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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 
20549

FORM 10-Q

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

FOR QUARTER ENDED: June 30, 2003

COMMISSION FILE NUMBER:  0-11108

SUMMIT BANCSHARES, INC.

STATE OF CALIFORNIA

2969 BROADWAY, OAKLAND CALIFORNIA 94611

(510) 839-8800

I.R.S.
IDENTIFICATION NUMBER

94-2767067

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 o
|----- | ----

Indicate by check mark whether the registrant is
an accelerated filer (as defined in Rule 12b-2 of the Exchange Act

|Yes o | No x
|----- | ----

The number of shares outstanding
of the registrants common stock was 1,826,905 shares of no par value common stock issued as of June 30, 2003

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##### Table of Contents

|                                                            | Page                                                                                 
|----------------------------------------------------------- | -------------------------------------------------------------------------------------
|                                                            |                                                                                      
|PART I - FINANCIAL INFORMATION                              |                                                                                      
|                                                            |                                                                                      
|ITEM 1                                                      |                                                                                      
|                                                            |                                                                                      
|SUMMIT BANCSHARES, INC. AND SUBSIDIARY FINANCIAL STATEMENTS |                                                                                      
|                                                            |                                                                                      
|                                                            | Consolidated Balance Sheets                                                          
|                                                            |                                                                                      
|                                                            | Consolidated Statements of Income                                                    
|                                                            |                                                                                      
|                                                            | Consolidated Statement of Cash Flows                                                 
|                                                            |                                                                                      
|                                                            | Consolidated Statement of Changes in Shareholders Equity                            
|                                                            |                                                                                      
|                                                            | Notes to Financial Statements                                                        
|                                                            |                                                                                      
|                                                            | Interest Rate Risk Reporting Schedule                                                
|                                                            |                                                                                      
|ITEM 2                                                      |                                                                                      
|                                                            |                                                                                      
|                                                            | Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                                            |                                                                                      
|ITEM 3                                                      | Quantitative and Qualitative Disclosures About Market Risk                           
|                                                            |                                                                                      
|ITEM 4                                                      | Controls and Procedures                                                              
|                                                            |                                                                                      
|                                                            | PART II - OTHER INFORMATION                                                          
|                                                            |                                                                                      
|ITEM 6                                                      | Exhibits and Reports on Form 8-K                                                     

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ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION JUNE 30, 2003 AND DECEMBER 31, 2002

|                                                                                                                                 |  |   |             |  | Unaudited 06/30/03 |             |  |  |             | Audited 12/31/02 |  
|-------------------------------------------------------------------------------------------------------------------------------- |  | - | ----------- |  | ------------------ | ----------- |  |  | ----------- | ---------------- | -
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|ASSETS                                                                                                                           |  |   |             |  |                    |             |  |  |             |                  |  
|Cash and due from banks                                                                                                          |  |   |             |  | $                  | 7,360,437   |  |  |             |                  | $
|Federal funds sold                                                                                                               |  |   |             |  |                    | 11,315,000  |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Cash and cash equivalents                                                                                                        |  |   |             |  |                    | 18,675,437  |  |  |             |                  |  
|Time deposits with other financial institutions                                                                                  |  |   |             |  |                    | 11,613,753  |  |  |             |                  |  
|Investment securities (fair value of $3,535,858 at June 30, 2003 and $2,061,250 at December 31, 2002) held to maturity           |  |   |             |  |                    | 3,519,254   |  |  |             |                  |  
|Loans:                                                                                                                           |  | $ | 103,540,060 |  |                    |             |  |  | 105,079,730 |                  |  
|Less: allowance for loan losses                                                                                                  |  | $ | 1,662,610   |  |                    |             |  |  | 1,638,588   |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Net loans                                                                                                                        |  |   |             |  |                    | 101,877,450 |  |  |             |                  |  
|Premises and equipment, net                                                                                                      |  |   |             |  |                    | 702,207     |  |  |             |                  |  
|Interest receivable and other assets                                                                                             |  |   |             |  |                    | 5,625,672   |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Total Assets                                                                                                                     |  |   |             |  | $                  | 142,013,773 |  |  |             |                  | $
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                             |  |   |             |  |                    |             |  |  |             |                  |  
|Deposits:                                                                                                                        |  |   |             |  |                    |             |  |  |             |                  |  
|Demand                                                                                                                           |  |   |             |  | $                  | 44,798,259  |  |  |             |                  | $
|Interest-bearing transaction accounts                                                                                            |  |   |             |  |                    | 42,839,658  |  |  |             |                  |  
|Savings                                                                                                                          |  |   |             |  |                    | 2,382,533   |  |  |             |                  |  
|Time certificates $100,000 and over                                                                                              |  |   |             |  |                    | 22,739,884  |  |  |             |                  |  
|Other time certificates                                                                                                          |  |   |             |  |                    | 5,557,142   |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Total Deposits                                                                                                                   |  |   |             |  |                    | 118,317,476 |  |  |             |                  |  
|Fed Funds Purchased                                                                                                              |  |   |             |  |                    | 3,000,000   |  |  |             |                  |  
|Interest payable and other liabilities                                                                                           |  |   |             |  |                    | 1,429,515   |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Total Liabilities                                                                                                                |  |   |             |  |                    | 122,746,991 |  |  |             |                  |  
|Shareholders Equity                                                                                                             |  |   |             |  |                    |             |  |  |             |                  |  
|Preferred Stock, no par value:                                                                                                   |  |   |             |  |                    |             |  |  |             |                  |  
|2,000,000 shares authorized, no shares outstanding                                                                               |  |   |             |  |                    | 0           |  |  |             |                  |  
|Common Stock, no par value:                                                                                                      |  |   |             |  |                    |             |  |  |             |                  |  
|3,000,000 shares authorized; 1,826,905 shares outstanding at June 30, 2003 and 1,837,643 shares outstanding at December 31, 2002 |  |   |             |  |                    | 3,260,302   |  |  |             |                  |  
|Retained Earnings                                                                                                                |  |   |             |  |                    | 16,006,480  |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Total Shareholders Equity                                                                                                       |  |   |             |  |                    | 19,266,782  |  |  |             |                  |  
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  
|Total Liabilities and Shareholders Equity                                                                                       |  |   |             |  | $                  | 142,013,773 |  |  |             |                  | $
|                                                                                                                                 |  |   |             |  |                    |             |  |  |             |                  |  

