SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

                 ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   For the fiscal year ended December 31, 1998

                       Commission file number 333-70361-01

                            RESOURCE CAPITAL TRUST I
                 (Name of Small Business Issuer in its Charter)

                Delaware                                         31-6614995
      (State or Other Jurisdiction                            (I.R.S. Employer
           of Incorporation)                                 Identification No.)
 
     3720 Virginia Beach Boulevard                                  23452
        Virginia Beach, Virginia                                  (Zip Code)
(Address of Principal Executive Offices)

                                 (757) 463-2265
                (Issuer's Telephone Number, Including Area Code)

         Securities registered under Section 12(b) of the Exchange Act:

                                                    Name of Each Exchange
       Title of Each Class                           on Which Registered
       -------------------                           -------------------

              None                                          n/a

         Securities registered under Section 12(g) of the Exchange Act:

                                      None
                                (Title of Class)

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

         Check if there is no  disclosure  of  delinquent  filers in response to
Item 405 of  Regulation  S-B contained in this form,  and no disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ X ]

         The issuer's gross income for its most recent fiscal year:  N/A

<PAGE>

         The aggregate  market value of the voting stock held by  non-affiliates
computed by reference to the average of the closing bid and asked prices of such
stock as of December 31, 1998: N/A

         The number of outstanding  shares of Common Stock as of May 7, 1999 was
11,382.

         * This Form  10-KSB  also  covers  368,000  shares of the  Registrant's
$2.3125 Capital  Securities,  which were registered  under the Securities Act of
1933, as amended,  pursuant to a registration  statement  declared  effective on
February 11, 1999.




<PAGE>


         Resource  Capital Trust I (the "Trust") is a statutory  business  trust
formed under the Delaware  Business  Trust Act, as amended,  pursuant to a trust
agreement,  as amended  by an amended  and  restated  declaration  of trust (the
"Declaration"),  and the  filing of a  certificate  of trust  with the  Delaware
Secretary  of State on December 23,  1998.  The Trust  exists for the  exclusive
purposes  of (i)  issuing and selling  trust  securities  consisting  of $2.3125
Capital Securities (the "Capital Securities") and common securities (the "Common
Securities," and together with the Capital Securities,  the "Trust Securities"),
representing  undivided  beneficial  ownership  interests  in the  assets of the
Trust,  (ii)  investing the proceeds  from such issuance in Junior  Subordinated
Debt  Securities  (the  "Junior   Subordinated  Debt  Securities")  of  Resource
Bankshares  Corporation,  a Virginia corporation (the "Corporation"),  and (iii)
engaging in only those  other  activities  necessary,  advisable  or  incidental
thereto.  The Trust's  sole  assets are  $9,484,550  principal  amount of Junior
Subordinated  Debt Securities,  and payments under the Junior  Subordinated Debt
Securities  are the  sole  revenues  of the  Trust.  Ownership  of the  Trust is
evidenced by $284,550 aggregate liquidation amount of Common Securities,  all of
which  are held by the  Corporation,  and by  $9,200,000  aggregate  liquidation
amount  of  Capital  Securities.  The  Trust  makes  distributions  on the Trust
Securities to the extent it receives  distributions  from the Corporation on the
Junior  Subordinated Debt Securities.  Distributions on the Trust Securities are
guaranteed  by the  Corporation,  but  only to the  extent  that the  Trust  has
available funds to pay such distributions.

         On March 9, 1999,  the Trust  invested the  proceeds  from the sale and
issuance of the Trust Securities in the Junior Subordinated Debt Securities. The
Trust's ability to pay distributions to the holders of the Capital Securities is
dependent  on its  receipt  of  distributions  on the Junior  Subordinated  Debt
Securities  from the  Corporation.  Therefore,  upon the receipt by the Trust of
payments from the Corporation,  the Trust will pass through such payments to the
holders of the Capital Securities.

         Because  the  Trust  is a  special  purpose  financing  entity  with no
separate  business  operations  and the only  assets of the Trust are the Junior
Subordinated  Debt  Securities,  the  Trust  does  not  believe  that  financial
statements for the Trust are meaningful.  Accordingly,  financial statements and
related  financial  information have not been included in this Form 10-KSB.  For
further information  concerning the Corporation,  including financial statements
and other financial  information,  see the  Corporation's  Annual Report on Form
10-K for the year ended  December 31,  1998,  as filed with the  Securities  and
Exchange  Commission,  copies  of  which  may be  obtained  from  the  Corporate
Secretary of the Corporation at 3720 Virginia Beach  Boulevard,  Virginia Beach,
Virginia 23452.

