===============================================================================


                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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

       For the quarterly period ended    June 30, 2000
                                     ------------------------------
                                       or

     [ ]  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:  1-6451
                    ---------

                                 SUMMIT BANCORP.
             (Exact name of registrant as specified in its charter)

                 New Jersey                                  22-1903313
--------------------------------------------------------------------------------
       (State or other jurisdiction of                     (I.R.S. Employer
       incorporation or organization)                    Identification No.)

301 Carnegie Center, P.O. Box 2066, Princeton, New Jersey            08543-2066
--------------------------------------------------------------------------------
(Address of principal executive offices)                             (Zip Code)


                                 (609) 987-3200
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)



--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


            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 for 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.
                                    [X] Yes [ ] No

       As of July 31, 2000 there were 173,926,726 shares of common stock,
                          $.80 par value, outstanding.


================================================================================


<PAGE>


                                 Summit Bancorp
                                    Form 10-Q
                                      Index
                                                                        Page No.
Part I    Financial Information

Item 1.   Financial Statements (unaudited)

          Consolidated Balance Sheets-
              June 30, 2000, December 31, 1999, and June 30, 1999...........  1

          Consolidated Statements of Income-
              Three and Six Months Ended June 30, 2000, and 1999............  2

          Consolidated Statements of Shareholders' Equity-
              Six  Months Ended June 30, 2000, and 1999.....................  3

           Consolidated Statements of Cash Flows-
              Six  Months Ended June 30, 2000, and 1999.....................  4

          Notes to Consolidated Financial Statements (unaudited)............  5

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations...............................  7

Item 3.   Quantitative and Qualitative Disclosures About Market Risk........ 22

Part II.  Other Information

Item 1.   Legal Proceedings................................................. 23

Item 2.   Changes in Securities and Use of Proceeds......................... 23

Item 3.   Defaults Upon Senior Securities................................... 23

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

Item 5.   Other Information................................................. 23

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

          Signature......................................................... 24

          Exhibit Index..................................................... 25




                                       ii

<PAGE>
                                             Summit Bancorp and Subsidiaries
                                               Consolidated Balance Sheets
                                                        Unaudited
                                                     (In thousands)

<TABLE>
<CAPTION>
                                                                           June 30,         Dec. 31,          June 30,
                                                                             2000             1999              1999
                                                                        ------------      ------------      ------------
Assets
<S>                                                                     <C>               <C>               <C>
Cash and due from banks                                                 $  1,192,496      $  1,160,577      $  1,009,863
Federal funds sold and securities purchased
    under agreements to resell                                                    --             5,000            16,463
Interest-bearing deposits with banks                                          26,845            32,870            15,297
Securities:
   Trading account                                                            26,554            20,118            18,990
   Available for sale                                                      6,226,991         5,199,121         4,375,966
   Held to maturity                                                        5,030,416         5,597,383         6,378,484
                                                                        ------------      ------------      ------------

    Total securities                                                      11,283,961        10,816,622        10,773,440
Loans (net of unearned discount):
   Commercial                                                              9,262,281         8,134,497         7,526,178
   Commercial mortgage                                                     3,189,847         3,174,370         2,897,752
   Residential mortgage                                                    5,795,174         5,747,927         5,488,340
   Consumer                                                                6,800,536         6,170,162         5,626,550
                                                                        ------------      ------------      ------------

        Total loans                                                       25,047,838        23,226,956        21,538,820
   Less: Allowance for loan losses                                           334,851           328,828           321,700
                                                                        ------------      ------------      ------------

        Net loans
                                                                          24,712,987        22,898,128        21,217,120
                                                                        ------------      ------------      ------------

Goodwill and other intangibles                                               565,337           519,362           316,610
Premises and equipment                                                       321,710           315,632           306,528
Accrued interest receivable                                                  249,311           214,797           202,306
Due from customers on acceptances                                             20,007            22,311            20,901
Other assets                                                                 612,478           393,676           347,232
                                                                        ------------      ------------      ------------

Total Assets                                                            $ 38,985,132      $ 36,378,975      $ 34,225,760
                                                                        ============      ============      ============

Liabilities and Shareholders' Equity
Deposits:
    Non-interest bearing demand deposits                                $  5,296,357      $  4,966,400      $  4,704,062
    Interest-bearing deposits:
        Savings and time deposits                                         20,043,841        18,653,398        18,054,408
        Commercial certificates of deposit $100,000 and over                 736,727         1,018,848           684,430
                                                                        ------------      ------------      ------------

            Total deposits                                                26,076,925        24,638,646        23,442,900
                                                                        ------------      ------------      ------------

Other borrowed funds                                                       5,883,846         4,593,064         3,734,712
Accrued expenses and other liabilities                                       337,558           357,152           343,443
Accrued interest payable                                                     110,937           100,845            80,413
Bank acceptances outstanding                                                  20,007            22,311            20,901
Long-term debt                                                             3,616,616         3,864,777         4,001,925
                                                                        ------------      ------------      ------------

    Total liabilities                                                     36,045,889        33,576,795        31,624,294
Shareholders' equity:
    Common stock par value $ .80:  Authorized 390,000 shares;
    issued 177,274; 177,471; and 177,523 shares                              141,819           141,977           142,018
    Surplus                                                                  913,019           959,934           966,429
    Retained earnings                                                      2,084,707         1,948,985         1,859,908
    Employee stock ownership plan obligation                                      --            (1,250)           (2,250)
    Accumulated other comprehensive loss, net of tax                        (112,611)          (85,841)          (39,478)

Common stock held in treasury, at cost (3,137; 4,825; 7,883 shares)          (87,691)         (161,625)         (325,161)
                                                                        ------------      ------------      ------------
       Total shareholders' equity                                          2,939,243         2,802,180         2,601,466
                                                                        ------------      ------------      ------------

Total Liabilities and Shareholders' Equity                              $ 38,985,132      $ 36,378,975      $ 34,225,760
                                                                        ============      ============      ============


                              See accompanying Notes to Consolidated Financial Statements.

</TABLE>


                                                           1
<PAGE>
                                        Summit Bancorp and Subsidiaries
                                       Consolidated Statements of Income
                                                   Unaudited
                                     (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                         Three Months Ended             Six Months Ended
                                                              June 30,                      June 30,
                                                      -------------------------     -------------------------
                                                          2000           1999           2000           1999
                                                      ----------     ----------     ----------     ----------
Interest Income
<S>                                                   <C>            <C>            <C>            <C>
Loans                                                 $  501,521     $  407,045     $  970,643     $  810,712

Securities:
   Trading account                                           685            135          1,080            217
   Available for sale                                    108,166         60,069        203,041        119,630
   Held to maturity                                       81,746        100,850        167,211        197,390
                                                      ----------     ----------     ----------     ----------
     Total securities                                    190,597        161,054        371,332        317,237
Other interest income                                        945            612          1,636          1,207
                                                      ----------     ----------     ----------     ----------
     Total interest income                               693,063        568,711      1,343,611      1,129,156
                                                      ----------     ----------     ----------     ----------

Interest Expense
   Savings and time deposits                             196,107        157,347        371,540        308,749
   Commercial certificates of deposit
        $100,000 and over                                 12,365          9,460         25,664         21,035
   Borrowed funds, including long-term debt              140,709         93,313        266,618        185,437
                                                      ----------     ----------     ----------     ----------
     Total interest expense                              349,181        260,120        663,822        515,221
                                                      ----------     ----------     ----------     ----------
     Net interest income                                 343,882        308,591        679,789        613,935
   Provision for loan losses                              24,500         16,500         44,500         33,000
                                                      ----------     ----------     ----------     ----------
     Net interest income after
        provision for loan losses                        319,382        292,091        635,289        580,935
                                                      ----------     ----------     ----------     ----------
Non-Interest Income
   Service charges on deposit accounts                    31,862         29,567         63,407         59,643
   Service and loan fee income                            19,611         16,011         35,366         31,635
   Insurance service fees                                 14,791          8,370         25,595         16,240
   Trust income                                           13,686         12,844         27,458         24,770
   Retail investment fees                                 10,820         10,612         23,559         20,770
   Securities gains                                        2,761          2,094          2,846          2,311
   Other                                                  21,237         16,429         38,270         38,715
                                                      ----------     ----------     ----------     ----------
     Total non-interest Income                           114,768         95,927        216,501        194,084
                                                      ----------     ----------     ----------     ----------
Non-Interest Expenses
   Salaries                                               93,438         82,606        181,402        162,932
   Pension and other employee benefits                    32,285         29,132         62,557         59,149
   Furniture and equipment                                25,486         22,517         50,935         44,968
   Occupancy, net                                         21,400         19,263         43,535         39,098
   Amortization of goodwill and other intangibles          9,912          6,468         18,912         12,339
   Communications                                          9,405          9,696         18,919         19,314
   Advertising and public relations                        6,193          5,927         12,337         11,455
   Other                                                  39,007         31,607         77,370         63,398
                                                      ----------     ----------     ----------     ----------
     Total non-interest expenses                         237,126        207,216        465,967        412,653
                                                      ----------     ----------     ----------     ----------
Net Income before taxes                                  197,024        180,802        385,823        362,366
   Federal and state income taxes                         66,922         60,465        130,808        123,288
                                                      ----------     ----------     ----------     ----------
Net Income                                            $  130,102     $  120,337     $  255,015     $  239,078
                                                      ==========     ==========     ==========     ==========
Net Income per Common Share:
     Basic                                            $     0.74     $     0.71     $     1.46     $     1.39
     Diluted                                                0.74           0.70           1.46           1.38

Average Common Shares Outstanding:
     Basic                                               175,304        170,656        174,243        172,216
     Diluted                                             176,293        172,282        175,245        173,861


                         See accompanying Notes to Consolidated Financial Statements.

