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

                                    FORM 10-Q

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

                For the quarterly period ended September 30, 1999


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

              For the transition period from ________ to _________

                          Commission File Number 0-9756

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

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

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

                                   (301) 887-6000
                                   --------------
              (Registrant's telephone number, including area code)

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

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

 Common Stock, $2.50 par value                             28,312,197
 -----------------------------                      ------------------------
      (Title of Class)                         (Outstanding at November 9, 1999)

<PAGE>



                           RIGGS NATIONAL CORPORATION


                                TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION                                         PAGE NO.


Item 1. Financial Statements-Unaudited

         Consolidated Statements of Income
         Three and nine months ended September 30, 1999 and 1998            3

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

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

         Consolidated Statements of Cash Flows
         Nine months ended September 30, 1999 and 1998                      6

         Notes to the Consolidated Financial Statements                  7-11


Item 2. Management's Discussion and Analysis of Financial
         Condition and Results of Operations                            12-20


Item 3. Quantitative and Qualitative Disclosures About Market Risk      21-23


PART II.OTHER INFORMATION


Item 1.  Legal Proceedings                                               None

Item 2.  Change in Securities                                            None

Item 3.  Defaults Upon Senior Securities                                 None

Item 4.  Submission of Matters to a Vote of Security Holders             None

Item 5.  Other Information                                               None

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


Signatures                                                                 24

                                      -2-



<PAGE>



                          PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS-UNAUDITED

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

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

INTEREST INCOME
  Interest and Fees on Loans                                                 $57,699        $64,312      $171,977       $176,708
  Interest and Dividends on Securities Available for Sale                     19,031         16,960        50,369         55,771
  Interest on Time Deposits with Other Banks                                   4,954         10,305        18,347         24,921
  Interest on Federal Funds Sold and Reverse Repurchase Agreements             2,965          2,195         6,292         10,372
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest Income                                                       84,649         93,772       246,985        267,772

INTEREST EXPENSE
  Interest on Deposits:
      Savings and NOW Accounts                                                   631          1,340         1,944          4,075
      Money Market Deposit Accounts                                            8,206         10,297        25,153         32,387
      Time Deposits in Domestic Offices                                       10,876         13,961        30,837         33,172
      Time Deposits in Foreign Offices                                         8,172          9,312        24,091         25,294
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Deposits                                                  27,885         34,910        82,025         94,928
----------------------------------------------------------------------------------------------------------------------------------
  Interest on Short-Term Borrowings and Long-Term Debt:
      Repurchase Agreements and Other Short-Term Borrowings                    7,165          5,742        14,961         15,941
      Long-Term Debt                                                           2,238          4,368        10,974         13,104
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest on Short-Term Borrowings and Long-Term Debt                   9,403         10,110        25,935         29,045
----------------------------------------------------------------------------------------------------------------------------------

  Total Interest Expense                                                      37,288         45,020       107,960        123,973
----------------------------------------------------------------------------------------------------------------------------------

  Net Interest Income                                                         47,361         48,752       139,025        143,799
  Less:  Provision for Loan Losses                                                 -              -             -              -
----------------------------------------------------------------------------------------------------------------------------------
  Net Interest Income after Provision for Loan Losses                         47,361         48,752       139,025        143,799

NONINTEREST INCOME
  Trust and Investment Advisory Income                                        13,093         11,280        38,383         34,304
  Service Charges and Fees                                                    10,289          9,682        29,619         28,439
  Gain on Sale of Fixed Assets                                                 3,805            126         3,805            133
  Other Noninterest Income                                                     2,382          3,580         6,339          8,375
  Securities Gains, Net                                                           47          8,222         1,151         15,003
----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Income                                                    29,616         32,890        79,297         86,254

NONINTEREST EXPENSE
  Salaries and Employee Benefits                                              23,318         22,313        67,387         64,028
  Occupancy, Net                                                               4,625          4,889        13,846         13,767
  Data Processing Services                                                     4,594          4,118        13,877         13,275
  Furniture and Equipment                                                      2,575          2,494         7,798          7,518
  Other Real Estate Owned Expense (Income), Net                                 (116)           338           (78)           300
  Other Noninterest Expense                                                   16,638         15,982        49,168         45,724
----------------------------------------------------------------------------------------------------------------------------------
  Total Noninterest Expense                                                   51,634         50,134       151,998        144,612
----------------------------------------------------------------------------------------------------------------------------------

  Income before Taxes, Minority Interest, and Extraordinary Loss              25,343         31,508        66,324         85,441
  Applicable Income Tax Expense                                                8,089          9,206        21,807         22,985
  Minority Interest in Income of Subsidiaries, Net of Taxes                    4,987          4,987        14,960         14,960
----------------------------------------------------------------------------------------------------------------------------------
  Income before Extraordinary Loss                                            12,267         17,315        29,557         47,496
  Extraordinary Loss, Net of Taxes                                            (5,061)             -        (5,061)             -
==================================================================================================================================
  Net Income                                                                 $ 7,206        $17,315      $ 24,496       $ 47,496
  Dividends on Preferred Stock                                                     -         (2,688)            -         (8,063)
==================================================================================================================================
  Net Income Available for Common Stockholders                               $ 7,206        $14,627      $ 24,496       $ 39,433

EARNINGS PER COMMON SHARE-              Basic before Extraordinary Loss      $   .43        $   .48      $   1.04       $   1.29
                                        Diluted before Extraordinary             .42            .46          1.01           1.24
                                        Loss

EARNINGS PER COMMON SHARE-              Basic                                $   .25        $   .48      $    .86       $   1.29
                                        Diluted                                  .25            .46           .84           1.24

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

                                      -3-
<PAGE>



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

ASSETS
  Cash and Due from Banks                                                        $  145,518         $  143,124        $  155,003
  Federal Funds Sold and Reverse Repurchase Agreements                              253,000            165,000            75,000
----------------------------------------------------------------------------------------------------------------------------------
  Total Cash and Cash Equivalents                                                   398,518            308,124           230,003

  Time Deposits with Other Banks                                                    376,554            754,680           696,181
  Securities Available for Sale (at Market Value)                                 1,298,251          1,003,549           970,728

  Loans                                                                           3,250,797          3,354,811         3,258,135
  Reserve for Loan Losses                                                           (51,379)           (54,699)          (54,455)
----------------------------------------------------------------------------------------------------------------------------------
  Total Net Loans                                                                 3,199,418          3,300,112         3,203,680

  Premises and Equipment, Net                                                       201,841            184,362           203,071
  Other Real Estate Owned, Net                                                          908              2,070             1,680
  Other Assets                                                                      234,365            181,823           196,988
==================================================================================================================================
  Total                                                                          $5,709,855         $5,734,720        $5,502,331

LIABILITIES
  Deposits:
  Noninterest-Bearing Demand Deposits                                            $  641,209         $  609,275        $  732,099
  Interest-Bearing Deposits:
      Savings and NOW Accounts                                                      344,315            359,746           434,649
      Money Market Deposit Accounts                                               1,503,612          1,419,580         1,414,278
      Time Deposits in Domestic Offices                                             956,514          1,106,577           917,442
      Time Deposits in Foreign Offices                                              643,352            667,933           646,380
----------------------------------------------------------------------------------------------------------------------------------
  Total Interest-Bearing Deposits                                                 3,447,793          3,553,836         3,412,749
----------------------------------------------------------------------------------------------------------------------------------
  Total Deposits                                                                  4,089,002          4,163,111         4,144,848

