<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:              SEPTEMBER 30, 1999

                         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 455,438
shares of no par value common stock issued as of September 30, 1999


                                                                               1
<PAGE>

PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>

ITEM 1                                                                      PAGE
<S>                                                                         <C>
SUMMIT BANCSHARES, INC. AND SUBSIDIARY FINANCIAL STATEMENTS

          Consolidated Balance Sheets ....................................   3

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

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

          Consolidated Statement of Changes in Shareholders' Equity ......   6

          Notes to Financial Statements ..................................   7-8

          Interest Rate Risk Reporting Schedule ..........................   10


ITEM 2

          Management's Discussion and Analysis of Financial
          Condition and Results of Operations ............................ 11-19

                     PART II - OTHER INFORMATION

          ITEMS 1-6 ...................................................... 20-21
</TABLE>



2
<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
              (UNAUDITED)

<TABLE>
<CAPTION>

ASSETS                                                                                                 09/30/99         12/31/98
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                           <C>                <C>
Cash and due from banks                                                                             $ 5,499,375      $ 8,126,067
Federal funds sold                                                                                   11,335,000       18,640,000
                                                                                              -----------------  -----------------
Cash and cash equivalents                                                                            16,834,375       26,766,067
Time deposits with other financial institutions                                                      28,087,690       24,135,487
Investment securities (fair value of $20,336,862 at
    September 30, 1999 and $15,489,100 at
    December 31, 1998 ) held to maturity                                                             20,465,718       15,499,670
Loans, net of allowance for loan losses of
     $ 1,332,348 at September 30, 1999 and
     $ 1,319,451 at December 31, 1998                                                                52,822,891       53,013,148
Other real estate owned                                                                                 422,845          212,262
Premises and equipment, net                                                                             854,405          976,388
Interest receivable and other assets                                                                  4,779,713        4,052,554
                                                                                             ------------------  ----------------

Total Assets                                                                                       $124,267,637     $124,655,576
                                                                                             -=================  ================

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand                                                                                             $ 36,464,354     $ 38,076,664
Interest-bearing transaction accounts                                                                39,161,027       35,350,967
Savings                                                                                               3,023,819        2,135,736
Time certificates $100,000 and over                                                                  21,968,039       26,147,116
Other time certificates                                                                               7,321,416        8,178,876
                                                                                             ------------------  ----------------
Total Deposits                                                                                      107,938,655      109,889,359
Interest payable and other liabilities                                                                1,357,296          677,802
                                                                                             ------------------  ----------------
Total Liabilities                                                                                   109,295,952      110,567,161

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;
  455,438 shares outstanding at September 30, 1999 and
   452,684 shares outstanding at December 31, 1998                                                    3,709,178        3,829,340
Retained Earnings                                                                                    11,262,507       10,259,075
                                                                                             ------------------  ----------------
Total Shareholders' Equity                                                                           14,971,685       14,088,415

Total Liabilities and Shareholders' Equity                                                         $124,267,637     $124,655,576
                                                                                             ==================  ================
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements

                                                                              3
<PAGE>



SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

<TABLE>
<CAPTION>

                                     THREE MONTHS                 THREE MONTHS                NINE MONTHS             NINE MONTHS
                                     ENDED 9-30-99                ENDED 9-30-98              ENDED 9-30-99           ENDED 9-30-98
<S>                            <C>                        <C>                         <C>                       <C>
INTEREST INCOME:
Interest and fees on loans            $1,401,276                   $1,494,579                 $ 4,212,942             $ 4,637,926
Interest on time deposits with
  other financial institutions           383,542                      128,126                   1,127,012                 311,401
Interest on U.S. government
   treasury securities                   242,717                      197,020                     592,505                 574,862
Interest on federal funds sold           247,905                      403,006                     560,455                 891,124
                              --------------------        ---------------------       ---------------------     -------------------
Total interest income                  2,275,439                    2,222,731                   6,492,914               6,415,313

