SECURITIES AND
EXCHANGE COMMISSION WASHINGTON, D.
C.   20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  FOR QUARTER ENDED:
  MARCH 31, 2001COMMISSION FILE NUMBER:
  0-11108SUMMIT BANCSHARES, INC.STATE OF CALIFORNIA
  I.R.S. IDENTIFICATIONNUMBER 
  94-2767067
  2969 BROADWAY, OAKLAND CALIFORNIA   94611
  (510)  
  839-8800
  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. YESxNOo The number of shares outstanding of the
registrant's common stock was 459,387 shares of no par value common stock as of
March 31, 2001    PARTI - FINANCIAL INFORMATION

ITEM 1SUMMIT
  BANCSHARES, INC. AND SUBSIDIARY FINANCIAL STATEMENTSConsolidated
  Statements of Financial ConditionConsolidated
  Statements of IncomeConsolidated
  Statement of Cash FlowsConsolidated
  Statement of Changes in Shareholders EquityNotes to
  Financial StatementsInterest
  Rate Risk Reporting ScheduleITEM 2Management's
  Discussion and Analysis of Financial Condition and Results of OperationsPART II - OTHER
  INFORMATIONITEMS 1-6ITEM 3Quantitative
  and Qualitative Disclosure About Market RiskITEM 1


SUMMIT BANCSHARES, INC. AND
SUBSIDIARY CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2000 AND MARCH 31, 2001


Unaudited
  UnauditedASSETS
  12/31/00
  03/31/01Cash and due from banks
  $10,754,372
  $6,982,567Federal funds sold
  8,055,000
  34,520,000Cash and cash equivalents
  18,809,372
  41,502,567Time deposits with other financial institutions
  26,349,023
  21,846,856Investments held to maturity, at cost (fair value of $12,450,018 at
  December 31, 2000 and $4,008,250 at March 31, 2001)
  12,465,000
  4,000,000Loans
  85,184,875
  81,507,816Less: allowance for loan
  losses
  1,468,393
  1,565,393Net Loans
  83,716,482
  79,942,423Other real estate owned
  0
  0Premises and equipment, net
  726,236
  682,576Interest receivable and other assets
  3,636,418
  4,238,703Total Assets
  $145,702,531
  $152,213,125LIABILITIES AND SHAREHOLDERS'
  EQUITYDeposits:Demand
  $43,685,937
  $36,829,010Interest-bearing transaction accounts
  41,551,449
  54,917,935Savings
  2,993,922
  3,198,952Time certificates $100,000 and over
  32,071,157
  30,099,524Other time certificates
  7,784,304
  8,549,552Total Deposits
  128,086,769
  133,594,973Interest payable and other liabilities
  780,638
  1,147,253Total Liabilities
  128,867,407
  134,742,226Shareholders'
  EquityPreferred Stock, no par value:2,000,000 shares authorized,
  no shares outstanding
  0
  0Common Stock, no par value:3,000,000 shares authorized;
  459,387 shares outstanding at December 31, 2000 and March 31, 2001
  3,699,018
  3,699,018Retained Earnings
  13,136,106
  13,771,881Total Shareholders' Equity
  16,835,124
  17,470,899Total Liabilities and Shareholders' Equity
  $145,702,531
  $152,213,125The
accompanying notes are an integral part of these consolidated financial
statements

SUMMIT BANCSHARES, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS
OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 2001