The accompanying notes are an integral part of these consolidated financial statements

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SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002

(UNAUDITED)

|                                                            |  | THREE MONTHS ENDED 6-30-03 |           | THREE MONTHS ENDED 6-30-02 |   | SIX MONTHS ENDED 6-30-03 |  | SIX MONTHS ENDED 6-30-02 |          
|----------------------------------------------------------- |  | -------------------------- | --------- | -------------------------- | - | ------------------------ |  | ------------------------ | ---------
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|INTEREST INCOME:                                            |  |                            |           |                            |   |                          |  |                          |          
|Interest and fees on loans                                  |  | $                          | 1,854,556 |                            | $ | 2,107,595                |  | $                        | 3,708,682
|Interest on time deposits with other financial institutions |  |                            | 142,446   |                            |   | 283,013                  |  |                          | 317,519  
|Interest on U.S. government treasury securities             |  |                            | 23,830    |                            |   | 22,259                   |  |                          | 46,088   
|Interest on federal funds sold                              |  |                            | 20,668    |                            |   | 106,841                  |  |                          | 32,389   
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Total interest income                                       |  |                            | 2,041,500 |                            |   | 2,519,708                |  |                          | 4,104,678
|INTEREST EXPENSE:                                           |  |                            |           |                            |   |                          |  |                          |          
|Interest on deposits                                        |  |                            | 243,284   |                            |   | 769,837                  |  |                          | 491,830  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Total interest expense                                      |  |                            | 243,284   |                            |   | 769,837                  |  |                          | 491,830  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Net interest income                                         |  |                            | 1,798,216 |                            |   | 1,749,871                |  |                          | 3,612,848
|Provision for loan losses                                   |  |                            | 4,000     |                            |   | 15,000                   |  |                          | 7,000    
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Net interest income after provision for loan losses         |  |                            | 1,794,216 |                            |   | 1,734,871                |  |                          | 3,605,848
|NON-INTEREST INCOME:                                        |  |                            |           |                            |   |                          |  |                          |          
|Service charges on deposit accounts                         |  |                            | 70,519    |                            |   | 54,084                   |  |                          | 138,906  
|Other customer fees and charges                             |  |                            | 63,900    |                            |   | 28,631                   |  |                          | 115,334  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Total non-interest income                                   |  |                            | 134,419   |                            |   | 82,715                   |  |                          | 254,240  
|NON-INTEREST EXPENSE:                                       |  |                            |           |                            |   |                          |  |                          |          
|Salaries and employee benefits                              |  |                            | 737,272   |                            |   | 678,888                  |  |                          | 1,530,287
|Occupancy expense                                           |  |                            | 82,575    |                            |   | 73,353                   |  |                          | 160,576  
|Equipment expense                                           |  |                            | 84,105    |                            |   | 92,535                   |  |                          | 176,277  
|Other                                                       |  |                            | 261,123   |                            |   | 285,744                  |  |                          | 509,485  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Total non-interest expense                                  |  |                            | 1,165,075 |                            |   | 1,130,520                |  |                          | 2,376,625
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Income before income taxes                                  |  |                            | 763,560   |                            |   | 687,066                  |  |                          | 1,483,463
|Provision for income taxes                                  |  |                            | 317,661   |                            |   | 285,480                  |  |                          | 610,389  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|Net Income                                                  |  | $                          | 445,899   |                            | $ | 401,586                  |  | $                        | 873,074  
|                                                            |  |                            |           |                            |   |                          |  |                          |          
|EARNINGS PER SHARE:                                         |  |                            |           |                            |   |                          |  |                          |          
|Earnings per common share                                   |  | $                          | 0.24      |                            | $ | 0.22                     |  | $                        | 0.48     
|Earnings per common share assuming dilution                 |  | $                          | 0.24      |                            | $ | 0.21                     |  | $                        | 0.47     
|Weighted average shares outstanding                         |  |                            | 1,826,813 |                            |   | 1,854,328                |  |                          | 1,831,577
|Weighted avg. shrs. outsdg. assuming dilution               |  |                            | 1,834,203 |                            |   | 1,871,894                |  |                          | 1,851,280
|                                                            |  |                            |           |                            |   |                          |  |                          |          

The accompanying notes are an integral part of these consolidated financial statements

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SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2003 and 2002

