<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:                                  MARCH 31, 1998

                              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 437,455 
shares of no par value common stock issued as of March 31, 1998.


<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 Statements of Changes in

                    Shareholders' Equity . . . . . . . . . . . . . . .    5

               Consolidated Statement of Cash Flows  . . . . . . . . .    6

               Notes to Financial Statements . . . . . . . . . . . . .    7

               Interest Rate Risk Reporting Schedule . . . . . . . . .    8


ITEM 2

               Management's Discussion and Analysis of Financial

               Condition and Results of Operations . . . . . . . . . . 9-16



                             PART II - OTHER INFORMATION

ITEMS 1-6    . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17-18
</TABLE>


<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION MARCH 31, 1998 AND DECEMBER 31, 1997
                (UNAUDITED)

<TABLE>
<CAPTION>

ASSETS                                                    3/31/98     12/31/97
------------------------------------------------------------------------------
<S>                                                  <C>            <C>
Cash and due from banks                              $  6,124,312 $  8,664,015
Federal funds sold                                     18,677,000   12,910,000
------------------------------------------------------------------------------
Cash and cash equivalents                              24,801,312   21,574,015
Time deposits with other financial institutions         6,337,000    5,644,000
Investment securities (fair value of $12,920,301 at
    March 31, 1998 and $8,830,810 at
    December 31, 1997) held to maturity                12,897,880   12,496,651
Loans, net of allowance for loan losses of
   $1,313,762 at March 31, 1998 and
   $1,238,012 at December 31, 1997                     55,353,654   60,832,859
Other real estate owned                                 1,222,080    1,222,080
Premises and equipment, net                               861,831      872,619
Interest receivable and other assets                    1,790,159    1,699,307

Total Assets                                         $103,263,916 $104,341,531

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------------------------------------------

Deposits:
Demand                                              $  28,155,989 $ 31,062,481
Interest-bearing transaction accounts                  33,273,431   33,012,655
Savings                                                 3,446,480    2,264,538
Time certificates $100,000 and over                    18,782,099   18,828,044
Other time certificates                                 5,305,923    5,264,024
------------------------------------------------------------------------------
Total Deposits                                         88,963,922   90,431,742
Interest payable and other liabilities                    982,196    1,031,120
Total Liabilities                                      89,946,118   91,462,862

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;
   437,455 shares outstanding at March 31, 1998 and
   436,565 shares outstanding at December 31, 1997      3,712,875    3,709,145
Retained Earnings                                       9,604,923    9,169,524
Total Shareholders' Equity                             13,317,798   12,878,669

Total Liabilities and Shareholders' Equity           $103,263,916 $104,341,531
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997

<TABLE>
<CAPTION>
                                                     THREE MONTHS   THREE MONTHS
                                                     ENDED 3-31-98  ENDED 3-31-97
---------------------------------------------------------------------------------
<S>                                                  <C>            <C>
INTEREST INCOME:
Interest and fees on loans                             $1,621,840   $1,505,010
Interest on time deposits with other
   financial institutions                                  90,015      122,676
Interest on U.S. government
   treasury securities                                    167,261      141,617
Interest on federal funds sold                            212,100      162,209
Total interest income                                   2,091,216    1,931,512

INTEREST EXPENSE:
Interest on deposits                                      501,543      456,022
Total interest expense                                    501,543      456,022
Net interest income                                     1,589,673    1,475,490
Provision for loan losses                                  75,000       75,000
Net interest income after
   provision for loan losses                            1,514,673    1,400,490

NON-INTEREST INCOME:
Service charges on deposit accounts                        86,002       73,954
Other customer fees and charges                            43,378       47,722
Total non-interest income                                 129,380      121,676

NON-INTEREST EXPENSE:
Salaries and employee benefits                            506,219      501,800
Occupancy expense                                         103,835       90,107
Equipment expense                                          44,154       28,066
Other                                                     243,387      245,644
Total non-interest expense                                897,595      865,617
Income before income taxes                                746,458      656,549
Provision for income taxes                                311,059      275,036
NET INCOME                                               $435,399     $381,513

EARNINGS PER SHARE:
Earnings per common share                                    1.00         0.89
Earnings per common share assuming dilution                  0.93         0.82

Weighted average shares outstanding                       437,193      429,746

Weighted average shares outstanding
   assuming dilution                                      469,252      469,317
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>

SUMMIT BANCSHARES, INC. & SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 1998 & 1997

<TABLE>
<CAPTION>
                                                        NUMBER OF
                                                           SHARES         COMMON       RETAINED
                                                      OUTSTANDING          STOCK       EARNINGS          TOTAL
--------------------------------------------------------------------------------------------------------------
<S>                                                   <C>             <C>            <C>           <C>
BALANCE AT DECEMBER 31, 1997                             $436,565     $3,709,145     $9,169,524    $12,878,669

