<PAGE>

                          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:                                   JUNE 30, 1997

                           COMMISSION FILE NUMBER:  0-11108

                               SUMMIT BANCSHARES, INC.


                     STATE OF CALIFORNIA    I.R.S. IDENTIFICATION
                                  NUMBER 94-2767067

                      2969 BROADWAY, OAKLAND CALIFORNIA   94611

                                   (510)  839-8800

Indicate by the 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.

                                   YES    X      NO
                                    --------      ----------

The number of shares outstanding of the registrant's common stock was 

                     427,675 shares of no par value common stock
 
                              issued as of June 30, 1997

<PAGE>
 
PART I - FINANCIAL INFORMATION


ITEM 1                                                                      PAGE

SUMMIT BANCSHARES, INC. AND SUBSIDIARY FINANCIAL STATEMENTS           
 
              Consolidated Balance Sheets  . . . . . . . . . . . . . .        3

              Consolidated Statements of Income. . . . . . . . . . . .        4

              Consolidated Statement of Cash Flows . . . . . . . . . .        5

              Notes to Financial Statements. . . . . . . . . . . . .          6

              Interest Rate Risk Reporting Schedule. . . . . . . . .          7


ITEM 2

              Management's Discussion and Analysis of Financial

              Condition and Results of Operations. . . . . . . . . .       8-16



                 PART II - OTHER INFORMATION

  ITEMS 1-6  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    17-19

<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION JUNE 30, 1997 AND DECEMBER 31, 1996
                        (UNAUDITED) 
<TABLE>
<CAPTION>
                                                                                             
ASSETS                                                                       6-30-97            12-31-1996
--------------------------------------------------------------------------------------------------------------

<S>                                                                      <C>                 <C>
Cash and due from banks                                                  $  5,187,974        $     7,188,515
Federal funds sold                                                          8,190,000             11,980,000
                                                                         ------------        ---------------
Cash and cash equivalents                                                  13,377,974             19,168,515
Time deposits with other financial institutions                             8,421,000              9,607,000
Investment securities (fair value of $10,769,413 at                                                         
    June 30, 1997 and $8,830,810 at                                                                         
    December 31, 1996 ) held to maturity                                   10,742,694              8,759,850
Loans, net of allowance for loan losses of                                                                  
   $1,128,716 at June 30, 1997 and                                                                          
   $1,070,318 at December 31, 1996                                         56,599,736             51,408,038
Other real estate owned                                                     1,241,459              1,291,459
Premises and equipment, net                                                   917,455                896,856
Interest receivable and other assets                                        2,018,977              1,814,083
                                                                         ------------        ---------------
Total Assets                                                              $93,319,295            $92,945,801
                                                                         ------------        ---------------
                                                                         ------------        ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------------------------------------------------------------------------

Deposits:                                                                                                   
Demand                                                                   $ 26,089,687        $    27,833,067
Interest-bearing transaction accounts                                      29,723,463             28,663,828
Savings                                                                     3,209,136              2,665,539
Time certificates $100,000 and over                                        14,144,778             15,324,980
Other time certificates                                                     7,242,236              6,022,170
                                                                         ------------        ---------------
Total Deposits                                                             80,409,300             80,509,584
Interest payable and other liabilities                                        676,983                497,074
                                                                         ------------        ---------------
Total Liabilities                                                          81,086,283             81,006,658
                                                                                                            
Shareholders' Equity                                                                                        
Preferred Stock, no par value:                                                                              
   2,000,000 shares authorized, no shares outstanding                               0                      0
Common Stock, no par value:                                                                                 
   3,000,000 shares authorized;                                                                             
   427,675 shares outstanding at June 30, 1997 and                                                          
   433,209 shares outstanding at December 31, 1996                          3,650,161              3,830,343
Retained Earnings                                                           8,582,851              8,108,800
                                                                         ------------        ---------------
Total Shareholders' Equity                                                 12,233,012             11,939,143
                                                        
Total Liabilities and Shareholders' Equity                                $93,319,295            $92,945,801
                                                                         ------------        ---------------
                                                                         ------------        ---------------