Unaudited
  UnauditedTHREE MONTHS
  THREE MONTHSENDED 3-31-00
  ENDED 3-31-01INTEREST INCOME:Interest and fees on loans
  $1,579,891
  $2,294,146Interest on time deposits with other financial institutions
  387,447
  391,851Interest on U.S. government treasury securities
  267,047
  111,864Interest on federal funds sold
  251,297
  331,051Total interest income
  2,485,682
  3,128,912INTEREST EXPENSE:Interest on deposits
  614,743
  863,719Total interest expense
  614,743
  863,719Net interest income
  1,870,939
  2,265,193Provision for loan losses
  -
  97,000Net interest income after provision for loan losses
  1,870,939
  2,168,193NON-INTEREST INCOME:Service charges on deposit accounts
  61,150
  55,121Other customer fees and charges
  30,476
  34,144Total non-interest income
  91,626
  89,265NON-INTEREST EXPENSE:Salaries and employee benefits
  658,820
  711,973Occupancy expense
  101,422
  108,177Equipment expense
  65,209
  57,636Other
  275,897
  285,890Total non-interest expense
  1,101,348
  1,163,676Income before income taxes
  861,217
  1,093,782Provision for income taxes
  359,319
  458,007Net Income
  $501,898
  $635,775EARNINGS PER SHARE:Earnings per common share
  $1.10
  $1.38Earnings per common share assuming dilution
  $1.08
  $1.37Weighted average shares outstanding
  457,699
  459,387Weighted avg. shrs. outsdg. assuming dilution
  465,286
  465,543The
accompanying notes are an integral part of these consolidated financial
statements

SUMMIT BANCSHARES, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH
FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND  2001(UNAUDITED)

THREE MONTHS
  THREE MONTHSENDED 3-31-00
  ENDED 3-31-01CASH FLOWS FROM OPERATING
  ACTIVITIES:Interest received
  $2,438,557
  $2,479,642Fees received
  379,035
  268,559Interest paid
  (613,014)
  (854,302)Cash paid to suppliers and employees
  (909,424)
  (885,151)Income taxes paid
  (326,000)
  (473,764)Net cash provided by operating activities
  969,154
  534,984CASH FLOWS FROM INVESTING
  ACTIVITIES:(Increase) decrease in time deposits with other financial institutions
  (3,373,716)
  4,502,167Maturity of investment securities
  32
  8,465,000Net (increase) decrease in loans to customers
  (2,799,959)
  3,690,938(Increase) decrease in premises and equipment
  (213,064)
  (8,098)Net cash provided by (used in) investing activities
  (6,386,707)
  16,650,007CASH FLOWS FROM FINANCING
  ACTIVITIES:Increase (decrease) in demand, interest bearing transaction, and
  savings deposits
  4,748,266
  6,714,589Net increase (decrease) in time deposits
  725,488
  (1,206,385)(Increase) decrease in other assets
  (924,750)
  0Repurchase of common stock
  (44,990)
  0Net cash provided by (used in) financing activities
  4,504,014
  5,508,204Net increase (decrease) in cash and cash equivalents
  (913,539)
  22,693,195Cash and cash equivalents at the beginning of the year
  27,635,500
  18,809,372Cash and cash equivalents at the end of the year
  $26,721,961
  $41,502,567RECONCILIATION OF NET INCOME TO
  NET CASH PROVIDED BY OPERATING ACTIVITIES:Net Income
  $501,898
  $635,775Adjustments to reconcile net income to net cash provided by operating
  activities:Depreciation and amortization
  69,713
  51,758Provision for loan losses and OREO losses
  0
  97,000(Increase) decrease in interest receivable & other assets
  57,310
  (602,285)Increase (decrease) in unearned loan fees
  181,875
  (13,879)Increase (decrease) in interest payable & other liabilities
  158,358
  366,615Total adjustments
  467,256
  (100,791)Net cash provided by operating activities
  $969,154
  $534,984The
accompanying notes are an integral part of these consolidated financial
statements

SUMMIT BANCSHARES, INC. AND
SUBSIDIARY CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE MONTHS ENDED
MARCH 31, 2000 AND 2001(UNAUDITED)

NUMBER  OFSHARESOUTSTANDING
  COMMONSTOCK
  RETAINEDEARNINGS
  TOTALBalance at December 31, 1999
  458,021
  $3,741,924
  $11,411,204
  $15,153,128Stock Options Exercised
  0
  -
  -
  0Repurchase of Common Stock
  (1,160)
  (44,990)
  0
  (44,990)Net Income
  0
  0
  501,898
  501,898Balance at March 31, 2000
  456,861
  3,696,934
  11,913,102
  15,610,036Balance at December 31, 2000
  459,387
  3,699,018
  13,136,106
  16,835,124Net Income
  0
  0
  635,775
  635,775Balance at March 31, 2001
  459,387
  $3,699,018
  $13,771,881
  $17,470,899