</TABLE>

                                                      2

<PAGE>

<TABLE>
<CAPTION>
                                                   Summit Bancorp and Subsidiaries
                                           Consolidated Statements of Shareholders' Equity
                                                              Unaudited
                                                           (In thousands)

                                                                                               Accum. Other                Total
                                                 Common                  Retained     ESOP    Comprehensive  Treasury  Shareholders'
                                                  Stock      Surplus     Earnings  Obligation Income (Loss)   Stock       Equity
<S>                                             <C>        <C>          <C>          <C>        <C>       <C>          <C>
Balance, December 31, 1998                      $142,106   $1,013,393   $1,728,135   $(3,394)   $12,087   $(169,900)   $2,722,427
Comprehensive income:
  Net income                                          --           --      239,078        --         --          --       239,078
  Unrealized loss on securities arising
    during the period (net of tax $27,350)            --           --           --        --    (53,090)         --
  Less: Reclassification adjustment for gains
    included in net income (net of tax $786)          --           --           --        --      1,525          --
                                                                                               --------
  Net unrealized loss on securities arising
    during the period (net of tax $26,564)                                                      (51,565)                  (51,565)
                                                                                                                       -----------
  Total comprehensive income                          --           --           --        --         --          --       187,513
Cash dividend declared on common stock                --           --     (107,305)       --         --          --      (107,305)
Employee stock plans (877 shares)                    (88)     (48,531)          --        --         --      37,630       (10,989)
Treasury shares issued for
   acquisitions (1,131 shares)                        --        1,567           --        --         --      47,079        48,646
Purchase of common stock (6,018 shares)               --           --           --        --         --    (239,970)     (239,970)
ESOP debt repayment                                   --           --           --     1,144         --          --         1,144
                                              -----------------------------------------------------------------------------------
Balance, June 30, 1999                          $142,018     $966,429   $1,859,908   $(2,250)  $(39,478)  $(325,161)   $2,601,466
                                              ===================================================================================

Balance, December 31, 1999                      $141,977     $959,934   $1,948,985   $(1,250)  $(85,841)  $(161,625)   $2,802,180
Comprehensive income:
  Net income                                          --           --      255,015        --         --          --       255,015
  Unrealized loss on securities arising
    during the period (net of tax $14,759)            --           --           --        --    (28,648)         --
  Less: Reclassification adjustment for gains
    included in net income (net of tax $968)          --           --           --        --      1,878          --
                                                                                               --------
  Net unrealized loss on securities arising
   during the period (net of tax $13,791)             --           --           --        --    (26,770)         --       (26,770)
                                                                                                                        ---------
  Total comprehensive income                          --           --           --        --         --          --       228,245
Cash dividend declared on common stock                --           --     (119,293)       --         --          --      (119,293)
Shares issued for employee stock
   plans (957 shares)                               (158)     (20,757)          --        --         --      29,945         9,030
Treasury shares issued for
   acquisitions (3,912 shares)                        --      (26,158)          --        --         --     129,903       103,745
Purchase of common  stock (3,181 shares)              --           --           --        --         --     (85,914)      (85,914)
ESOP debt repayment                                   --           --           --     1,250         --          --         1,250
                                              -----------------------------------------------------------------------------------
Balance, June 30, 2000                          $141,819     $913,019   $2,084,707     $  --  $(112,611)   $(87,691)   $2,939,243
                                              ===================================================================================
</TABLE>

See accompanying Notes to Consolidated Financial Statements.


                                                                 3
<PAGE>

                                      Summit Bancorp and Subsidiaries
                                   Consolidated Statements of Cash Flows
                                                 Unaudited
                                              (In thousands)

<TABLE>
<CAPTION>
                                                                                  Six Months Ended
                                                                                     June 30
                                                                          -------------------------------
Operating Activities                                                           2000                1999
                                                                          -----------         -----------
<S>                                                                       <C>                 <C>
  Net income                                                              $   255,015         $   239,078
  Adjustments to reconcile net income to net cash
     provided by operating activities:
       Provision for loan losses                                               44,500              33,000
       Depreciation, amortization and accretion, net                           42,461              35,108
       Gains on sales of securities
                                                                               (2,846)             (2,311)
       Gains on sales of mortgages held for sale
                                                                               (3,194)            (10,756)
       Gains on sales of other real estate owned
                                                                               (1,738)               (988)
       Proceeds from the sales of other real estate owned                       5,173
                                                                                                    6,338
       Proceeds from the sales of mortgages held for sale                     173,143             463,476
       Originations of mortgages held for sale
                                                                             (198,822)           (480,013)
       Net increase in trading account securities
                                                                               (6,436)             (6,437)
       Net change in other accrued and deferred income and expense
                                                                              (44,383)            (48,612)
                                                                          -----------         -----------
          Net cash provided by operating activities                           262,873             227,883
                                                                          -----------         -----------
Investing Activities
  Purchases of securities held to maturity                                       (760)         (1,630,736)
  Purchases of securities available for sale                               (1,461,748)         (2,039,333)
  Proceeds from maturities of securities held to maturity                     614,493           1,273,983
  Proceeds from maturities of securities available for sale                   418,774           1,068,731
  Proceeds from sales of securities available for sale                         35,488             533,850
  Net decrease in Federal funds sold, securities purchased under
     agreements to resell and interest bearing deposits with banks             19,570              28,629
  Net increase in loans                                                    (1,575,068)           (330,514)
  Purchases of premises and equipment, net                                    (45,580)            (39,799)
  Purchase of corporate owned life insurance                                 (192,376)                 --
                                                                          -----------         -----------
          Net cash used in investing activities                            (2,187,207)         (1,135,189)
                                                                          -----------         -----------
Financing Activities
  Net increase in deposits                                                  1,134,941             143,882
  Net increase in short-term borrowings                                     1,303,532             544,724
  Principal payments on long-term debt                                       (813,748)            (72,737)
  Proceeds from the issuance of long-term debt                                511,375             501,860
  Dividends paid                                                             (115,181)           (104,044)
  Purchase of common stock                                                    (85,914)           (239,970)
  Proceeds from issuance of common stock under stock option plans               6,409               7,099
                                                                          -----------         -----------
          Net cash provided by financing activities                         1,941,414             780,814
                                                                          -----------         -----------
Increase (decrease) in cash and due from banks                                 17,080            (126,492)
Beginning cash balance of acquired entities                                    14,839               6,496
Cash and due from banks at beginning of period                              1,160,577           1,129,859
                                                                          -----------         -----------
Cash and due from banks at end of period                                  $ 1,192,496         $ 1,009,863
                                                                          ===========         ===========

Supplemental disclosure of cash flow information
Cash paid:
     Interest payments                                                    $   653,730         $   529,238
     Income tax payments                                                      134,222              84,942
Noncash investing activities:
     Net transfer of loans to other real estate owned                           1,250               5,986

</TABLE>

                                                    4

<PAGE>
                         Summit Bancorp and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

1.) Basis of Presentation

The accompanying financial statements reflect, in the opinion of management, all
normal  recurring  adjustments  necessary  to present  fairly  the  consolidated
financial position of Summit Bancorp and subsidiaries  ("Summit  Bancorp"),  and
its  consolidated  results of operations,  changes in  shareholders'  equity and
changes in cash flows.  All significant  intercompany  accounts and transactions
have been eliminated in consolidation.  In all material respects,  the financial
statements   presented  comply  with  the  current  reporting   requirements  of
supervisory authorities.  Certain prior period amounts have been reclassified to
conform  to  the  financial  statement  presentation  of  2000.  For  additional
information  and  disclosures   required  under  generally  accepted  accounting
principles,  reference is made to Summit  Bancorp's  1999 Annual  Report on Form
10-K.

2.) Acquisitions

On March 29,  2000,  Summit  Bancorp  completed  the  acquisition  of NMBT Corp.
("NMBT").  NMBT was  headquartered in New Milford,  Connecticut and operated ten
branches in western  Connecticut with $430.0 million in assets. This acquisition
was  accounted  for as a purchase,  with the  issuance of 2.6 million  shares of
treasury  stock.  The cost in excess of the fair  value of net  assets  acquired
resulted in  goodwill  and other  intangibles  of $36.6  million  which is being
amortized over a 20 year period.

On March 17, 2000,  Summit Bancorp  completed its acquisition of selected assets
of Patgo Insurance Agency,  Inc., Patgo South, Inc., Patgo  International,  Inc.
and Crown  Insurance  Agency,  Inc.  These  companies  provide both property and
casualty  insurance and group benefit  services.  This acquisition was accounted
for as a  purchase  with the cost in  excess  of the  fair  value of net  assets
acquired  resulting in goodwill and other  intangibles  of $4.3 million which is
being amortized over a 10 year period.

On February 29, 2000, Summit Bancorp completed its acquisition of Meeker Sharkey
Financial Group.  Meeker Sharkey Financial Group offers an array of property and
casualty products, group health insurance benefits and retirement plan services.
This  transaction  was  accounted  for as a purchase  with the  issuance  of 1.3
million  shares of treasury  stock.  The cost in excess of the fair value of net
assets  acquired  resulted in goodwill and other  intangibles  of $24.1  million
which is being amortized over a 10 year period.

On August 1, 1999,  Summit  Bancorp  completed the  acquisition of Prime Bancorp
Inc.  Prime  Bancorp was  headquartered  in Fort  Washington,  Pennsylvania  and
operated  27  branches in the  greater  Philadelphia  area with $1.1  billion in
assets.  This acquisition was accounted for as a purchase,  with the issuance of
7.4 million  shares of treasury  stock.  The cost in excess of the fair value of
net assets acquired resulted in goodwill and other intangibles of $220.5 million
which is being amortized over a 20 year period.

On March 31, 1999,  Summit Bancorp  completed the acquisition of New Canaan Bank
and Trust Company.  New Canaan Bank and Trust Company was  headquartered  in New
Canaan,  Connecticut  and operated four branches with $182.0  million in assets.
This  acquisition  was  accounted  for as a purchase,  with the  issuance of 1.1
million  shares of treasury  stock.  The cost in excess of the fair value of net
assets  acquired  resulted in goodwill and other  intangibles  of $35.1  million
which is being amortized over a 20 year period.