(UNAUDITED)

|                                               |  | NUMBER OF SHARES OUTSTANDING |           | COMMON STOCK |   | RETAINED EARNINGS |   | TOTAL |           
|---------------------------------------------- |  | ---------------------------- | --------- | ------------ | - | ----------------- | - | ----- | ----------
|                                               |  |                              |           |              |   |                   |   |       |           
|Balance at December 31, 2001                   |  |                              | 1,850,492 |              | $ | 3,752,486         |   | $     | 14,457,382
|Stock Options Exercised                        |  |                              | 3,836     |              |   | 12,467            |   |       | 0         
|Issuance of cash dividends of $.1875 per share |  |                              | 0         |              |   | 0                 |   |       | (347,686  
|Net Income                                     |  |                              | 0         |              |   | 0                 |   |       | 779,053   
|                                               |  |                              |           |              |   |                   |   |       |           
|Balance at June 30, 2002                       |  |                              | 1,854,328 |              | $ | 3,764,953         |   | $     | 14,888,749
|                                               |  |                              |           |              |   |                   |   |       |           
|Balance at December 31, 2002                   |  |                              | 1,837,643 |              |   | 3,475,640         |   |       | 15,476,451
|Stock Options Exercised                        |  |                              | 6,554     |              |   | 30,191            |   |       | 0         
|Repurchase of common stock                     |  |                              | (17,292   | )            |   | (245,529          | ) |       | 0         
|Issuance of cash dividends of $.1875 per share |  |                              | 0         |              |   | 0                 |   |       | (343,045  
|Net Income                                     |  |                              | 0         |              |   | 0                 |   |       | 873,074   
|                                               |  |                              |           |              |   |                   |   |       |           
|Balance at June 30, 2003                       |  |                              | 1,826,905 |              | $ | 3,260,302         |   | $     | 16,006,480
|                                               |  |                              |           |              |   |                   |   |       |           

The accompanying notes are an integral part of these consolidated financial statements

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SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002

(UNAUDITED)

|                                                                                  |  | SIX MONTHS ENDED 6-30-03 |            | SIX MONTHS ENDED 6-30-02 |  
|--------------------------------------------------------------------------------- |  | ------------------------ | ---------- | ------------------------ | -
|                                                                                  |  |                          |            |                          |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                             |  |                          |            |                          |  
|Interest received                                                                 |  | $                        | 3,715,206  |                          | $
|Fees received                                                                     |  |                          | 675,264    |                          |  
|Interest paid                                                                     |  |                          | (515,914   | )                        |  
|Cash paid to suppliers and employees                                              |  |                          | (2,723,935 | )                        |  
|Income taxes paid                                                                 |  |                          | (535,000   | )                        |  
|                                                                                  |  |                          |            |                          |  
|Net cash provided by operating activities                                         |  |                          | 615,621    |                          |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                             |  |                          |            |                          |  
|(Increase) decrease in time deposits with other financial institutions            |  |                          | 3,733,679  |                          |  
|Maturity of investment securities                                                 |  |                          | 3,992      |                          |  
|Purchase of investment securities                                                 |  |                          | (1,509,462 | )                        |  
|Net (increase) decrease in loans to customers                                     |  |                          | 1,554,517  |                          |  
|Recoveries on loans previously charged-off                                        |  |                          | 17,570     |                          |  
|(Increase) decrease in premises and equipment                                     |  |                          | (102,005   | )                        |  
|                                                                                  |  |                          |            |                          |  
|Net cash provided by (used in) investing activities                               |  |                          | 3,695,291  |                          |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                             |  |                          |            |                          |  
|Increase (decrease) in demand, interest bearing transaction, and savings deposits |  |                          | (1,671,424 | )                        |  
|Net increase (decrease) in time deposits                                          |  |                          | (5,524,617 | )                        |  
|Increase (decrease) fed funds purchased                                           |  |                          | 3,000,000  |                          |  
|Exercise of stock options                                                         |  |                          | 30,192     |                          |  
|Repurchase of common stock (decrease)                                             |  |                          | (245,529   | )                        |  
|Dividends paid (decrease)                                                         |  |                          | (343,046   | )                        |  
|                                                                                  |  |                          |            |                          |  
|Net cash provided by (used in) financing activities                               |  |                          | (4,754,424 | )                        |  
|                                                                                  |  |                          |            |                          |  
|Net increase (decrease) in cash and cash equivalents                              |  |                          | (439,512   | )                        |  
|Cash and cash equivalents at the beginning of the year                            |  |                          | 19,118,949 |                          |  
|                                                                                  |  |                          |            |                          |  
|Cash and cash equivalents as of 6-30-03 and 6-30-02                               |  | $                        | 18,675,437 |                          | $
|                                                                                  |  |                          |            |                          |  
|RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:        |  |                          |            |                          |  
|Net Income                                                                        |  | $                        | 873,074    |                          | $
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                          |            |                          |  
|Depreciation and amortization                                                     |  |                          | 100,086    |                          |  
|Provision for loan losses and OREO losses                                         |  |                          | 7,000      |                          |  
|(Increase) decrease in interest receivable                                        |  |                          | (843,366   | )                        |  
|Increase (decrease) in unearned loan fees                                         |  |                          | (12,395    | )                        |  
|Increase (decrease) in Int Pay and Other Liab.                                    |  |                          | 491,222    |                          |  
|                                                                                  |  |                          |            |                          |  
|Total adjustments                                                                 |  |                          | (257,453   | )                        |  
|                                                                                  |  |                          |            |                          |  
|Net cash provided by operating activities                                         |  |                          | 615,621    |                          |  
|                                                                                  |  |                          |            |                          |  

The accompanying notes are an integral part of these consolidated financial statements

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For the periods reported, the Company had no reconciling items between net income (loss) and income (loss) available to common shareholders.