</TABLE>

See accompanying notes to consolidated financial statements

                                         -3-

<PAGE>
SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996

<TABLE>
<CAPTION>

                                           THREE MONTHS          THREE MONTHS         SIX MONTHS           SIX MONTHS    
                                          ENDED 6-30-97         ENDED 6-30-96        ENDED 6-30-97        ENDED 6-30-96 
<S>                                       <C>                   <C>                  <C>                  <C>
INTEREST INCOME:
Interest and fees on loans                     $1,622,703          $1,316,207          $  3,127,713        $  2,692,962  
Interest on time deposits with other                                                                                     
   financial institutions                         129,144             124,550               251,820             299,333  
Interest on U.S. government                                                                                              
   treasury securities                            170,438             136,838               312,055             221,117  
Interest on federal funds sold                    117,505             134,595               279,714             250,118  
                                              -----------         -----------           -----------         -----------
Total interest income                           2,039,790           1,712,190             3,971,302           3,463,530  
                                                                                                                         
INTEREST EXPENSE:                                                                                                        
Interest on deposits                              466,553             415,460               922,575             834,023  
Total interest expense                            466,553             415,460               922,575             834,023  
                                              -----------         -----------           -----------         -----------
Net interest income                             1,573,237           1,296,730             3,048,727           2,629,507  
Provision for loan losses                          25,000              30,000               100,000             115,000  
                                              -----------         -----------           -----------         -----------
Net interest income after                                                                                                
   provision for loan losses                    1,548,237           1,266,730             2,948,727           2,514,507  
                                                                                                                         
NON-INTEREST INCOME:                                                                                                     
Service charges on deposit accounts                70,672              78,508               144,626             160,792  
Other customer fees and charges                    51,756              43,545                99,478             102,633  
                                              -----------         -----------           -----------         -----------
Total non-interest income                         122,428             122,053               244,104             263,425  
                                                                                                                         
NON-INTEREST EXPENSE:                                                                                                    
Salaries and employee benefits                    505,778             461,559             1,007,578             918,482  
Occupancy expense                                  92,511              94,875               182,618             182,515  
Equipment expense                                  43,084              22,351                71,150              38,967  
Other                                             320,984             233,355               566,628             485,524  
                                              -----------         -----------           -----------         -----------
Total non-interest expense                        962,357             812,140             1,827,974           1,625,488  
Income before income taxes                        708,308             576,643             1,364,857           1,152,444  
Provision for income taxes                        295,013             234,322               570,049             483,023  
                                              -----------         -----------           -----------         -----------
Net Income                                       $413,295            $342,321              $794,808            $669,421  
                                              -----------         -----------           -----------         -----------
                                              -----------         -----------           -----------         -----------
PRIMARY EARNINGS:                                                                                                       
Weighted average shares outstanding               463,020             460,045               463,020             461,081  
                                              -----------         -----------           -----------         -----------
PRIMARY EARNINGS PER SHARE                          $0.89               $0.74                 $1.72               $1.45  
                                              -----------         -----------           -----------         -----------
                                              -----------         -----------           -----------         -----------

</TABLE>
See accompanying notes to consolidated financial statements

                                         -4-
<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND  1996
                 (UNAUDITED)                        
<TABLE>
<CAPTION>
                                                                                   SIX MONTHS            SIX MONTHS
                                                                                  ENDED 6-30-97         ENDED 6-30-96
---------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                
Interest received                                                                  $  3,575,737          $  3,286,906
Fees received                                                                           512,933               492,665
Interest paid                                                                          (935,921)             (869,922)
Cash paid to suppliers and employees                                                 (1,663,628)           (1,387,314)
Income taxes paid                                                                      (465,000)             (377,000)
                                                                                   ------------          ------------
Net cash provided by operating activities                                             1,024,121             1,145,335
                                                                                                                     
CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                
(Increase) decrease in time deposits with                                                                            
   other financial institutions                                                       1,186,000             1,787,000
Maturity of investment securities                                                     2,515,682             1,554,594
Purchase of investment securities                                                    (4,498,526)           (5,228,600)
Net (increase) decrease in loans to customers                                        (5,543,793)            3,128,678
Recoveries on loans previously charged-off                                                1,750                 2,000
(Increase) decrease in premises and equipment                                          (118,353)              (88,692)
                                                                                   ------------          ------------
Net cash provided by (used in) investing activities                                  (6,457,240)            1,154,980
                                                                                                                     
CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                
(Increase) decrease in demand, interest                                                                              
   bearing transaction, and savings deposits                                            140,148            (3,613,410)
Net increase (decrease) in time deposits                                                (39,864)            2,089,687
(Increase) decrease in other assets                                                      43,232                27,562
Exercise of stock options                                                                     0                     0
Repurchase of common stock                                                             (180,182)              (36,438)
Dividends paid                                                                         (320,756)             (319,432)
Net cash provided by (used in) financing activities                                    (357,422)           (1,852,031)
                                                                                   ------------          ------------
Net increase (decrease) in cash and cash equivalents                                 (5,790,541)              448,284

Cash and cash equivalents at the                                                                                     
   beginning of the year                                                             19,168,515            16,427,803
                                                                                   ------------          ------------
Cash and cash equivalents at the end of the year                                   $ 13,377,974            16,876,087
                                                                                   ------------          ------------

                                                                                                                     
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:                                           
Net Income                                                                         $    794,808          $    669,421
Adjustments to reconcile net income to                                                                               
   net cash provided by operating activities:                                                                        
Depreciation and amortization                                                            95,009                59,325
Provision for loan losses and OREO losses                                               150,000               115,000
(Increase) decrease in interest receivable                                             (151,836)               65,922
Increase (decrease) in unearned loan fees                                               (24,900)              (13,306)
Increase (decrease) in accrued interest payable                                         (13,346)              (35,899)
(Increase) decrease in prepaid expenses                                                  (4,798)               32,754
Increase (decrease) in accounts payable                                                  74,136               146,095
Increase (decrease) in income taxes payable                                             105,048               106,023
                                                                                   ------------          ------------
Total adjustments                                                                       229,313               475,914
                                                                                   ------------          ------------
Net cash provided by operating activities                                          $  1,024,121           $ 1,145,335
                                                                                   ------------          ------------
</TABLE>

See accompanying notes to consolidated financial statements

                                         -5-

<PAGE>


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 financial position at June 30, 1997
and the results of operations for the six months ended June 30, 1997 and 1996
and cash flows for the six months ended June 30, 1997 and 1996.

Certain information and footnote disclosures presented in the
Corporation'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
Corporation's 1996 Annual Report to Shareholders, which is incorporated by
reference in the Company's 1996 annual report on Form 10-K. The results of
operations for the six months ended June 30, 1997 are not necessarily indicative
of the operating results for the full year.

2.   RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In February of 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128). The
Bank is required to adopt SFAS 128 in the fourth quarter of 1997 and will
restate at that time earnings per share data for prior periods to conform with
SFAS 128. Earlier application is not permitted.

SFAS 128 replaces current earnings per share reporting requirements and requires
a dual presentation of basic and diluted earnings per share. Earnings per share
excludes dilution and is computed by dividing net income by the weighted average
common shares outstanding of 463,020 and 460,045 during the three months ended
June 30, 1997 and 1996, respectively. Diluted earnings per share reflects the
potential dilution that could occur if common shares were issued pursuant to the
exercise of options under the Bank's Stock Option Plans. Diluted earnings per
share under SFAS 128 would not have been significantly different than primary
earnings per share currently reported for the periods.


                                         -6-

<PAGE>
INTEREST RATE SENSITIVITY/INTEREST RATE RISK ANALYSIS
              
     The following table provides an interest rate sensitivity and interest rate
risk analysis for the  quarter ended June  30, 1997. The table  presents each 
major category of interest-earning assets and interest bearing-liabilities.