INTEREST EXPENSE:
Interest on deposits                     572,567                      605,167                   1,695,011               1,622,908
                              --------------------        ---------------------       ---------------------     -------------------
Total interest expense                   572,567                      605,167                   1,695,011               1,622,908
                              --------------------        ---------------------       ---------------------     -------------------
Net interest income                    1,702,872                    1,617,564                   4,797,903               4,792,405
Provision for loan losses                    -                            -                           -                   100,000
                              --------------------        ---------------------       ---------------------     -------------------
Net interest income after
   provision for loan losses           1,702,872                    1,617,564                   4,797,903               4,692,405

NON-INTEREST INCOME:
Service charges on deposit accounts      106,113                      115,837                     337,296                 348,861
Other customer fees and charges            1,720                       21,079                      90,602                  50,991
                              --------------------        ---------------------       ---------------------     -------------------
Total non-interest income                107,833                      136,916                     427,899                 399,852

NON-INTEREST EXPENSE:
Salaries and employee benefits           602,019                      589,643                   1,668,267               1,608,950
Occupancy expense                         99,969                      103,257                     305,904                 305,341
Equipment expense                         68,337                       65,147                     192,573                 166,275
Other                                    251,622                      227,039                     745,003                 747,488
                              --------------------        ---------------------       ---------------------     -------------------
Total non-interest expense             1,021,946                      985,086                   2,911,746               2,828,054
Income before income taxes               788,759                      769,394                   2,314,056               2,264,204
Provision for income taxes               329,188                      324,863                     966,489                 948,156
                              --------------------        ---------------------       ---------------------     -------------------
Net Income                              $459,571                     $444,531                  $1,347,567              $1,316,048
                              ====================        =====================       =====================     ===================

EARNINGS PER SHARE:
Earnings per common share                  $1.01                        $1.01                       $2.95                   $3.01
Earnings per common
  assuming dilution share                  $0.99                        $0.95                       $2.90                   $2.80
Weighted average shares outstanding      455,755                      438,035                     456,755                 437,636
Weighted avg. shrs. outsdg.
  assuming dilution                      464,556                      469,973                     465,172                 469,574
                              ====================        =====================       =====================     ===================
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements

4
<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND  1998
                 (UNAUDITED)

<TABLE>
<CAPTION>
                                                           NINE MONTHS                          NINE MONTHS
                                                          ENDED 9-30-99                        ENDED 9-30-98
<S>                                                   <C>                                 <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received                                             $ 6,054,499                          $ 6,050,029
Fees received                                                     811,460                              706,317
Interest paid                                                  (1,686,735)                          (1,623,415)
Cash paid to suppliers and employees                           (2,713,514)                          (2,717,211)
Income taxes paid                                                (820,000)                          (1,049,365)
                                                      ---------------------               ----------------------
Net cash provided by operating activities                       1,645,710                            1,366,355

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in time deposits with
   other financial institutions                                (3,952,203)                          (8,301,742)
Maturity of investment securities                               7,499,670                           10,997,392
Purchase of investment securities                             (12,465,718)                         (12,000,000)
Net (increase) decrease in loans to customers                     621,172                            6,679,776
Recoveries on loans previously charged-off                         22,792                               31,462
(Increase) decrease in premises and equipment                     (73,065)                            (337,513)
                                                      ---------------------               ----------------------
Net cash provided by (used in) investing activities            (8,347,352)                          (2,930,625)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in demand, interest
   bearing transaction, and savings deposits                    3,085,833                            7,103,821
Net increase (decrease) in time deposits                       (5,036,536)                           7,637,736
(Increase) decrease in other assets                              (815,049)                          (2,184,089)
Exercise of stock options                                          90,000                               18,755
Repurchase of common stock (decrease)                            (210,163)                              (6,270)
Dividends paid (decrease)                                        (344,135)                            (338,891)
                                                      ---------------------              -----------------------
Net cash provided by (used in) financing activities            (3,230,050)                          12,231,062
                                                      ---------------------               ----------------------
Net increase (decrease) in cash and cash equivalents           (9,931,692)                          10,666,792
Cash and cash equivalents at the
   beginning of the year                                       26,766,067                           21,574,015
                                                      ---------------------               ----------------------
Cash and cash equivalents at the end of the year             $ 16,834,375                         $ 32,240,807
                                                      ---------------------               ----------------------

RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net Income                                                    $ 1,347,567                          $ 1,316,047
Adjustments to reconcile net income to
   net cash provided by operating activities:
Depreciation and amortization                                     196,727                              178,938
Provision for loan losses and OREO losses                               0                              100,000
(Increase) decrease in interest receivable                       (122,691)                             (31,434)
Increase (decrease) in unearned loan fees                          67,837                              (27,385)
Increase (decrease) in accrued interest pay                         8,276                                 (507)
(Increase) decrease in prepaid expenses                           (48,242)                             (85,872)
Increase (decrease) in accounts payable                            49,747                               17,777
Increase (decrease) in income taxes payable                       146,489                             (101,209)
                                                      ---------------------               ----------------------
                                                                  298,143                               50,308
                                                      ---------------------               ----------------------
Net cash provided by operating activities                      $1,645,710                          $ 1,366,355
                                                      ---------------------               ----------------------
</TABLE>

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

                                                                              5

<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                       (UNAUDITED)

<TABLE>
<CAPTION>

                                       NUMBER OF
                                         SHARES                     COMMON                    RETAINED
                                       OUTSTANDING                   STOCK                    EARNINGS                    TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                        <C>                        <C>                       <C>
Balance at December 31, 1998            452,684                   $3,829,341                 $10,259,075               14,088,416

Stock Options Exercised                   7,500                       90,000                           0                   90,000

Repurchase of Common Stock               (4,746)                    (210,163)                          0                 (210,163)

Issuance of cash dividends of $.75
  per share                                   0                            0                    (344,135)                (344,135)

Net Income                                    0                            0                   1,347,567                1,347,567

Balance at September 30, 1999           455,438                    3,709,178                  11,262,507               14,971,685


Balance at December 31, 1997            436,565                    3,709,145                   9,169,524               12,878,669

Stock Options Exercised                  15,700                      159,875                           -                  159,875

Repurchase of Common Stock                 (110)                      (6,270)                          0                   (6,270)

Issuance of cash dividends of $.75
  per share                                   0                            0                    (338,891)                (338,891)

Net Income                                    0                            0                   1,316,048                1,316,048

Balance at September 30, 1998           452,155                    3,862,750                  10,146,681               14,009,431
</TABLE>

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

6

<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 September 30,
1999 and the results of operations for the nine months ended September 30, 1999
and 1998 and cash flows for the nine months ended September 30, 1999 and 1998.

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 1998 Annual Report to Shareholders, which is incorporated by
reference in the Company's 1998 annual report on Form 10-K. The results of
operations for the nine months ended September 30, 1999 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 was required to adopt SFAS 128 in the fourth quarter of 1997 and restated
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 455,755 and 438,035 during the nine months ended
September 30, 1999 and 1998, 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.




                                                                               7
<PAGE>

In June of 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income", which
establishes standards for reporting and display of comprehensive income and its
components; and No. 131, "Disclosures about Segments of an Enterprise and
Related Information", which establishes annual and interim reporting standards
for an enterprise's operating segments and related disclosures about its
products, services, geographic areas, and major customers. Adoption of these
statements will not impact the Bank's consolidated financial position, results
of operations or cash flows, and any effect will be limited to the form and
content of its disclosures. Both statements are effective in 1999, with earlier
application permitted.