                                       5
<PAGE>


3.) Net Income per Common Share

Basic net income per common  share is  calculated  by dividing net income by the
weighted average common shares outstanding during the period. Diluted net income
per common  share is computed  similarly  to that of basic net income per common
share,  except  that the  denominator  is  increased  to  include  the number of
additional  common shares that would have been  outstanding  if all  potentially
dilutive common share equivalents, principally stock options, were issued during
the reporting period.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
(In thousands, except per share data)                   Three Months Ended June 30,       Six Months Ended June 30,
---------------------------------------------------------------------------------------------------------------------
                                                            2000            1999            2000           1999
---------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>               <C>            <C>          <C>
Net Income                                                $  130,102        $ 120,337      $  255,015   $    239,078
=====================================================================================================================
Basic weighted-average common shares outstanding             175,304          170,656         174,243        172,216
Plus: Common stock equivalents                                   989            1,626           1,002          1,645
---------------------------------------------------------------------------------------------------------------------
Diluted weighted-average common shares outstanding           176,293          172,282         175,245        173,861
=====================================================================================================================
Net Income per Common Share:
Basic                                                     $     0.74        $   0.71       $     1.46   $       1.39
Diluted                                                         0.74            0.70             1.46           1.38
=====================================================================================================================
</TABLE>


4.) Restructuring Charges

During  the fourth  quarter of 1999,  a  restructuring  charge of $27.9  million
pretax,  ($17.1  million,  or $0.10 per diluted share after tax) was recorded in
conjunction  with the realignment of key lines of business and lines of support.
The realignment  eliminated  approximately 260 positions.  Employees affected by
the realignment  were notified at the time of the  restructure.  The table below
displays the status of accrual  reserves for business  restructuring  charges at
June 30,  2000.  The  majority  of the  restructuring  charge is  expected to be
utilized by year-end December 31, 2000.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
Restructuring Charges
(In millions)
--------------------------------------------------------------------------------------------------------
                                                           Recorded        Utilization       Remaining
Type of cost                                              Liability          to date         Liability
--------------------------------------------------------------------------------------------------------
<S>                                                       <C>                <C>              <C>
Severance and benefits                                    $     26.1         $   18.3         $    7.8
Real estate and other                                            1.8              0.4              1.4
--------------------------------------------------------------------------------------------------------
  Total                                                   $     27.9         $   18.7         $   9.2
--------------------------------------------------------------------------------------------------------
</TABLE>

5.) Recent Accounting Pronouncements

In June 1999, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial  Accounting  Standards ("SFAS") No. 137, "Accounting for Derivative
Instruments  and  Hedging  Activities-Deferral  of the  Effective  Date  of FASB
Statement No. 133." This  statement  delays the effective date of FASB Statement
No. 133 one year.  SFAS No. 133,  "Accounting  for  Derivative  Instruments  and
Hedging  Activities,"  as  amended  by SFAS No.  138,  "Accounting  for  Certain
Derivative  Instruments and Certain Hedging Activities,"  establishes accounting
and reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities. It requires
recognition of all derivative instruments as either assets or liabilities in the
statement of financial  position and  measurement  of those  instruments at fair
value. This statement is now effective for all fiscal years beginning after June
15, 2000, on a prospective  basis.  The adoption of SFAS No. 133 is not expected
to have a material impact on the financial  position or results of operations of
Summit Bancorp.

                                       6
<PAGE>

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

Summit Bancorp is a bank holding company headquartered in Princeton, New Jersey.
Summit  Bancorp  owns  bank  subsidiaries  in  New  Jersey,  Pennsylvania,   and
Connecticut  and several active  non-bank  subsidiaries.  Summit  Bancorp's bank
subsidiaries provide a broad range of retail, insurance, commercial, and private
banking  services  as well as trust  and  investment  services  to  individuals,
businesses,   not-for-profit  organizations,   government  entities,  and  other
financial institutions.  These services are provided through an extensive branch
network,  including supermarket branches and private banking facilities, as well
as through automated teller machines and the Internet.

FINANCIAL CONDITION

Total assets at June 30, 2000, were $39.0 billion,  an increase of $2.6 billion,
or 7.2 percent,  from year-end  1999. The growth came most notably from the loan
portfolios and was generally  funded with increases in savings and time deposits
and  other  borrowed  funds.  The  increase  in  total  assets  attributable  to
acquisitions was approximately $430.0 million.

Total  securities at June 30, 2000,  were $11.3  billion,  an increase of $467.3
million, or 4.3 percent,  from year-end 1999. The growth in total securities due
to  acquisitions  was $101.8  million.  Securities  held to maturity,  which are
carried at  amortized  historical  cost,  are  investments  for which there is a
positive intent and ability to hold to maturity.  Securities held to maturity at
June 30, 2000,  were $5.0  billion and were  comprised  of U.S.  Government  and
Federal agency securities totaling $3.3 billion, other securities, predominately
corporate  collateralized  mortgage  obligations ("CMOs") totaling $1.6 billion,
and securities of state and political subdivisions totaling $103.2 million. Held
to maturity securities decreased $567.0 million, or 10.1 percent,  from year-end
1999 due primarily to principal  repayments  and  maturities of $614.5  million.
These funds were reinvested in securities  available for sale. At June 30, 2000,
and December 31, 1999,  net  unrealized  losses on  securities  held to maturity
amounted to $194.4 million and $209.3 million, respectively.

Securities  available for sale are  investments  that may be sold in response to
changing  market and interest rate  conditions or for other  business  purposes.
Activity in this  portfolio  is  initiated  primarily  to manage  liquidity  and
interest rate risk and to take advantage of certain market  conditions.  At June
30,  2000,  securities  available  for sale  amounted  to $6.2  billion and were
predominately  comprised of $4.6 billion of U.S.  Government  and Federal agency
securities  and  $1.3  billion  of CMOs.  Total  available  for sale  securities
increased  $1.0 billion,  or 19.8  percent,  from  year-end  1999.  The increase
resulted primarily from $1.5 billion in purchases  partially offset by sales and
maturities of $454.3 million.  These purchases were partially funded by the cash
flows from the securities held to maturity portfolio.

The loan portfolio,  which  represents  Summit's largest asset, is a significant
source of both  interest  and fee  income.  Elements of the loan  portfolio  are
subject to differing  levels of credit and interest rate risk.  Summit's lending
strategy stresses portfolio diversification by product, geography, and industry.
At June 30, 2000,  total loans  amounted to $25.1  billion,  an increase of $1.8
billion,  or 7.8 percent,  from year-end  1999. The growth in total loans due to
acquisitions  was $269.3 million.  The largest  increases were in commercial and
consumer  loans  which  grew  $1.1  billion  and  $630.4  million  respectively.
Additionally,  residential mortgages grew $47.2 million and commercial mortgages
increased $15.5 million.  The increase in commercial loans was primarily related
to loan growth in  commercial  and  industrial,  syndicated  loans and the food,
media  and  large  corporate  portfolios.  The  increase  in the  consumer  loan
portfolio was primarily  attributed to home equity loan promotions and purchases
of home equity loans.  Residential  mortgages totaling $157 million were sold in
June 2000.  Mortgage  loans held for sale  amounted  to $51.1  million and $65.5
million  for  the  periods   ended  June  30,  2000,   and  December  31,  1999,
respectively.

Other assets increased $218.8 million, or 55.6 percent,  from year-end 1999. The
increase was  primarily  related to the purchase of $192.4  million in corporate
owned life insurance in June 2000.

Deposits,    which   include    non-interest   bearing   demand   deposits   and
interest-bearing savings and time deposits, are a fundamental source of funding.
Summit  offers a variety of products  designed to attract and retain  customers,
with the primary focus on building and expanding  relationships.  Total deposits
were  $26.1  billion at June 30,  2000,  an  increase  of $1.4  billion,  or 5.8
percent,  from  December 31, 1999.  Acquisitions  during the period  contributed



                                       7
<PAGE>

$303.3  million to the  increase.  Savings and time  deposits at $20.0  billion,
increased $1.4 billion, or 7.5 percent,  from December 31, 1999. The growth came
most notably from retail  certificates  of deposit which  increased $1.1 billion
from  December  31,  1999,  as a  result  of the  introduction  of  several  new
certificate of deposit products. In addition, Summit's cash management solution,
the Summit Navigator Account,  increased $806.8 million,  or 27.1 percent,  from
year-end 1999. The Summit Navigator Account is a relationship sweep account that
combines banking,  investment,  and brokerage  services into one account.  These
increases  more than  offset  the  decline of $519.3  million  in other  deposit
products  largely  resulting from a shift the deposit mix.  Demand deposits also
increased by $330.0  million,  or 6.6 percent,  from year-end 1999 to total $5.3
billion at June 30,  2000.  The  increase  in demand  deposits  came mainly from
business and personal accounts. Partially offsetting these deposit increases was
a decline in  commercial  certificates  of deposit  $100,000  and over of $282.1
million,  or 27.7  percent,  compared to  December  31,  1999,  related to using
alternative funding sources to support balance sheet growth.

Other  borrowed  funds are mainly  comprised of repurchase  agreements,  Federal
funds  purchased,   Federal  Home  Loan  Bank  borrowings  ("FHLB"),  and  other
short-term  borrowings.  Other  borrowed  funds totaled $5.9 billion at June 30,
2000, an increase of $1.3 billion, or 28.1 percent,  from December 31, 1999. The
increase in other  borrowed  funds is the result of asset growth and a change in
funding mix.

Total  long-term  debt was $3.6  billion at June 30,  2000, a decrease of $248.2
million, or 6.4 percent, from year-end 1999. The decrease was primarily due to a
shift in the funding mix.

Total  shareholders'  equity at June 30, 2000, was $2.9 billion,  an increase of
$137.1  million,  or 4.9  percent,  from  December  31,  1999.  The increase was
primarily  attributed to retained profits and the issuance of treasury stock for
acquisitions.  Treasury  stock at June 30, 2000,  amounted to $87.7  million,  a
reduction of $73.9 million, or 45.7 percent,  compared to December 31, 1999, and
was  comprised  of 3,136,633  shares.  The  reduction in treasury  stock was the
result of the  issuance  of shares  for the  purchase  acquisitions  of NMBT and
Meeker  Sharkey  Financial  Group.  Treasury  shares  on hand  will be used  for
acquisitions,  employee benefit plans, and general corporate purposes.  Included
in shareholders'  equity at June 30, 2000, was accumulated  other  comprehensive
loss, net of tax,  totaling $112.6 million,  compared to a loss of $85.8 million
at year-end 1999.  Accumulated other comprehensive loss is comprised principally
of unrealized  gains and losses,  net of tax, on securities  available for sale.
The increase in accumulated other  comprehensive  loss was due to the decline in
the market value of Summit's fixed income  securities  caused by the rising rate
environment.