                           
                                 INTEREST RATE RISK REPORTING SCHEDULE
                                                          
    REPORTING INSTITUTION:  SUMMIT BANK                REPORTING DATE: 6-30-97
                                                 
                    REMAINING TIME BEFORE MATURITY OR INTEREST RATE ADJUSTMENT
<TABLE>
<CAPTION>
                                                                         
                                                                      
                                               ($000.00)               
                                                OMITTED    UP TO        > 3MOS        > 1YR        > 3YRS    > 5YRS        OVER
                                                TOTAL      3MOS         < 1YR         < 3YRS       < 5YRS    <  10YRS      10 YEARS
<S>                                            <C>          <C>        <C>           <C>          <C>        <C>        <C>
   I.       EARNING ASSETS                                                                                                         
                                                                                                                              
         A. INVESTMENTS:                                                                                                           
         1. U. S. TREASURIES                      $6,743           $0      $2,248       $4,495          $0           $0         $0
         2. U. S. AGENCIES                         4,000            0       2,500        1,500           0            0          0
         3. FED FUNDS SOLD                         8,190        8,190           0            0           0            0          0
         4. PURCHASED CDS                          8,421        2,478       5,448          495           0            0          0
                                                --------     --------    --------     --------    --------     --------   ---------
            TOTAL INVESTMENTS                    $27,354      $10,668     $10,196       $6,490          $0           $0         $0
                                                                                                                              
         B. LOANS                                                                                                                  
         1. COMMERCIAL                           $55,224      $52,095      $1,078         $789        $396         $866         $0
         2. REAL ESTATE                                0            0           0            0           0            0          0
         3. INSTALLMENT                               15           15           0            0           0            0          0
                                                --------     --------    --------     --------    --------     --------   ---------
            TOTAL LOANS                          $55,239      $52,110      $1,078         $789        $396         $866         $0
                       
         C. TOTAL EARNING ASSETS                 $82,593      $62,778     $11,274       $7,279        $396         $866         $0
                                            
                                                                     
  II.       COST OF FUNDS (DEPOSITS)                                                                                               
                                                                                                                              
         A. CERTIFICATE OF DEPOSITS              $21,387      $12,219      $8,132         $939         $97           $0         $0
         B. MONEY MARKET ACCOUNTS                 25,477            0      12,739       12,738           0            0          0
         C. TRANSACTION ACCOUNTS                   5,296            0           0        2,648       1,324        1,324          0
         D. SAVINGS ACCOUNTS                       2,220            0           0        1,110         555          555          0
                                                --------     --------    --------     --------    --------     --------   ---------
            TOTAL COST OF FUNDS                  $54,380      $12,219     $20,871      $17,435      $1,976       $1,879         $0
                                                                                                                              
 III.       INTEREST SENSITIVE ASSETS            $82,593      $62,778     $11,274       $7,279        $396         $866         $0
                                                                                                                              
  IV.       INTEREST SENSITIVE  LIABILITIES      $54,380      $12,219     $20,871      $17,435      $1,976       $1,879         $0
                                                --------     --------    --------     --------    --------     --------   ---------

   V.       GAP                                  $28,213      $50,559     ($9,597)    ($10,156)    ($1,580)     ($1,013)        $0
                                                                                                                              
  VI.       CUMULATIVE GAP                       $28,213      $50,559     $40,962      $30,806     $29,226      $28,213    $28,213
                                                                                                                              
 VII.       GAP RATIO                               1.52         5.14        0.54         0.42        0.20         0.46      
 
                                                                                                                              
VIII.       CUMULATIVE RATIO                        1.52         5.14        2.25         1.61        1.56         1.52       1.52
                                                                                                                               
  IX.       GAP AS A % OF TOTAL                    31.23        55.97      -10.63       -11.24       -1.75        -1.12 
            ASSETS
                                                                                                                              
   X.       CUMULATIVE GAP AS A % OF                                                                                               
            TOTAL ASSETS                           31.23        55.97       45.35        34.10       32.36        31.23      31.23
</TABLE>

                                         -7-
<PAGE>

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS  FOR THE SIX MONTHS ENDED JUNE 30, 1997

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 June 30, 1997 was 71.8% which was an
increase from 64.8% for the same period in 1996.  Total outstanding loans as of
June 30, 1997 increased $9,966,000 compared to the same period a year ago while
total deposits increased $6,682,000 versus the same time last year.  The
increases in loans and deposits are mainly due to Bank's effort in marketing its
products.  The average loan-to-deposit ratio for the second quarter of 1997 was
68.8%, up from 64.2% for the same period last year.  This increase was caused by
an increase in average total deposits of $7,965,000 or 11.0% while average total
loans increased $8,609,000 or 18.5%. Management continues to seek growth and
acquisition of quality credits. 