Stock Options Exercised                                     1,000         10,000              0          10000

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

Net Income                                                      0              0        435,399        435,399

BALANCE AT MARCH 31, 1998                                 437,455      3,712,875      9,604,923    $13,317,798

BALANCE AT DECEMBER 31, 1996                             $433,209     $3,830,343     $8,108,800    $11,939,143

Stock Options Exercised                                         0              0              0              0

Repurchase of Common Stock                                 (3,985)      (129,064)             0       (129,064)

Net Income                                                      0              0        381,513        381,513

BALANCE AT MARCH 31, 1997                                $429,224     $3,701,279     $8,490,313    $12,191,592
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>

SUMMIT BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF
CASH FLOWS FOR THE QUARTER ENDED MARCH 31, 1998 AND MARCH 31, 1997
                      (UNAUDITED)

<TABLE>
<CAPTION>
                                                     THREE MONTHS   THREE MONTHS
                                                    ENDED 3-31-98  ENDED 3-31-97
--------------------------------------------------------------------------------
<S>                                                 <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received                                      $2,075,456     $1,747,925 
Fees received                                             193,344        307,686
Interest paid                                            (476,113)      (439,169)
Cash paid to suppliers and employees                   (1,009,863)      (783,344)
Income taxes paid                                        (113,864)             0
Net cash provided by operating activities                 668,960        833,098

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in time deposits with
   other financial institutions                          (693,000)       196,000
Maturity of investment securities                       4,599,066        970,791
Purchase of investment securities                      (5,000,295)    (1,999,531)
Net (increase) decrease in loans to customers           5,301,879       (337,611)
Recoveries on loans previously charged-off                    750            750
(Increase) decrease in premises and equipment             (42,198)       (64,978)
Net cash provided by (used in) investing activities     4,166,202     (1,234,579)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in demand, interest
   bearing transaction, and savings deposits           (1,463,774)        48,855
Net increase (decrease) in time deposits                   (4,046)       959,661
(Increase) decrease in other assets                      (143,775)      (206,595)
Exercise of stock options                                  10,000              0
Repurchase of common stock                                 (6,270)      (129,064)
Dividends paid                                                  0              0
Net cash provided by (used in) financing activities    (1,607,865)       672,857
Net increase (decrease) in cash and cash equivalents    3,227,297        271,376
Cash and cash equivalents at the 
   beginning of the year                               21,574,015     19,168,515
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR      $24,801,312    $19,439,891

RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net Income                                               $435,399       $381,513
Adjustments to reconcile net income to 
   net cash provided by operating activities:
Depreciation and amortization                              52,984         47,630
Provision for loan losses                                  75,000         75,000
(Increase) decrease in interest receivable                 91,413        (44,008)
Increase (decrease) in unearned loan fees                 (43,209)        46,431
Increase (decrease) in accrued interest payable            25,430         16,853
(Increase) decrease in prepaid expenses                   (38,490)        28,350
Increase (decrease) in accounts payable                  (126,762)         6,293
Increase (decrease) in income taxes payable               197,195        275,036
--------------------------------------------------------------------------------
Total adjustments                                         233,561        451,585
Net cash provided by operating activities                $668,960       $833,098
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.
<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 March 31, 
1998 and the results of operations for the three months ended March 31, 1998 
and 1997 and cash flows for the three months ended March 31, 1998 and 1997.

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 1997 Annual Report to Shareholders, which is incorporated by
reference in the Company's 1997 annual report on Form 10-K. The results of
operations for the three months ended March 31, 1998 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 437,193 and 429,746 
during the three months ended March 31, 1998 and 1997, 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.

3. SUBSEQUENT EVENT

On April 22, 1998 the Company announced a $0.75 cash dividend payable on
June 12, 1998 to shareholders of record as of May 1, 1998.
<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 March 31, 1998. The table presents 
each major category of interest-earning assets and interest 
bearing-liabilities. and interest-bearing liabilities.