8
<PAGE>

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999

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 September 30, 1999 was 48.9% which was
a decrease from 51.4% for the same period in 1998. Total outstanding loans as of
September 30, 1999 decreased $1,288,000 compared to the same period a year ago
while total deposits increased $2,765,000 versus the same time last year. The
decrease in loans was mainly due to Summit maintaining it's lending standards
during a period of increased competition that resulted in a lowering of lending
standards throughout the marketplace. The increase in deposits is mainly due to
Bank's effort in marketing its products. The average loan-to-deposit ratio for
the third quarter of 1999 was 45.9%, a decrease from 49.5% for the same period
last year. This decrease was caused by an increase in average total deposits of
$10,830,000 or 10.8% while average total loans decreased $1,309,000 or 2.5%.
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 $65,388,000 on September 30, 1999.
This amount represented 60.6% of total deposits in comparison to the liquidity
ratio of 56.8% as of September 30, 1998. This increase is primarily a result of
a decline in loan growth and an increase in deposits. It is management's belief
that the current liquidity level is appropriate given current economic
conditions and is sufficient to meet current needs.



                                                                               9
<PAGE>

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.

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)
<TABLE>
<CAPTION>

                     9-30-99       %    12-31-98       %     9-30-98       %
<S>                  <C>         <C>     <C>         <C>     <C>         <C>
Fed funds sold       $11,335     19%     $18,640     32%     $26,740     49%
Interest bearing
   deposits           28,087     47%      24,135     41%      13,946     26%
Securities            20,465     34%      15,500     27%      13,499     25%
</TABLE>


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 September 30, 1999 were comprised of U.S. Gov't agencies.


CHANGES IN FINANCIAL POSITION

As of September 30, 1999, total deposits increased $1,951,000 from December 31,
1998 while at the same time total loans outstanding decreased $190,000. Total
deposits as of September 30, 1999 were $107,939,000, an increase of 2.6% from
$105,173,000 as of September 30, 1998. Total loans as of September 30, 1999 were
$52,823,000, a decrease of 2.38% from $54,111,000 as of September 30, 1999.

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)
<TABLE>
<CAPTION>

                     9-30-99       %      12-31-98     %      9-30-98      %
<S>                  <C>         <C>     <C>         <C>     <C>         <C>
Demand               $36,464     34%     $38,076     35%     $36,466     35%

Savings                3,024      3%       2,136      2%       2,986      3%

Interest bearing      39,161     36%      35,351     32%      33,991     32%
 Trans. Deposits

Other time            29,290     27%      34,326     28%      31,730     30%
</TABLE>


10
<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)
<TABLE>
<CAPTION>

                      9-30-99       %    12-31-98       %     9-30-98       %
<S>                   <C>         <C>     <C>         <C>     <C>         <C>
Commercial            $30,343     56%     $38,335     71%     $40,767     74%
Real estate-const       7,204     13%       5,060      9%       4,429      8%
Real estate-other       9,709     18%       5,751     11%       5,512     10%
Installment/other       6,899      8%       5,187      9%       4,721      8%
</TABLE>



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)
<TABLE>
<CAPTION>

                                  9-30-99    12-31-98     9-30-98
<S>                               <C>        <C>          <C>
Loans 90 days or more past
 due & still accruing              $    6      $  662      $    0
Non-accrual loans                     271         651         406
Other real estate owned               422         212       1,359
                                   ------      ------      ------
   Total non-performing assets     $  699      $1,525      $1,765
                                   ======      ======      ======
Non-performing assets to
  period end loans plus
  other real estate owned            1.31%       2.81%       3.11%

Allowance to non-performing
  loans                               481%        100%        325%

Allowance to non-performing
  assets                              190%         86%         75%
</TABLE>


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


                                                                             11
<PAGE>

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 non-interest expense
in the period incurred.

The decrease in non-performing assets from September 30, 1998 to September 30,
1999 is due primarily to a decrease in non-accrual loans of $135,000 and a
decrease of $937,000 in OREO. Of the $271,000 total non accrual loans in 1999,
$129,000 is guaranteed by Small Business Administration.

The total OREO amount, $422,000, is related to one property that is located in
Contra Costa County. This property is currently under contract to be sold, and
is expected to be liquidated before the end of the year.