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 $27,354,000 on June 30, 1997.  This 
amount represented 34.0% of total deposits in comparison to the liquidity 
ratio of 48.5% as of June 30, 1996. This decrease is primarily a result of 
loan growth.  It is management's belief that the current liquidity level is 
appropriate given current economic conditions and is sufficient to meet 
current needs. 

The Company is not aware of any current recommendations by the regulatory
authorities which, if they were implemented, would have a material effect on the
Company.


                                         -8-
<PAGE>

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)


                       6-30-97     %      12-31-96    %     6-30-96    %

Fed funds sold           8,190   30%        11,980  39%      10,450  36% 

Interest bearing    
  deposits               8,421   31%         9,607  32%       9,215  31%
Securities              10,743   39%         8,759  29%       9,692  33%


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 June 30, 1997 were comprised of $6,742,000 in U. S. Gov't notes
and $4,000,000 in U.S. Gov't agencies.


CHANGES IN FINANCIAL POSITION

As of June 30, 1997, total deposits increased $100,000 from December 31, 1996
while at the same time net loans outstanding increased $5,192,000.  Total
deposits as of June 30, 1997 were $80,409,000, an increase of 9.1% from
$73,727,000 as of June 30, 1996.  Total loans as of June 30, 1997 were
$57,728,000, an increase of 20.9% from $47,762,000 as of June 30, 1996.  

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)

 
                       6-30-97    %       12-31-96    %     6-30-96    %

Demand                 $26,090  32%        $27,833   34%    $22,764  31%

Savings                  3,209   4%         2,666    3%      2,178    3%

Interest bearing
 trans. deposits        29,723  37%        28,664    36%     27,777   38% 

Other time              21,387  27%        21,347    27%     21,008   28%



                                         -9-
<PAGE>


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


                                LOAN COMPARATIVE
                              ($000.00 Omitted)



                       6-30-97    %       12-31-96    %     6-30-96    %

Commercial             $40,337  70%        $35,788  68%     $29,850  62%
Real estate-const        8,297  14%          7,508  14%       6,530  14%
Real estate-other        3,020   5%          3,063   6%       5,783  12%
Installment/other        6,074  11%          6,119  12%       5,599  12%


NON-PERFORMING ASSETS

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


                                              NON-PERFORMING ASSETS
                                                 (000.00 Omitted)
                                           
                                         6-30-97    12-31-96   6-30-96
Loans 90 days or more past
 due & still accruing                     $    3    $      0   $    58
Non-accrual loans                              0           0       146
Other real estate owned                   _1,241       1,291     1,302
                                          ------      ------    ------
   Total non-performing assets            $1,244      $1,291    $1,506
                                          ------      ------    ------
                                          ------      ------    -------

Non-performing assets to
  period end loans plus
  other real estate owned                   2.20%       2.46%     3.07%

Allowance to non-performing
  loans                                    37624%          0%      560%

Allowance to non-performing
  assets                                      94%         83%       76%

                                         -10-
<PAGE>

The subsidiary 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.  When the loan
balance plus accrued interest exceeds the fair value of the property, the
difference is charged to the allowance for loan losses at the time of
acquisition.  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 noninterest expense
in the period incurred.

The decrease in non-performing assets from June 30, 1996 to June 30, 1997 is due
primarily to a decrease in loans 90 days past due and non-accrual loans of
$201,000 and a decrease of $61,000 in OREO.

The total OREO amount, $1,241, 000, is related to two properties. One of the
properties is vacant land in the Oakland Hills and the second property is two
continguous parcels in the Danville/Diablo Mountain area of Alameda County. The
Bank is actively marketing these two parcels.


                                         -11-
<PAGE>

CAPITAL POSITION

As of June 30, 1997, Shareholders' Equity was $12,233,000. This represents an
increase of $797,000, or 7.0% over the same period last year.  Since the
inception of the repurchase program in 1989, the Company has authorized the
repurchase of $2,500,000 of its stock.  As of June 30, 1997, the Company has
repurchased a total of 157,652 shares of the Company stock constituting 29.1% of
the Company's original stock prior to the repurchase program, at a total cost of
$2,266,153, or an average price per share of $14.37. The Company plans to
continue its repurchase program as an additional avenue for liquidity for its
shareholders.  The program has not 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.

