Summit Bancshares Reports First Quarter 2001 Earnings

Apr 12, 2001, 01:00 ET from Summit Bancshares, Inc.

    FORT WORTH, Texas, April 12 /PRNewswire/ --
 Summit Bancshares, Inc. (Nasdaq:   SBIT), a community-oriented bank holding
 company in Fort Worth, with assets of $685 million, reported first quarter
 earnings today.  Philip E. Norwood, Chairman, President and Chief Executive
 Officer stated, "The quarter was challenging due to the significant decline in
 market interest rates during the quarter and the impact this had on managing
 the spread between the yield on interest earning assets and the rate paid for
 interest bearing funds."  He further stated that, "As reported in January, the
 Company has been very active during the quarter in preparing for the merger of
 its two banking subsidiaries, Summit National Bank and Summit Community Bank,
 N.A., which is projected to be completed in mid May.  This is an exciting time
 for the Company as we prepare to continue operations under a new banner --
 Summit Bank, N.A."
 
     Results of Operations Excluding Merger-Related Expenses
     Excluding merger-related expenses, net income for the first quarter of
 2001 was $2,503,000 as compared to $2,450,000 for the same quarter last year.
 Diluted earnings per share, excluding the merger-related expenses, was $0.38
 for the quarter ended March 31, 2001 compared to $0.37 per diluted share for
 the first quarter of 2000.  Return on average assets and return on average
 stockholders' equity for the quarter would have been 1.64% and 18.0%,
 respectively.  Both these measures of profitability continue to compare very
 favorably with the Company's peers.
 
     Results of Operations as Reported
     For the quarter ended March 31, 2001, net income was $2,111,000 compared
 to $2,450,000 for the same period in 2000.  Net income per diluted share was
 $0.32 for the three months ended March 31, 2001, compared to $0.37 for the
 three months ended March 31, 2000.  This decrease in net income, and net
 income per diluted share, for the three-month period, resulted primarily from
 $598,000 in pretax expenses related to the merger of the Company's two banking
 subsidiaries.  Return on average assets and return on average stockholders'
 equity for the first quarter were 1.38% and 15.2%, respectively.  The
 Company's average stockholders' equity-to-assets ratio of 9.1% for the quarter
 ended March 31, 2001, continues to reflect a strong capital position for the
 Company.
 
     Financial Results
     Net interest income for the first quarter of 2001 was $7.2 million
 compared to $7.1 million in the first quarter of last year.  Because the
 Company is somewhat more sensitive to market interest rate changes due to its
 heavier commercial lending focus than other community banks, the net interest
 margin declined to 4.99% for the quarter compared to 5.39% for the first
 quarter of the prior year.
     Noninterest income reflected a $130,000 or 14.3% increase for the quarter
 compared to the same quarter in the prior year with positive increases in
 service charges on deposits and increases in several other fee based services.
     Noninterest expenses, net of merger related expenses of $598,000,
 increased $232,000 or 5.8%.  This increase reflected costs associated with the
 Company's growth and included increases in salary and benefit expense,
 occupancy expense and equipment expense.
     Nonperforming assets totaled $4.3 million or 1.10% of loans and foreclosed
 assets at March 31, 2001, compared to $4.6 million or 1.23% at March 31, 2000.
 The allowance for loan losses was 1.43% of loans and 189% of nonperforming
 loans at March 31, 2001.  "As the economy has begun to slow, additional
 efforts have been made by the Company to closely monitor credit quality," said
 Norwood.
     The Company's loans were $388 million at March 31, 2001, an increase of
 $18 million from a year ago.  Deposits increased over the last year from
 $502 million to $607 million.  At quarter-end the deposits included
 approximately $72 million of funds that are not considered core deposits and
 were not expected to remain on deposit but for a short time.  Stockholders'
 equity at March 31, 2000 was $57.4 million compared to $49.6 million at March
 31, 2000.  In the first quarter of 2001 SBI repurchased 30,005 shares of its
 common stock.
     "Merging of our two bank subsidiaries under the Summit Bank name will
 provide improved recognition in our market and will allow the Company to more
 efficiently achieve its previously identified growth strategies," said
 Norwood.
     The Company will host a first quarter earnings conference call Thursday,
 April 12 at 2:00 p.m. CDT.  To join the live call, please call Carl Thompson
 Associates at (800) 959-9677 to secure your participation.  A toll free replay
 of the call will be available for one week beginning at 5:00 p.m. CDT,
 April 12, 2001.
     Certain statements contained in this press release, which are not
 historical in nature, including statements regarding the Company's and/or
 management's intentions, strategies, beliefs, expectations, representations,
 plans, projections, or predictions of the future, are forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995 and are intended to be covered by the safe harbor provisions for
 forward-looking statements contained in such Act.  We are including this
 statement for purposes of invoking these safe harbor provisions.  Forward-
 looking statements are made based on assumptions involving certain known and
 unknown risks and uncertainties, many of which are beyond the Company's
 control, and other important factors that could cause actual results,
 performance or achievements to differ materially from the expectations
 expressed or implied by such forward-looking statements.  These risk factors
 and uncertainties are listed from time to time in the Company's filings with
 the Securities and Exchange Commission, including but not limited to the
 annual report on Form 10-K for the year ended December 31, 2000.
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                                Three Months Ended
                                                     March 31,            %
     EARNINGS SUMMARY                            2001          2000    Change
     Interest income                        $    12,086   $    11,150    8.4%
     Interest expense                             4,900         4,091   19.8%
     Net interest income                          7,186         7,059    1.8%
     Provision for loan losses                      180           232  -22.4%
     Noninterest income                           1,038           908   14.3%
     Noninterest expense                          4,823         3,993   20.8%
     Earnings before income taxes                 3,221         3,742  -13.9%
     Provision for income taxes                   1,110         1,292  -14.1%
 