Summit  Bancorp's  capital  ratios for June 30,  2000,  compared to select prior
periods and regulatory  requirements,  are shown in the following table.  Summit
Bancorp's bank  subsidiaries met the  well-capitalized  requirements for each of
the  periods  presented.  The  decreases  in the ratios at June 30,  2000,  were
principally attributable to asset growth.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                                                                             Minimum
                                   June 30,        Dec.31,      June 30,     Required          Well
Selected Capital Ratios:             2000           1999          1999       Capital       Capitalized
---------------------------------------------------------------------------------------------------------
<S>                                  <C>            <C>           <C>        <C>              <C>
           Equity to assets          7.54 %         7.70 %        7.60 %        -- %             -- %
           Leverage ratio            6.95           7.06          7.47        3.00             5.00
           Tier I capital            9.03           9.46          9.97        4.00             6.00
           Total risk-based         10.49          11.06         11.76        8.00            10.00
           capital
---------------------------------------------------------------------------------------------------------
</TABLE>


                                       8
<PAGE>


Non-performing Assets

Non-performing  assets include  non-performing loans and other real estate owned
("OREO") and are shown in the following table as of the dates indicated.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Non-performing Assets                                      June 30,          Dec. 31,        June 30,
(In thousands)                                               2000              1999            1999
---------------------------------------------------------------------------------------------------------
<S>                                                        <C>              <C>              <C>
Non-performing loans:
 Commercial and industrial                                 $ 91,328         $ 78,303         $ 76,737
 Commercial mortgage                                         21,846           18,480           11,764
  Construction and development                                2,085            3,538            6,324
---------------------------------------------------------------------------------------------------------
   Non-performing loans                                     115,259          100,321           94,825
OREO, net                                                     4,661            6,881            6,342
---------------------------------------------------------------------------------------------------------
   Non-performing assets                                   $119,920         $107,202         $101,167
---------------------------------------------------------------------------------------------------------
Loans, not included above, past due 90 days or more        $ 46,607         $ 41,378         $ 37,674
---------------------------------------------------------------------------------------------------------
Non-performing loans to total loans                            0.46%            0.43%            0.44%
Non-performing assets to total loans and OREO                  0.48             0.46             0.47
---------------------------------------------------------------------------------------------------------
</TABLE>

Average  non-performing  loans were $103.4 million and $83.5 million for the six
months ended June 30, 2000,  and June 30, 1999,  respectively.  Interest  income
received on  non-performing  loans  amounted to $0.6  million for the six months
ended June 30, 2000,  compared to $1.2 million for the six months ended June 30,
1999.

Loans which are past due 90 days or more but are not included in  non-performing
assets are  primarily  residential  mortgage and  consumer  loans which are well
secured and in the process of collection.

Potential  problem loans,  which are excluded from  non-performing  assets,  are
loans where  information  about  possible  credit  problems of borrowers  causes
management  to have  doubts as to the ability of such  borrowers  to comply with
loan  repayment  terms.  These loans amounted to $46.7 million at June 30, 2000,
compared to $11.9 million and $64.5  million at December 31, 1999,  and June 30,
1999, respectively.

Allowance for Loan Losses

The  allowance  for loan  losses is a  valuation  reserve  available  for losses
incurred or  inherent  in the loan  portfolio  and other  extensions  of credit.
Credit losses arise primarily from the loan  portfolio,  but may also be derived
from other credit-related  sources including commitments and other extensions of
credit,  guarantees,  and standby  letters of credit.  Additions are made to the
allowance through periodic provisions,  which are charged to expense. All losses
of principal are charged to the allowance when incurred or when a  determination
is made that a loss is expected.  Subsequent recoveries, if any, are credited to
the allowance.

A process has been  established to assess the  appropriateness  of the allowance
for loan losses and to identify the risks inherent in the loan  portfolio.  This
process  consists of the  identification  of specific  reserves  for  identified
problem loans, the calculation of general reserves, which includes a combination
of formula-driven allocations and minimum reserve levels by loan type and grade,
and the determination of the unallocated reserves.

Specific reserves are determined through assessment of the borrower's ability to
repay and the fair value of the underlying collateral,  for collateral dependent
loans, for each non-performing loan. If the carrying value of a loan exceeds the
discounted  expected cash flows or the value of the underlying  collateral,  the
excess is specifically  reserved or charged off. The level of specific  reserves
is generally the smallest component of the allowance for loan losses.

The  calculation of the general  reserve  involves  several steps. An historical
loss factor is applied to each loan and unused  commitment  by business  segment
and loan grade.  The historical loss factors are calculated using a trailing six
quarter loss  migration  analysis.  Adjustments  are then made to the historical
loss  factors  based  on  six  quantitative   objective  elements  (delinquency,
non-performing  assets, watch lists, charge offs,  concentrations of credit, and





                                      9
<PAGE>

recoveries)  and three  subjective  elements  (economic  conditions,  the rating
assigned by the  internal  credit audit  department,  and other  factors).  This
methodology  is applied to the commercial  portfolio.  The  methodology  for the
retail  portfolio  involves a six quarter loss  migration  analysis which may be
adjusted  due  to  rising  trends  or  charge  offs.  For  the  commercial  loan
portfolios,  the historical loss factor,  inclusive of the  adjustment,  is then
compared to minimum  reserve  levels for each loan grade.  The larger of the two
factors is used in the  determination of the reserves.  The reserves  calculated
for the  residential  and  consumer  loans  employ  an  historical  six  quarter
migration analysis.

The last  component of the loan loss  reserve is the  unallocated  reserve.  The
unallocated  reserve is based upon  management's  evaluation  of the  underlying
inherent risk in the loan portfolio.  The analysis of the  appropriate  level of
reserves,  in the  aggregate,  is based on the  level of  specific  and  general
reserves previously discussed and is also inclusive of: industry concentrations,
delinquency  trends,  economic  trends,  loan  growth  relative  to the  overall
allowance,  the level of  substandard  assets,  and the amount of allocated  and
unallocated  reserves  relative  to the total loan  portfolio.  The  unallocated
portion of the  allowance  for loan  losses,  in excess of specific  and general
reserves,  was $134.1  million at June 30, 2000,  compared to $119.8  million at
December 31, 1999.

The provision for loan losses for the second  quarter of 2000 was $24.5 million,
a $8.0  million  increase  from the same period a year ago.  The increase in the
provision  for loan  losses  for the  three  months  ended  June 30,  2000,  was
primarily attributed to loan growth and an increase in the level of charge offs.
The  provision  for loan losses is charged to expense to bring the allowance for
loan losses to a level deemed appropriate by management to cover the credit risk
inherent  in the loan  portfolio.  The  provision  for loan losses may vary from
quarter to quarter due to loan growth,  the level of charge offs, or an increase
in the inherent  risk in the loan  portfolio.  The  allowance as a percentage of
total loans was 1.34 percent at June 30, 2000, compared to 1.42 percent and 1.49
percent at December 31, 1999, and June 30, 1999, respectively.

The following tables show the transactions in the allowance for loan losses,  by
loan category, for the three and six month periods ended June 30, 2000, and June
30, 1999,  and selected loan quality ratios for the periods ended June 30, 2000,
December 31, 1999, and June 30, 1999.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Allowance for Loan Losses                                   Three Months Ended               Six Months Ended
                                                                  June 30,                       June 30,
(In thousands)                                             2000            1999             2000          1999
----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>              <C>           <C>
Balance, beginning of period                             $332,755       $328,302         $328,828      $322,814
Allowance of acquired institutions                             --             --            4,357         2,140
Provision for loan losses                                  24,500         16,500           44,500        33,000
----------------------------------------------------------------------------------------------------------------
                                                          357,255        344,802          377,685       357,954

----------------------------------------------------------------------------------------------------------------
Loans charged off:
    Commercial and industrial                              19,417         20,268           39,441        28,399
    Construction and development                               --             --               --            13
    Commercial mortgage                                       235          1,070              258         2,272
    Residential mortgage                                      895            322            1,979         2,948
    Consumer                                                6,397          7,178           12,650        15,165
----------------------------------------------------------------------------------------------------------------
             Total loans charged off                       26,944         28,838           54,328        48,797
----------------------------------------------------------------------------------------------------------------
Recoveries:
    Commercial and industrial                               2,637          2,348            7,344         5,865
    Construction and development                               38            452               38           847
    Commercial mortgage                                        11            193               39           741
    Residential mortgage                                       90            116              150           435
    Consumer                                                1,764          2,627            3,923         4,655
----------------------------------------------------------------------------------------------------------------
             Total recoveries                               4,540          5,736           11,494        12,543
----------------------------------------------------------------------------------------------------------------
Net charge offs                                            22,404         23,102           42,834        36,254
----------------------------------------------------------------------------------------------------------------
Balance, end of period                                   $334,851       $321,700         $334,851      $321,700
================================================================================================================
</TABLE>


                                       10
<PAGE>



Selected Loan Quality Ratios
-------------------------------------------------------------------------------
                                         June 30,       Dec. 31,       June 30,
                                          2000            1999           1999
-------------------------------------------------------------------------------
Net charge offs to average loans:
     Quarter-to-date                       0.37 %         0.32 %         0.44 %
     Year-to-date                          0.36           0.61           0.34
Allowance for loan losses to:
     Total loans at period end             1.34 %         1.42 %         1.49 %
     Non-performing loans                290.60         327.78         339.26
     Non-performing assets               279.23         306.74         317.99
-------------------------------------------------------------------------------






















                                       11
<PAGE>


<TABLE>
<CAPTION>
                                               Summit Bancorp and Subsidiaries
                            Consolidated Average Balance Sheets with Resultant Interest and Rates
                                                          Unaudited
                                        (Tax-equivalent basis, dollars in thousands)