On March 14, 1989, the Board of Directors of the Federal Deposit Insurance
Corporation ("FDIC") approved a Statement of Policy on Risk-Based Capital which
became effective December 31, 1990.  Under this statement banks are required to
meet certain capital standards in addition to leverage standards as previously
outlined under FDIC Rules and Regulations.  The Bank does not foresee any
material or significant impact to its manner of operation in the foreseeable
future.  Total qualifying capital allowable under risk-based capital guidelines
for the subsidiary Bank is $8,704,000. 

The following table shows the risk-based capital and leverage ratios as well as
the minimum regulatory requirements for the same as of June 30, 1997:

                                           Minimum
                   Capital Ratio    Regulatory Requirement

Tier 1 Capital        15.16%                4.00%
Total Capital         16.37%                8.00%
Leverage Ratio        10.23%                3.00%

The Company is not aware of any current recommendations by the regulatory
authorities which if they were implemented would have a material effect on the
Company.

                                         -12-
<PAGE>

RESULTS OF OPERATIONS 


NET INTEREST INCOME

Total interest income including loan fees increased from $3,464,000 for the
first six months of 1996 to $3,971,000 for the same period in 1997. The prime
lending rate increased to 8.50% in March 1997 from 8.25% compared to the same
period last year and a factor in the increased interest income on loans. Another
reason for the increase in interest income on loans was due to $5,600,000
increase in average loans compared to the same period a year ago.  Loan fees
showed an increase of $51,182 over the same period last year.  The yield on
loans and fees increased 36 basis points over the same period last year.  The
increase in interest income from investments was due to total average
outstanding investments volume increase of $2,401,000 for the first six months
in 1997 versus 1996. This increase was primarily due to an increase in deposit
balances. The yield on investments for the first six months of 1997 showed a
decrease of 3 basis points compared to the same period in 1996 reflective of
market conditions.

Interest expense increased from $834,000 at the end of the first six months of
1996 to $923,000 in 1997.  This increase was due to increase in average
interest-bearing deposit accounts of $4,871,000 during the first six months of
1997 versus the same period last year.  The average cost of funds for the period
ending June 30, 1997 was 9 basis points more than the same period last year.  As
a result of these factors, net interest margin for the first six months of 1997
was 7.25% compared to 6.93% for the same period last year. 

For the second quarter, total interest income on loans including loan fees
increased from $1,712,000 in 1996 to $2,040,000 for the same period in 1997.
This increase is primarily due to increase in the prime lending rate and the
increase in loan volume. Average loan volume for the second quarter of 1997
showed an increase of $8,609,000 from the same period last year. For the second
quarter of 1997, total interest income on investments increased $21,100. This
increase was attributable to an average investment volume increase of $524,000
and an interest yield increase from 5.53% in the second quarter of 1996 to 5.72%
for the same period in 1997.

                                         -13-
<PAGE>

For the second quarter of 1997, interest expense increased $51,000 compared to
the same period in 1996. Average outstanding interest bearing deposits increased
from $51,155,000 in the second quarter in 1996 to $55,833,000 in the second
quarter in 1997. Average cost of funds for the same period was 3.34% in 1997
compared to 3.25% in 1996. As a result, net interest income for the second
quarter of 1997 increased $277,000. or 2.53% compared to the same period in
1996.



OTHER OPERATING INCOME 

Service charges on deposit accounts as of the end of the first half of 1997
decreased to $145,000 versus $161,000 for the same period in 1996.  The decrease
was due to lower fees collected in service charges related to return check and
overdraft charges and from analysis of service charges on commercial accounts. 
Other charges and fees decreased $3,000, primarily due to lower fees collected
on wire transfers but partially offset by increase in merchant fees collected.

Service charges on deposit accounts for the second quarter of 1997 decreased
$7,800 compared to the same period last year due to decreased collection of fees
associated with return check and overdraft charges. Other customer fees and
charges increased $8,200 for the present quarter associated with increased fees
from merchant activities.  


