLDERS' EQUITY

  Interest-Bearing Deposits                                $ 3,536,847    $ 30,849        3.51% $3,554,151    $ 26,785        3.02%
  Repurchase Agreements and Other Short-Term Borrowings        625,305       8,625        5.55     382,782       3,818        4.00
  Long-Term Debt                                                66,525       1,605        9.70     191,525       4,368        9.15
-----------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid       4,228,677      41,079        3.91   4,128,458      34,971        3.40

  Demand Deposits                                              632,007                             587,393
  Other Liabilities                                             97,865                              67,974
  Minority Interest in Preferred Stock of Subsidiaries         350,000                             350,000
  Shareholders' Equity                                         349,828                             345,430
===================================================================================================================================

  Total Liabilities, Minority Interest and
     Shareholders' Equity                                  $ 5,658,377                          $5,479,255
===================================================================================================================================

  NET INTEREST INCOME AND SPREAD                                          $ 49,292        3.27%               $ 46,362        3.16%
===================================================================================================================================

  NET INTEREST MARGIN ON EARNING ASSETS                                                   3.92%                               3.74%
</TABLE>

(1) - Income and rates are  computed on a  tax-equivalent  basis using a Federal
income tax rate of 35% and local tax rates as  applicable.
(2) -  Nonperforming loans are  included  in average  balances  used to
determine  rates.
(3) - The averages and rates for the securities  available for sale portfolio
are based on amortized cost.

NONINTEREST INCOME

Noninterest  income for the three  months  ended June 30,  2000,  totaled  $32.3
million,  an increase of $6.9 million from the $25.4 million for the same period
a year ago. This  increase was primarily due to $5.6 million in venture  capital
investment gains at Riggs Capital Partners. Also contributing to the increase in
noninterest  income  for the  current  quarter  was $13.9  million  in trust and
investment  advisory income at Riggs & Company,  an increase of $1.2 million, or
9%, over the same period a year ago.

Noninterest  income  for the six  months  ended  June 30,  2000,  totaled  $64.8
million, an increase of $15.1 million from the $49.7 million earned for the same
period in 1999.  This  increase was  primarily  due to $12.6  million in venture
capital  investment  gains at Riggs  Capital  Partners,  and an increase of $2.2
million in trust and advisory income from 1999 to 2000 at Riggs & Company.

                                       13
<PAGE>

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

                                                                    SIX MONTHS ENDED                    SIX MONTHS ENDED
                                                                     JUNE 30, 2000                       JUNE 30, 1999
                                                           ------------------------------------------------------------------------
(TAX-EQUIVALENT BASIS) (1)                                   AVERAGE     INCOME/                 AVERAGE     INCOME/
(IN THOUSANDS)                                               BALANCE     EXPENSE      RATE       BALANCE     EXPENSE      RATE
===================================================================================================================================
ASSETS
<S>                                                        <C>           <C>              <C>   <C>          <C>              <C>

  Loans, Including Fees (2)                                $ 3,151,310   $ 119,841        7.65% $3,185,659   $ 115,283        7.30%
  Securities Available for Sale (3)                          1,276,771      39,917        6.29   1,098,346      31,691        5.82
  Time Deposits with Other Banks                               368,337      11,096        6.06     566,836      13,393        4.76
  Federal Funds Sold and Reverse Repurchase Agreements         335,725      10,164        6.09     138,552       3,327        4.84
-----------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned             5,132,143     181,018        7.09   4,989,393     163,694        6.62

  Reserve for Loan Losses                                      (39,810)                            (53,478)
  Cash and Due from Banks                                      142,715                             146,542
  Other Assets                                                 486,164                             406,044
===================================================================================================================================

    Total Assets                                           $ 5,721,212                          $5,488,501

LIABILITIES, MINORITY INTEREST AND
    SHAREHOLDERS' EQUITY

  Interest-Bearing Deposits                                $ 3,579,326    $ 61,114        3.43% $3,535,864    $ 54,140        3.09%
  Repurchase Agreements and Other Short-Term Borrowings        671,446      17,803        5.33     391,819       7,796        4.01
  Long-Term Debt                                                66,525       3,210        9.70     191,525       8,736        9.20
-----------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid       4,317,297      82,127        3.83   4,119,208      70,672        3.46