  Repurchase Agreements and Other Short-Term Borrowings                             786,170            456,340           374,380
  Other Liabilities                                                                  75,036             74,557            48,850
  Long-Term Debt                                                                     66,525            191,525           191,525
----------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities                                                               5,016,733          4,885,533         4,759,603

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

STOCKHOLDERS' EQUITY
  Preferred Stock-$1.00 Par Value
   Shares  Authorized - None at September 30, 1999 and December 31, 1998, and
      25,000,000 at September 30, 1998
      Liquidation Preference - $25 per share
      Shares Issued - Noncumulative Perpetual Series B - None at
       September 30,1999 and December 31, 1998, and 4,000,000 at                        --              4,000                --
        September 30, 1998
  Common Stock-$2.50 Par Value
      Shares Authorized - 50,000,000 at September 30, 1999 and 1998,
       and December 31, 1998
      Shares Issued - 31,612,995 at September 30, 1999, 31,554,345 at
         September 30, 1998 and 31,555,345 at December 31, 1998                      79,032             78,886            78,888
  Surplus - Preferred Stock                                                              --             91,192                --
  Surplus - Common Stock                                                            161,418            160,352           160,760
  Undivided Profits                                                                 205,001            187,577           184,794
  Accumulated Other Comprehensive Income                                            (30,972)               903            (2,548)
  Treasury Stock - 3,300,798 shares at September 30, 1999, 900,798
   shares at September 30, 1998, and 1,175,798 at December 1, 1998                  (71,357)           (23,723)          (29,166)
----------------------------------------------------------------------------------------------------------------------------------
  Total Stockholders' Equity                                                        343,122            499,187           392,728
==================================================================================================================================
  Total Liabilities and Stockholders' Equity                                     $5,709,855         $5,734,720        $5,502,331

</TABLE>

                                      -4-

<PAGE>



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

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

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

Comprehensive Income:
   Net Income                                                                 47,496                                       $ 47,496
   Other Comprehensive Income
     (Loss), Net of Tax: (1)
    Unrealized Gain (Loss) on
      Securities Available for
Sale, Net
      of Reclassification                                                                        (710)                         (710)
Adjustments
    Foreign Exchange
      Translation Adjustments                                                                     446                           446
                                                                                                                    ----------------
   Total Other Comprehensive
     Income (Loss)                                                                                                             (264)
                                                                                                                    ----------------
Total Comprehensive Income (Loss)                                                                                          $ 47,232

Issuance of Common Stock for
  Stock Option Plans, 92,559 Shares                       232      1,192                                                      1,424

Cash Dividends -
  Series B Preferred Stock,
   $2.015625 per Share                                                        (8,063)                                        (8,063)
  Common Stock, $.15 per Share                                                (4,588)                                        (4,588)
====================================================================================================================================

Balance, September 30, 1998               $  4,000   $ 78,886   $251,544    $187,577         $    903     $(23,723)        $499,187


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

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

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

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

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

Balance, September 30, 1999               $     --   $ 79,032   $161,418    $205,001         $(30,972)    $(71,357)        $343,122
</TABLE>

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

                                      -5-
<PAGE>

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

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                                                                          $   24,496    $   47,496
  Adjustments to Reconcile Net Income to Cash
    Provided By Operating Activities:
     Provision for Other Real Estate Owned Writedowns                                                       16           850
     Depreciation Expense and Amortization of Leasehold Improvements                                     8,716         8,522
     Gains on Sale of Securities Available for Sale                                                     (1,151)      (15,003)
     Gains on Sale of Other Real Estate Owned                                                              (61)         (493)
     (Increase) Decrease in Other Assets                                                               (22,359)       13,086
     Increase (Decrease) in Other Liabilities                                                           26,186      (116,736)
------------------------------------------------------------------------------------------------------------------------------
  Total Adjustments                                                                                     11,347      (109,774)
------------------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By (Used In) Operating Activities                                                   35,843       (62,278)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Net Decrease (Increase) In Time Deposits with Other Banks                                            319,627      (512,867)
  Principal Collections and Maturities of Securities Available for Sale                              2,898,637     3,814,924
  Proceeds from Sales of Securities Available for Sale                                                  81,337     1,486,053
  Purchases of Securities Available for Sale                                                        (3,349,254)   (4,618,065)
  Net Decrease (Increase) in Loans                                                                       4,356      (468,454)
  Proceeds from Sale and Other Payments of Other Real Estate Owned                                         816         2,651
  Net Increase in Premises and Equipment                                                                (7,486)      (27,507)
  Other, Net                                                                                               (93)          332
------------------------------------------------------------------------------------------------------------------------------
Net Cash Used In Investing Activities                                                                  (52,060)     (322,933)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net (Decrease) Increase in:
    Demand, NOW, Savings and Money Market Deposit Accounts                                             (91,890)     (523,443)
    Time Deposits                                                                                       36,044       388,636
    Repurchase Agreements and Other Short-Term Borrowings                                              411,790       103,832
  Repayment of Long-Term Debt                                                                         (125,000)           --
  Proceeds from the Issuance of Common Stock                                                               802         1,424
  Dividend Payments - Preferred                                                                             --        (8,063)
                    - Common                                                                            (4,289)       (4,588)
  Repurchase of Common Shares                                                                          (42,191)           --
------------------------------------------------------------------------------------------------------------------------------
Net Cash Provided By (Used in) Financing Activities                                                    185,266       (42,202)
------------------------------------------------------------------------------------------------------------------------------
Effect of Exchange Rate Changes                                                                           (534)          446
------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash and Cash Equivalents                                                   168,515      (426,967)
Cash and Cash Equivalents at Beginning of Period                                                       230,003       735,091
==============================================================================================================================
Cash and Cash Equivalents at End of Period                                                          $  398,518    $  308,124


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)                                                         $  109,700   $   120,906
  Income Tax Payments                                                                                      128         8,067
</TABLE>

                                      -6-
<PAGE>



RIGGS NATIONAL CORPORATION

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


NOTE 1. BASIS OF PRESENTATION

In 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 our 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, 1998.  Certain  reclassifications  have been made to  prior-period
amounts  to conform  with the  current  period's  presentation.  The  results of
operations for the first nine months of 1999 are not  necessarily  indicative of
the results to be expected for the full 1999 year.