                            INTEREST RATE RISK REPORTING SCHEDULE

REPORTING INSTITUTION:  SUMMIT BANK                     REPORTING DATE: 3-31-98

<TABLE>
<CAPTION>
                     REMAINING TIME BEFORE MATURITY OR INTEREST RATE ADJUSTMENT
                           ($000.00)
                            OMITTED          UP TO         > 3MOS          > 1YR         > 3YRS         > 5YRS           OVER
                              TOTAL           3MOS          < 1YR         < 3YRS         < 5YRS        < 10YRS       10 YEARS
                           --------       --------        -------       --------           ----          -----       --------
<S>                        <C>            <C>             <C>           <C>               <C>            <C>         <C>
EARNING ASSETS

INVESTMENTS:
U. S. TREASURIES             $5,498         $1,000         $3,000         $1,498             $0             $0             $0
U. S. AGENCIES                7,400              0            500          6,900              0              0              0
FED FUNDS SOLD               18,677         18,677              0              0              0              0              0
PURCHASED CDS                 6,337          1,386          2,575          2,376              0              0              0
                           --------       --------        -------       --------           ----           ----           ----
TOTAL INVESTMENTS           $37,912        $21,063         $6,075        $10,774             $0             $0             $0

LOANS
COMMERCIAL                  $54,444        $52,456         $1,624           $326            $38             $0             $0
REAL ESTATE                       0              0              0              0              0              0              0
INSTALLMENT                      10             10              0              0              0              0              0
                           --------       --------        -------       --------           ----           ----           ----
TOTAL LOANS                 $54,454        $52,466         $1,624           $326            $38             $0             $0

TOTAL EARNING ASSETS        $92,366        $73,529         $7,699        $11,100            $38             $0             $0

COST OF FUNDS (DEPOSITS)

CERTIFICATE OF DEPOSITS     $24,088        $16,304         $7,428           $336            $20             $0             $0
MONEY MARKET ACCOUNTS        29,402          1,623         13,685         14,094              0              0              0
TRANSACTION ACCOUNTS          5,816            249            748          1,972          1,418          1,429              0
SAVINGS ACCOUNTS              3,446              0             72          1,687            840            847              0
                           --------       --------        -------       --------           ----           ----           ----
TOTAL COST OF FUNDS         $62,752        $18,176        $21,933        $18,089         $2,278         $2,276             $0

INTEREST SENSITIVE ASSETS   $92,366        $73,529         $7,699        $11,100            $38             $0             $0

INTEREST SENSITIVE 
LIABILITIES                 $62,752        $18,176        $21,933        $18,089         $2,278         $2,276             $0
                           --------       --------        -------       --------           ----           ----           ----
GAP                         $29,614        $55,353       ($14,234)       ($6,989)       ($2,240)       ($2,276)            $0

CUMULATIVE GAP              $29,614        $55,353        $41,119        $34,120        $31,890        $29,614        $29,614

GAP RATIO                      1.47           4.01           0.35           0.61           0.02           0.00

CUMULATIVE RATIO               1.47           4.01           1.76           1.42           1.42           1.47           1.47

GAP AS A % OF TOTAL ASSETS    28.41          53.77         (14.03)         (6.88)          0.02           1.47           1.47

CUMULATIVE GAP AS A % OF
   TOTAL ASSETS               28.41          53.77          39.75          32.86          30.66          28.41          28.41
</TABLE>

<PAGE>

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 1998

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

FINANCIAL CONDITION

Liquidity Management

The consolidated loan-to-deposit ratio at March 31, 1998 was 62.2% which was 
an decrease from 65.0% for the same period in 1997.  Total outstanding loans 
as of March 31, 1998 increased $2,396,000 compared to the same period a year 
ago while total deposits increased $7,543,000 versus the same time last year. 
 The increases in loans and deposits are mainly due to Bank's concentrated 
effort in promoting sales culture to its employees.  The average 
loan-to-deposit ratio for the first quarter of 1998 was 67.5%, up from 65.5% 
for the same period last year.  This increase was caused by an increase in 
average total deposits of $6,578,000 or 8.1% compared to increase in average 
total loans of $6,574,000 or 12.5%. 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 $44,036,000 on March 31, 1998.  
This amount represented 49.5% of total deposits in comparison to the 
liquidity ratio of 47.5% as of March 31, 1997.  This increase is primarily a 
result of deposit growth.  It is management's belief that the current 
liquidity level is appropriate given current economic conditions and is 
sufficient to meet current needs. 

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

<PAGE>

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

                               Investment Comparative
                                 ($000.00 Omitted)
<TABLE>
<CAPTION>
                       3-31-97      %     12-31-97      %      3-31-98       %
<S>                    <C>        <C>     <C>         <C>      <C>         <C>
Fed funds sold          13,360    41%       12,910    42%       18,677     49%
Interest bearing
   deposits              9,411    29%        5,644    18%        6,337     17%
Securities               9,789    30%       12,497    40%       12,898     34%
</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 March 31, 1998 were comprised of $5,498,000 in U.S. Gov't notes
and $7,400,000 in U.S. Gov't agencies.


Changes in Financial Position

As of March 31, 1998, deposits decreased $1,468,000 from December 31, 1997 
while at the same time net loans outstanding decreased $5,479,000 primarily 
due to payoff of commercial loans.  Total deposits as of March 31, 1998 were 
$88,964,000, an increase of 8.1% from $81,420,000 as of March 31, 1997.  
Total loans as of March 31, 1998 were $55,354,000, which was an increase from 
$52,957,000 as of March 31, 1997.