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

1. CONSOLIDATED FINANCIAL
STATEMENTS

In
the opinion of management, the unaudited interim consolidated financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the Company's financial position at
March 31, 2001 and the results of operations for the three months ended March
31, 2001 and 2000 and cash flows for the three months ended March 31, 2001 and
2000.

Certain
information and footnote disclosures presented in the Company's annual
consolidated financial statements are not included in these interim financial
statements. Accordingly, the accompanying unaudited interim consolidated
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's 2000 Annual
Report to Shareholders, which is incorporated by reference in the Company's
2000 annual report on Form 10-K. The results of operations for the three months
ended March 31, 2001 are not necessarily indicative of the operating results
for the full year.

2.COMPREHENSIVE INCOME

The
Company had no items of other comprehensive income for the three month period
ended March, 2001 and 2000. 
Accordingly, total comprehensive income was equal to net income for each
of those periods

3.SEGMENT REPORTING

The
Company is principally engaged in community banking activities through the four
banking offices of its subsidiary bank. 
The community banking activities include accepting deposits, providing
loans and lines of credit to local individuals and businesses, investing in
investment securities and money market instruments.  The four banking offices have been aggregated into a single
reportable segment.  Because the
Companys financial information is internally evaluated as a single operating
segment, no separate segment information is presented.  The combined results are reflected in these
financial statements.

4.EARNINGS PER SHARE

The
following table reconciles the numerator and denominator of the basic and
diluted earnings per share computations:

Net Income
  Weighted
  Per ShareAvg. Shares
  AmountFor
  the quarter ended March 31, 2001Basic Earnings per
  share
  $636
  459,387
  $1.38Stock Options
  
  6,156Diluted Earnings per
  share
  $636
  465,543
  $1.37Net Income
  Weighted
  Per ShareAvg. Shares
  AmountFor
  the quarter ended March 31, 2000Basic Earnings per
  share
  $502
  457,699
  $1.10Stock Options
  
  7,587Diluted Earnings per
  share
  $502
  465,286
  $1.08For
the periods reported, the Company had no reconciling items between net income
and income available to common shareholders.

5.NEW ACCOUNTING PROUNOUNCEMENTS

The Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 133 (SFAS 133), Accounting for
Derivative Instruments and Hedging Activities, as amended by SFAS 138,
establishes accounting and reporting standards requiring that every derivative
instrument (including certain derivative instruments embedded in other
contracts) be recorded in the balance sheet as either an asset or liability
measured at its fair value. The Company adopted SFAS 133 on January 1,
2001.  The implementation of this
statement did not have a material impact on the Companys financial position or
result of operations.

INTEREST RATE SENSITIVITY/INTEREST RATE RISK ANALYSIS

The
following table provides an interest rate sensitivity and interest rate risk
analysis for the quarter ended March 30, 2001. The table presents each major
category of interest-earning assets and interest bearing-liabilities.

INTEREST
  RATE RISK REPORTING SCHEDULEREPORTING INSTITUTION:  SUMMIT BANK
  
  
  
  REPORTING DATE: 3-31-00REMAINING TIME BEFORE MATURITY OR INTEREST RATE
  ADJUSTMENT($000.00)
  OMITTEDTOTAL
  UP3
  >3
  <1
  >1
  <3
  >3
  <5
  >5
  <10
  OVER
  10 YEARSI.
  