12
<PAGE>

CAPITAL POSITION

As of September 30, 1999, Shareholders' Equity was $14,972,000. This represents
an increase of $1,103,000 or 8.0% 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 September 30, 1999, the Company has
repurchased a total of 164,658 shares of the Company stock constituting 30.6% of
the Company's original stock prior to the repurchase program, at a total cost of
$2,572,700, or an average price per share of $15.62. 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.

The following table shows the risk-based capital and leverage ratios as well as
the minimum regulatory requirements for the same as of September 30, 1999:
<TABLE>
<CAPTION>

                            Capital Ratio                 Minimum
                                                   Regulatory requirement
<S>                         <C>                    <C>
Tier 1 Capital                  20.49%                     4.00%
Total Capital                   21.72%                     8.00%
Leverage Ratio                  11.77%                     3.00%
</TABLE>


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.


                                                                            13
<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 September 30, 1999. 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: 9-30-99

           REMAINING TIME BEFORE MATURITY OR INTEREST RATE ADJUSTMENT

<TABLE>
<CAPTION>
                                               ($000.00)
                                                OMITTED          UP      > 3Mo.       > 1Yrs.     > 3Yrs.    > 5Yrs.      OVER
                                                  TOTAL       3 Mo.      < 1Yrs.      < 3Yrs.     < 5Yrs.    < 10Yrs.    10 YEARS
<S>                                           <C>          <C>         <C>         <C>          <C>         <C>         <C>
     I.       EARNING ASSETS

           A. INVESTMENTS:
           1. U. S. TREASURIES                       $0          $0          $0           $0          $0          $0          $0
           2. U. S. AGENCIES                     20,466       1,000       2,000       17,466           0           0           0
           3. FED FUNDS SOLD                     11,335      11,335           0            0           0           0           0
           4. PURCHASED CDS                      28,088       5,249       9,776       13,062           0           0           0
                                              ---------     -------     --------     --------     -------     -------     --------
              TOTAL INVESTMENTS                 $59,889     $17,584     $11,776      $30,528          $0          $0          $0


           B. LOANS                             $52,651     $48,385      $1,541         $500      $2,225          $0          $0
                                              ---------     -------     --------     --------     -------     -------     --------
              TOTAL LOANS                       $52,651     $48,385      $1,541         $500      $2,225          $0          $0

           C. TOTAL EARNING ASSETS             $112,540     $65,969     $13,317      $31,028      $2,225          $0          $0

    II.       COST OF FUNDS (DEPOSITS)

           A. CERTIFICATE OF DEPOSITS           $29,290     $19,771      $9,448          $71          $0          $0          $0
           B. MONEY MARKET ACCOUNTS              37,123       5,062      14,273       17,788           0           0           0
           C. TRANSACTION ACCOUNTS                5,135         220         660        1,741       1,252       1,262           0
           D. SAVINGS ACCOUNTS                    3,024         130         389        1,025         737         743           0
                                              ---------     -------     --------     --------     -------     -------     --------
              TOTAL COST OF FUNDS               $74,572     $25,183     $24,770      $20,625      $1,989      $2,005          $0

   III.       INTEREST SENSITIVE ASSETS        $112,540     $65,969     $13,317      $31,028      $2,225          $0          $0

    IV.       INTEREST SENSITIVE LIABILITIES    $74,572     $25,183     $24,770      $20,625      $1,989      $2,005          $0
                                              ---------     -------     --------     --------     -------     -------     --------
     V.       GAP                               $37,968     $40,786    ($11,453)     $10,403        $236     ($2,005)         $0

    VI.       CUMULATIVE GAP                    $37,968     $40,786     $29,333      $39,736     $39,972     $37,967     $37,967

   VII.       GAP RATIO                            1.51        2.62        0.54         1.50        1.12        0.00        0.00

  VIII.       CUMULATIVE RATIO                     1.51        2.62        1.59         1.56        1.55        1.51        1.51

    IX.       GAP AS A % OF TOTAL ASSETS          31.04       33.34       -9.36         8.50        0.19       -1.64        0.00