5.     NEW ACCOUNTING PROUNOUNCEMENTS

In August 2001, FASB issued SFAS No. 143, Accounting for Asset Retirement Obligations,
which requires the Bank to record the fair value of an asset retirement obligation as a liability in the period in which its incurs a legal obligation associated with the retirement of long-term assets.  SFAS No. 143 is effective for the Bank
in 2003; however, management does not believe adoption will have a material impact on the Banks financial statements.

6.     STOCK BASED
COMPENSATION

Statement of Financial Accounting Standards No. 123 (SFAS No. 123), Accounting for Stock Based Compensation, defines a fair-value method of accounting for
stock based compensation.  As permitted by SFAS No. 123, the Company continues to account for stock options under the intrinsic value method of APB Opinion No. 25, under which no compensation cost has been recognized.  Pro-Forma
net income and earnings per share data as if compensation costs for stock option grants had been determined consistent with SFAS No. 123 are shown in the table below:

|                                                                                               |  | Three Months Ended 6/30/2003 |         | Three Months Ended 6/30/2002 |   | Six Months Ended 6/30/2003 |   | Six Months Ended 6/30/2002 |        
|---------------------------------------------------------------------------------------------- |  | ---------------------------- | ------- | ---------------------------- | - | -------------------------- | - | -------------------------- | -------
|                                                                                               |  |                              |         |                              |   |                            |   |                            |        
|Net Income                                                                                     |  |                              |         |                              |   |                            |   |                            |        
|As reported                                                                                    |  | $                            | 445,899 |                              | $ | 401,586                    |   | $                          | 873,074
|Stock Based Compensation using Intrinsic Value Method                                          |  | $                            | 0       |                              | $ | 0                          |   | $                          | 0      
|Stock Based Compensation that would have been reported using the Fair Value Method of SFAS 123 |  |                              | (1,106  | )                            |   | (1,465                     | ) |                            | (2,211 
|                                                                                               |  |                              |         |                              |   |                            |   |                            |        
|Pro Forma                                                                                      |  | $                            | 444,793 |                              | $ | 400,121                    |   | $                          | 870,863
|                                                                                               |  |                              |         |                              |   |                            |   |                            |        
|Basic earnings per share                                                                       |  |                              |         |                              |   |                            |   |                            |        
|As Reported                                                                                    |  | $                            | 0.24    |                              | $ | 0.22                       |   | $                          | 0.48   
|Pro Forma                                                                                      |  | $                            | 0.24    |                              | $ | 0.22                       |   | $                          | 0.48   
|Diluted earnings per share                                                                     |  |                              |         |                              |   |                            |   |                            |        
|As Reported                                                                                    |  | $                            | 0.24    |                              | $ | 0.21                       |   | $                          | 0.47   
|Pro Forma                                                                                      |  | $                            | 0.24    |                              | $ | 0.21                       |   | $                          | 0.47   

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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 June 30, 2003 and the results of operations for three months and six months ended June 30, 2003 and 2002 and cash flows for the six months ended June 30, 2003 and 2002.

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 2002 Annual Report to Shareholders, which is incorporated by reference in the Companys
2002 annual report on Form 10-K. The results of operations for the three months and six months ended June 30, 2003 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 six-month period ended June 30, 2003 and
2002.  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 three banking offices of its subsidiary bank.  The community banking activities include accepting deposits, providing loans and lines of
credit to local individuals and businesses, and investing in investment securities and money market instruments.  The three 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.

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4.     EARNINGS PER SHARE

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

|                                  |  | Net Income (Loss)                   |     | Weighted Avg. Shares |  | Per Share Amount | 
|--------------------------------- |  | ----------------------------------- | --- | -------------------- |  | ---------------- | 
|                                  |  |                                     |     |                      |  |                  | 
|                                  |  | For the quarter ended June 30, 2003 |    
|Basic Earnings (Loss) per share   |  | $                                   | 446 |                      |  | 1,826,813        | 
|Stock Options                     |  |                                     |     |                      |  | 7,390            | 
|Diluted Earnings (Loss) per share |  | $                                   | 446 |                      |  | 1,834,203        | 



|                                  |  | Net Income (Loss)                   |     | Weighted Avg. Shares |  | Per Share Amount | 
|--------------------------------- |  | ----------------------------------- | --- | -------------------- |  | ---------------- | 
|                                  |  |                                     |     |                      |  |                  | 
|                                  |  | For the quarter ended June 30, 2002 |    
|Basic Earnings (Loss) per share   |  | $                                   | 402 |                      |  | 1,854,328        | 
|Stock Options                     |  |                                     |     |                      |  | 17,566           | 
|Diluted Earnings (Loss) per share |  | $                                   | 402 |                      |  | 1,871,894        | 



|                                  |  | Net Income (Loss)                      |     | Weighted Avg. Shares |  | Per Share Amount | 
|--------------------------------- |  | -------------------------------------- | --- | -------------------- |  | ---------------- | 
|                                  |  |                                        |     |                      |  |                  | 
|                                  |  | For the six months ended June 30, 2003 |    
|Basic Earnings (Loss) per share   |  | $                                      | 873 |                      |  | 1,831,577        | 
|Stock Options                     |  |                                        |     |                      |  | 19,703           | 
|Diluted Earnings (Loss) per share |  | $                                      | 873 |                      |  | 1,851,280        | 