                                                                         Three Months Ended
                                          ---------------------------------------------------------------------------------
                                                       June 30, 2000                              June 30, 1999
                                          ----------------------------------------      -----------------------------------
                                            Average                      Average         Average                   Average
                                            Balance        Interest        Rate          Balance      Interest      Rate
                                          -------------    --------      ---------      -----------   ---------    --------
<S>                                          <C>              <C>            <C>           <C>            <C>         <C>
Assets
Interest-earning assets:
  Federal funds sold and securities
     purchased  under agreements to resell   $  12,435        $197           6.37%         $29,167        $350        4.81%
  Interest-bearing deposits with banks          53,395         748           5.63           23,716         262        4.43
  Securities:
    Trading account                             26,650         764          11.53           11,222         183        6.54
    Available for sale                       6,225,320     108,378           6.96        3,988,952      60,357        6.05
    Held to maturity                         5,202,509      82,525           6.35        6,551,577     101,871        6.22
                                          -------------    --------      ---------      -----------   ---------    --------
      Total securities                      11,454,479     191,667           6.69       10,551,751     162,411        6.16
                                          -------------    --------      ---------      -----------   ---------    --------
  Loans, net of unearned discount:
    Commercial                               8,796,398     192,859           8.82        7,377,701     141,791        7.71
    Commercial mortgage                      3,195,807      64,462           8.07        2,895,640      58,054        8.02
    Residential mortgage                     5,937,077     107,466           7.24        5,536,378      98,631        7.13
    Consumer                                 6,540,821     137,870           8.48        5,458,995     109,760        8.06
                                          -------------    --------      ---------      -----------   ---------    --------
      Total loans                           24,470,103     502,657           8.26       21,268,714     408,236        7.70
                                          -------------    --------      ---------      -----------   ---------    --------
      Total interest-earning assets         35,990,412     695,269           7.77       31,873,348     571,259        7.19
                                          -------------    --------      ---------      -----------   ---------    --------
Non-interest earning assets:
  Cash and due from banks                    1,064,320                                     958,692
  Allowance for loan losses                   (333,868)                                   (330,913)
  Other assets                               1,573,712                                   1,175,609
                                          -------------                                 -----------
      Total non-interest earning assets      2,304,164                                   1,803,388
                                          -------------                                 -----------
Total Assets                            $   38,294,576                               $  33,676,736
                                          =============                                 ===========

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
  Savings deposits                      $   11,938,079      89,273           3.01    $  11,021,772      71,216        2.59
  Time deposits                              7,795,202     106,834           5.51        6,948,494      86,131        4.97
  Commercial certificates of
    deposit $100,000 and over                  831,695      12,365           5.98          797,238       9,460        4.76
                                          -------------    --------      ---------      -----------   ---------    --------
      Total interest-bearing deposits       20,564,976     208,472           4.08       18,767,504     166,807        3.56
                                          -------------    --------      ---------      -----------   ---------    --------
Other borrowed funds                         5,654,775      87,646           6.23        3,259,556      38,642        4.76
Long-term debt                               3,676,231      53,063           5.77        3,975,757      54,671        5.50
                                          -------------    --------      ---------      -----------   ---------    --------
      Total interest-bearing liabilities    29,895,982     349,181           4.70       26,002,817     260,120        4.01
                                          -------------    --------      ---------      -----------   ---------    --------
Non-interest bearing liabilities:
  Demand deposits                            4,992,286                                   4,520,254
  Other liabilities                            488,756                                     518,481
                                          -------------                                 -----------
      Total non-interest bearing
        liabilities                          5,481,042                                   5,038,735
  Shareholders' equity                       2,917,552                                   2,635,184
                                          -------------                                 -----------
Total Liabilities and
     Shareholders' Equity                 $ 38,294,576                                 $33,676,736
                                          =============                                 ===========

Net Interest Spread                                        346,088           3.07 %                    311,139        3.18 %
                                                                         =========                                 ========
Tax-equivalent basis adjustment                             (2,206)                                     (2,548)
                                                           --------                                   ---------
Net Interest Income                                    $   343,882                                  $  308,591
                                                           ========                                   =========
Net Interest Margin                                                          3.87 %                                   3.92 %
                                                                         =========                                 ========
</TABLE>


                                       12
<PAGE>
<TABLE>
<CAPTION>
                                                 Summit Bancorp and Subsidiaries
                              Consolidated Average Balance Sheets with Resultant Interest and Rates
                                                            Unaudited
                                          (Tax-equivalent basis, dollars in thousands)

                                                                             Six Months Ended
                                             ----------------------------------------------------------------------------------
                                                         June 30, 2000                                June 30, 1999
                                             ---------------------------------------       ------------------------------------
                                              Average                       Average         Average                   Average
                                              Balance        Interest        Rate           Balance      Interest       Rate
                                             -----------     ---------      --------       -----------   ----------   ---------
<S>                                       <C>              <C>                 <C>       <C>           <C>                <C>
Assets
Interest-earning assets:
  Federal funds sold and securities
      purchased under agreements
      to resell                           $      11,499    $      331          5.79 %    $     19,959  $       495        5.00 %
  Interest-bearing deposits with banks           48,493         1,305          5.41            28,699          712        5.00
  Securities:
    Trading account                              23,646         1,190         10.12            10,599          286        5.44
    Available for sale                        5,964,448       203,466          6.82         3,973,019      120,308        6.06
    Held to maturity                          5,326,216       168,806          6.34         6,389,949      199,458        6.24
                                             -----------     ---------      --------       -----------   ----------   ---------
      Total securities                       11,314,310       373,462          6.60        10,373,567      320,052        6.17
                                             -----------     ---------      --------       -----------   ----------   ---------
  Loans, net of unearned discount:
    Commercial                                8,523,884       366,295          8.64         7,268,132      278,854        7.74
    Commercial mortgage                       3,174,450       127,888          8.06         2,885,058      115,567        8.01
    Residential mortgage                      5,842,370       210,832          7.22         5,626,686      200,478        7.13
    Consumer                                  6,412,266       267,896          8.40         5,438,268      218,432        8.10
                                             -----------     ---------      --------       -----------   ----------   ---------
      Total loans                            23,952,970       972,911          8.17        21,218,144      813,331        7.73
                                             -----------     ---------      --------       -----------   ----------   ---------
      Total interest-earning assets          35,327,272     1,348,009          7.67        31,640,369    1,134,590        7.23
                                             -----------     ---------      --------       -----------   ----------   ---------
Non-interest earning assets:
  Cash and due from banks                     1,052,415                                       956,857
  Allowance for loan losses                    (331,635)                                     (328,133)
  Other assets                                1,529,430                                     1,149,459
                                             -----------                                   -----------
      Total non-interest earning assets       2,250,210                                     1,778,183
                                             -----------                                   -----------
Total Assets                              $  37,577,482                                 $  33,418,552
                                             ===========                                   ===========

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
  Savings deposits                        $  11,799,439       172,984          2.95     $  10,661,577      133,105        2.52
  Time deposits                               7,449,612       198,556          5.36         7,035,370      175,644        5.03
  Commercial certificates of
    deposit $100,000 and over                   895,085        25,664          5.77           885,793       21,035        4.79
                                             -----------     ---------      --------       -----------   ----------   ---------
      Total interest-bearing deposits        20,144,136       397,204          3.97        18,582,740      329,784        3.58
                                             -----------     ---------      --------       -----------   ----------   ---------
Other borrowed funds                          5,372,636       159,997          5.99         3,335,296       80,129        4.84
Long-term debt                                3,771,564       106,621          5.65         3,831,036      105,308        5.50
                                             -----------     ---------      --------       -----------   ----------   ---------
      Total interest-bearing liabilities     29,288,336       663,822          4.56        25,749,072      515,221        4.04
                                             -----------     ---------      --------       -----------   ----------   ---------
Non-interest bearing liabilities:
  Demand deposits                             4,924,013                                     4,487,984
  Other liabilities                             489,890                                       498,354
                                             -----------                                   -----------
   Total non-interest bearing liabilities     5,413,903                                     4,986,338

  Shareholders' equity                        2,875,243                                     2,683,142
                                             -----------                                   -----------
Total Liabilities and
  Shareholders' Equity                    $  37,577,482                                 $  33,418,552
                                             ===========                                   ===========

Net Interest Spread                                           684,187          3.11 %                      619,369        3.19 %
                                                                            ========                                  =========
Tax-equivalent basis adjustment                                (4,398)                                      (5,434)
                                                             ---------                                   ----------
Net Interest Income                                     $     679,789                                  $   613,935
                                                             =========                                   ==========
Net Interest Margin                                                            3.89 %                                     3.95 %
                                                                            ========                                  =========
</TABLE>


                                                               13
<PAGE>

RESULTS OF OPERATIONS


Net income for the quarter ended June 30, 2000, was $130.1 million, or $0.74 per
basic  share,  compared to $120.3  million,  or $0.71 per basic  share,  for the
second  quarter of 1999. On a diluted per share basis,  net income for the three
months ended June 30, 2000,  was $0.74 per diluted  share  compared to $0.70 for
the same period in 1999.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
(In thousands)                                      Three months ended                     Six Months Ended
                                                         June 30,                              June 30,
                                                      2000              1999               2000           1999
--------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                <C>                <C>             <C>
Financial data:
     Net income                                   $ 130,102          $ 120,337          $ 255,015       $ 239,078
     Per share-diluted                                 0.74               0.70               1.46           1.38
     Return on average assets                          1.37 %             1.43 %             1.36 %         1.44 %
     Return on average equity                         17.94              18.32              17.84          17.97
     Efficiency ratio                                 52.02              51.20              52.00          50.88
--------------------------------------------------------------------------------------------------------------------
Cash-basis financial data*:
     Net income                                   $ 139,498          $ 126,597          $ 272,949       $ 251,000
     Per share-diluted                                 0.79               0.73               1.56           1.44
     Return on average tangible assets                 1.49 %             1.52 %             1.48 %         1.53 %
     Return on average tangible equity                23.60              21.87              23.32          21.24
     Efficiency Ratio                                 49.86              49.61              49.89          49.36
--------------------------------------------------------------------------------------------------------------------
</TABLE>
* Cash-basis  financial  data excludes the after tax impact of  amortization  of
goodwill and other intangibles.


Net Interest Income

Interest  income on a  tax-equivalent  basis was $1.3 billion for the six months
ended June 30, 2000, an increase of $213.4 million, or 18.8 percent, compared to
a year ago. Interest-earnings assets averaged $35.3 billion, an increase of $3.7
billion,  or 11.7  percent,  compared  to the prior year  period.  The growth in
interest-earning   assets   contributed   $146.3  million  to  the  increase  in
tax-equivalent  interest  income while the increase in yield  contributed  $67.1
million. The rate earned on interest-earning assets increased 44 basis points to
7.67 percent for the six months ended June 30, 2000. The increase was the result
of a higher interest rate environment  compared to last year as both the average
Prime  rate and the  average  London  Interbank  Offering  Rate  ("LIBOR")  were
significantly higher than the prior year.

Interest expense increased $148.6 million,  or 28.8 percent,  for the six months
ended June 30,  2000,  compared to the same period a year ago.  Interest-bearing
liabilities  averaged  $29.3  billion for the six months ended June 30, 2000, an
increase of $3.5  billion,  or 13.8  percent,  compared  to the prior year.  The
growth in interest-bearing liabilities contributed $82.3 million to the increase
in  interest  expense  while  the  increase  in rates  paid on  interest-bearing
liabilities   contributed  the  remaining  $66.3  million.   The  rate  paid  on
interest-bearing  liabilities  increased  52 basis points to 4.56 percent due to
the higher  interest-rate  environment  and a shift to a more expensive  deposit
mix.