  Demand Deposits                                              622,916                             604,404
  Other Liabilities                                             86,782                              60,589
  Minority Interest in Preferred Stock of Subsidiaries         350,000                             350,000
  Shareholders' Equity                                         344,217                             354,300
===================================================================================================================================

  Total Liabilities, Minority Interest and
     Shareholders' Equity                                  $ 5,721,212                          $5,488,501
===================================================================================================================================

  NET INTEREST INCOME AND SPREAD                                          $ 98,891        3.26%                $ 93,022       3.16%
===================================================================================================================================

  NET INTEREST MARGIN ON EARNING ASSETS                                                   3.87%                               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 EXPENSE

Noninterest expense for the three months ended June 30, 2000, was $55.6 million,
an increase of $5.4 million from the $50.2 million reported for the three months
ended June 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.

Noninterest  expense for the six months ended June 30, 2000,  was $109.5 million
compared to $100.4  million for the same period a year ago. The increase for the
six month period was mostly due to the new business initiatives discussed in the
preceding paragraph.

                                       14
<PAGE>

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


FINANCIAL CONDITION

SECURITIES

Securities  available for sale totaled $1.31 billion at June 30, 2000,  compared
to $1.29  billion  at  year-end  1999 and $1.17  billion at June 30,  1999.  The
activity for the first six months included purchases of securities available for
sale  totaling  $809.3   million,   which  were  mostly  offset  by  maturities,
curtailments and sales of securities available for sale totaling $801.1 million.
The  weighted-average  durations  and yields  for the  portfolio,  adjusted  for
anticipated prepayments,  were approximately 3.4 years and 6.06%,  respectively,
at June 30, 2000.

<TABLE>
<CAPTION>

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

U.S. Treasury Securities                                    $  313,826  $  299,273  $  213,476  $  200,348 $   289,242 $   268,008
Government Agencies Securities                                 475,239     470,976     418,326     416,098     479,297     474,457
Mortgage-Backed Securities                                     511,911     481,790     530,233     509,352     518,418     483,734
Other Securities                                                58,111      58,111      41,620      41,620      63,685      63,685
===================================================================================================================================

Total                                                       $1,359,087  $1,310,150  $1,203,655  $1,167,418 $ 1,350,642 $ 1,289,884
</TABLE>

LOANS

At June 30, 2000, loans outstanding  totaled $3.14 billion,  decreasing slightly
from the June 30,  1999 and  December  31,  1999  balances  of $3.19  and  $3.20
billion,  respectively. The decreases were primarily in commercial and financial
and foreign loans from both prior periods. 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 June 30,  2000,  residential  real  estate  loans
originated  and held for sale totaled $7.8 million.  There were no such loans at
either June 30, 1999, or December 31, 1999.
<TABLE>
<CAPTION>

                                                             JUNE 30,                JUNE 30,               DECEMBER 31,
(IN THOUSANDS)                                                2000                     1999                     1999
=======================================================================================================================
<S>                                                          <C>                     <C>                     <C>
Commercial and Financial                                    $  630,296              $  676,769              $  667,393
Real Estate - Commercial/Construction                          421,885                 409,707                 415,304
Residential Mortgage                                         1,204,924               1,224,250               1,219,740
Loans Available for Sale                                         7,803                       -                       -
Home Equity                                                    339,168                 312,681                 315,520
Consumer                                                        70,686                  69,101                  73,158
Foreign                                                        470,994                 497,540                 517,012
-----------------------------------------------------------------------------------------------------------------------

Total Loans                                                  3,145,756               3,190,048               3,208,127

Net Deferred Loan Fees,
 Premiums and Discounts                                         (5,315)                 (4,003)                 (6,146)
=======================================================================================================================

Loans                                                       $3,140,441              $3,186,045              $3,201,981
</TABLE>






                                       15
<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>
                                                                                                               SIX MONTHS ENDED
                                                                                                                   JUNE 30,
                                                                                                            -----------------------
                                                                                                              2000        1999
===================================================================================================================================
<S>                                                                                                           <C>         <C>
Balance, January 1                                                                                            $ 41,455    $ 54,455
Provision for loan losses                                                                                        1,003           -

Loans charged-off                                                                                                6,411       2,770
   Less: Recoveries on charged-off loans                                                                         1,418         940
-----------------------------------------------------------------------------------------------------------------------------------
Net loan charge-offs (recoveries)                                                                                4,993       1,830