NOTE 2. EARNINGS PER COMMON SHARE

Earnings per share computations are as follows:
<TABLE>
<CAPTION>
                                                              NINE MONTHS ENDED                   NINE MONTHS ENDED
                                                              SEPTEMBER 30, 1999                 SEPTEMBER 30, 1998
                                                      ================================== ===================================
                                                           BASIC            DILUTED           BASIC            DILUTED
                                                            EPS               EPS              EPS               EPS
                                                      ----------------- ---------------- ----------------- -----------------
<S>                                                        <C>              <C>               <C>               <C>

Income before Extraordinary Loss                              $29,557          $29,557           $47,496           $47,496
Extraordinary Loss, Net of Tax                                 (5,061)          (5,061)               --                --
                                                      ----------------- ---------------- ----------------- -----------------
Net Income                                                     24,496           24,496            47,496            47,496
Dividends on Preferred Stock                                       --               --            (8,063)           (8,063)
                                                      ----------------- ---------------- ----------------- -----------------
Income Available to Common Shareholders                       $24,496          $24,496           $39,433           $39,433

Weighted-Average Shares Outstanding                        28,514,728       28,514,728        30,602,344        30,602,344
Weighted-Average Dilutive Effect
   of Stock Option Plans                                          n/a          607,025               n/a         1,093,063
                                                      ----------------- ---------------- ----------------- -----------------
Adjusted Weighted-Average Shares Outstanding               28,514,728       29,121,753        30,602,344        31,695,407

Basic EPS before Extraordinary Loss                           $  1.04                            $  1.29
Diluted EPS before Extraordinary Loss                                          $  1.01                             $  1.24

Basic EPS                                                     $   .86                            $  1.29
Diluted EPS                                                                    $   .84                             $  1.24


                                                              THREE MONTHS ENDED                 THREE MONTHS ENDED
                                                              SEPTEMBER 30, 1999                 SEPTEMBER 30, 1998
                                                      ================================== ===================================
                                                           BASIC            DILUTED           BASIC            DILUTED
                                                            EPS               EPS              EPS               EPS
                                                      ----------------- ---------------- ----------------- -----------------
<S>                                                        <C>              <C>               <C>               <C>

Income before Extraordinary Loss                              $12,267          $12,267           $17,315           $17,315
Extraordinary Loss, Net of Tax                                 (5,061)          (5,061)               --                --
                                                      ----------------- ---------------- ----------------- -----------------
Net Income                                                      7,206            7,206            17,315            17,315
Dividends on Preferred Stock                                       --               --            (2,688)           (2,688)
                                                      ----------------- ---------------- ----------------- -----------------
Income Available to Common Shareholders                       $ 7,206          $ 7,206           $14,627           $14,627

Weighted-Average Shares Outstanding                        28,300,240       28,300,240        30,644,298        30,644,298
Weighted-Average Dilutive Effect
   of Stock Option Plans                                          n/a          632,275               n/a         1,043,950
                                                      ----------------- ---------------- ----------------- -----------------
Adjusted Weighted-Average Shares Outstanding               28,300,240       28,932,515        30,644,298        31,688,248

Basic EPS before Extraordinary Loss                           $   .43                            $   .48
Diluted EPS before Extraordinary Loss                                          $   .42                             $   .46

Basic EPS                                                     $   .25                            $   .48
Diluted EPS                                                                    $   .25                             $   .46
</TABLE>

                                      -7-
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 3. OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>
                                                                                      Before-        Tax
                                                                                       Tax        (Expense)     Net-of-Tax
                                                                                      Amount       Benefit        Amount
=============================================================================================================================
NINE MONTHS ENDED SEPTEMBER 30, 1999:
<S>                                                                                   <C>           <C>            <C>
Foreign Currency Translation Adjustments (1)                                          $   (189)     $   (345)      $   (534)
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                              (41,757)       14,615        (27,142)
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income           (1,151)          403           (748)
---------------------------------------------------------------------------------- ------------- ------------- --------------
  Net Unrealized Gains (Losses)                                                        (42,908)       15,018        (27,890)
==============================================================================================================================

Other Comprehensive Income (Loss)                                                     $(43,097)      $14,673       $(28,424)

NINE MONTHS ENDED SEPTEMBER 30, 1998:
Foreign Currency Translation Adjustments (1)                                          $   (902)      $ 1,348       $    446
Unrealized Gains (Losses) on Securities:
  Unrealized Holding Gains (Losses) Arising During Period                               13,911        (4,869)         9,042
  Less: Reclassification Adjustment for (Gains) Losses Realized in Net Income          (15,003)        5,251         (9,752)
---------------------------------------------------------------------------------- ------------- ------------- --------------
  Net Unrealized Gains (Losses)                                                         (1,092)          382           (710)
=============================================================================================================================

Other Comprehensive Income (Loss)                                                     $ (1,994)      $ 1,730       $   (264)
</TABLE>

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



ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES
<TABLE>
<CAPTION>
                                                                              Foreign       Unrealized       Accumulated
                                                                             Currency       Gain (Loss)         Other
                                                                            Translation    on Securities    Comprehensive
                                                                            Adjustments                     Income (Loss)
=============================================================================================================================
NINE MONTHS ENDED SEPTEMBER  30, 1999:
<S>                                                                              <C>           <C>                <C>
Balance, December 31, 1998                                                       $(1,349)      $ (1,199)          $ (2,548)
Current-Period Change                                                               (534)       (27,890)           (28,424)
------------------------------------------------------------------------- ---------------- -------------- ------------------
Balance, September 30, 1999                                                      $(1,883)      $(29,089)          $(30,972)

NINE MONTHS ENDED SEPTEMBER 30, 1998:
Balance, December 31, 1997                                                       $  (872)      $  2,039           $  1,167
Current-Period Change                                                                446           (710)              (264)
------------------------------------------------------------------------- ---------------- -------------- ------------------
Balance, September 30, 1998                                                      $  (426)      $  1,329           $    903
</TABLE>



NOTE 4.  FIXED ASSETS

In the  third  quarter  of 1999,  we  recorded  a gain on sale of the  corporate
aircraft  of $3.8  million.  The  aircraft  was  sold to  entities  directly  or
indirectly  owned by Mr.  Allbritton  (Chairman of the Board and Chief Executive
Officer of the  Corporation).  The increase in premises  and  equipment of $18.7
million from September 30, 1998 to December 31, 1998 reflects  payments toward a
replacement  aircraft,  which we acquired  during the third quarter of 1999. The
decrease in premises  and  equipment  from year end 1998 to  September  30, 1999
included a reduction for the sale of the older aircraft,  which had a book value
of $6.5  million.  This  decrease  was  partially  offset by the  addition of an
International Financial Center in Washington,  D.C., and by final payment on the
new aircraft.