Net interest  income on a  tax-equivalent  basis was $684.2  million for the six
months  ended June 30,  2000,  an increase of $64.8  million,  or 10.5  percent,
compared to the same period in 1999.  The net interest  spread  percentage  on a
tax-equivalent  basis  (the  difference  between  the  rate  earned  on  average
interest-earning   assets  and  the  rate  paid  on   average   interest-bearing
liabilities)  was 3.11  percent for the six months then ended,  compared to 3.19
percent for the prior year period. Net interest margin (net interest income on a
tax-equivalent  basis as a percentage  of average  interest-earning  assets) was
3.89 percent for the six months  ended June 30,  2000,  compared to 3.95 percent
during the same period in 1999.  The decline in net  interest  spread and margin
was  primarily  caused  by rates on  interest-bearing  liabilities  rising  more
rapidly than yields on interest-earning assets.


                                       14
<PAGE>

The  rate/volume  table  below  presents  an  analysis of the impact on interest
income and expense  resulting from changes in average volumes and rates over the
periods.  Changes  that  are  not due to  volume  or rate  variances  have  been
allocated proportionally to both, based on their relative absolute values.

<TABLE>
<CAPTION>
Rate/Volume Table                                                          Amount of Increase (Decrease)
                                               ------------------------------------------------------------------------------------
                                                    Three Months Ended June30,                 Six Months Ended June 30,
                                                         2000 versus 1999                           2000 versus 1999
                                               ------------------------------------------------------------------------------------
                                                       Due to Change in:                          Due to Change in:
                                                   ------------------------                -----------------------------
(Tax-equivalent basis, in millions)                  Volume         Rate         Total          Volume         Rate          Total
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>           <C>          <C>            <C>            <C>          <C>
Interest Income:
    Loans
      Commercial                                    $  29.2       $  21.9      $   51.1       $   52.3       $  35.2      $   87.5
      Commercial mortgage                               6.0           0.4           6.4           11.6           0.7          12.3
      Residential mortgage                              7.3           1.5           8.8            7.8           2.6          10.4
      Consumer                                         22.5           5.6          28.1           41.2           8.2          49.4
----------------------------------------------------------------------------------------------------------------------------------
         Total loans                                   65.0          29.4          94.4          112.9          46.7         159.6
      Securities held to maturity                     (21.4)          2.1         (19.3)         (33.8)          3.1         (30.7)
      Securities available for sale                    37.9          10.1          48.0           66.5          16.7          83.2
      Other interest earning assets                     0.4           0.5           0.9            0.7           0.6           1.3
----------------------------------------------------------------------------------------------------------------------------------
         Total Interest Income                         81.9          42.1         124.0          146.3          67.1         213.4
----------------------------------------------------------------------------------------------------------------------------------
Interest Expense:
    Deposits
      Savings deposits                                  6.1          11.9          18.0           15.4          24.5          39.9
      Time deposits                                    11.0           9.8          20.8           10.8          12.1          22.9
      Commercial Certificates of Deposits>$100M         0.4           2.5           2.9            0.2           4.4           4.6
----------------------------------------------------------------------------------------------------------------------------------
         Total interest-bearing deposits               17.5          24.2          41.7           26.4          41.0          67.4
      Other borrowed funds                             34.5          14.5          49.0           57.5          22.4          79.9
      Long-term debt                                   (4.2)          2.6          (1.6)          (1.6)          2.9           1.3
----------------------------------------------------------------------------------------------------------------------------------
         Total Interest Expense                        47.8          41.3          89.1           82.3          66.3         148.6
----------------------------------------------------------------------------------------------------------------------------------
Net Interest Income (fully taxable equivalent)      $  34.1       $   0.8      $   34.9       $   64.0       $   0.8      $   64.8
----------------------------------------------------------------------------------------------------------------------------------
Decrease in tax-equivalent adjustment                                               0.4                                        1.1
----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Interest Income                                                $   35.3                                   $   65.9
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       15

<PAGE>

Non-interest Income

Non-interest  income  categories  for the three and six month periods ended June
30, 2000, and 1999 are shown in the following table:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
(In millions)                                   Three Months Ended June 30,           Six Months Ended June 30,
---------------------------------------------------------------------------------------------------------------------
                                                                      Percent                             Percent
                                               2000        1999        Change            2000      1999    Change
---------------------------------------------------------------------------------------------------------------------
<S>                                         <C>          <C>              <C>         <C>        <C>         <C>
Service charges on deposit accounts         $  31.9      $  29.6          7.8 %       $  63.4    $ 59.6      6.3 %
Service and loan fee income                    19.6         16.0         22.5            35.4      31.6     11.8
Insurance service fees                         14.8          8.4         76.7            25.6      16.2     57.6
Trust income                                   13.7         12.8          6.6            27.5      24.8     10.9
Retail investment fees                         10.8         10.6          2.0            23.5      20.8     13.4
Other                                          21.2         16.4         29.3            38.3      38.8     (1.1)
---------------------------------------------------------------------------------------------------------------------
Total non-interest operating income           112.0         93.8         19.4           213.7     191.8     11.4
Securities gains                                2.8          2.1         31.9             2.8       2.3     23.2
---------------------------------------------------------------------------------------------------------------------
         Total non-interest income          $ 114.8      $  95.9         19.6 %       $ 216.5    $194.1     11.6 %
=====================================================================================================================
</TABLE>


Service charges on deposit accounts increased $2.3 million, or 7.8 percent,  for
the three months  ended June 30, 2000,  compared  with 1999 and  increased  $3.8
million, or 6.3 percent,  for the six months then ended,  compared with the same
period a year ago.  This was  primarily  due to growth  in demand  deposits  and
increased volume of insufficient fund fees. Partially offsetting these favorable
factors were lower minimum balance  requirements on regular  checking  accounts,
savings  accounts,  and  certificates  of  deposit  resulting  in lower  monthly
maintenance  fees. These lower minimum balance  requirements  were instituted in
April 1999.

Service and loan fee income  increased  $3.6 million,  or 22.5 percent,  for the
quarter ended June 30, 2000,  compared with 1999, and increased $3.7 million, or
11.8  percent,  for the six months  ended,  compared with the same period a year
ago. The increases were primarily due to increased volume of commercial loan and
credit  card fees,  partially  offset by a decline in mortgage  origination  and
mortgage servicing income.

Insurance service fees increased $6.4 million, or 76.7 percent,  for the quarter
ended June 30, 2000,  compared to the same period a year ago and increased  $9.4
million, or 57.6 percent,  for the six months ended June 30, 2000, compared with
the same period a year ago. The increases were primarily due to the  acquisition
of Meeker  Sharkey  Financial  Group.  In  addition,  fees  from core  insurance
business also experienced growth.

Trust income increased $0.8 million, or 6.6 percent,  for the quarter ended June
30, 2000,  compared with 1999 and increased $2.7 million,  or 10.9 percent,  for
the six months then ended,  compared  with the same period a year ago.  This was
generally due to an increase in investment  advisory  fees,  including  advisory
fees from the Pillar Funds, Summit Bancorp's proprietary mutual funds.

Retail investment fees increased $0.2 million,  or 2.0 percent,  for the quarter
ended June 30, 2000,  compared  with 1999 and increased  $2.8  million,  or 13.4
percent, for the six months ended June 30, 2000, compared with the same period a
year ago. This growth was a result of increased  brokerage  fees  resulting from
higher trading volumes, as well as increased fees from the sale of annuities.

Other income,  which primarily consists of ATM fees,  international  fees, other
fees, and gains on sales of assets, increased $4.8 million, or 29.3 percent, for
the three months  ended June 30, 2000,  compared  with 1999 and  decreased  $0.4
million,  or 1.1 percent,  for the six months ended June 30, 2000, compared with
the same period a year ago.  The  increase  for the three  months ended June 30,
2000 was  attributable  to the sale of $157.0 million in residential  mortgages,
which  generated a gain of $3.5  million.  The decrease for the six month period
ended June 30,  2000,  is  primarily  due to a net gain of $5.9 million from the
sale of a $33.0  million  credit  card  portfolio,  which  occurred in the first
quarter of 1999.


                                       16
<PAGE>


Non-interest Expense

Non-interest  expense  categories for the three and six month periods ended June
30, 2000, and 1999 are shown in the following table:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
(In millions)                                     Three Months Ended June 30,           Six Months Ended June 30,
------------------------------------------------------------------------------------------------------------------------
                                                                     Percent                                 Percent
                                                   2000      1999     Change          2000         1999       Change
------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>       <C>          <C>        <C>            <C>           <C>
Salaries                                        $  93.4   $  82.6      13.1 %     $ 181.4        $ 162.9       11.3 %
Pension and other employee benefits                32.3      29.1      10.8          62.6           59.1        5.8
Furniture and equipment                            25.5      22.5      13.2          51.0           45.0       13.3
Occupancy, net                                     21.4      19.3      11.1          43.5           39.1       11.3
Amortization of goodwill and other                  9.9       6.5      53.2          18.9           12.4       53.3
Communications                                      9.4       9.7      (3.0)         18.9           19.3       (2.0)
Advertising and Public Relations                    6.2       5.9       4.5          12.3           11.5        7.7
Other                                              39.0      31.6      23.4          77.4           63.4       22.0
------------------------------------------------------------------------------------------------------------------------
Total non-interest expense                     $  237.1   $ 207.2      14.4 %     $ 466.0        $ 412.7       12.9 %
========================================================================================================================
</TABLE>

Salaries and benefits increased $14.0 million, or 12.5 percent,  for the quarter
ended June 30, 2000,  compared to the same quarter in 1999 and $21.9 million, or
9.9  percent  for the six months  ended June 30,  2000,  compared  with the same
period a year ago. In  addition  to the annual  merit  increases,  salaries  and
benefits rose  approximately $7.6 million from acquisitions for the three months
ended June 30,  2000,  and $13.0  million for the  six-month  period then ended.
Partially  offsetting these increases was the benefit of the fourth quarter 1999
corporate  realignment  which  resulted  in a  reduction  of  approximately  260
employees. The increase is primarily a result of acquisitions (NMBT Corp., Prime
Bancorp and Meeker Sharkey  Financial Group) partially offset by the decline due
to the corporate realignment.