  EARNING ASSETSA.
  INVESTMENTS:1.
  U. S. TREASURIES
  $0
  $0
  $0
  $0
  $0
  $0
  $02.
  U. S. AGENCIES
  4,000
  3,000
  1,000
  0
  0
  0
  03.
  FED FUNDS SOLD
  34,520
  34,520
  0
  0
  0
  0
  04.
  PURCHASED CDS
  21,847
  7,129
  3,851
  10,867
  0
  0
  0TOTAL INVESTMENTS
  $60,367
  $44,649
  $4,851
  $10,867
  $0
  $0
  $0B.
  LOANS
  $78,157
  $61,474
  $1,665
  $1,709
  $6,570
  $6,739
  $0TOTAL LOANS
  $78,157
  $61,474
  $1,665
  $1,709
  $6,570
  $6,739
  $0C.
  TOTAL EARNING ASSETS
  $138,524
  $106,123
  $6,516
  $12,576
  $6,570
  $6,739
  $0II.
  
  COST OF FUNDS (DEPOSITS)A.
  CERTIFICATE OF DEPOSITS
  $38,649
  $26,471
  $12,045
  $133
  $0
  $0
  $0B.
  MONEY MARKET ACCOUNTS
  49,704
  6,778
  19,110
  23,816
  0
  0
  0C.
  TRANSACTION ACCOUNTS
  6,844
  295
  885
  2,334
  1,678
  1,692
  0D.
  SAVINGS ACCOUNTS
  3,199
  137
  411
  1,084
  780
  786
  0TOTAL COST OF FUNDS
  $98,396
  $33,681
  $32,451
  $27,367
  $2,458
  $2,478
  $0III.
  
  INTEREST SENSITIVE ASSETS
  $138,524
  $106,123
  $6,516
  $12,576
  $6,570
  $6,739
  $0IV.
  
  INTEREST SENSITIVE LIABILITIES
  $98,436
  $33,681
  $32,451
  $27,368
  $2,458
  $2,479
  $0V.
  
  GAP
  $40,088
  $72,442
  ($25,935)
  ($14,792)
  $4,112
  $4,260
  $0VI.
  
  CUMULATIVE GAP
  $40,088
  $72,442
  $46,507
  $31,716
  $35,828
  $40,088
  $40,088VII.
  
  GAP RATIO
  1.41
  3.15
  0.20
  0.46
  2.67
  2.72VIII.
  
  CUMULATIVE RATIO
  1.41
  3.15
  1.70
  1.34
  1.37
  1.41
  1.41IX.
  
  GAP AS A % OF TOTAL ASSETS
  26.98
  48.75
  -17.45
  -9.95
  2.77
  2.87
  0.00X.
  
  CUMULATIVE GAP AS A % OF TOTAL ASSETS
  26.98
  48.75
  31.30
  21.34
  24.11
  26.98
  26.98ITEM2.

MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS
ENDED MARCH 31, 2001

The
registrant, Summit Bancshares, Inc. (the Company) is a bank holding company
whose only operating subsidiary is Summit Bank (the Bank).  The following discussion primarily concerns
the financial condition and results of operations of the Company on a
consolidated basis including the subsidiary Bank.  All adjustments made in the compilation of this information are
of a normal recurring nature.

FINANCIAL CONDITION

Liquidity Management

The
consolidated loan-to-deposit ratio at March 31, 2001 was 61.0% which was an
increase from 46.8% for the same period in 2000.  Total outstanding loans as of March 31, 2001 increased
$21,531,000 compared to the same period a year ago while total deposits
increased $8,125,000 versus the same time last year.  The increase in loans and deposits was mainly due to Summits
effort in marketing its products and the formation of the Real Estate Capital
Markets Group.  The average
loan-to-deposit ratio at the end of the first quarter of 2001 was 65.1%, an
increase from 52.6% for the same period last year.  This increase was caused by an increase in average total deposits
of $4,420,000 or 3.6% while average total loans increased $18,357,000 or 28.1%.

One
of the Companys customers manages accounts for medical offices and
physicians.  This customer has brought
approximately 80 of the accounts they manage to the Company.  As of March 31, 2001 the aggregate monthly
average balance in these accounts was approximately $20,000,000.