     Net earnings                           $     2,111*  $     2,450  -13.8%
 
     Basic earnings per share               $      0.33   $      0.38  -13.2%
     Basic weighted average shares
      outstanding                                 6,369         6,384
 
     Diluted earnings per share             $      0.32*  $      0.37  -13.5%
     Diluted weighted average
      shares outstanding                          6,526         6,548
 
     *  Excluding merger-related expenses, net income would have been $2,503 or
        $0.38 per diluted share.
 
 
                                           Average for Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     BALANCE SHEET
      SUMMARY              2001       2000         2000        2000      2000
     Total loans         $381,849   $379,574     $378,302    $373,251  $364,750
     Total investment
      securities          137,759    150,970      148,346     147,562   148,895
     Earning assets       583,894    574,818      553,713     534,799   526,713
     Total assets         620,253    611,293      589,327     573,013   564,812
     Noninterest bearing
      deposits            129,967    138,401      135,769     136,250   130,197
     Interest bearing
      deposits            412,044    397,342      372,938     359,159   354,565
     Total deposits       542,011    535,743      508,707     495,409   484,762
     Other borrowings      18,724     19,039       28,332      26,182    29,483
     Shareholders' equity  56,513     54,064       51,285      50,075    49,107
 
 
                                              Average for Three Months
                                                   Ended March 31,        %
     BALANCE SHEET SUMMARY                        2001        2000     Change
     Total loans                                $381,849    $364,750    4.7%
     Total investment securities                 137,759     148,895   -7.5%
     Earning assets                              583,894     526,713   10.9%
     Total assets                                620,253     564,812    9.8%
     Noninterest bearing deposits                129,967     130,197   -0.2%
     Interest bearing deposits                   412,044     354,565   16.2%
     Total deposits                              542,011     484,762   11.8%
     Other borrowings                             18,724      29,483  -36.5%
     Shareholders' equity                         56,513      49,107   15.1%
 
 
                                             Ending Balance
                       March 31, December 31, September 30, June 30, March 31,
     BALANCE SHEET
      SUMMARY             2001       2000         2000        2000      2000
     Total loans        $387,798   $380,016     $379,259    $377,641  $370,125
     Total investment
      securities         144,224    149,647      146,907     145,798   145,304
     Allowance for
      loan losses         (5,537)    (5,399)      (6,918)     (6,899)   (5,440)
     Premises and
      equipment            7,930      8,124        8,218       8,404     8,442
     Total assets        685,084    619,121      596,302     585,371   582,546
     Noninterest bearing
      deposits           131,995    146,083      137,721     140,466   133,389
     Interest bearing
      deposits           474,782    393,583      383,876     362,755   368,435
     Total deposits      606,777    539,666      521,597     503,221   501,824
     Other borrowings     16,831     19,910       18,671      29,052    28,438
     Total liabilities   627,732    563,550      543,694     535,338   532,963
     Shareholders'
      equity              57,352     55,571       52,608      50,033    49,583
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                             (Dollars in thousands)
 