|                                  |  |                                        | Net Income (Loss) |  |  | Weighted Avg. Shares |  |   | Per Share Amount | 
|--------------------------------- |  | -------------------------------------- | ----------------- |  |  | -------------------- |  | - | ---------------- | 
|                                  |  |                                        |                   |  |  |                      |  |   |                  | 
|                                  |  | For the six months ended June 30, 2002 |                  
|Basic Earnings (Loss) per share   |  | $                                      | 779               |  |  | 1,853,141            |  | $ | .42              | 
|Stock Options                     |  |                                        |                   |  |  | 17,502               |  |   |                  | 
|Diluted Earnings (Loss) per share |  | $                                      | 779               |  |  | 1,870,643            |  | $ | .42              | 

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##### Table of Contents

The following table provides an interest rate sensitivity and interest rate risk analysis for the quarter ended
June 30, 2003. 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: 6-30-03
|----------------------------------- | -----------------------

REMAINING TIME BEFORE MATURITY OR INTEREST RATE
ADJUSTMENT

|                                      |    | ($000.00) OMITTED TOTAL |         | UP 1 Yr |   | >1 yr. <2Yrs. |  | >2Yrs. <3Yrs. |        | >3Yrs. <4Yrs. |   | >4Yrs. <5Yrs. |  | >5 Yrs <10Yrs |       
|------------------------------------- | -- | ----------------------- | ------- | ------- | - | ------------- |  | ------------- | ------ | ------------- | - | ------------- |  | ------------- | ------
|                                      |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|EARNING ASSETS                        |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|INVESTMENTS:                          |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|U. S. TREASURIES                      |    | $                       | 0       |         | $ | 0             |  | $             | 0      |               | $ | 0             |  | $             | 0     
|U. S. AGENCIES                        |    |                         | 3,519   |         |   | 2,515         |  |               | 1,004  |               |   | 0             |  |               | 0     
|FED FUNDS SOLD                        |    |                         | 11,315  |         |   | 11,315        |  |               | 0      |               |   | 0             |  |               | 0     
|PURCHASED CDS                         |    |                         | 11,614  |         |   | 10,525        |  |               | 1,089  |               |   | 0             |  |               | 0     
|                                      |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|TOTAL INVESTMENTS                     |    | $                       | 26,448  |         | $ | 24,355        |  | $             | 2,093  |               | $ | 0             |  | $             | 0     
|LOANS                                 |    | $                       | 99,126  |         | $ | 80,123        |  | $             | 9,163  |               | $ | 4,204         |  | $             | 3,644 
|                                      |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|TOTAL LOANS                           | -1 | $                       | 99,126  |         | $ | 80,123        |  | $             | 9,163  |               | $ | 4,204         |  | $             | 3,644 
|TOTAL EARNING ASSETS                  |    | $                       | 125,574 |         | $ | 104,478       |  | $             | 11,256 |               | $ | 4,204         |  | $             | 3,644 
|COST OF FUNDS (DEPOSITS)              |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|CERTIFICATE OF DEPOSITS               |    | $                       | 28,297  |         | $ | 27,731        |  | $             | 566    |               | $ | 0             |  | $             | 0     
|MONEY MARKET ACCOUNTS                 |    |                         | 38,718  |         |   | 35,007        |  |               | 1,936  |               |   | 1,775         |  |               | 0     
|TRANSACTION ACCOUNTS                  |    |                         | 4,748   |         |   | 2,297         |  |               | 635    |               |   | 608           |  |               | 309   
|SAVINGS ACCOUNTS                      |    |                         | 2,383   |         |   | 1,531         |  |               | 220    |               |   | 211           |  |               | 107   
|FED FUNDS PURCHASED                   |    |                         | 3,000   |         |   | 3,000         |  |               | 0      |               |   | 0             |  |               |       
|                                      |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|TOTAL COST OF FUNDS                   |    | $                       | 77,146  |         | $ | 69,566        |  | $             | 3,357  |               | $ | 2,594         |  | $             | 416   
|INTEREST SENSITIVE ASSETS             |    | $                       | 125,574 |         | $ | 104,478       |  | $             | 11,256 |               | $ | 4,204         |  | $             | 3,644 
|INTEREST SENSITIVE LIABILITIES        |    | $                       | 77,146  |         | $ | 69,566        |  | $             | 3,357  |               | $ | 2,594         |  | $             | 416   
|                                      |    |                         |         |         |   |               |  |               |        |               |   |               |  |               |       
|GAP                                   |    | $                       | 48,428  |         | $ | 34,912        |  | $             | 7,899  |               | $ | 1,610         |  | $             | 3,228 
|CUMULATIVE GAP                        |    | $                       | 48,428  |         | $ | 34,912        |  | $             | 42,811 |               | $ | 44,421        |  | $             | 47,649
|GAP RATIO                             |    |                         | 1.63    |         |   | 1.50          |  |               | 3.35   |               |   | 1.62          |  |               | 8.76  
|CUMULATIVE RATIO                      |    |                         | 1.63    |         |   | 1.50          |  |               | 1.59   |               |   | 1.59          |  |               | 1.63  
|GAP AS A % OF TOTAL ASSETS            |    |                         | 35.09   |         |   | 25.30         |  |               | 5.72   |               |   | 1.17          |  |               | 2.34  
|CUMULATIVE GAP AS A % OF TOTAL ASSETS |    |                         | 35.09   |         |   | 25.30         |  |               | 31.02  |               |   | 32.19         |  |               | 34.52 