This
customer has notified the Bank that due to the expiration of a contract, one of
the companies they manage funds for will be taking control of their own
accounts. This is expected to result in a decrease of interest bearing deposits
of approximately $17,000,000 as well as a corresponding decrease in federal
funds sold.

Net
liquid assets, which consists primarily of cash, due from banks,
interest-bearing deposits with other financial institutions, investment
securities and federal funds sold totaled $67,349,000 on March 31, 2001.  This amount represented 50.4% of total
deposits in comparison to the liquidity ratio of 61.8% as of March 31,
2000.  This decrease is primarily a
result of a rise in loan growth which caused a decrease in investments.  It is management's belief that the current
liquidity level is appropriate given current economic conditions and is
sufficient to meet current needs.

The
following table sets forth book value of investments by category and the
percent of total investments at the dates specified.

Investment
  Comparative($000.00
  Omitted)3-31-01
  %
  12-31-00
  %
  3-31-00
  %Fed funds sold
  $34,520
  57%
  $21,760
  32%
  $18,860
  27%Interest bearing
  deposits
  21,846
  36%
  27,889
  40%
  31,262
  45%Securities
  4,000
  7%
  19,465
  28%
  19,465
  28%Interest bearing deposits are comprised
of Time Certificates of Deposit with other banks and savings and loan
institutions with no more than $100,000 in any institution.

Securities on March 31, 2001 were
comprised of U.S. Govt agencies.

Changes in Financial Position

As of March 31, 2001, total deposits
increased $5,508,000 from December 31, 2000 while at the same time net loans
outstanding decreased $3,774,000.  Total
deposits as of March 31, 2001 were $133,595,000, an increase of 6.5% from
$125,470,000 as of March 31, 2000.  Net
loans as of March 31, 2001 were $79,942,000, an increase of 36.2% from
$58,703,000 as of March 31, 2000.

The following table sets forth the amount
of deposits by each category and the percent of total deposits at the dates
specified.



Deposit
  Comparative($000.00
  Omitted)3-31-01
  %
  12-31-00
  %
  3-31-00
  %Demand
  $36,829
  28%
  $43,685
  34%
  $46,492
  37%Savings
  3,199
  2%
  2,994
  2%
  2,664
  2%Interest bearing
  Trans. Deposits
  54,918
  41%
  41,551
  32%
  45,711
  36%Other time
  38,649
  29%
  39,855
  32%
  30,603
  25%The following table sets forth the amount
of loans outstanding by category and the percent of total loans outstanding at
the dates specified.



Loan
  Comparative($000.00
  Omitted)3-31-01
  %
  12-31-00
  %
  3-31-00
  %Commercial
  $33,224
  41%
  $28,027
  33%
  $32,624
  54%Real estateconst
  16,426
  20%
  18,032
  21%
  10,166
  17%Real estateother
  25,200
  31%
  31,635
  37%
  11,549
  19%Installment/other
  6,658
  8%
  7,491
  9%
  5,638
  10%Non-Performing Assets

The following table provides information
with respect to the Bank's past due loans and components for non-performing
assets at the dates indicated.

Non-Performing Assets($000.00 Omitted)3-31-01
  12-31-00
  3-31-00Loans
  90 days or more past  due & still
  accruing
  $145
  $45
  $0Non-accrual
  loans
  0
  0
  298Other
  real estate owned
  0
  0
  0Total
  non-performing assets
  $145
  $45
  $298Non-performing
  assets to period end loans plus  other
  real estate owned
  0.18%
  0.06%
  .50%Allowance
  to non-performing  loans
  1,079%
  3,263%
  427%Allowance
  to non-performing assets
  1,079%
  3,263%
  427%The Bank's policy is to recognize
interest income on an accrual basis unless the full collectibility of principal
and interest is uncertain.  Loans that
are delinquent 90 days as to principal or interest are placed on a non-accrual
basis, unless they are well secured and in the process of collection, and any
interest earned but uncollected is reversed from income. Collectibility is
determined by considering the borrower's financial condition, cash flow, quality
of management, the existence of collateral or guarantees and the state of the
local economy.