                       March 31, December 31, September 30, June 30, March 31,
     NONPERFORMING
      ASSETS              2001       2000          2000       2000      2000
     Nonaccrual loans   $  2,904   $  2,182      $  5,273   $  5,440  $  2,518
     Restructured loans      ---        ---           ---          1         2
     Other real estate
      & foreclosed assets  1,348      1,595         1,329      1,343     1,945
     Accruing loans past
      due 90 days or more     22         10           ---        ---       105
       Total
        nonperforming
        assets          $  4,274   $  3,787      $  6,602   $  6,784  $  4,570
     Total nonperforming
      assets as a
      percentage of
      loans and foreclosed
      assets               1.10%      0.99%         1.73%      1.79%     1.23%
 
 
                                               Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     ALLOWANCE FOR
      LOAN LOSSES         2001       2000          2000       2000      2000
     Balance at
      beginning of
      period            $  5,399   $  6,918      $  6,899   $  5,440  $  5,169
     Loans charged off       (90)    (1,842)         (632)       (95)      (31)
     Loan recoveries          48         22            74         58        70
       Net (charge-offs)
        recoveries           (42)    (1,820)         (558)       (37)       39
     Provision for
      loan losses            180        301           577      1,496       232
     Balance at end
      of period         $  5,537   $  5,399      $  6,918   $  6,899  $  5,440
 
     Allowance for loan
      losses as a
      percentage of
      total loans          1.43%      1.42%         1.82%      1.83%     1.47%
     Allowance for loan
      losses as a
      percentage of
      nonperforming
      loans              189.23%    246.25%       131.20%    126.82%   207.40%
     Net charge-offs
      as a percentage
      of average loans
      (annualized)         0.04%      1.91%         0.59%      0.04%    -0.04%
     Provision for loan
      losses as a
      percentage of
      average loans
      (annualized)         0.19%      0.32%         0.61%      1.61%     0.26%
 
 
                                              Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     SELECTED RATIOS      2001       2000          2000       2000      2000
     Return on average
      assets (annualized)  1.38%      1.72%         1.72%      0.95%     1.75%
 
     Return on average
      equity (annualized) 15.15%     19.42%        19.71%     10.86%    20.08%
 
     Yield on earning
      assets               8.40%      8.78%         8.79%      8.69%     8.52%
 
     Cost of interest
      bearing funds        4.61%      5.11%         4.94%      4.64%     4.28%
 
     Net interest margin
      (tax equivalent)     4.99%      5.07%         5.21%      5.35%     5.39%
 
     Efficiency ratio     58.70%     48.40%        45.43%     55.89%    50.12%
 
     End of period book
      value per common
      share              $  9.02    $  8.73       $  8.28    $  7.88   $  7.77
 
     End of period
      common shares
      outstanding          6,359      6,362         6,355      6,352     6,380
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                             (Dollars in thousands)
 
                                          Three Months Ended
                               March 31, 2001              March 31, 2000
                        Average                     Average
     YIELD ANALYSIS     Balance   Interest  Yield   Balance   Interest   Yield
 
     Interest Earning Assets:
     Federal funds sold,
      Repurchases, & Due
      from time         $ 64,286  $    854   5.39%  $ 13,068  $    184   5.68%
     Investment
      securities
      (taxable)          137,519     2,145   6.33%   148,404     2,279   6.18%
     Investment securities
      (tax-exempt)           240         5   7.65%       491         9   7.29%
     Loans               381,849     9,084   9.65%   364,750     8,681   9.57%
       Total Interest
        Earning Assets   583,894    12,088   8.40%   526,713    11,153   8.52%
 
     Noninterest Earning
      Assets:
     Cash and due
      from banks          23,317                      24,115
     Other assets         18,506                      19,293
     Allowance for
      loan losses         (5,464)                     (5,309)
       Total Noninterest
        Earning Assets    36,359                      38,099
 