                                      -8-

<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

NOTE 5. SEGMENT PROFITABILITY
<TABLE>
<CAPTION>

===================================================================================================================================
                                                INTERN-                                                                 RIGGS
NINE MONTHS ENDED                               ATIONAL      RIGGS &                                   RECON-         NATIONAL
SEPTEMBER 30, 1999                 BANKING      BANKING      COMPANY      TREASURY       OTHER        CILIATION      CORPORATION
------------------------------- -------------- ----------- ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>           <C>           <C>        <C>           <C>          <C>                <C>
Interest Income                   $  140,260    $ 40,378      $  8,245   $   75,801    $   38,543
Interest Expense                      43,670      46,797        11,797       22,157        37,405
Funds Transfer Income                 (1,898)     28,258        12,967      (45,123)        5,796
(Expense)
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           94,692      21,839         9,415        8,521         6,934
  Tax-Equivalent
Tax Equivalent Adjustment             (1,948)         --            --         (428)           --
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   92,744    $ 21,839      $  9,415   $    8,093    $    6,934    $        --       $  139,025
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   29,790    $  2,130      $ 40,218   $    1,843    $    5,316
  Customers
Intersegment Noninterest               1,674       3,150           411            1         2,360
Income
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   31,464    $  5,280      $ 40,629   $    1,844    $    7,676    $    (7,596)      $   79,297
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    5,572    $    495      $    683   $       10    $    5,402
Direct Expense                        43,835      15,539        25,924        2,292        59,842
Overhead and Support                  43,724       8,209         9,569        1,271       (62,773)
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   93,131    $ 24,243      $ 36,176   $    3,573    $    2,471    $    (7,596)      $  151,998
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes and    $   31,077    $  2,876      $ 13,868   $    6,364    $   12,139    $        --       $   66,324
  Minority Interest
                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------

                                -------------- ----------- ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,748,603    $829,817      $204,836   $1,840,020    $1,091,927    $(1,185,333)      $5,529,870
===================================================================================================================================
</TABLE>


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

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.

                                      -9-


<PAGE>

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


===================================================================================================================================
                                                  INTER-                                                                RIGGS
NINE MONTHS ENDED                                NATIONAL      RIGGS &                                   RECON-        NATIONAL
SEPTEMBER 30, 1998                 BANKING       BANKING       COMPANY      TREASURY       OTHER        CILIATION     CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>        <C>           <C>           <C>               <C>
Interest Income                   $  142,996      $ 38,529     $  9,460   $   84,876    $   47,497
Interest Expense                      56,028        48,262       10,763       25,358        36,854
Funds Transfer Income                 13,194        31,300       10,090      (59,686)        5,102
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),          100,162        21,567        8,787         (168)       15,745
  Tax-Equivalent
Tax Equivalent Adjustment               (786)           --           --       (1,508)           --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   99,376      $ 21,567     $  8,787   $   (1,676)   $   15,745    $        --       $  143,799
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   29,606      $  2,667     $ 36,042   $   16,353    $    1,586
  Customers
Intersegment Noninterest                  --         2,840          332            1         1,268
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   29,606      $  5,507     $ 36,374   $   16,354    $    2,854    $    (4,441)      $   86,254
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    5,242      $    464     $  1,207   $       10    $    5,137
Direct Expense                        41,253        14,780       21,564        1,131        58,265
Overhead and Support                  48,434         7,040        7,788        1,118       (64,380)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   94,929      $ 22,284     $ 30,559   $    2,259    $     (978)   $    (4,441)      $  144,612
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $   34,053      $  4,790     $ 14,602   $   12,419    $   19,577    $        --       $   85,441
and  Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,607,006      $686,072     $201,486   $1,946,827    $1,191,931    $(1,059,943)      $5,573,379
===================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>

===================================================================================================================================
                                                  INTER-                                                                 RIGGS
THREE MONTHS ENDED                               NATIONAL      RIGGS &                                   RECON-         NATIONAL
SEPTEMBER 30, 1999                 BANKING       BANKING       COMPANY      TREASURY       OTHER        CILIATION      CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>         <C>          <C>           <C>               <C>
Interest Income                   $   47,616      $ 13,577     $  2,737    $  28,506    $   11,957
Interest Expense                      13,501        15,259        4,006       10,260        13,205
Funds Transfer Income                 (3,268)        9,042        4,348      (13,760)        3,638
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           30,847         7,360        3,079        4,486         2,390
  Tax-Equivalent
Tax Equivalent Adjustment               (801)           --           --           --            --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   30,046      $  7,360     $  3,079    $   4,486    $    2,390    $        --       $   47,361
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest Income-External       $   10,307      $    730     $ 13,697    $     958    $    3,924
  Customers
Intersegment Noninterest               1,415         1,182           69           --           561
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $   11,722      $  1,912     $ 13,766    $     958    $    4,485    $    (3,227)      $   29,616
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    1,847      $    171     $    228    $       4    $    1,775
Direct Expense                        15,099         5,610        8,521        1,533        20,073
Overhead and Support                  15,005         2,916        3,353          494       (21,768)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   31,951      $  8,697     $ 12,102    $   2,031    $       80    $    (3,227)      $   51,634
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $    9,817      $    575     $  4,743    $   3,413    $    6,795    $        --       $   25,343
and  Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,792,640      $832,585     $202,657   $2,001,130    $1,018,206    $(1,235,959)      $5,611,259
===================================================================================================================================
</TABLE>

                                      -10-

<PAGE>


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

<TABLE>
<CAPTION>

===================================================================================================================================
                                                  INTER-                                                                 RIGGS
THREE MONTHS ENDED                               NATIONAL      RIGGS &                                  RECON-          NATIONAL
SEPTEMBER 30, 1998                 BANKING       BANKING       COMPANY      TREASURY       OTHER       CILIATION       CORPORATION
------------------------------- -------------- ------------ ------------ ------------- ------------- -------------- ----------------
NET INTEREST INCOME
<S>                               <C>             <C>          <C>        <C>           <C>           <C>               <C>
Interest Income                   $   51,998      $ 14,404     $  3,164   $   26,587    $   15,580
Interest Expense                      19,311        17,259        4,434        8,943        12,285
Funds Transfer Income                  2,003        10,128        4,166      (17,844)        1,547
(Expense)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss),           34,690         7,273        2,896         (200)        4,842
  Tax-Equivalent
Tax Equivalent Adjustment               (267)           --           --         (482)           --
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Net Interest Income (Loss)        $   34,423      $  7,273     $  2,896   $     (682)   $    4,842    $        --       $   48,752
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST INCOME
Noninterest                       $    9,957      $    835     $ 11,903   $    8,844    $    1,351
Income-External
  Customers
Intersegment Noninterest                  --           939          111           --           423
Income
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Income          $    9,957      $  1,774     $ 12,014   $    8,844    $    1,774    $    (1,473)      $   32,890
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

NONINTEREST EXPENSE
Depreciation and Amortization     $    1,732      $    155     $    403   $        3    $    1,726
Direct Expense                        14,253         4,876        7,250          374        20,835
Overhead and Support                  17,044         2,471        2,669          464       (22,648)
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Noninterest Expense         $   33,029      $  7,502     $ 10,322   $      841      $    (87)   $    (1,473)      $   50,134
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

Income (Loss) Before Taxes        $   11,351      $  1,545     $  4,588   $     7,321    $   6,703    $        --       $   31,508
and  Minority Interest
                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------

                                -------------- ------------ ------------ ------------- ------------- -------------- ----------------
Total Average Assets              $2,764,563      $761,922     $197,865   $1,815,424    $1,198,431    $(1,014,172)      $5,724,033
===================================================================================================================================
</TABLE>




NOTE 6. NEW FINANCIAL ACCOUNTING STANDARDS


SFAS No. 133,  "Accounting for Derivative  Instruments and Hedging  Activities,"
was issued in June  1998.  SFAS No.  133 will  require  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.