Other real estate owned (OREO) is
comprised of properties acquired through foreclosure.  These properties are carried at the lower of the recorded loan
balance or their estimated fair market value based on appraisal, less estimated
costs to sell.  When the loan balance
plus accrued interest exceeds the fair value of the property less disposal
costs, the difference is charged to the allowance for loan losses at the time
of foreclosure.  Subsequent declines in
value from the recorded amount, if any, and gains or losses upon disposition
are included in noninterest expense. 
Operating expenses related to other real estate owned are charged to
non-interest expense in the period incurred.

The increase in non-performing assets
from March 31, 2000 to March 31, 2001 is due primarily to an increase in loans
90 days past due of $100,000.

Capital Position

As of March 31, 2001, Shareholders'
Equity was $17,471,000. This represents an increase of $1,861,000 or 11.9% over
the same period last year.  Since the
inception of the stock repurchase program in 1989, the Company has authorized
the repurchase of $3,500,000 of its stock. 
As of March 31, 2001, the Company has repurchased a total of 167,170
shares of the Company stock constituting 31.1% of the Company's original stock
prior to the repurchase program, at a total cost of $2,667,714, or an average
price per share of $15.96. The Company plans to continue its repurchase program
as an additional avenue for liquidity for its shareholders.  The program has not significantly affected
the Company's liquidity or capital position or its ability to operate as the
Company's capital growth has exceeded its asset growth.  In addition, the Company's subsidiary Bank
remains more than well-capitalized under current regulations.

The following table shows the risk-based
capital and leverage ratios as well as the minimum regulatory requirements for
the same as of March 31, 2001:

Capital
  Ratio
  Minimum
  Regulatory requirementTier 1 Capital
  17.92%
  4.00%Total Capital
  19.16%
  8.00%Leverage Ratio
  12.05%
  4.00%RESULTS OF OPERATIONS

Net Interest Income

Total
interest income including loan fees increased from $2,486,000 for the first
three months of 2000 to $3,129,000 for the same period in 2001.

The
increase in loan income was due primarily to the increase in outstanding
loans.  Average outstanding loans
increased from $58,837,000 in 2000 to $83,760,000 in 2001.  The yield on loans increased from 10.80% in
2000 to 11.11% in 2001.

The
decrease in interest income from investments was in contrast to an increase in
yield of 73 basis points compared to the same period in 2000. Average total
investments were $12,091,000 lower than the same period last year due to the
increase in loans.  The return of
maturing investments were used to fund the loan increase.

Interest
expense increased from $615,000 at the end of the first three months of 2000 to
$864,000 in 2001.  This increase was due
to an increase in average interest-bearing deposit accounts of $13,385,000
during the first three months of 2001 versus the same period last year. The
average cost of funds for the period ending March 31, 2001 was 65 basis points
more than the same period last year.

As
a result of these factors, net interest margin for the first three months of
2001 was 6.20% compared to 5.81% for the same period last year.

Other Operating Income

Service
charges on deposit accounts as of the end of the first three months of 2001
decreased to $55,000 versus $61,000 for the same period in 2000.  The decrease was due to decreased fees
collected in service charges related to NSF fees on commercial accounts.

Other
customer fees and charges for the first three months increased $4,000.

Loan Loss Provision

The
allowance for loan losses is maintained at a level that management of the
Company considers adequate for losses that are inherent in the loan
portfolio.  The allowance is increased
by charges to operating expenses and reduced by net-charge-offs.  The level of the allowance for loan losses
is based on management's evaluation of losses in the loan portfolio, as well as
prevailing economic conditions.

Management
employs a systematic methodology on a monthly basis to determine the adequacy of
the allowance for current  loan
losses.  Each loan is graded at the time
of extension or renewal by the credit administrator.  Gradings are assigned a risk factor which is calculated to assess
the adequacy of the allowance for loan losses. 
Further, management considers other factors such as overall portfolio
quality, trends in the level of delinquent and classified loans, specific
problem loans, and current economic conditions.