Furniture and equipment  expenses increased $3.0 million,  or 13.2 percent,  for
the quarter ended June 30, 2000, compared with the same quarter in 1999 and $6.0
million, or 13.3 percent,  for the six months ended June 30, 2000, compared with
the same period a year ago.  This  increase was primarily due to the recent bank
acquisitions and increased  amortization  expense relating to computer equipment
and software.

Occupancy expense increased $2.1 million, or 11.1 percent, for the quarter ended
June 30, 2000,  compared with the same quarter in 1999 and $4.4 million, or 11.3
percent, for the six months ended June 30, 2000, compared with the same period a
year ago. The increase was largely a result of recent bank acquisitions.

Amortization  of  goodwill  and  intangibles  increased  $3.4  million,  or 53.2
percent, for the three months ended June 30, 2000, compared to the same period a
year ago and $6.6 million,  or 53.3  percent,  for the six months ended June 30,
2000,  compared  with the same period a year ago.  The  increase  was due to the
purchase acquisitions of Prime Bancorp, New Canaan Bank & Trust Company,  Meeker
Sharkey Financial Group, and NMBT.

Other  expenses  increased $7.4 million,  or 23.4 percent,  for the three months
ended June 30, 2000,  compared with the same quarter in 1999 and $14.0  million,
or 22.0 percent,  for the six months ended June 30, 2000, compared with the same
period a year ago.  This was a result of increased  consultant  fees,  increased
second mortgage servicing fees resulting from home equity purchases, an increase
in  commissions  due to  increased  sales of  insurance  and  retail  investment
products, and an increase in charge offs. Also contributing to the increase were
higher  employment  agency  fees due to a tight  labor  market and  recent  bank
acquisitions.  Included in other  expenses were legal and  professional  fees of
$10.7  million for the three month period ended June 30, 2000,  compared to $9.0
million for the same quarter in 1999.

The  effective  income tax rate was 34.0 percent for the three months ended June
30,  2000,  compared  with 33.4  percent  for the same  quarter in 1999 and 33.9
percent for the six months ended June 30, 2000,  compared  with 34.0 percent for
the same period a year ago.


                                       17
<PAGE>

LINES OF BUSINESS

For management purposes, Summit Bancorp is segmented into the following lines of
business: Retail Banking, Corporate Banking and The Private Bank. Activities not
included in these lines are reflected in Other.  The lines have been  structured
according to the customer groups served. Financial performance of business lines
is monitored with an internal profitability measurement system. Line of business
information  is based on  management  accounting  practices  that conform to and
support the current management structure and is not necessarily  comparable with
similar  information  from any other financial  institution.  The  profitability
measurement  system uses  internal  management  accounting  policies that ensure
business line results reflect the underlying economics of each business line and
are compiled on a consistent basis.

Net income includes revenues and expenses directly  associated with each line in
addition to allocations of revenue earned and expenses incurred by support units
such as operations and technology.  Centrally  provided  corporate  services and
general  overhead are  allocated  on a per-unit  cost basis or on an "ability to
pay" basis related to each particular  business line's contribution to income. A
matched maturity funds transfer pricing methodology is employed to assign a cost
of funds to the earning  assets,  as well as a value of funds to the liabilities
of each  business  line.  The  provision  for loan losses is allocated  based on
management's assessment of the historical net charge off ratio for each business
segment.  Income taxes are allocated based upon the  consolidated  effective tax
rates,  after  consideration  of  certain  permanent  differences  that  may  be
allocated to a specific line of business.

The following tables summarize  results by lines of business as if operated on a
stand-alone  basis for the three  months and six months  ended June 30, 2000 and
1999.  Certain  prior period  information  has been restated to conform with the
current period presentation.

<TABLE>
<CAPTION>
Results of Operations
Quarter Ended June 30,          Retail Banking     Corporate Banking   The Private Bank          Other          Consolidated
                                 ---------------------------------------------------------------------------------------------
(In millions)                   2000      1999      2000      1999      2000      1999       2000     1999      2000      1999
------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>       <C>        <C>       <C>       <C>       <C>       <C>       <C>      <C>       <C>
Net interest income             $213      $203       $84       $68       $17       $15       $30       $23      $344      $309
Provision for loan losses          7         9        18         7        --         1        --        --        25        17
                                 ---------------------------------------------------------------------------------------------
    Net interest income
      after provision for
      loan losses                206       194        66        61        17        14        30        23       319       292
Non-interest income               54        50        18        12        40        32         3         2       115        96
Non-interest expense             145       134        42        34        40        34        10         5       237       207
                                 ---------------------------------------------------------------------------------------------
    Income before taxes          115       110        42        39        17        12        23        20       197       181

Federal and state income          39        37        14        12         6         4         8         8        67        61
                                 ---------------------------------------------------------------------------------------------
Net income                       $76       $73       $28       $27       $11        $8       $15       $12      $130      $120
                                 =============================================================================================

Selected Average Balances:
Securities                   $    --       $55       $19       $--       $25       $11   $11,410   $10,486   $11,454   $10,552
Loans                         12,942    11,596     9,990     8,384     1,538     1,272        --        17    24,470    21,269
Assets                        13,312    11,963     9,997     8,362     1,674     1,364    13,312    11,988    38,295    33,677

Deposits                      22,680    20,668     1,133     1,007       900       770       844       843    25,557    23,288
</TABLE>


                                       18

<PAGE>


<TABLE>
<CAPTION>
Results of Operations
Six Months Ended June 30,         Retail Banking     Corporate Banking    The Private Bank          Other         Consolidated
                                  ----------------------------------------------------------------------------------------------
(In millions)                     2000      1999      2000      1999      2000      1999        2000     1999      2000    1999
                                  ----------------------------------------------------------------------------------------------
<S>                               <C>       <C>       <C>       <C>        <C>       <C>       <C>       <C>      <C>       <C>
Net interest income               $424      $402      $161      $135       $32       $29       $63       $48      $680      $614
Provision for loan losses           15        19        29        13         1         1        --        --        45        33
                                  ----------------------------------------------------------------------------------------------
    Net interest income after
      provision for loan losses    409       383       132       122        31        28        63        48       635       581

Non-interest income                103       105        34        24        77        62         3         3       217       194
Non-interest expense               285       267        85        68        75        65        21        13       466       413
                                  ----------------------------------------------------------------------------------------------
    Income before taxes            227       221        81        78        33        25        45        38       386       362
Federal and state income taxes      78        76        26        25        11         8        16        14       131       123

                                  ----------------------------------------------------------------------------------------------
Net income                        $149      $145       $55       $53       $22       $17       $29       $24      $255      $239
                                  ==============================================================================================

Selected Average Balances:
Securities                         $--       $55       $15       $--       $20       $11   $11,339   $10,308   $11,374   $10,374
Loans                           12,702    11,708     9,745     8,246     1,506     1,253        --        11    23,953    21,218
Assets                          13,073    12,076     9,748     8,227     1,626     1,343    13,130    11,773    37,577    33,419
Deposits                        22,182    20,331     1,139     1,005       868       753       879       982    25,068    23,071

</TABLE>


Retail Banking

Retail  Banking  sells and  delivers  retail  banking  products  and services to
individuals  and  small  businesses   through  more  than  400  traditional  and
approximately 80 supermarket branches in New Jersey,  eastern Pennsylvania,  and
Connecticut.  In addition to traditional banking services, Retail Banking offers
its  customers  an  expanding   array  of  24-hour  banking   services   through
approximately 600 automated teller machines,  telephone banking centers, and the
Internet.  It also  includes a broad  selection  of small  business and consumer
loans, deposit products,  and a complete range of full-service  mortgage banking
activities.

Average loans for the three months ended June 30, 2000,  increased $1.3 billion,
or 11.6 percent, to $12.9 billion from the same period in 1999, primarily due to
home equity loan  purchases  and  increases  in the  utilization  of home equity
credit lines. Total average deposits for the second quarter of 2000 increased to
$22.7 billion,  up $2.0 billion from a year ago. This increase was  attributable
to the  growth in the  Summit  Navigator  Account  and  retail  certificates  of
deposit.  Net interest  income for the quarter  increased  $10  million,  or 4.9
percent,  over  last  year,  primarily  due to  loan  growth.  The  increase  in
non-interest income of $4 million is primarily  attributable to loan and deposit
fee income.  Non-interest expenses for the quarter increased $11 million, or 8.2
percent,  over  last  year,  primary  due  to  salaries,   other  expenses,  and
acquisitions.  Net income for the  quarter  was $76  million,  an increase of $3
million, or 4.1 percent, from the prior year.

Corporate Banking

Corporate  Banking  provides  a full  array of  commercial  financial  services,
including asset-based lending,  international trade services, equipment leasing,
real estate financing, private placement, mezzanine financing, aircraft lending,
correspondent  banking,  treasury services,  and structured finance.  Demand and
interest-bearing  deposit  accounts and services are provided through the branch
network.

Total average loans for the quarter ended June 30, 2000, were $10.0 billion,  an
increase  of $1.6  billion,  or 19.2  percent,  over  the  same  period  in 1999
primarily in commercial and industrial, syndicated loans and the food, media and
large corporate  portfolios.  Net interest income for the second quarter of 2000
increased  $16 million,  or 23.5  percent,  from 1999,  driven  primarily by the
increase in average  loans.  Partially  offsetting  the loan increase was an $11
million  increase in the provision for loan losses.  This was  attributed to the
increase in the level of charge offs and loan  growth.  Non-interest  income for
the quarter ended June 30, 2000, increased $6 million, or 50.0 percent, from the
prior  year  due to an  increase  in loan  and  deposit  fee  income  as well as
additional capital market fee


                                       19
<PAGE>

income.  Non-interest  expense  increased  $8 million over the prior year to $42
million due to higher salaries and benefits expense.  Net income was $28 million
for the three  months  ended June 30,  2000,  an increase of $1 million,  or 3.7
percent, from the same period a year ago.

The Private Bank

The Private Bank provides  personal credit services,  professional  services for
lawyers and accountants as well as their firms,  and business loans and lines of
credit. This segment also includes investment services that provide a full range
of  trust,   administrative,   and  custodial   services  to   individuals   and
institutions,  in addition to  investment  products and discount  brokerage.  In
addition, the line markets a wide variety of insurance products for the personal
and corporate marketplace.