       Total Assets     $620,253                    $564,812
 
     Interest Bearing
      Liabilities:
     Transaction and
      money market
      accounts          $167,548     1,394   3.38%  $159,846     1,432   3.60%
     Savings deposits     98,510     1,085   4.47%    96,059     1,059   4.43%
     Certificates and
      other time
      deposits           145,985     2,210   6.14%    98,660     1,249   5.09%
     Other borrowings     18,724       211   4.58%    29,483       351   4.79%
       Total Interest
        Bearing
        Liabilities      430,768     4,900   4.61%   384,048     4,091   4.28%
 
     Noninterest Bearing
      Liabilities:
     Demand deposits     129,967                     130,197
     Other liabilities     3,005                       1,460
     Shareholders' Equity 56,513                      49,107
       Total Noninterest
        Bearing
        Liabilities      189,485                     180,764
 
       Total Liabilities
        and Shareholders'
        Equity          $620,253                    $564,812
 
     Net Interest Income
      and Margin (tax
      equivalent)                 $  7,188   4.99%            $  7,062   5.39%
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                      March 31,             March 31,
     LOAN PORTFOLIO                      2001       %          2000        %
     Commercial and industrial         $173,409   44.7%      $164,383    44.4%
     Real estate:
       Commercial                        98,442   25.4%        91,659    24.8%
       One-to-four family Residential    32,198    8.3%        32,172     8.7%
       Multi-family Residential             456    0.1%           327     0.1%
       Construction and development      49,244   12.7%        48,367    13.1%
     Consumer                            34,078    8.8%        33,340     9.0%
     Total loans (gross)                387,827  100.0%       370,248   100.0%
     Unearned discounts                     (29)   0.0%          (123)    0.0%
     Total loans (net)                  387,798  100.0%       370,125   100.0%
 
                                            March 31,     March 31,
     REGULATORY CAPITAL DATA                   2001          2000
     Tier 1 Capital                         $  56,193     $  51,081
     Tier 1 Ratio                              12.75%        13.26%
     Total Capital (Tier 1 + Tier 2)        $  61,701     $  55,896
     Total Capital Ratio                       14.00%        14.51%
     Total Risk-Adjusted Assets             $ 440,621     $ 385,172
     Tier 1 Leverage Ratio                      8.14%         8.71%
 
 

SOURCE Summit Bancshares, Inc.
    FORT WORTH, Texas, April 12 /PRNewswire/ --
 Summit Bancshares, Inc. (Nasdaq:   SBIT), a community-oriented bank holding
 company in Fort Worth, with assets of $685 million, reported first quarter
 earnings today.  Philip E. Norwood, Chairman, President and Chief Executive
 Officer stated, "The quarter was challenging due to the significant decline in
 market interest rates during the quarter and the impact this had on managing
 the spread between the yield on interest earning assets and the rate paid for
 interest bearing funds."  He further stated that, "As reported in January, the
 Company has been very active during the quarter in preparing for the merger of
 its two banking subsidiaries, Summit National Bank and Summit Community Bank,
 N.A., which is projected to be completed in mid May.  This is an exciting time
 for the Company as we prepare to continue operations under a new banner --
 Summit Bank, N.A."
 
     Results of Operations Excluding Merger-Related Expenses
     Excluding merger-related expenses, net income for the first quarter of
 2001 was $2,503,000 as compared to $2,450,000 for the same quarter last year.
 Diluted earnings per share, excluding the merger-related expenses, was $0.38
 for the quarter ended March 31, 2001 compared to $0.37 per diluted share for
 the first quarter of 2000.  Return on average assets and return on average
 stockholders' equity for the quarter would have been 1.64% and 18.0%,
 respectively.  Both these measures of profitability continue to compare very
 favorably with the Company's peers.
 
     Results of Operations as Reported
     For the quarter ended March 31, 2001, net income was $2,111,000 compared
 to $2,450,000 for the same period in 2000.  Net income per diluted share was
 $0.32 for the three months ended March 31, 2001, compared to $0.37 for the
 three months ended March 31, 2000.  This decrease in net income, and net
 income per diluted share, for the three-month period, resulted primarily from
 $598,000 in pretax expenses related to the merger of the Company's two banking
 subsidiaries.  Return on average assets and return on average stockholders'
 equity for the first quarter were 1.38% and 15.2%, respectively.  The
 Company's average stockholders' equity-to-assets ratio of 9.1% for the quarter
 ended March 31, 2001, continues to reflect a strong capital position for the
 Company.
 