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ITEM 2.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2003

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, 2003 was 86.1%, which was an increase from 70.7% for the same
period in 2002.  Net outstanding loans as of June 30, 2003 increased $7,517,000 or 8% compared to the same period a year ago, while total deposits decreased $15,131,000 or 11.3% versus the same time last year.  The increase in loans was
mainly due to Summits effort in marketing its products and the continuing success of the Real Estate Capital Markets Group.  Regarding the decrease in deposits, at the beginning of 2002, a large depositor merged and consolidated its
operations in Southern California, moving many of its largest accounts with the bank there.  Brokered deposits were purchased to assist in the liquidation of this relationship.  Although some accounts in the amount of $5,000,000 did
transfer, some have remained with the Bank as the transfer has taken longer than anticipated. As of June 30, 2003, the balance remaining in these accounts was approximately $11,655,000.  To reduce expenses, all brokered deposits in the amount
of $19,000,000 were allowed to mature and were not renewed.  In addition, at the beginning of 2002, another client was involved in a legal suit, which resulted in a settlement and liquidation of $8,000,000 in time deposits.  The Bank is
actively pursuing other depository relationships to offset this decline in deposits. The average loan-to-deposit ratio at the end of the first six months of 2003 was 89.4%, an increase from 66.3% for the same period last year.  This increase
was caused by a decrease in average total deposits of $19,881,000 or 14.2% from the same period last year, while average total loans increased $12,976,000 or 14% from the same period last year.

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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 $33,808,000 on June 30, 2003.  This amount represented 28.6% of total deposits in comparison to the liquidity ratio of 38.0% as of June 30, 2002.  This decrease is primarily a result of the decrease in deposits discussed
previously.  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)

|                          |  | 6-30-03 |        | % |  | 12-31-02 |   | % |        | 6-30-02 |  | %   |  
|------------------------- |  | ------- | ------ | - |  | -------- | - | - | ------ | ------- |  | --- | -
|                          |  |         |        |   |  |          |   |   |        |         |  |     |  
|Fed funds sold            |  | $       | 11,315 |   |  | 43       | % | $ | 9,875  |         |  | 36  | %
|Interest bearing deposits |  |         | 11,614 |   |  | 44       | % |   | 15,347 |         |  | 56  | %
|Securities                |  |         | 3,519  |   |  | 13       | % |   | 2,014  |         |  | 8   | %
|                          |  |         |        |   |  |          |   |   |        |         |  |     |  
|Total                     |  | $       | 26,448 |   |  | 100      | % | $ | 27,236 |         |  | 100 | %

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, 2003 were comprised of U.S. Govt agencies.

Changes
in Financial Position

As of June 30, 2003, total deposits decreased $9,028,000 or 7.1% from December 31, 2002 while at the same time net loans outstanding decreased $1,564,000 or 1.5% from
December 31, 2002.  Total deposits as of June 30, 2003 were $118,317,000, a decrease of 23.1% from $133,449,000 as of June 30, 2002.  Net loans as June 30, 2003 were $101,877,000, an increase of 8.0% from $94,360,000 as of June 30,
2002.

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

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Deposit Comparative($000.00 Omitted)

|                                 |  | 6-30-03 |         | % |  | 12-31-02 |   | % |         | 6-30-02 |  | %   |  
|-------------------------------- |  | ------- | ------- | - |  | -------- | - | - | ------- | ------- |  | --- | -
|                                 |  |         |         |   |  |          |   |   |         |         |  |     |  
|Demand                           |  | $       | 44,798  |   |  | 38       | % | $ | 51,409  |         |  | 40  | %
|Savings                          |  |         | 2,383   |   |  | 2        | % |   | 2,136   |         |  | 2   | %
|Interest bearing Trans. Deposits |  |         | 42,840  |   |  | 36       | % |   | 39,979  |         |  | 31  | %
|Other time                       |  |         | 28,296  |   |  | 24       | % |   | 33,821  |         |  | 27  | %
|                                 |  |         |         |   |  |          |   |   |         |         |  |     |  
|Total                            |  | $       | 118,317 |   |  | 100      | % | $ | 127,345 |         |  | 100 | %

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)

|                  |  | 6-30-03 |         | % |  | 12-31-02 |   | % |         | 6-30-02 |  | %   |  
|----------------- |  | ------- | ------- | - |  | -------- | - | - | ------- | ------- |  | --- | -
|                  |  |         |         |   |  |          |   |   |         |         |  |     |  
|Commercial        |  | $       | 33,842  |   |  | 33       | % | $ | 29,269  |         |  | 28  | %
|Real estate-const |  |         | 19,988  |   |  | 19       | % |   | 26,922  |         |  | 25  | %
|Real estate-other |  |         | 43,648  |   |  | 42       | % |   | 42,498  |         |  | 41  | %
|Installment/other |  |         | 6,062   |   |  | 6        | % |   | 6,391   |         |  | 6   | %
|                  |  |         |         |   |  |          |   |   |         |         |  |     |  
|Total             |  | $       | 103,540 |   |  | 100      | % | $ | 105,080 |         |  | 100 | %

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)

|                                                                       |  |         |      
|---------------------------------------------------------------------- |  | ------- | -----
|                                                                       |  |         |      
|                                                                       |  | 6-30-03 |      
|                                                                       |  |         |      
|Loans 90 days or more past due & still accruing                        |  | $       | 119  
|Non-accrual loans                                                      |  |         | 348  
|Other real estate owned                                                |  |         | 0    
|                                                                       |  |         |      
|Total non-performing assets                                            |  | $       | 467  
|                                                                       |  |         |      
|Non-performing assets to period end loans plus other real estate owned |  |         | 0.45 
|Allowance to non-performing loans                                      |  |         | 356.1

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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 Bank did not have any OREO properties at
the end of the period.