Foreign exchange translation adjustments                                                                          (429)       (451)
===================================================================================================================================

Balance, June 30                                                                                              $ 37,036    $ 52,174
</TABLE>


ASSET QUALITY

NONPERFORMING ASSETS

Nonperforming  assets,  which include  nonaccrual loans,  renegotiated loans and
other real estate owned (net of  reserves),  totaled  $41.7  million at June 30,
2000, a $2.0 million  decrease from the year-end 1999 total of $43.7 million and
a $12.2  million  increase  from  the June  30,  1999  total.  The  increase  in
nonperforming  assets  from the  second  quarter  of 1999 was  mainly due to two
nonperforming  loans in which we  participated  with other  major  banks.  These
credits  were an $8.1  million  loan to a health care entity and a $4.0  million
loan to a computer equipment  manufacturing and service company that were placed
on  nonaccrual in the third  quarter of 1999.  These two credits are  considered
impaired.  Impaired loans also include a $25.0 million loan to a commercial real
estate  investment  trust that went to nonaccrual in the fourth quarter of 1998.
Impaired loans totaled $39.7 million at June 30, 2000. The assigned  reserve for
loan losses for impaired loans was $8.4 million at June 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 $3.0 million during the
first six months of 2000 to $10.4 million, with most of the increase in secured,
residential  real estate loans.  Potential  problem loans increased $3.2 million
from  December 31, 1999. A decrease in potential  problem loans of $10.7 million
from June 30, 1999  occurred as the loan to the health care entity  discussed in
the previous paragraph moved to nonaccrual status.

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

Nonaccrual Loans (1)                                          $ 39,751                $ 26,389                $ 41,534
Renegotiated Loans                                               1,055                   1,452                   1,263
Other Real Estate Owned, Net                                       908                   1,678                     908
=======================================================================================================================
Total Nonperforming Assets                                    $ 41,714                $ 29,519                $ 43,705

PAST-DUE LOANS (2)                                            $ 10,419                $  8,574                $  7,429

POTENTIAL PROBLEM LOANS                                       $  5,206                $ 15,861                $  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.

                                       16
<PAGE>

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

DEPOSITS

Deposits are our primary and most stable source of funds. Deposits totaled $4.25
billion at June 30, 2000,  an increase of $77 million from the December 31, 1999
total of $4.18  billion,  and an increase of $113 million from the June 30, 1999
deposit total of $4.14 billion.  For both periods,  deposits decreased in demand
deposit,  savings and NOW, and time deposits in domestic offices  accounts,  and
increased in money market and time deposits in foreign offices accounts.


SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term  borrowings  decreased  by  $195.8  million  from the  year-end  1999
balance,  and increased  $267.1  million from the June 30, 1999  balance.  These
changes  reflect  borrowings  and partial 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  2000.  $100 million of the
remaining  available  credit has a final  maturity of ten years,  with the other
$100 million  maturing in five years.  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.

The  decrease in long-term  debt from the June 30, 1999,  balance was due to our
redemption in July 1999 of $125 million of 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 1999 as a result of the redemption.

<TABLE>
<CAPTION>

                                                              JUNE 30,                JUNE 30,              DECEMBER 31,
(IN THOUSANDS)                                                  2000                    1999                    1999
=======================================================================================================================
<S>                                                          <C>                     <C>                     <C>

Repurchase Agreements and Other Short-Term Borrowings        $ 636,377               $ 369,291               $ 832,202

Subordinated Debentures due 2009                                66,525                  66,525                  66,525
Subordinated Notes due 2006                                          -                 125,000                       -
-----------------------------------------------------------------------------------------------------------------------
Total Long-Term Debt                                            66,525                 191,525                  66,525
=======================================================================================================================
Total Short-Term Borrowings and Long-Term Debt               $ 702,902               $ 560,816               $ 898,727
</TABLE>


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 June 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 $2.18 billion
(38% of total  assets).  This  compares with $2.20 billion (38%) at December 31,
1999, and $1.89 billion (35%) at June 30, 1999. At June 30, 2000, $977.6 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 $824.5
million at June 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 June 30, 2000,  December 31, 1999, and June 30, 1999,
short-term  credit lines and the FHLB Atlanta line of credit  available  totaled
approximately $1.56 billion, $1.38 billion, and $1.68 billion,  respectively. At
June 30, 2000,  December 31, 1999,  and June 30, 1999,  the amounts  outstanding
were $214.3 million, $423.2 million, and $31.9 million, respectively.