NOTE 7. OTHER EVENTS

On June 16, 1999, we filed a  registration  statement  with the  Securities  and
Exchange  Commission  to issue $200  million of  variable  rate Trust  Preferred
Securities.  On July 22, 1999,  because of market  volatility,  we announced our
decision  to  postpone  the  issuance.  On that  same  date,  we  completed  our
redemption of $125 million of 8.5% subordinated  notes due in 2006, at the price
of 104.25%, using general corporate funds to retire the debt. As a result of the
redemption, we recorded an extraordinary expense of $5.1 million, after tax.

                                      -11-

<PAGE>



RIGGS NATIONAL CORPORATION

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


Results of Operations

We earned $7.2 million of net income for the third  quarter of 1999  compared to
$17.3  million  for the same  period a year ago.  Earnings  per share  were $.25
compared  to $.46 for the same  period in the  prior  year.  For the first  nine
months of 1999, we had net income of $24.5  million,  or $.84 per diluted share,
compared  with $47.5  million,  or $1.24 a share,  for the first nine  months of
1998.

Non-recurring items contributed  significantly to the quarterly and year-to-date
reductions  in net income.  During the current  quarter we recorded an after tax
extraordinary  expense of $5.1  million from the  redemption  of $125 million of
8.5%  subordinated  notes.  Our results in 1998 were improved by $8.2 million of
non-recurring  securities  gains in the  third  quarter  and  $15.0  million  in
securities gains for the first nine months of 1998. The extraordinary expense in
1999 was partially  offset by a $3.8 million gain from the sale of the corporate
aircraft  as the  aircraft  was  replaced  in the  current  quarter of 1999.  In
addition,  a reduction in net interest income due to our redemption of preferred
stock and  repurchase  of common  stock,  and a higher  income tax rate in 1999,
reduced net income in the current period.


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 $48.2 million in
the third  quarter of 1999,  decreasing  $1.3 million from the third  quarter of
1998. Net interest income on a  tax-equivalent  basis was $141.4 million for the
first nine months of 1999,  compared with $146.1  million for the same period in
1998. The decreases from the prior year's quarter and year-to-date  periods were
primarily  due to funds  expended  in  redeeming  Preferred  Stock in the fourth
quarter  of 1998 and  Common  Stock in both the  fourth  quarter of 1998 and the
first quarter of 1999,  partially  offset by a reduction in interest expense due
to the redemption of the $125 million in subordinated notes.


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

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

Interest Income:
   Loans, Including Fees                   $(6,250)      $171   $ (6,079)            $(14,184)   $10,615    $(3,569)
   Securities Available for Sale               216      1,373      1,589               (1,845)    (4,637)    (6,482)
   Time Deposits with Other Banks             (830)    (4,520)    (5,350)              (2,734)    (3,840)    (6,574)
   Federal Funds Sold and Reverse
    Repurchase Agreements                     (149)       918        769                 (974)    (3,106)    (4,080)
---------------------------------------------------------------------------------------------------------------------

Total Interest Income                       (7,013)    (2,058)    (9,071)             (19,737)      (968)   (20,705)

Interest Expense:
   Interest-Bearing Deposits                (6,471)      (553)    (7,024)             (19,165)     6,263    (12,902)
   Repurchase Agreements and Other
      Short-Term Borrowings                   (407)     1,829      1,422               (1,854)       873       (981)
   Long-Term Debt                              197     (2,327)    (2,130)                 147     (2,277)    (2,130)
---------------------------------------------------------------------------------------------------------------------

Total Interest Expense                      (6,681)    (1,051)    (7,732)             (20,872)     4,859    (16,013)
=====================================================================================================================

Net Interest Income                        $  (332)   $(1,007)   $(1,339)             $ 1,135    $(5,827)   $(4,692)
</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
                                                               SEPTEMBER 30, 1999                  SEPTEMBER 30, 1998
                                                         -------------------------------    ----------------------------------
(TAX-EQUIVALENT BASIS) (1)                                 AVERAGE     INCOME/                AVERAGE     INCOME/
(IN THOUSANDS)                                             BALANCE     EXPENSE    RATE        BALANCE     EXPENSE     RATE
==============================================================================================================================
<S>                                                       <C>            <C>       <C>       <C>            <C>          <C>

ASSETS

  Loans, Including Fees (2)                               $3,213,650     $58,500   7.22 %    $3,217,128     $64,579      7.96 %
  Securities Available for Sale (3)                        1,255,783      19,031   6.01       1,165,177      17,442      5.94
  Time Deposits with Other Banks                             387,892       4,954   5.07         736,915      10,304      5.55
  Federal Funds Sold and Reverse Repurchase Agreements       224,509       2,965   5.24         155,553       2,196      5.60
---------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned           5,081,834      85,450   6.67       5,274,773      94,521      7.11

  Reserve for Loan Losses                                    (52,224)                           (54,692)
  Cash and Due from Banks                                    151,931                            137,172
  Other Assets                                               429,718                            366,780

=================================================================================================================================
  Total Assets                                            $5,611,259                         $5,724,033

LIABILITIES, MINORITY INTEREST AND
    STOCKHOLDERS' EQUITY

  Interest-Bearing Deposits                               $3,564,923     $27,885   3.10 %    $3,570,113     $34,909      3.88 %
  Repurchase Agreements and Other Short-Term Borrowings      624,094       7,165   4.55         455,047       5,743      5.01
  Long-Term Debt                                              93,699       2,238   9.48         191,525       4,368      9.05
------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid     4,282,716      37,288   3.45       4,216,685      45,020      4.24

  Demand Deposits                                            579,101                            613,268
  Other Liabilities                                           65,965                             55,516
  Minority Interest in Preferred Stock of Subsidiaries       350,000                            350,000
  Stockholders' Equity                                       333,477                            488,564

------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities, Minority Interest and
     Stockholders' Equity                                 $5,611,259                         $5,724,033

==============================================================================================================================
  NET INTEREST INCOME AND SPREAD                                         $48,162   3.22 %                   $49,501      2.87 %

==============================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                            3.76 %                                3.72 %
</TABLE>

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

NONINTEREST INCOME

Noninterest  income for the three months  ended  September  30, 1999,  excluding
securities  gains,  totaled $29.6 million,  an increase of $4.9 million from the
same period a year ago. This increase was mostly due to a $3.8 million gain from
the sale of the corporate aircraft,  which was replaced during the quarter,  and
increases in trust and  investment  advisory  income of $1.8 at Riggs & Company.
Riggs & Company is our private  client  services  division.  This  increase  was
partially offset by a decrease in other noninterest income.

For the first nine months of 1999, noninterest income excluding securities gains
totaled $78.1 million, an increase of $6.9 million from the first nine months of
1998. The increase in noninterest income for the nine month period was partially
due to the $3.8  million  gain  discussed  above and a 12% increase in trust and
investment advisory income of Riggs & Company, partially offset by a decrease of
$2.0 million in other noninterest income. This decrease was partly the result of
lower deposit  account and ATM fees, as consumers  move towards the use of debit
cards and the use of ATMs by non-Riggs customers declined.