The decrease in non-performing assets from June 30, 2002 to June 30, 2003 is due primarily to a decrease in loans 90 days or more past due and still accruing.

Capital Position

As of June 30, 2003, Shareholders Equity was $19,267,000. This represents an increase of $613,000 or 3.3% over the same period
last year.  Since the inception of the repurchase program in 1989, the Company has authorized the repurchase of $3,500,000 of its stock.  As of June 30, 2003, the Company has repurchased a total of 705,857 shares of the Company stock
constituting 32.7% of the Companys original stock outstanding in 1989 prior to the repurchase program, at a total cost of $3,216,756, or an average price per share of $4.56. The Company plans to continue its repurchase program as an additional
avenue for liquidity for its shareholders.  The repurchases have not significantly affected the Companys liquidity or capital position or its ability to operate. 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 categories as of June
30, 2003:

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|               |  | Capital Ratio |       | Minimum Regulatory requirement | 
|-------------- |  | ------------- | ----- | ------------------------------ | 
|               |  |               |       |                                | 
|Tier 1 Capital |  |               | 14.76 | %                              | 
|Total Capital  |  |               | 15.92 | %                              | 
|Leverage Ratio |  |               | 13.69 | %                              | 

RESULTS OF OPERATIONS

Net Interest
Income

Total interest income, including loan fees decreased from $4,769,000 for the first six months of 2002 to $4,105,000 for the same period in 2003.

Although loans increased in the first six months of 2003 versus the same period last year, the yield on loans and fees decreased from 8.37% in 2002 to 7.03% in the 2003.  This was primarily due to a decrease in the
average prime rate from an average rate of 4.75% in the first six months of 2002 to an average rate of 4.25% for the same period this year. In addition, several real estate construction loans were paid off, which had floor rates of 6.50%. Average
outstanding loans increased from $94,208,000 in the first six months of 2002 to $106,446,000 in the first six months of 2003.

The decrease in interest income from investments was due to a
decrease in the average total investments outstanding from $52,537,000 in the first six months of 2002 to $21,429,000 for the same period in 2003.  The primary reason for the decline in investments outstanding was the increase in loans and a
decrease in brokered deposits.  The yield on investments increased from 3.29% in 2002 to 3.73% for the same period in 2003 primarily due to long term CDs and investments.

Interest
expense decreased from $1,269,000 at the end of the first six months of 2002 to $492,000 for the same period in 2003.  This was caused by a decrease in average outstanding interest bearing deposits, which decreased from an average outstanding
of $99,033,000 for the first six months of 2002 to $75,877,000 for the same period in 2003.  This decrease was caused by circumstances mentioned previously in this report.  In addition, the average cost of funds for the period ending June
30, 2003 decreased to 1.31% from 2.58% for the same period last year.

As a result of these factors, net interest margin for the first six months of 2003 was 5.73% compared to 5.79% for the same
period last year.

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For the second quarter, total interest income including loan fees decreased from $2,520,000 in 2002 to $2,042,000 for the same period in 2003.  This decrease is due to
the decrease in the average prime rate, which for the second quarter 2002 was 4.75% versus the average of 4.25% for the same period in 2003.  Offsetting this decrease was an increase in average loans outstanding of $10,431,000 for the second
quarter of 2003 to $105,712,000 versus an average balance of $95,280,000 for the same period in 2002. Average outstanding investments decreased $25,918,000 during the second quarter of 2003 to $24,325,000 versus an average balance of $50,243,000 for
the same period last year, primarily due to the increase in loans as well as the decrease in brokered deposits.

For the second quarter of 2003, interest expense
decreased    $527,000 compared to the same period in 2002.  Average outstanding interest bearing deposits decreased from $93,504,000 in 2002 to $73,335,000 in 2003.  Average cost of funds for the same period was 1.33%
compared to 2.59% in 2002.  As a result, net interest income for the second quarter of 2003 increased $48,000, or 2.8% compared to the same period in 2002.

Other Operating
Income

Service charges on deposit accounts as of the end of the first six months of 2003 increased to $139,000 versus $117,000 for the same period in 2002.  The increase was
centered in fees collected on service charges related to NSF fees on commercial accounts.

Other customer fees and charges for the first six months increased $14,000 or 14%, which was centered in
safe deposit box fees and wire fees over the amount collected in 2002.

Service charges on deposit accounts as of the end of the second quarter of 2003 increased to $71,000 versus $54,000 for the
same period in 2002. This was primarily related to an increase in service charges collected on returned checks and analysis charges.

Other customer fees and charges increased $35,000 for the
second quarter.  This was primarily related to an increase in wire fees, safe deposit fees, and non-interest income on life insurance policies.