     X.       CUMULATIVE GAP AS A % OF            31.04       33.34       23.98        32.48       32.67       31.04       31.04
                   TOTAL ASSETS
</TABLE>


14
<PAGE>

RESULTS OF OPERATIONS

NET INTEREST INCOME

Total interest income including loan fees increased from $6,415,000 for the
first nine months of 1998 to $6,493,000 for the same period in 1999. Although
loan income decreased, the increase in deposits caused an increase in investment
income. Loan fees showed a decrease of $18,000 compared to the same period last
year reflective of the decrease in loan growth. The yield on loans and fees
decreased 53 basis points over the same period last year. The increase in
interest income from investments was due to an increase in volume as the yield
decreased 50 basis points compared to the same period in 1998. Average total
investments was $16,868,000 higher than the same period last year due to deposit
growth.

Interest expense increased from $1,623,000 at the end of the first nine months
of 1998 to $1,695,000 in 1999. This increase was due to an increase in average
interest-bearing deposit accounts of $6,001,000 during the first nine months of
1999 versus the same period last year. The average cost of funds for the period
ending September 30, 1999 was 15 basis points less than the same period last
year. As a result of these factors, net interest margin for the first nine
months of 1999 was 6.52% compared to 5.79% for the same period last year.

For the third quarter, total interest income including loan fees increased
from $2,223,000 in 1998 to $2,275,000 for the same period in 1999. This
increase is due to an increase in securities income. Average loan volume for
the third quarter of 1999 showed a decrease of $1,309,000 from the same
period last year. Yield on loans for the third quarter of 1999 was 10.86%
compared to 11.29% for the same period last year. For the third quarter of
1999, total interest income on investments increased $146,000. This increase
was attributable to an average investment volume increase of $13,118,000, along
with an interest yield decrease from 5.56% in the third quarter of 1998 to
5.33% for the same period in 1999.

                                                                              15
<PAGE>

For the third quarter of 1999, interest expense decreased $33,000 compared to
the same period in 1998. Average outstanding interest bearing deposits increased
from $69,000,000 in the third quarter of 1998 to $76,000,000 in the third
quarter of 1999. Average cost of funds for the same period was 2.99% in 1999
compared to 3.46% in 1998. As a result of these factors, net interest income for
the third quarter of 1999 increased $85,000, or 5.27%, compared to the same
period in 1998.


OTHER OPERATING INCOME

Service charges on deposit accounts as of the end of the first nine months of
1999 decreased to $337,000 versus $349,000 for the same period in 1998. The
decrease was due to decreased fees collected in service charges related to the
collection of NSF fees on commercial accounts.

Service charges on deposit accounts for the third quarter of 1999 increased
$9,700 compared to the same period last year due to increased collection of fees
associated with the collection of NSF fees on commercial accounts. Other
customer fees and charges decreased $19,300 for the present quarter due to the
loss of rental income.


LOAN LOSS PROVISION

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.



16
<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 nine months ended September 30, 1999 and 1998.

<TABLE>
<CAPTION>
                                                NINE MONTHS ENDED
                                               ---------------------
                                                (000.00 Omitted)
                                               9/30/99     9/30/98
<S>                                            <C>         <C>
Balance, beginning of the period                 1,319       1,238
Provision for loan losses                            0         100
Recoveries                                          28          31
Loans Charged-off                                  (15)        (51)
                                                -------     -------
                                                 1,332       1,318
</TABLE>

The balance in the allowance for loan losses at September 30, 1999 was 2.46% of
total loans compared to 2.38% of total loans at September 30, 1998.


OTHER OPERATING EXPENSES

Total other operating expenses increased $84,000 as of the end of the first
nine months of 1999 compared to the same period last year. This increase was
primarily due to an increase in staff expense and the purchase of fixed
assets to our LAN/WAN system.

For the third quarter of 1999, operating expenses increased $37,000 compared to
the same period last year primarily due to the items previously mentioned.