                                       17
<PAGE>

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


SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL

Total shareholders'  equity at June 30, 2000, was $363.1 million, an increase of
$25.4 million from year-end 1999 and $22.4 million from a year ago. The increase
from  year-end  was  primarily  the  result of net income of $21.9  million  and
unrealized  securities losses that were smaller by $7.7 million,  after tax. The
increase  from June 30,  1999 was  primarily  the  result of net income of $36.2
million,  which was  partially  offset by unrealized  securities  losses of $8.3
million.  For more information on our securities  portfolio,  see the discussion
under  "Securities"  in the  Management's  Discussion  and Analysis of this Form
10-Q.

Book value per common share was $12.81 as of June 30,  2000,  compared to $11.93
at year-end  1999 and $12.06 at June 30, 1999.  The increases in book value from
June 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 June 30, 2000 and 1999, and December
31, 1999.
<TABLE>
<CAPTION>

                                                                                      JUNE 30,    JUNE 30,   DECEMBER 31,  REQUIRED
                                                                                        2000        1999        1999       MINIMUMS
===================================================================================================================================
<S>                                                                                      <C>         <C>         <C>          <C>

RIGGS NATIONAL CORPORATION:
     Tier I                                                                              15.15%      13.47%      14.09%       4.00%
     Combined Tier I and Tier II                                                         24.55       26.59       23.55        8.00
     Leverage                                                                             9.12        8.70        8.59        4.00

RIGGS BANK N.A.:
     Tier I                                                                              13.87       12.89       12.63        4.00
     Combined Tier I and Tier II                                                         15.01       14.14       13.86        8.00
     Leverage                                                                             8.49        8.78        7.91        4.00
</TABLE>


YEAR 2000 READINESS DISCLOSURE

GENERAL

Advances  and  changes  in  technology  can  have a  significant  impact  on our
business.  Financial  institutions are dependent on information systems and also
have  many  external  interdependencies  with  other  companies.  Many  computer
programs  were  designed to recognize  calendar  years by their last two digits.
Calculations  performed  using these  digits may not have worked  properly  with
dates  beginning in the Year 2000 and beyond.  The Year 2000 issue  created risk
for us from  unforeseen  problems  in our  computer  systems  and from Year 2000
issues with our vendors,  service  providers and customers.  For January 1, 2000
and subsequent dates through the date of this report, we experienced no material
impact as a result of Year 2000 date changes.

APPROACH AND RISKS

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

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


                                       18
<PAGE>

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


In addition to systems-related  risks, we undertook a review of risks created by
potential business interruptions suffered by our major business  counterparties,
both  domestic and foreign.  We divided our business  counterparties  into three
broad   categories:   Funds  Takers  (primarily   borrowers),   Funds  Providers
(depositors  and other funding  sources) and Capital Markets  partners  (trading
counterparties  and fiduciary  relationships).  For those business partners that
would have had a significant impact on our liquidity, income, or capital markets
activities, if they had encountered significant business interruption due to the
Year 2000, we assessed their readiness and contingency plans for recovering from
an abrupt interruption.

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

The failure to correct a material problem could have resulted in an interruption
in or failure of certain business operations.  Year 2000 risks and uncertainties
included increased credit losses, service delays,  funding delays,  counterparty
failures,  inaccurate  information  processing,  ATM failures, and problems with
international  accounts.  There was no assurance  that the Year 2000 issue would
not have a  material  adverse  impact  on our  financial  position,  results  of
operations, or relationships with customers, vendors, or others.

COSTS

The total cost of the Year 2000 project at June 30, 2000, was $7.1 million.  The
future cost of completing the Year 2000 project is estimated to be $21 thousand.
The  total  amount  expended  to date  for  2000  was  $86  thousand.  The  most
significant components of the $7.1 million total estimated cost consisted of 60%
for personnel costs, including consultants and special Year 2000 incentives, and
28% for data processing services. We did not separately track all internal costs
incurred  for the  Year  2000  project.  Internal  costs  were  principally  the
payroll-related costs for the information systems group.