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

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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.  The credit administrator grades each loan at the time of extension or renewal.  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 allocation of the allowance for loan losses by loan type for the years indicated and the percent of loans in each category to total
loans:

($000.0 omitted)

|             |  | 6-30-03 |       | 12-31-02     |  | 6-30-02 |  
|------------ |  | ------- | ----- | ------------ |  | ------- | -
|             |  |         |       |              |  |         |  
|             |  | Amount  |       | Loan Percent |  | Amount  |  
|             |  |         |       |              |  |         |  
|Commercial   |  | $       | 615   |              |  | 32.7    | %
|Construction |  |         | 478   |              |  | 19.3    | %
|Real Estate  |  |         | 504   |              |  | 42.1    | %
|Consumer     |  |         | 66    |              |  | 5.9     | %
|Unallocated  |  |         | N/A   |              |  | 0.0     | %
|             |  |         |       |              |  |         |  
|             |  | $       | 1,663 |              |  | 100.0   | %
|             |  |         |       |              |  |         |  

The following table summarizes the activity in the Banks allowance for credit losses for the six
months ended June 30, 2003 and 2002.

|                                 |  | Six Months Ended (000.00 Omitted) |      
|-------------------------------- |  | --------------------------------- | -----
|                                 |  |                                   |      
|                                 |  | 6/30/03                           |      
|                                 |  |                                   |      
|Balance, beginning of the period |  | $                                 | 1,639
|Provision for loan losses        |  |                                   | 7    
|Recoveries                       |  |                                   | 19   
|Loans Charged-off                |  |                                   | (2   
|                                 |  |                                   |      
|                                 |  | $                                 | 1,663
|                                 |  |                                   |      

The balance in the allowance for loan losses at June 30, 2003 was 1.61% of loans compared to 1.62% of
loans at June 30, 2002.  This level is considered appropriate and is approximately the same as the industry average.

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Other Operating Expenses

Total other operating expenses increased $8,000 or 0.3% as of the end of the first six
months of 2003 compared to the same period last year.  This increase was centered in personnel and occupancy expenses while decreases were shown in legal fees and auto expenses.

Total other operating expenses increased $35,000 as of the end of the second quarter of 2003.  This increase was primarily due to an increase in salaries and occupancy expenses.

Provision for Income Taxes

The Companys provision for income taxes as of the end of the first six months of 2003 increased from $539,000 in 2002 to
$610,000.  This increase is attributable to an increase in profits from operations as a result of increased loan activity. For the same period in 2003 the Companys total effective tax rate was 41.1% compared to 40.9% in 2002.

Net Income

Net income for the first six months of 2003 increased to $873,000 from $779,000 for the same period in 2002, or an increase of 12.1%.

Off Balance Sheet Transactions

The Bank in its ordinary course of business has commitments to disburse loan proceeds both under
revolving and non-revolving arrangements.  As of June 30, 2003 the total of these commitments approximated $29,850,000 compared to $43,776,000 as of December 31, 2003 and $46,812,000 as of June 30, 2002.

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 exchange 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

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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 has implemented an investment policy, continued to stress its loan programs and decreased interest rates it pays
on deposit accounts commensurate with the marketplace to help mitigate the downward pressure on its net interest margin.

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.  As mentioned previously, 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.

ITEM 4.     Controls and Procedures

(a)     Evaluation of Disclosure Controls and Procedures.

The Companys Chief Executive Officer and its Chief Financial Officer, after evaluating the effectiveness of the Companys disclosure controls and procedures (as defined in Securities Exchange Act of 1934 Rules
13a-14(c) and 15d-14(c as of a date within 90 days of the filing date of this quarterly report on Form 10Q (the Evaluation Date), have concluded that as of the Evaluation Date, the Companys disclosure controls and procedures were
adequate and effective to ensure that material information relating to the Company would be known to them by others within the Company, particularly during the period in which this report on Form 10Q was being prepared.

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(b)     Changes in Internal Controls.

There were no significant changes in the Companys internal controls, the Companys disclosure controls and procedures, or in other factors that could significantly affect internal controls subsequent to the
Evaluation Date, nor were there any significant deficiencies or material weaknesses in such disclosure controls and procedures requiring corrective actions.  As a result, no corrective actions were taken.

PART II  -  OTHER INFORMATION

|ITEM 1 - LEGAL PROCEEDINGS                                  
|------------------------------------------------------------
|                                                            
|                                                            
|ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS          
|                                                            
|                                                            
|ITEM 3 - DEFAULTS UPON SENIOR SECURITIES                    
|                                                            
|                                                            
|ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|                                                            
|                                                            
|                                                            
|ITEM 5 - OTHER INFORMATION                                  
|                                                            
|                                                            
|ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K                   
|                                                            
|                                                            

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##### Table of Contents

| |     | 31.1  Certification of CEO pursuant to Section 302 of Sarbanes-Oxley
| | --- | ---------------------------------------------------------------------
| |     |                                                                      
| |     | 31.2  Certification of CFO pursuant to Section 302 of Sarbanes-Oxley
| |     |                                                                      
| |     | 32.1  Certification of CEO pursuant to Section 906 of Sarbanes-Oxley
| |     |                                                                      
| |     | 32.2  Certification of CFO pursuant to Section 906 of Sarbanes-Oxley
| |     |                                                                      
| | (b) | Reports on Form 8-K                                                  
| |     | None                                                                 

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##### Table of Contents

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:  August 12, 2003 | By:                    
|                       |                        
|                       |                        
|                       |                        
|DATE:  August 12, 2003 | By:                    
|                       |                        
|                       |                        

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