LOAN LOSS PROVISION

The decrease in loan loss provision was primarily due to
a perceived improvement in California's economy as well as the current level of
the allowance for loan losses.

The allowance for loan losses is maintained at a level that management of the
Company considers to be adequate for losses that can be reasonably anticipated. 
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 potential losses in the loan portfolio, as well as
prevailing and anticipated economic conditions.

                                         -14-
<PAGE>

Management employs a systematic methodology on a monthly basis to determine the
adequacy of the allowance for current and future 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 and anticipated economic
conditions.

The following table summarizes the activity in the Bank's allowance for credit
losses for the six months ended June 30, 1997 and 1996.




                                                      SIX MONTHS ENDED
                                                      -----------------
                                                      (000.00 Omitted)
                                                      6-30-97  6-30-96

Balance, beginning of the period                       $1,070   $1,025
Provision for loan losses                                 100      115
Recoveries                                                  2        2
Loans charged-off                                         (43)       0
                                                       ------   ------
Balance, end of the period                             $1,129   $1,142


The balance in the allowance for loan losses at June 30, 1997 was 1.95% of total
loans compared to 2.39% of total loans at June 30, 1996.


OTHER OPERATING EXPENSES

Total other operating expenses increased $202,000 as of the end of the first six
months of 1997 compared to the same period last year.  This increase was
primarily due to an increase in salaries and employee expense. The Bank's
commitment to grow increased the number of employees from 39 to 40 primarily in
the sales area. The increase was also attributed to increase in regular raises
in pay, increased cost of benefits and bonuses related to sales. Other expenses
increased due to increased foreclosure expenses and business development costs.

For the second quarter 1997, operating expenses increased $150,000 compared to
the same period last year for the same reasons mentioned above.


                                         -15-
<PAGE>


PROVISION FOR INCOME TAXES 

The Company's provision for income taxes as of the end of the first six months
of 1997 increased from $483,000 in 1996 to $570,000.  This increase is
attributed to increased income from regular business operations. For the same
period in 1997 the Company's total effective tax rate was 41.8% compared to
41.9% in 1996. 

For the second quarter of 1997, the provision for income taxes increased $61,000
compared to the second quarter of 1996. The effective tax rate for this period
was 41.7% versus 40.6% for the same period last year.


NET INCOME

Net income for the first half of 1997 increased from $669,000 for the same
period in 1996 to $795,000, or a increase of 18.8%. Second quarter net income
increased $71,000 or 20.7% over the same period last year.



                                         -16-
<PAGE>
PART II  -  OTHER INFORMATION



ITEM 1 - LEGAL PROCEEDINGS
          No material developments from that which was
          reported in the Form 10-K dated March 31, 1997 for
          the year ended December 31, 1996.
                   

ITEM 2 - CHANGES IN SECURITIES
          None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
          None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
          Annual Meeting of shareholders minutes are attached   
          (Exhibit #1) The annual meeting was held April 24,    
           1997.

ITEM 5 - OTHER INFORMATION
          None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
         (a)   Exhibits

          11   Statement re: computation of per share
               earnings

          27   Financial Data Schedule   

          (b)  Reports on Form 8-K

           One Form 8-K was filed by the registrant during   
           the first quarter of 1997, reporting that the 
           Company had dismissed Arthur Andersen L.L.P. as
           its independent accountants. On May 8, 1997, the Company
           filed a Form 8-K indicating that it retained Coopers and
           Lybrand L.L.P. as its independent public accountants for 
           the fiscal year ending December 31, 1997.