     Financial Results
     Net interest income for the first quarter of 2001 was $7.2 million
 compared to $7.1 million in the first quarter of last year.  Because the
 Company is somewhat more sensitive to market interest rate changes due to its
 heavier commercial lending focus than other community banks, the net interest
 margin declined to 4.99% for the quarter compared to 5.39% for the first
 quarter of the prior year.
     Noninterest income reflected a $130,000 or 14.3% increase for the quarter
 compared to the same quarter in the prior year with positive increases in
 service charges on deposits and increases in several other fee based services.
     Noninterest expenses, net of merger related expenses of $598,000,
 increased $232,000 or 5.8%.  This increase reflected costs associated with the
 Company's growth and included increases in salary and benefit expense,
 occupancy expense and equipment expense.
     Nonperforming assets totaled $4.3 million or 1.10% of loans and foreclosed
 assets at March 31, 2001, compared to $4.6 million or 1.23% at March 31, 2000.
 The allowance for loan losses was 1.43% of loans and 189% of nonperforming
 loans at March 31, 2001.  "As the economy has begun to slow, additional
 efforts have been made by the Company to closely monitor credit quality," said
 Norwood.
     The Company's loans were $388 million at March 31, 2001, an increase of
 $18 million from a year ago.  Deposits increased over the last year from
 $502 million to $607 million.  At quarter-end the deposits included
 approximately $72 million of funds that are not considered core deposits and
 were not expected to remain on deposit but for a short time.  Stockholders'
 equity at March 31, 2000 was $57.4 million compared to $49.6 million at March
 31, 2000.  In the first quarter of 2001 SBI repurchased 30,005 shares of its
 common stock.
     "Merging of our two bank subsidiaries under the Summit Bank name will
 provide improved recognition in our market and will allow the Company to more
 efficiently achieve its previously identified growth strategies," said
 Norwood.
     The Company will host a first quarter earnings conference call Thursday,
 April 12 at 2:00 p.m. CDT.  To join the live call, please call Carl Thompson
 Associates at (800) 959-9677 to secure your participation.  A toll free replay
 of the call will be available for one week beginning at 5:00 p.m. CDT,
 April 12, 2001.
     Certain statements contained in this press release, which are not
 historical in nature, including statements regarding the Company's and/or
 management's intentions, strategies, beliefs, expectations, representations,
 plans, projections, or predictions of the future, are forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995 and are intended to be covered by the safe harbor provisions for
 forward-looking statements contained in such Act.  We are including this
 statement for purposes of invoking these safe harbor provisions.  Forward-
 looking statements are made based on assumptions involving certain known and
 unknown risks and uncertainties, many of which are beyond the Company's
 control, and other important factors that could cause actual results,
 performance or achievements to differ materially from the expectations
 expressed or implied by such forward-looking statements.  These risk factors
 and uncertainties are listed from time to time in the Company's filings with
 the Securities and Exchange Commission, including but not limited to the
 annual report on Form 10-K for the year ended December 31, 2000.
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                                Three Months Ended
                                                     March 31,            %
     EARNINGS SUMMARY                            2001          2000    Change
     Interest income                        $    12,086   $    11,150    8.4%
     Interest expense                             4,900         4,091   19.8%
     Net interest income                          7,186         7,059    1.8%
     Provision for loan losses                      180           232  -22.4%
     Noninterest income                           1,038           908   14.3%
     Noninterest expense                          4,823         3,993   20.8%
     Earnings before income taxes                 3,221         3,742  -13.9%
     Provision for income taxes                   1,110         1,292  -14.1%
 
     Net earnings                           $     2,111*  $     2,450  -13.8%
 
     Basic earnings per share               $      0.33   $      0.38  -13.2%
     Basic weighted average shares
      outstanding                                 6,369         6,384
 
     Diluted earnings per share             $      0.32*  $      0.37  -13.5%
     Diluted weighted average
      shares outstanding                          6,526         6,548
 
     *  Excluding merger-related expenses, net income would have been $2,503 or
        $0.38 per diluted share.
 