Net interest income for the quarter increased $3 million, or 37.5 percent,  from
1999  primarily due to higher loan  volumes.  Non-interest  income  increased $8
million,  or 25.0  percent,  from the same period a year ago. This was primarily
due to a $5.7 million,  or 68.2 percent,  increase in insurance  service fees, a
$0.9 million,  or 8.4 percent,  increase in retail  investment  fees, and a $0.8
million, or 6.6 percent, increase in trust income. The acquisition of the Meeker
Sharkey  Financial Group  contributed  $5.7 million of insurance  income for the
quarter. In addition, the growth in retail investment fees were primarily due to
increased  brokerage  fees  resulting  from  higher  trading  volumes as well as
increased fees from sales of annuity products.  The $6 million, or 17.7 percent,
increase in expenses is due to increases in salaries and commissions  related to
the increased sale of trust,  retail  investment,  and insurance  products.  Net
income for the quarter was $11 million, up $3 million,  or 37.5 percent,  from a
year ago.


Other

Other includes the treasury  function which is responsible for managing interest
rate risk and the  investment  portfolios.  In  addition,  certain  revenues and
expenses not  considered  allocable to a line of business are  reflected in this
area.

Net interest income increased $7 million, or 30.4 percent,  from 1999, primarily
due to growth in the securities portfolio. Securities averaged $11.4 billion for
the second  quarter of 2000,  up $0.9  million,  or 8.8 percent,  from the prior
year.  Net income was up for the quarter $3  million,  or 25.0  percent,  to $15
million when compared to the same quarter the prior year.

LIQUIDITY

Liquidity is the ability to support asset growth while  satisfying the borrowing
needs and deposit withdrawal  requirements of customers.  Traditional sources of
liquidity  include asset maturities,  asset  repayments,  and deposit growth. In
addition,  borrowed funds  represent  another major source of funding.  The bank
subsidiaries have established  borrowing  relationships  with the FHLB and other
correspondent banks which further support and enhance liquidity. Summit Bank, NJ
and Summit  Bank,  PA  executed  a  distribution  agreement  in  November  1998,
providing  for the  possible  issuance  of senior  and  subordinated  notes to a
maximum of $3.75 billion on an  underwritten  or agency basis.  Through June 30,
2000, no funds have been drawn from this source.

Liquidity is also important at the Parent  Corporation in order to provide funds
for operations and to pay dividends to  shareholders.  Parent  Corporation  cash
requirements  are met primarily  through  management fees and dividends from its
subsidiaries  and the  issuance  of short  and  long-term  debt.  The  amount of
dividends  that can be assessed to the bank  subsidiaries  is subject to certain
regulatory restrictions. Lines of credit are available at the Parent Corporation
to support  commercial  paper  borrowings  and for general  corporate  purposes.
Interest on these lines of credit  approximates  the prime  lending  rate at the
time of  borrowing.  Unused  lines  amounted to $33.0  million at June 30, 2000.
During 1999, a shelf registration statement providing for the possible issuance,
from time to time,  of senior and  subordinated  debt  securities  and preferred
stock to a maximum of $1.0 billion was declared  effective by the Securities and
Exchange  Commission.  Terms  of the  securities  will  be set  at the  time  of
issuance.  As of June 30, 2000,  none of this debt or  preferred  stock had been
issued.

Liquidity  management  includes  monitoring current and projected cash flows, as
well as economic forecasts for the industry. A liquidity  contingency plan is in
place which is designed to effectively  manage potential  liquidity concerns due
to changes in interest rates, credit markets, or other external risks.


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<PAGE>

The  Consolidated  Statements  of Cash Flows  present the change in cash and due
from banks from operating,  investing and financing activities. During the first
six months of 2000,  net cash provided by operating  activities  totaled  $262.9
million.  Contributing  to net cash  provided by operating  activities  were the
results of  operations,  plus noncash  expenses,  and proceeds from the sales of
mortgages held for sale.  Partially  offsetting the  contributions  to operating
cash were  funds used to  originate  mortgage  loans  held for sale and  noncash
revenues.

Net cash used in investing  activities totaled $2.2 billion.  For the six months
ended June 30, 2000,  net cash used in  transactions  involving  the  investment
portfolios totaled $0.4 million,  while the loan portfolio used net cash of $1.6
million.

Scheduled  maturities and anticipated  principal repayments of the available for
sale and held to maturity securities  portfolios will approximate $886.1 million
throughout  the  balance  of 2000.  In  addition,  all or part of the  remaining
securities  available  for sale  could  be sold,  providing  another  source  of
liquidity.  These  sources  can also be used to meet the  funding  needs  during
periods of loan growth.

Net cash provided by financing activities totaled $1.9 billion. During the first
six months of 2000,  other  borrowed  funds and long-term  debt  increased  $1.0
billion and deposits  increased  $1.1 billion.  These  increases  were partially
offset by the  payment of common  stock  dividends  and the  purchase  of Summit
Bancorp's common stock.

LOOKING AHEAD

This report contains  certain  forward-looking  statements,  either expressed or
implied,  which are  provided  to assist  the reader to  understand  anticipated
future financial performance.  These forward-looking  statements involve certain
risks, uncertainties, estimates and assumptions made by management.

One of Summit  Bancorp's  primary  objectives is to achieve  balanced  asset and
revenue  growth,  and at the same time expand market  presence and diversify the
line of financial products. However, it is recognized that objectives, no matter
how focused,  are subject to factors  beyond the control of Summit Bancorp which
can impede our ability to achieve these goals.

Factors that may cause actual results to differ from those results  expressed or
implied  include,  but are not limited to, the interest rate environment and the
overall  economy,  the  ability of  customers  to repay their  obligations,  the
adequacy of the  allowance  for loan  losses,  including  realizable  collateral
valuations,  charge offs and  recoveries,  the progress of integrating  acquired
financial   institutions,   competition  and  technological  changes.   Although
management has taken certain steps to mitigate any negative  effect of the above
mentioned  items,  significant  unfavorable  changes could  severely  impact the
assumptions used and have an adverse affect on profitability.





                                       21
<PAGE>


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Due to the nature of Summit Bancorp's business, market risk is primarily limited
to its  exposure to  interest  rate risk,  which is the impact  that  changes in
interest  rates  would  have on future  earnings.  The  principal  objective  in
managing  interest  rate risk is to  maximize  net  interest  income  within the
acceptable  levels of risk  established  by policy.  This risk can be reduced by
various  strategies,  including  the  administration  of  liability  costs,  the
reinvestment  of asset  maturities  and the use of off-balance  sheet  financial
instruments.

Interest  rate  risk  is  monitored  through  the  use  of  simulation  modeling
techniques which apply alternative interest rate scenarios to periodic forecasts
of future  business  activity and  estimate  the related  impact to net interest
income.  The use of simulation  modeling  assists  management in its  continuing
efforts to achieve earnings growth in varying interest rate environments.

Key assumptions in the model include anticipated prepayments on mortgage-related
instruments,  contractual cash flows and maturities of all financial instruments
including   derivatives,   anticipated   future   business   activity,   deposit
sensitivity, and changes in market conditions.  Selected core deposit rates have
not been changed based on the results of analysis of historical rate movements.

These assumptions are inherently uncertain and, as a result, these models cannot
precisely  estimate the impact that higher or lower rate  environments will have
on net interest income. Actual results will differ from simulated results due to
the timing,  magnitude,  and frequency of interest rate changes, changes in cash
flow  patterns  and  market  conditions,  as well  as  changes  in  management's
strategies.

Based on the results of the  interest  simulation  model,  as of June 30,  2000,
Summit  Bancorp  would expect a decrease of  approximately  $81.3 million in net
interest income and an increase of  approximately  $71.1 million in net interest
income if interest rates increase or decrease by 100 basis points, respectively,
from  current  interest  rates  in  an  immediate  and  parallel  shock  over  a
twelve-month period. At December 31, 1999, Summit Bancorp expected a decrease of
$66.5  million in net  interest  income and an increase of $74.2  million in net
interest  income if interest  rates  increased or decreased by 100 basis points,
respectively. The interest simulation model does not include asset and liability
strategies  that  could be  deployed  to  mitigate  the impact of changes in the
interest rate environment.

Interest rate risk management efforts also involve the use of certain derivative
financial  instruments,  primarily  interest  rate  swaps,  for the  purpose  of
stabilizing net interest income in a changing interest rate environment. At June
30, 2000, the notional values of these instruments totaled $205.0 million. These
derivatives  resulted in a reduction in net interest  income of $0.4 million for
the first six months of 2000. The cost to terminate  these contracts at June 30,
2000, would have been $0.6 million.

Summit Bancorp has limited risks associated with foreign currencies, commodities
or other marketable instruments.














                                       22
<PAGE>


PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS

Based upon advice of Summit's  attorneys,  management  does not believe that the
ultimate  disposition  of the  litigation  discussed  below will have a material
adverse effect on the financial position and results of operation of the company
and its subsidiaries, taken as a whole.

5. John Baker,  Margaret Baker,  Elaine  Coopersmith,  and Arnold Coopersmith on
behalf of themselves and all others  similarly  situated v. Summit Bank,  United
States District Court for the Eastern District of Pennsylvania, Civil Action No.
CV-2010, filed April 21, 1999.



Last  reported on Form 10-K for the period ended  December 31, 1999.  Plaintiffs
have  furnished  expert  reports  addressing  the  issues of  Summit  Bank PA, a
subsidiary of Summit Bancorp,  liability and damages allegedly  sustained by the
class  members.  Plaintiff's  damages  expert has opined that the loss allegedly
sustained  by the class is $32.5  million,  including  principal  and  interest.
Summit  Bank PA is  vigorously  defending  this  case and has  retained  its own
experts to address the plaintiff's expert reports.


ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.

Not applicable.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 Not applicable.

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

Not applicable.

ITEM 5. OTHER INFORMATION.

Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  Exhibits

                  (27) Summit Bancorp. Financial Data Schedule - June 30, 2000.

     (b)  Reports on Form 8-K
                  Not applicable.












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<PAGE>


                                    SIGNATURE



     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.




                                           SUMMIT BANCORP
                                           Registrant



        DATE: August 14, 2000 by:          /s/ PAUL V. STAHLIN
                                           PAUL V. STAHLIN
                                           Senior Vice President, Comptroller
                                           and Principal Accounting Officer
                                           (Duly Authorized Officer)





















                                       24
<PAGE>


                                  EXHIBIT INDEX


  Exhibit No.                            Description


     (27)            Summit Bancorp. Financial Data Schedule - June 30, 2000.





























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