                                                                              17
<PAGE>

PROVISION FOR INCOME TAXES

The Company's provision for income taxes as of the end of the first nine months
of 1999 increased from $948,000 in 1998 to $966,000. This increase is
attributable to increased income from regular business operations. For the same
period in 1999 the Company's total effective tax rate was 41.8% compared to
41.9% in 1998.

For the third quarter of 1999, the provision for income taxes increased $4,000
compared to the third quarter of 1998. The effective tax rate for this period
was 41.7% versus 42.3% for the same period last year.


NET INCOME

Net income for the first nine months of 1999 increased to $1,348,000 from
$1,316,000 for the same period in 1998, or an increase of 2.4%. Third quarter
net income increased $15,000 or 3.38% over the same period last year.


CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS

In regard to the year 2000 issue, the Company has conducted a review of its
computer systems to identify the systems that could be affected and has
developed an implementation plan to resolve the issue. The year 2000 problem is
the result of computer programs being written using two digits rather than four
to define the applicable year. Any of the Company's programs that have time
sensitive software may recognize a date using "00" as the year 1900 rather than
2000. This could result in a major system failure or miscalculations including
but not limited to, a temporary inability to process transactions, send
statements, or engage in similar day to day business activities. The extent of
the potential impact of the Year 2000 Problem is not yet known and if not timely
corrected, it could affect the global economy.

Management has assessed the extent of vulnerability of the Bank's computer
systems to the problem, and expects its year 2000 date conversion project to be
completed on a timely basis.

To date, the Company has completed the testing deemed to be required on the
Bank's computer systems. Included in this process, was an upgrade to the Banker
II system that performs the Bank's core processing. This upgrade has been
installed and tested by several other banks that use the Banker II systems with
no apparent problems.


18
<PAGE>

The Company also replaced the NCR 7770 proof machine with a new POD sorter that
is Y2K compliant. This new sorter is now up and running with no apparent
problems.

During the execution of this project, the Company has incurred internal staff
costs as well as other expenses related to enhancements necessary to prepare the
systems for the year 2000.

The Company believes that, with modifications to existing software and
conversions to new software that have been completed, the Year 2000 problem will
not pose a significant operational problem for the Company. However, because
most computer systems are, by their very nature, interdependent, it is possible
that no-compliant third party computers could impact the Company's computer
systems. Therefore, the Company has taken steps to communicate with the third
parties, such as wire transfer systems, telephone systems, electric companies
and other companies with which it deals to coordinate Year 2000 compliance but
could be adversely affected if it or the unrelated third parties are
unsuccessful. The Company is also assessing the impact, if any, the Year 2000
may have on its large loan (credit risk) and deposit customers.

The expense of the year 2000 project as well as the related potential effect on
the Company's earning is not expected to have a material effect on its financial
position or results of operations. As of September 30, 1999, the costs related
to the Year 2000 project are approximately $65,000. Remaining expenses regarding
Y2K are not expected to be significant as testing and modifications to both
software and hardware are basically complete.

Contingency Plans

Management, in conjunction with its Year 2000 and Disaster Recovery program, has
modified its disaster recovery plans to include the response to a Year 2000
problem in a most likely worst case scenario.


                                                                              19
<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, 1999 for the year ended December 31, 1998.


ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
          None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
          None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
          None

ITEM 5 - OTHER INFORMATION
          None

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

          27   Financial Data Schedule

          (b)  Reports on Form 8-K
               None


20
<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: November 15, 1999           BY: /s/ Shirley W. Nelson
       -------------------             ------------------------------
                                        SHIRLEY W. NELSON
                                        CHAIRMAN AND CEO
                                        (PRINCIPAL EXECUTIVE OFFICER)


  DATE: November 15, 1999           BY: /s/ Kihuo Nakahara
       -------------------             ------------------------------
                                        KIKUO NAKAHARA
                                        CHIEF FINANCIAL OFFICER
                                        (PRINCIPAL FINANCIAL OFFICER)


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                                                                              17