 
                                           Average for Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     BALANCE SHEET
      SUMMARY              2001       2000         2000        2000      2000
     Total loans         $381,849   $379,574     $378,302    $373,251  $364,750
     Total investment
      securities          137,759    150,970      148,346     147,562   148,895
     Earning assets       583,894    574,818      553,713     534,799   526,713
     Total assets         620,253    611,293      589,327     573,013   564,812
     Noninterest bearing
      deposits            129,967    138,401      135,769     136,250   130,197
     Interest bearing
      deposits            412,044    397,342      372,938     359,159   354,565
     Total deposits       542,011    535,743      508,707     495,409   484,762
     Other borrowings      18,724     19,039       28,332      26,182    29,483
     Shareholders' equity  56,513     54,064       51,285      50,075    49,107
 
 
                                              Average for Three Months
                                                   Ended March 31,        %
     BALANCE SHEET SUMMARY                        2001        2000     Change
     Total loans                                $381,849    $364,750    4.7%
     Total investment securities                 137,759     148,895   -7.5%
     Earning assets                              583,894     526,713   10.9%
     Total assets                                620,253     564,812    9.8%
     Noninterest bearing deposits                129,967     130,197   -0.2%
     Interest bearing deposits                   412,044     354,565   16.2%
     Total deposits                              542,011     484,762   11.8%
     Other borrowings                             18,724      29,483  -36.5%
     Shareholders' equity                         56,513      49,107   15.1%
 
 
                                             Ending Balance
                       March 31, December 31, September 30, June 30, March 31,
     BALANCE SHEET
      SUMMARY             2001       2000         2000        2000      2000
     Total loans        $387,798   $380,016     $379,259    $377,641  $370,125
     Total investment
      securities         144,224    149,647      146,907     145,798   145,304
     Allowance for
      loan losses         (5,537)    (5,399)      (6,918)     (6,899)   (5,440)
     Premises and
      equipment            7,930      8,124        8,218       8,404     8,442
     Total assets        685,084    619,121      596,302     585,371   582,546
     Noninterest bearing
      deposits           131,995    146,083      137,721     140,466   133,389
     Interest bearing
      deposits           474,782    393,583      383,876     362,755   368,435
     Total deposits      606,777    539,666      521,597     503,221   501,824
     Other borrowings     16,831     19,910       18,671      29,052    28,438
     Total liabilities   627,732    563,550      543,694     535,338   532,963
     Shareholders'
      equity              57,352     55,571       52,608      50,033    49,583
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                             (Dollars in thousands)
 
                       March 31, December 31, September 30, June 30, March 31,
     NONPERFORMING
      ASSETS              2001       2000          2000       2000      2000
     Nonaccrual loans   $  2,904   $  2,182      $  5,273   $  5,440  $  2,518
     Restructured loans      ---        ---           ---          1         2
     Other real estate
      & foreclosed assets  1,348      1,595         1,329      1,343     1,945
     Accruing loans past
      due 90 days or more     22         10           ---        ---       105
       Total
        nonperforming
        assets          $  4,274   $  3,787      $  6,602   $  6,784  $  4,570
     Total nonperforming
      assets as a
      percentage of
      loans and foreclosed
      assets               1.10%      0.99%         1.73%      1.79%     1.23%
 
 
                                               Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     ALLOWANCE FOR
      LOAN LOSSES         2001       2000          2000       2000      2000
     Balance at
      beginning of
      period            $  5,399   $  6,918      $  6,899   $  5,440  $  5,169
     Loans charged off       (90)    (1,842)         (632)       (95)      (31)
     Loan recoveries          48         22            74         58        70
       Net (charge-offs)
        recoveries           (42)    (1,820)         (558)       (37)       39
     Provision for
      loan losses            180        301           577      1,496       232
     Balance at end
      of period         $  5,537   $  5,399      $  6,918   $  6,899  $  5,440
 
     Allowance for loan
      losses as a
      percentage of
      total loans          1.43%      1.42%         1.82%      1.83%     1.47%
     Allowance for loan
      losses as a
      percentage of
      nonperforming
      loans              189.23%    246.25%       131.20%    126.82%   207.40%
     Net charge-offs
      as a percentage
      of average loans
      (annualized)         0.04%      1.91%         0.59%      0.04%    -0.04%
     Provision for loan
      losses as a
      percentage of
      average loans
      (annualized)         0.19%      0.32%         0.61%      1.61%     0.26%
 
 
                                              Quarter Ended
                        March 31, December 31, September 30, June 30, March 31,
     SELECTED RATIOS      2001       2000          2000       2000      2000
     Return on average
      assets (annualized)  1.38%      1.72%         1.72%      0.95%     1.75%
 