CONTINGENCY PLANS

The remediation plans addressed any information systems which,  through testing,
had been  identified  as not Year 2000  compliant.  These  plans  described  and
scheduled alternative provisions,  including,  if necessary,  the replacement of
vendors or third party servicers to ensure  compliance.  The  remediation  plans
were complete; however,  implementation of these plans was not necessary because
of our state of readiness.

The business  resumption plans addressed how we would continue operations in the
event a Year 2000 related interruption  occurred.  The business resumption plans
for our  mission-critical  systems and third-party  servicers were substantially
completed as of June 30, 1999. In some cases these plans provided for the manual
processing of certain normal bank functions. Manual processing would have caused
delays, which could have disrupted the normal business activities of our company
and our customers. While implementation of the business resumption plans was not
expected  to be  necessary,  it  ensured  that we had  the  ability  to  process
transactions  and  serve  our  customers  if a Year 2000  problem  actually  had
occurred.









                                       19
<PAGE>

RIGGS NATIONAL CORPORATION

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 June
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 JUNE 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)                                     -1.0%        2.3%                  -1.80%        3.4%

  Net Interest Income Increase/(Decrease)                                 $ (1,840)    $ 4,348               $ (10,660)   $ 20,133
</TABLE>

<TABLE>
<CAPTION>

                                                                             MOVEMENTS IN INTEREST RATES FROM JUNE 30, 1999
===================================================================================================================================
                                                                          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)                                     -0.9%        2.2%                   -2.3%        2.2%

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

(1) Key Assumptions:
Assumptions with respect to the model's  projections of the effect of changes in
interest rates on Net Interest  Income  include:
1. Target balances for various asset and  liability  classes,  which are
solicited  from the  management of the various units of the Corporation.
2. Interest rate scenarios which are generated by ALCO for the "most  likely"
scenario  and are  dictated  by  policy  for the alternative  scenarios.
3. Spread  relationships  between various interest rate indices,  which are
generated by the analysis of historical  relationships  and ALCO consensus.
4. Assumptions  about the effect of embedded  options and prepayment  speeds:
instruments  that are  callable  are  assumed  to be  called  at the first
opportunity  if an interest rate scenario  makes it  advantageous  for the owner
of the call to do so.  Prepayment  assumptions for mortgage products are derived
from accepted industry sources.
5. Reinvestment  rates for funds  replacing  assets or  liabilities  that are
assumed (through early withdrawal, prepayment, calls, etc.) to run off the
balance sheet, which are generated by the spread relationships.
6. Maturity  strategies  with  respect  to assets  and  liabilities,  which are
solicited from the management of the various units of the Corporation.

                                       20
<PAGE>

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

At June 30,  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 4%. The results of the simulation for June
30, 2000,  indicated that we were  liability  sensitive over 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 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 June 30, 2000 and 1999,  and December 31,
1999 are detailed in the table below. At June 30, 2000, our financial derivative
instruments  included four swaps with a total notional  amount of $30.0 million,
which 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 and January 2000, and
entail the  payment of a blended  6.84% fixed rate and the receipt of a floating
rate equal to three-month LIBOR. These swaps reset quarterly and mature in 2004.
We also had 28 swaps at Riggs Bank  Europe  Limited,  our London  based  banking
subsidiary,  with a total  notional  amount of $89.4  million  that  entail  the
payment of a blended  6.63% fixed rate and the receipt of a floating  rate equal
to six-month LIBOR. These swaps have varying maturities extending until 2004 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 $15.8 million at June 30, 2000 of which $666
thousand were less than one year.
<TABLE>
<CAPTION>

                                                                                CONTRACTUAL OR NOTIONAL VALUE
                                                            -----------------------------------------------------------
                                                              JUNE 30,                JUNE 30,              DECEMBER 31,
                                                                2000                    1999                    1999
=======================================================================================================================
<S>                                                          <C>                    <C>                    <C>

Commitments to Extend Credit                                 $ 892,238              $1,093,187             $ 1,035,644

Venture Capital Commitments                                     15,818                  21,777                  25,210

Letters of Credit                                              120,546                 145,382                 137,622

Derivative Instruments:
            Foreign Exchange Contracts:
                 Commitments to Purchase                     $  66,969              $  109,009              $  112,226
                 Commitments to Sell                           285,774                 193,770                 317,837
                       Futures                                   1,655                       -                       -
            Interest Rate Agreements
                       Swaps                                   119,385                  99,635                 126,786
                       Purchased Options                             -                     615                     629