                                      -13-

<PAGE>

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


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

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

ASSETS

  Loans, Including Fees (2)                               $3,195,091    $173,925   7.28 %    $3,010,016    $177,494      7.88 %
  Securities Available for Sale (3)                        1,151,402      50,797   5.90       1,255,696      57,279      6.10
  Time Deposits with Other Banks                             506,533      18,347   4.84         607,038      24,921      5.49
  Federal Funds Sold and Reverse Repurchase Agreements       167,519       6,292   5.02         247,887      10,372      5.59
---------------------------------------------------------------------------------------------------------------------------------
    Total Earning Assets and Average Rate Earned           5,020,545     249,361   6.64       5,120,637     270,066      7.05

  Reserve for Loan Losses                                    (53,055)                           (53,152)
  Cash and Due from Banks                                    148,358                            146,882
  Other Assets                                               414,022                            359,012

=================================================================================================================================
  Total Assets                                            $5,529,870                         $5,573,379

LIABILITIES, MINORITY INTEREST AND
    STOCKHOLDERS' EQUITY

  Interest-Bearing Deposits                               $3,545,657    $ 82,025   3.09 %    $3,300,508    $ 94,927      3.85 %
  Repurchase Agreements and Other Short-Term Borrowings      470,094      14,961   4.26         424,931      15,942      5.02
  Long-Term Debt                                             158,558      10,974   9.25         191,525      13,104      9.15
------------------------------------------------------------------------------------------------------------------------------
    Total Interest-Bearing Funds and Average Rate Paid     4,174,309     107,960   3.46       3,916,964     123,973      4.23

  Demand Deposits                                            595,877                            765,750
  Other Liabilities                                           62,401                             63,369
  Minority Interest in Preferred Stock of Subsidiaries       350,000                            350,000
  Stockholders' Equity                                       347,283                            477,296

------------------------------------------------------------------------------------------------------------------------------
  Total Liabilities, Minority Interest and
     Stockholders' Equity                                 $5,529,870                         $5,573,379

==============================================================================================================================
  NET INTEREST INCOME AND SPREAD                                        $141,401   3.18 %                  $146,093      2.82 %

==============================================================================================================================
  NET INTEREST MARGIN ON EARNING ASSETS                                            3.77 %                                3.81 %
</TABLE>

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


NONINTEREST EXPENSE

Noninterest  expense for the three  months  ended  September  30, 1999 was $51.6
million,  up 3% from the  $50.1  million  reported  for the three  months  ended
September 30, 1998.  For the nine months ended  September 30, 1999,  noninterest
expense was $152.0  million,  an increase of $7.4 million from the same period a
year ago.  The  increases  were due to added  personnel  costs  during the year,
partially  related  to  new  business   initiatives,   and  increases  in  other
noninterest expense,  such as increased data processing and advertising costs in
1999, and the addition of the International Financial Center in Washington, D.C.

                                      -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  $1.30  billion at  September  30, 1999,
compared to $970.7  million at year-end 1998, and $1.00 billion at September 30,
1998.  The activity for the first nine months  included  purchases of securities
available  for sale  totaling  $3.35  billion,  which were  partially  offset by
maturities  and sales of securities  available for sale totaling  $2.97 billion.
The  weighted-average  durations  and yields  for the  portfolio,  adjusted  for
anticipated prepayments,  were approximately 4.1 years and 5.97%,  respectively,
at September 30, 1999.
<TABLE>
<CAPTION>

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

U.S. Treasury Securities            $  314,267      $  298,605       $        -     $        -       $  113,677      $  111,750
Government Agencies Securities         438,809         435,975          808,845        809,428          391,165         391,344
Mortgage-Backed Securities             526,640         500,384          124,383        125,229          424,152         423,503
Other Securities                        63,287          63,287           68,277         68,892           43,577          44,131
=================================================================================================================================

Total                               $1,343,003      $1,298,251       $1,001,505     $1,003,549       $  972,571      $  970,728
</TABLE>


LOANS

At  September  30,  1999,  total loans  outstanding  amounted to $3.25  billion,
decreasing  slightly  from the  December  31, 1998 total of $3.26  billion.  The
decrease in loans from December 31, 1998, was primarily  attributed to decreases
in  residential  mortgage  loans of  $38.7  million  and real  estate/commercial
construction  loans of $10.1 million,  partially  offset by an increase of $44.3
million in commercial and financial loans.
<TABLE>
<CAPTION>

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

Commercial and Financial                                  $  713,081           $  696,045           $  668,778
Real Estate - Commercial/Construction                        399,440              418,928              409,586
Residential Mortgage                                       1,237,522            1,333,954            1,276,257
Home Equity                                                  311,958              329,275              314,347
Consumer                                                      72,090               69,860               69,419
Foreign                                                      522,291              508,033              522,032
----------------------------------------------------------------------------------------------------------------

Total Loans                                                3,256,382            3,356,095            3,260,419

Net Deferred Loan Fees,
 Premiums and Discounts                                       (5,585)              (1,284)              (2,284)
================================================================================================================

Loans                                                     $3,250,797           $3,354,811           $3,258,135
</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>

                                                                                                     NINE MONTHS ENDED
                                                                                                      SEPTEMBER 30,
                                                                                           -------------------------------------
                                                                                                     1999              1998
================================================================================================================================
<S>                                                                                                 <C>               <C>
Balance, January 1                                                                                  $ 54,455          $ 52,381
Provision for loan losses                                                                                 --                --

Loans charged-off                                                                                      4,337             2,548
   Less: Recoveries on charged-off loans                                                               1,355             4,532
--------------------------------------------------------------------------------------------------------------------------------
Net loan charge-offs (recoveries)                                                                      2,982            (1,984)

Foreign exchange translation adjustments                                                                 (94)              334

=================================================================================================================================
Balance, September 30                                                                               $ 51,379          $ 54,699
</TABLE>

ASSET QUALITY

NONPERFORMING ASSETS

Nonperforming  assets,  which include  nonaccrual loans,  renegotiated loans and
other real estate owned (net of  reserves),  totaled  $53.5 million at September
30, 1999, a $22.1 million increase from the year-end 1998 total of $31.4 million
and a $49.8 million  increase from the September 30, 1998 total. The increase in
nonperforming  assets from both periods was mainly due to nonperforming loans in
which we have participated with other major banks. These credits include a $25.0
million loan to a commercial  real estate  financing  company that was placed on
nonaccrual in the fourth quarter of 1998. In addition, a $13.7 million loan to a
health  care  entity  and  a  $12.0   million  loan  to  a  computer   equipment
manufacturing and service company were placed on nonaccrual in the third quarter
of 1999. These three credits are considered  impaired.  Impaired loans including
the three credits  totaled  $52.0  million at September  30, 1999.  The assigned
reserve for loan losses for impaired  loans was $11.4  million at September  30,
1999.

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  decreased $16.6 million during the
first nine months of 1999 to $8.6 million,  mostly due to repayment of a foreign
government overdraft of $15.8 million.  There were no potential problem loans at
September 30, 1999 and December 31, 1998.  The $25.0  potential  problem loan at
September 30, 1998 was  reclassified as nonaccrual  during the fourth quarter of
1998.