     Return on average
      equity (annualized) 15.15%     19.42%        19.71%     10.86%    20.08%
 
     Yield on earning
      assets               8.40%      8.78%         8.79%      8.69%     8.52%
 
     Cost of interest
      bearing funds        4.61%      5.11%         4.94%      4.64%     4.28%
 
     Net interest margin
      (tax equivalent)     4.99%      5.07%         5.21%      5.35%     5.39%
 
     Efficiency ratio     58.70%     48.40%        45.43%     55.89%    50.12%
 
     End of period book
      value per common
      share              $  9.02    $  8.73       $  8.28    $  7.88   $  7.77
 
     End of period
      common shares
      outstanding          6,359      6,362         6,355      6,352     6,380
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                             (Dollars in thousands)
 
                                          Three Months Ended
                               March 31, 2001              March 31, 2000
                        Average                     Average
     YIELD ANALYSIS     Balance   Interest  Yield   Balance   Interest   Yield
 
     Interest Earning Assets:
     Federal funds sold,
      Repurchases, & Due
      from time         $ 64,286  $    854   5.39%  $ 13,068  $    184   5.68%
     Investment
      securities
      (taxable)          137,519     2,145   6.33%   148,404     2,279   6.18%
     Investment securities
      (tax-exempt)           240         5   7.65%       491         9   7.29%
     Loans               381,849     9,084   9.65%   364,750     8,681   9.57%
       Total Interest
        Earning Assets   583,894    12,088   8.40%   526,713    11,153   8.52%
 
     Noninterest Earning
      Assets:
     Cash and due
      from banks          23,317                      24,115
     Other assets         18,506                      19,293
     Allowance for
      loan losses         (5,464)                     (5,309)
       Total Noninterest
        Earning Assets    36,359                      38,099
 
       Total Assets     $620,253                    $564,812
 
     Interest Bearing
      Liabilities:
     Transaction and
      money market
      accounts          $167,548     1,394   3.38%  $159,846     1,432   3.60%
     Savings deposits     98,510     1,085   4.47%    96,059     1,059   4.43%
     Certificates and
      other time
      deposits           145,985     2,210   6.14%    98,660     1,249   5.09%
     Other borrowings     18,724       211   4.58%    29,483       351   4.79%
       Total Interest
        Bearing
        Liabilities      430,768     4,900   4.61%   384,048     4,091   4.28%
 
     Noninterest Bearing
      Liabilities:
     Demand deposits     129,967                     130,197
     Other liabilities     3,005                       1,460
     Shareholders' Equity 56,513                      49,107
       Total Noninterest
        Bearing
        Liabilities      189,485                     180,764
 
       Total Liabilities
        and Shareholders'
        Equity          $620,253                    $564,812
 
     Net Interest Income
      and Margin (tax
      equivalent)                 $  7,188   4.99%            $  7,062   5.39%
 
 
                            SUMMIT BANCSHARES, INC.
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                      March 31,             March 31,
     LOAN PORTFOLIO                      2001       %          2000        %
     Commercial and industrial         $173,409   44.7%      $164,383    44.4%
     Real estate:
       Commercial                        98,442   25.4%        91,659    24.8%
       One-to-four family Residential    32,198    8.3%        32,172     8.7%
       Multi-family Residential             456    0.1%           327     0.1%
       Construction and development      49,244   12.7%        48,367    13.1%
     Consumer                            34,078    8.8%        33,340     9.0%
     Total loans (gross)                387,827  100.0%       370,248   100.0%
     Unearned discounts                     (29)   0.0%          (123)    0.0%
     Total loans (net)                  387,798  100.0%       370,125   100.0%
 
                                            March 31,     March 31,
     REGULATORY CAPITAL DATA                   2001          2000
     Tier 1 Capital                         $  56,193     $  51,081
     Tier 1 Ratio                              12.75%        13.26%
     Total Capital (Tier 1 + Tier 2)        $  61,701     $  55,896
     Total Capital Ratio                       14.00%        14.51%
     Total Risk-Adjusted Assets             $ 440,621     $ 385,172
     Tier 1 Leverage Ratio                      8.14%         8.71%
 
 SOURCE  Summit Bancshares, Inc.