</TABLE>




                                       21
<PAGE>

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

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

                                                                          BALANCE                                         BALANCE
                                                                        DECEMBER 31,                                      JUNE 30,
                                                                           1999      ADDITIONS  MATURITIES  TERMINATIONS    2000
===================================================================================================================================
<S>                                                                       <C>          <C>        <C>              <C>   <C>

Interest Rate Agreements:
     Receive variable/pay fixed                                           $ 25,000     $ 5,000    $      -         $ -   $  30,000
     Riggs Bank Europe Limited                                             101,786           -      12,401           -      89,385
===================================================================================================================================

Total                                                                     $126,786     $ 5,000    $ 12,401         $ -   $ 119,385
</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 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

            The Annual Meeting of the  shareholders  of the Corporation was held
            on April 12, 2000, in Washington  D.C.  Chairman of the Board Joe L.
            Allbritton   presided  and  26,204,181  of  the  28,316,197   shares
            outstanding  as of the  record  date  of  February  29,  2000,  were
            represented in person or by proxy.

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

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

                        -----------------------------------------------------------------------------------
                                                                          Total                   Total
                                                                         Votes For           Votes Withheld
                        -----------------------------------------------------------------------------------
                        <S>                                             <C>                      <C>
                        Joe L. Allbritton                               23,990,541               1,019,980
                        -----------------------------------------------------------------------------------
                        Robert L. Allbritton                            25,004,146               1,019,980
                        -----------------------------------------------------------------------------------
                        Timothy C. Coughlin                             24,288,179               1,019,980
                        -----------------------------------------------------------------------------------
                        John M. Fahey, Jr.                              25,159,170               1,019,980
                        -----------------------------------------------------------------------------------
                        Lawrence I. Hebert                              25,154,826               1,019,980
                        -----------------------------------------------------------------------------------
                        Steven B. Pfeiffer                              25,159,240               1,019,980
                        -----------------------------------------------------------------------------------
                        John E.V. Rose                                  25,156,937               1,019,980
                        -----------------------------------------------------------------------------------
                        Robert L. Sloan                                 25,158,019               1,019,980
                        -----------------------------------------------------------------------------------
                        Jack Valenti                                    25,112,174               1,019,980
                        -----------------------------------------------------------------------------------
                        William L. Walton                               25,140,653               1,019,980
                        -----------------------------------------------------------------------------------
                        Eddie N. Williams                               25,148,355               1,019,980
                        -----------------------------------------------------------------------------------
</TABLE>


            2-Proposal to Adopt the Executive Incentive Plan
              ----------------------------------------------

            By a vote of  23,899,503  For, to  2,017,514  Against,  with 287,164
            Abstaining,  the Corporation's  shareholders  approved a proposal to
            adopt the Riggs National Corporation Executive Incentive Plan, which
            provides  an  opportunity  for  executives  to earn  incentive  cash
            compensation  for  contributing  significantly  to the strategic and
            long-term performance objectives and growth of the Corporation.

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

            By a vote of  4,567,142  For, to  16,873,564  Against,  with 360,398
            Abstaining,  the Corporation's  shareholders  rejected a proposal to
            implement   procedures   to  have   the   shareholders   elect   the
            Corporation's independent accountants each year.




                                       23
<PAGE>

RIGGS NATIONAL CORPORATION


                       PART II OTHER INFORMATION

ITEM 5.     OTHER INFORMATION

            Not applicable.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K


            (a)         Exhibits

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


            (b)         Reports on Form 8-K

                        None.






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


                           RIGGS NATIONAL CORPORATION


Date:  August 4, 2000                     /s/ TIMOTHY C. COUGHLIN
       --------------                     -----------------------
                                              Timothy C. Coughlin
                                                   President






Date:  August 4, 2000                        /s/ JOHN L. DAVIS
       --------------                    ------------------------
                                                 John L. Davis
                                             Chief Financial Officer
                                    (Principal Financial and Accounting Officer)


                                       24
<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      Exhibit 3.2

       (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.)

      (10.1)Riggs National Corporation and Riggs Bank N.A. Deferred Compensation
            Plan for Directors, revised April 12, 2000                            Exhibit 10.1


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

(Exhibits omitted are not required or not applicable.)

                                       25