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

Nonaccrual Loans (1)                                                        $51,203          $ 1,519           $26,831
Renegotiated Loans                                                            1,409               84             2,920
Other Real Estate Owned, Net                                                    908            2,070             1,680
========================================================================================================================
Total Nonperforming Assets                                                  $53,520          $ 3,673           $31,431

PAST-DUE LOANS (2)                                                          $ 8,647          $10,527           $25,269

POTENTIAL PROBLEM LOANS                                                     $    --          $25,000           $    --
</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 $4.09
billion at September  30, 1999,  decreasing  $55.8 million from the December 31,
1998 deposit total, and $74.1 million from September 30, 1998. The decrease from
the year-end  balance was due primarily to decreases in demand,  savings and NOW
deposit accounts.  Demand deposits  decreased by $90.9 million,  and savings and
NOW  accounts  by $90.3  million  from the  December  31, 1998  balances.  These
decreases  from year-end were  partially due to increases in sweep activity from
demand to money market  accounts.  Money market  account  balances  increased by
$89.3 million in total from  year-end.  The decrease from the September 30, 1998
balance was due  primarily to decreases  in time  deposits in both  domestic and
foreign offices of $174.6 million, partially offset by increases in money market
accounts of $84.0 million. The decrease in time deposits was primarily caused by
a decrease in large dollar certificates of deposits.


SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term  borrowings  increased  by  $411.8  million  from the  year-end  1998
balance, and $329.8 million from the September 30, 1998 balance. The increase in
short-term  borrowings from both periods was primarily  because we borrowed $400
million from the Federal Home Loan Bank of Atlanta (FHLB), at an average rate of
4.99%. $300 million, callable by the FHLB in the year 2000, has a final maturity
of ten years.  Another  $100  million,  also  callable  next  year,  has a final
maturity of 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 was due to our redemption 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, as a result of the redemption.
<TABLE>
<CAPTION>

                                                              SEPTEMBER 30,       SEPTEMBER 30,         DECEMBER 31,
(IN THOUSANDS)                                                      1999                 1998                 1998
======================================================================================================================
<S>                                                                <C>                 <C>                 <C>
Repurchase Agreements and Other Short-Term Borrowings              $786,170            $456,340            $374,380

Subordinated Debentures due 2009                                     66,525              66,525              66,525
Subordinated Notes due 2006                                              --             125,000             125,000
----------------------------------------------------------- ---------------- -- ---------------- --- -----------------
Total Long-Term Debt                                                 66,525             191,525             191,525
======================================================================================================================
Total Short-Term Borrowings and Long-Term Debt                     $852,695            $647,865            $565,905
</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 September 30, 1999, 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 $2.07 billion
(36% of total  assets).  This  compares with $1.90 billion (34%) at December 31,
1998,  and $2.07  billion  (36%) at September  30, 1998.  At September 30, 1999,
$887.4  million  of our  assets  were  pledged  to  secure  deposits  and  other
borrowings.  This compares with pledged assets of $727.4 million at December 31,
1998, and $865.0 million at September 30, 1998.

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 Federal Home Loan Bank of Atlanta (FHLB Atlanta). At September
30, 1999, December 31, 1998, and September 30, 1998, short-term credit lines and
the FHLB Atlanta line of credit available totaled  approximately  $1.40 billion,
$1.50 billion,  and $1.09 billion,  respectively.  Of this availability,  $431.9
million,  $31.7 million,  and $122.4  million were  outstanding at September 30,
1999, December 31, 1998, and September 30, 1998.

                                      -17-
<PAGE>

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


STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL

Total stockholders'  equity at September 30, 1999 was $343.1 million, a decrease
of $49.6  million from year-end  1998.  The decrease from year-end was primarily
the result of repurchases of Common Stock in the first quarter of 1999, totaling
2,125,000  shares  at a cost of $42.2  million,  and an  unrealized  loss in our
securities  portfolio of $29.1 million,  after tax. For more  information on our
securities portfolio,  see the discussion under "Securities" in the Management's
Discussion and Analysis of this Form 10-Q.

Total stockholders' equity decreased $156.1 million from September 30, 1998. The
decrease year to year was primarily the result of the  redemption of Riggs' $100
million  10.75%  Noncumulative  Perpetual  Preferred  Stock on  October 1, 1998,
repurchases of Common Stock, and unrealized losses in our securities  portfolio.
The  repurchases of Common Stock totaled 275,000 shares in the fourth quarter of
1998 and  2,125,000  shares in the first  quarter of 1999, at a cost of $5.4 and
$42.2 million,  respectively.  The unrealized losses in the securities portfolio
totaled $27.9 million, after tax, at September 30, 1999.

Book value per common  share was $12.12 as of  September  30,  1999  compared to
$12.93 at year-end  1998 and $13.18 at  September  30, 1998.  Following  are our
capital  ratios  and  those  of our  banking  subsidiary,  Riggs  Bank  National
Association  (Riggs Bank N.A.) at September 30, 1999 and 1998,  and December 31,
1998.

<TABLE>
<CAPTION>


                                                    SEPTEMBER 30,   SEPTEMBER 30,    DECEMBER 31,      REQUIRED
                                                         1999            1998            1998          MINIMUMS
================================================================================================================
<S>                                                     <C>             <C>             <C>             <C>
RIGGS NATIONAL CORPORATION:
     Tier I                                             13.76%          17.15%          14.63%          4.00%
     Combined Tier I and Tier II                        23.25           28.23           27.51           8.00
     Leverage                                            8.67           11.46            9.33           4.00

RIGGS BANK N.A.:
     Tier I                                             13.36           12.23           12.17           4.00
     Combined Tier I and Tier II                        14.61           13.48           13.43           8.00
     Leverage                                            8.69            8.78            8.26           4.00
</TABLE>

                                      -18-


<PAGE>


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


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 work  properly  with dates
beginning in the Year 2000 and beyond.  The Year 2000 issue  creates risk for us
from unforeseen  problems in our computer systems and from Year 2000 issues with
our vendors, service providers and customers.

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  entails a number of  groups,  each
addressing  a different  aspect of the project,  and  reporting to the Year 2000
Program  Manager.  Oversight of the entire project is performed by the Year 2000
Advisory  Group.  This is a  management  committee  appointed  by the  Board  of
Directors that reports to the Board on a quarterly basis.

We determined that an enterprise-wide  business risk-assessment approach is most
appropriate for addressing and remediating Year 2000 problems.  This included an
assessment of the  information  technology  resources of each of 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.

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 a significant  impact on our liquidity,  income,  or capital  markets
activities,  should they encounter  significant business interruption due to the
Year 2000, we have worked with them to assess 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 record and track  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.

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

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

                                      -19-

<PAGE>

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


COSTS
We estimate the total cost of the Year 2000 project will be  approximately  $7.0
million, with $5.9 million expended to date as of September 30, 1999. The future
cost of completing  the Year 2000 project is estimated to be $1.1  million.  The
total amount  expended for the first nine months of 1999 was $2.2  million.  The
most significant  components of the $7.0 million total estimated cost consist of
65% for personnel costs, including consultants and special Year 2000 incentives,
and 24% for data processing  services.  We do not separately  track all internal
costs  incurred for the Year 2000 project.  Internal costs are  principally  the
payroll-related costs for the information systems group.