                                         -17-
<PAGE>

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, INC.
                                            REGISTRANT



DATE:                             BY:
     --------------------            ---------------------------
                                        SHIRLEY W. NELSON
                                        CHAIRMAN AND CEO
                                        (PRINCIPAL EXECUTIVE OFFICER)


DATE:                             BY:
     --------------------            ---------------------------
                                        KIKUO NAKAHARA
                                        CHIEF FINANCIAL OFFICER
                                        (PRINCIPAL FINANCIAL OFFICER)


 The remainder of this page is intentionally left blank





                                         -18-

<PAGE>
                    WEIGHTED AVERAGE SHARES
                SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<CAPTION>

                                                                            PRIMARY     FULLY

<S>                      <C>                 <C>            <C>             <C>        <C>
  A. COMMON STOCK                                            ANNUAL          428,816    428,816
                                                            (1ST QTR)        428,816    428,816
                                               NO OF
                                               DAYS
          433,209        12-31-96(BAL FWD)  ----------
          433,209              TO 1-06-97            6       2,599,254    
          432,109              TO 1-14-97            8       3,456,872    
          429,224              TO 4-14-97           89      38,200,936    
          427,675              TO 6-30-97           78      33,358,650    
                                                                          
                                                                          
                                                                          
                                                                                          
                                           -----------     -----------
                                                   181      77,615,712      
                                                                                          

     AVERAGE SHARES OUTSTANDING
       FOR THE PERIOD                                          428,816      

                  OPTIONS-FULLY  
                  ------------------
     USE HIGHER OF YEAR END PRICE OR AVERAGE PRICE
     <S>                                       <C>        <C>                <C>
     YEAR END PRICE                             33.125  
     AVERAGE PRICE                              34.250    
                                                    
     USE YEAR END PRICE OF                                      34.250        34,204
                                                          ------------
<CAPTION>

            NO OF                YEAR END       OPTION           NO OF  
           SHARES                   PRICE        PRICE          SHARES  
     ------------    --------------------  -----------    -------------
<S>  <C>             <C>                   <C>            <C>                        <C>
MZ          1,000                  34.250        10.00             708 
SN         10,000                  34.250        10.00           7,080  
MZ          2,900                  34.250        13.50           1,757  
SN         15,689                  34.250        10.00          11,108  
SN          8,333                  34.250        12.00           5,413  
TW            400                  34.250        12.25             257  
SN            978                  34.250        13.25             600  
DD          2,500                  34.250        13.00           1,551  
MZ          1,045                  34.250        13.00             648  
AC            400                  34.250        13.00             248  
TW          1,500                  34.250        13.00             931  
SN          4,000                  34.250        17.75           1,927  
MZ          2,000                  34.250        17.75             964  
DD          1,000                  34.250        17.75             482  
TW          1,000                  34.250        17.75             482  
AC            100                  34.250        17.75              48  

                   OPTIONS-PRIMARY
                   ---------------------
                   AVERAGE PRICE FOR THE YEAR                   34.250                   34,204
                                                              --------
<CAPTION>

            NO OF              YEAR END       OPTION           NO OF    
           SHARES                 PRICE        PRICE          SHARES    
     ------------    --------------------  -----------    -------------
<S>  <C>             <C>                   <C>            <C>             <C>         <C>
MZ          1,000                  34.250        10.00             708  
SN         10,000                  34.250        10.00           7,080  
SN         15,689                  34.250        10.00          11,108  
SN          8,333                  34.250        12.00           5,413  
MZ          2,900                  34.250        13.50           1,757  
TW            400                  34.250        12.25             257  
SN            978                  34.250        13.25             600  
DD          2,500                  34.250        13.00           1,551  
MZ          1,045                  34.250        13.00             648  
AC            400                  34.250        13.00             248  
TW          1,500                  34.250        13.00             931  
SN          4,000                  34.250        17.75           1,927  
MZ          2,000                  34.250        17.75             964  
DD          1,000                  34.250        17.75             482  
TW          1,000                  34.250        17.75             482  
AC            100                  34.250        17.75              48  
                                                                                       
     TOTAL SHARES 1ST QUARTER                                                463,020    463,020
                                                                                       
     TOTAL SHARES YEAR-END                                                   463,020    463,020
                                                                                       
     NET INCOME 2ND QUARTER                                                 $413,295   $413,295
                                                                                       
     NET INCOME YEAR TO DATE, 1997                                          $794,808   $794,808
                                                                                      
     EARNINGS PER SHARE 1ST QUARTER                                           $0.893     $0.893
                                                                                        
     EARNINGS PER SHARE, YTD                                                  $1.717     $1.717
</TABLE>

                                         -19-