         The following documents are exhibits to this report:

         4.1      Certificate of Trust (incorporated by reference to Exhibit 4.1
                  of the  Registration  Statement of the Trust on Form S-2 (Nos.
                  333-70361 and 333-70361-01)).

         4.2      Trust Agreement  between Resource  Bankshares  Corporation and
                  Wilmington   Trust  Company,   as  Trustee   (incorporated  by
                  reference to Exhibit 4.2 of the Registration  Statement of the
                  Trust on Form S-2 (Nos. 333-70361 and 333-70361-01)).

         4.3      Form  of   Amended   and   Restated   Declaration   of   Trust
                  (incorporated  by reference to Exhibit 4.3 of the Registration
                  Statement  of the  Trust  on  Form  S-2  (Nos.  333-70361  and
                  333-70361-01)).

<PAGE>

         4.4      Form  of  Junior   Subordinated   Indenture  between  Resource
                  Bankshares   Corporation  and  Wilmington  Trust  Company,  as
                  Trustee  (incorporated  by  reference  to  Exhibit  4.4 of the
                  Registration   Statement  of  the  Trust  on  Form  S-2  (Nos.
                  333-70361 and 333-70361-01)).

         4.5      Form of Capital Security (included in Exhibit 4.3 above).

         4.6      Form of Junior Subordinated Debt Security (included in Exhibit
                  4.4 above).

         4.7      Form  of  Guarantee   Agreement  with  respect  to  the  Trust
                  Securities  (incorporated  by  reference to Exhibit 4.7 of the
                  Registration   Statement  of  the  Trust  on  Form  S-2  (Nos.
                  333-70361 and 333-70361-01)).


<PAGE>

                                   SIGNATURES

         In  accordance  with  Section  13 or 15(d)  of the  Exchange  Act,  the
registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.

                                     RESOURCE CAPITAL TRUST I



Date:  May 12, 1999                  By: /s/ T. A. Grell, Jr.     
                                         -------------------------------------
                                         T. A. Grell, Jr.
                                         Administrative Trustee



Date:  May 12, 1999                  By: /s/ Harvard R. Birdsong     
                                         -------------------------------------
                                         Harvard R. Birdsong
                                         Administrative Trustee




<PAGE>

                                  EXHIBIT INDEX


       Number                                  Document
       ------                                  --------

        4.1                Certificate  of Trust  (incorporated  by reference to
                           Exhibit  4.1 of  the  Registration  Statement  of the
                           Trust on Form S-2 (Nos. 333-70361 and 333-70361-01)).

        4.2                Trust   Agreement    between   Resource    Bankshares
                           Corporation and Wilmington Trust Company,  as Trustee
                           (incorporated  by  reference  to  Exhibit  4.2 of the
                           Registration Statement of the Trust on Form S-2 (Nos.
                           333-70361 and 333-70361-01)).

        4.3                Form of Amended  and  Restated  Declaration  of Trust
                           (incorporated  by  reference  to  Exhibit  4.3 of the
                           Registration Statement of the Trust on Form S-2 (Nos.
                           333-70361 and 333-70361-01)).

        4.4                Form  of  Junior   Subordinated   Indenture   between
                           Resource Bankshares  Corporation and Wilmington Trust
                           Company,  as Trustee  (incorporated  by  reference to
                           Exhibit  4.4 of  the  Registration  Statement  of the
                           Trust on Form S-2 (Nos. 333-70361 and 333-70361-01)).

        4.5                Form of Capital  Security  (included  in Exhibit  4.3
                           above).

        4.6                Form of Junior  Subordinated Debt Security  (included
                           in Exhibit 4.4 above).

        4.7                Form of Guarantee Agreement with respect to the Trust
                           Securities  (incorporated by reference to Exhibit 4.7
                           of the  Registration  Statement  of the Trust on Form
                           S-2 (Nos. 333-70361 and 333-70361-01)).