The  Year  2000  expense  represents  approximately  10%  of  our  total  actual
information  technology  expenditures  for the first nine months of 1999.  Other
significant or critical  non-Year 2000 information  technology  efforts have not
been materially delayed or impacted by Year 2000 initiatives.

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

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

The business  resumption  plans address how we will  continue  operations in the
event a Year 2000 related interruption occurs. The business resumption plans for
our  mission-critical  systems  and  third-party  servicers  were  substantially
completed as of June 30, 1999.  These plans in some cases provide for the manual
processing  of certain  normal bank  functions.  Manual  processing  would cause
delays,  which could disrupt the normal  business  activities of our company and
our customers.  While  implementation  of the business  resumption  plans is not
expected  to be  necessary,  it will  ensure  we have  the  ability  to  process
transactions  and  serve our  customers  under  circumstances  where a Year 2000
problem actually occurs.



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

                                      -20-

<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
company to provide a stable net interest margin while maintaining  liquidity and
capital.  This  entails the  management  of the  overall  risk of the company in
conjunction  with the acquisition and deployment of funds based upon ALCO's view
of both current and prospective market and economic conditions.

We manage our interest-rate  risk through the use of an income simulation model,
which  forecasts  the impact on net  interest  income of a variety of  different
interest rate  scenarios.  A "most likely"  interest rate scenario is forecasted
based upon an analysis of current market conditions and expectations.  The model
then evaluates the impact on net interest  income of rates moving  significantly
higher or lower than the "most  likely"  scenario.  The results are  compared to
risk  tolerance  limits  set by  corporate  policy.  The  model's  results as of
September 30, 1999 and 1998 are shown in the following  tables.  Current  policy
establishes  limits for possible  changes in net  interest  income for 12 and 36
month horizons.  The interest rate scenarios  monitored by ALCO are based upon a
100 basis point (1%) gradual  increase or decrease in rates over a 12-month time
period and a 300 basis point (3%)  gradual  increase or decrease in rates over a
36-month time period.
<TABLE>
<CAPTION>


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

  Net Interest Income Increase/(Decrease)                       (1.1)%            2.2 %            (3.5)%              .9 %

  Net Interest Income Increase/(Decrease)                    $(2,180)         $ 4,294          $(21,642)           $5,586
</TABLE>

<TABLE>
<CAPTION>



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

  Net Interest Income Increase/(Decrease)                         .1 %           (0.1)%             1.8 %            (4.6)%

  Net Interest Income Increase/(Decrease)                     $  137           $ (103)         $ 10,476          $(26,853)
</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.

                                      -21-

<PAGE>

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


At September  30,  1999,  the  forecasted  impact of rates rising or falling 100
basis points versus the "most likely" scenario over a 12-month time period was a
change in net interest  income not exceeding 3%. For a 300 basis point  movement
in rates versus the "most likely" scenario over a 36-month period, the impact on
net  interest  income  did not exceed 4%.  The  results  of the  simulation  for
September 30, 1999 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 September 30, 1999 and 1998, and December
31, 1998 are detailed in the table below.  At December 31, 1998,  our  financial
derivative  instruments  included a $25 million  (notional amount) interest rate
swap,  which  converted  a portion of the fixed rate real estate  mortgage  loan
portfolio into a floating rate asset. This swap matured in January 1999.

<TABLE>
<CAPTION>

                                                                    CONTRACTUAL OR NOTIONAL VALUE
                                                            -----------------------------------------------
                                                            SEPTEMBER 30,   SEPTEMBER 30,   DECEMBER 31,
                                                                 1999           1998            1998
===========================================================================================================
<S>                                                               <C>           <C>             <C>
Commitments to Extend Credit                                      $981,818      $1,188,909      $1,169,670

Letters of Credit                                                  155,207         135,933         116,734

Derivative Instruments:
    Foreign Exchange Contracts:
         Commitments to Purchase                                   109,944      $  140,135      $  138,727
         Commitments to Sell                                       192,454         223,212         225,846
           Futures                                                   2,621              --              --
    Interest Rate Agreements                                       104,689         114,573         115,343

</TABLE>

                                      -22-


<PAGE>


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


Our interest  rate  agreement  activity for the nine months ended  September 30,
1999, is as follows:
<TABLE>
<CAPTION>

                                                BALANCE                                                        BALANCE
                                             DECEMBER 31,                                                   SEPTEMBER 30,
                                                 1998         ADDITIONS     MATURITIES     TERMINATIONS          1999
============================================================================================================================
<S>                                                <C>            <C>           <C>               <C>              <C>
Interest Rate Agreements:
     Receive fixed/pay variable                    $     --       $    --       $    --           $    --          $     --
     Receive variable/pay fixed                      25,000            --        25,000                --                --
     Riggs Bank Europe Limited                       90,343        14,346            --                --           104,689
============================================================================================================================
Total                                              $115,343       $14,346       $25,000           $    --          $104,689
</TABLE>


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

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

                                      -23-
<PAGE>



RIGGS NATIONAL CORPORATION


                            PART II OTHER INFORMATION



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


        (a)    Exhibits

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


        (b)    Reports on Form 8-K

                     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:    November 12, 1999                     /s/ TIMOTHY C. COUGHLIN
       ---------------------------        --------------------------------
                                                    Timothy C. Coughlin
                                                         President






 Date:    November 12, 1999                     /s/ JOHN L. DAVIS
       ---------------------------         --------------------------------
                                                    John L. Davis
                                                Chief Financial Officer
                                            (Principal Financial Officer)






 Date:    November 12, 1999                     /s/ ELEANOR L. RUTLAND
       ---------------------------         --------------------------------
                                                    Eleanor L. Rutland
                                                       Comptroller
                                             (Principal Accounting Officer)


                                      -24-


<PAGE>
<TABLE>
<CAPTION>



                                INDEX TO EXHIBITS

  EXHIBIT NO.                      DESCRIPTION                                               PAGES
==================================================================================================
    <S>          <C>                                                                         <C>
     (3.1)       Restated   Certificate  of   Incorporation  of  Riggs  National
                 Corporation, 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 10,
                 1996  (Incorporated by reference to the Registrant's  Form 10-K
                 for the year ended December 31, 1998, SEC File No. 09756.)

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

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

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

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

    (10.1)       Aircraft Purchase Agreement for the Sale of Riggs Bank's
                 Gulfstream III.                                                             Exhibit 10.1

    (10.2)       Outfitted Gulfstream V Sales Agreement, Addendum I, and
                 Amendment for Riggs Bank's Purchase of a new Gulfstream V.                  Exhibit 10.2

    (10.3)       Joe L. Allbritton Employment Agreement, dated July 15, 1999.                Exhibit 10.3

    (10.4)       Riggs National Corporation's Executive Incentive Plan.                      Exhibit 10.4

</TABLE>

                                      -25-

<PAGE>
<TABLE>
<CAPTION>



                          INDEX TO EXHIBITS, CONTINUED

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

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

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

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

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

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

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

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

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

(Exhibits omitted are not required or not applicable.)


                                  -26-