The
following table summarizes the activity in the Banks allowance for credit
losses for the three months ended March 31, 2000 and 2001.

Three
  months ended(000.00
  Omitted)3/31/00
  3/31/01Balance, beginning of
  the period
  $1,273
  $1,468Provision for loan
  losses
  0
  97Loans Charged-off
  0
  0$1,273
  $1,565The balance in the
allowance for loan losses at March 31, 2001 was 1.96% of net loans compared to
2.17% of net loans at March 31, 2000.

Other Operating Expenses

Total other operating
expenses increased $62,000 as of the end of the first three months of 2001 compared
to the same period last year.  This
increase was primarily due to an increase in salary expense which was brought
about by the addition of employees to staff the Companys Real Estate Capital
Markets Group.

Provision for Income Taxes

The Company's provision
for income taxes as of the end of the first three months of 2001 increased from
$359,000 in 2000 to $458,000.  This
increase is attributable to increased income from regular business operations.
For the same period in 2001 the Company's total effective tax rate was 41.9%
compared to 41.7% in 2000.

Net Income

Net income for the first
three months of 2001 increased to $636,000 from $502,000 for the same period in
2000, or an increase of 26.7%.

ITEM 3.

QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK

Interest
rate and credit risks are the most significant market risks impacting the
Company's performance. Other types of market risk, such as foreign currency
exchanges rate risk and the commodity price risk, do not arise in the normal
course of the Company's business activities. The Company relies on loan
reviews, prudent loan underwriting standards and an adequate allowance for loan
losses to mitigate credit risk.

Interest
rate risk is managed by subjecting the Company's balance sheet to hypothetical
interest rate shocks. The Company's primary objective in managing interest rate
risk is to minimize the adverse impact of changes in interest rates on the
Company's net interest income and capital, while structuring the Company's
asset/liability position to obtain the maximum yield-cost spread on that
structure.

Rate
shock is an instantaneous and complete adjustment in market rates of various
magnitudes on a static or level balance sheet to determine the effect such a
change in rates would have on the Company's net interest income for the
succeeding twelve months, and the fair values of financial instruments.

Management
has assessed these risks and believes that there has been no material change
since December 31, 2000.

CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS

The primary factor which
may affect future results is the fluctuation of interest rates in the market
place more commonly referred to as interest rate risk.  Interest rate risk is the exposure of a
banks current and future earnings and equity capital arising from adverse
movements in interest rates.  It results
from the possibility that changes in interest rates may have an adverse effect
on a banks earnings and its underlying economic value.  Changes in interest rates affect a banks earnings
by changing its net interest income and the level of other interest-sensitive
income and operating expenses.  The
potential decrease in a declining interest rate environment would be minimized
by an increase in assets. In addition, earnings and growth of the company are
and will be affected by general economic conditions, both domestic and
international, and by monetary and fiscal policies of the United States
Government, particularly the Federal Reserve Bank.

PART II

  OTHER INFORMATIONITEM 1 
  LEGAL
  PROCEEDINGSNo material developments from that
  which was reported in the Form 10-K dated March 31, 2001 for the year ended
  December 31, 2000ITEM 2 
  CHANGES
  IN SECURITIES AND USE OF PROCEEDSNoneITEM 3 
  DEFAULTS
  UPON SENIOR SECURITIESNoneITEM 4 
  SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERSNoneITEM 5 
  OTHER
  INFORMATIONNoneITEM 6 
  EXHIBITS
  AND REPORTS ON FORM 8-K(a)   Exhibits(b)  Reports on Form 8-K      None

SIGNATURES

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

SUMMIT BANCSHARES, INCRegistrantDATE:              5/14/01
  
  By:           /s/ Shirley NelsonShirley W. NelsonChairman and CEO(Principal Executive Officer)DATE:   5/14/01
  
  By:    /s/ Kikuo
  NakaharaKikuo NakaharaChief Financial Officer(Principal Financial Officer)The remainder of this
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