<PAGE>

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>
                       3-31-97      %     12-31-97      %      3-31-98       %
                       -------    ---     --------    ---      -------     ---
<S>                    <C>        <C>     <C>         <C>      <C>         <C>
Demand                 $25,018    31%      $31,062    34%      $28,156     32%
Savings                  2,774     3%        2,264     3%        3,447      4%
Interest bearing
 trans. deposits        31,322    38%       33,013    37%       33,273     37%
Other time              22,306    28%       24,092    26%       24,088     27%
</TABLE>

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>
                       3-31-97      %     12-31-97      %      3-31-98       %
                       -------    ---     --------    ---      -------     ---
<S>                    <C>        <C>      <C>        <C>      <C>         <C>
Commercial             $36,800    69%      $44,044    71%      $38,371     68%
Real estate-const        7,342    14%        7,471    12%        8,635     15%
Real estate-other        3,179     6%        4,850     8%        4,043      7%
Installment/other        5,636    11%        5,706     9%        5,618     10%
</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>
                                3-31-97  12-31-97  3-31-98
                                -------  --------  -------
<S>                             <C>      <C>       <C>
Loans 90 days or more past
 due & still accruing            $    0    $  408   $    0
Non-accrual loans                     0       176      661
Other real estate owned           1,291     1,222    1,222
                                -------  --------  -------
   Total non-performing assets   $1,291    $1,806   $1,883
                                -------  --------  -------
                                -------  --------  -------
Non-performing assets to
  period end loans plus
  other real estate owned          2.44%     2.85%    3.22%

Allowance to non-performing
  loans                               0%      212%     199%

Allowance to non-performing
  assets                            106%       68%      70%
</TABLE>


<PAGE>

The subsidiary Bank's policy is to recognize interest income on an accrual 
basis unless the full collectibility of principal and interest is uncertain.  
Loans that are delinquent 90 days as to principal or interest are placed on a 
non-accrual basis, unless they are well secured and in the process of 
collection, and any interest earned but uncollected is reversed from income. 
Collectibility is determined by considering the borrower's financial 
condition, cash flow, quality of management, the existence of collateral or 
guarantees and the state of the local economy.

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

The increase in non-performing assets from March 31, 1997 to March 31, 1998 
is due primarily to a increase in loans 90 days past due and non-accrual 
loans of $661,000 and a  decrease in other real estate owned.

The total OREO amount, $1,222,000, is related to two properties. One of the 
properties is vacant land in the Oakland Hills and the second property is two 
contiguous parcels in the Danville/Diablo Mountain area of Alameda County. 



<PAGE>


CAPITAL POSITION

As of March 31, 1998, Shareholders' Equity was $13,317,798. This represents 
an increase of $1,126,209, or 9.2% over the same period last year.  Since the 
inception of the repurchase program in 1989, the Company has authorized the 
repurchase of $2,500,000 of its stock.  As of March 31, 1998, the Company has 
repurchased a total of 158,872 shares of the Company stock constituting 29.5% 
of the Company's original stock prior to the repurchase program, at a total 
cost of $2,313,438, or an average price per share of $14.56.  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.  In addition, the 
Company's subsidiary Bank remains more than well-capitalized under current 
regulations.

On March 14, 1989, the Board of Directors of the Federal Deposit Insurance 
Corporation ("FDIC") approved a Statement of Policy on Risk-Based Capital 
which became effective December 31, 1990.  Under this statement banks are 
required to meet certain capital standards in addition to leverage standards 
as previously outlined under FDIC Rules and Regulations.  The Bank does not 
foresee any material or significant impact to its manner of operation in the 
foreseeable future.  Total qualifying capital allowable under risk-based 
capital guidelines for the subsidiary bank is $10,405,000.

The following table shows the risk-based capital and leverage ratios as well 
as the minimum regulatory requirements for the same as of March 31, 1998.

<TABLE>
<CAPTION>
                                           Minimum
                   Capital Ratio    Regulatory Requirement
                   -------------    ----------------------
<S>                <C>              <C>
Tier 1 Capital        15.35%                4.00%
Total Capital         16.60%                8.00%
Leverage Ratio         9.61%                4.00%
</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.


<PAGE>

RESULTS OF OPERATIONS

NET INTEREST INCOME

Total interest income including loan fees increased from $1,932,000 for the 
first three months of 1997 to $2,091,000 for the same period in 1998. The 
primary reason for the increase in interest income was due to a $6,574,000 
increase in average loans outstanding compared to the same period a year ago. 
The yield on loans and fees decreased 48 basis points over the same period 
last year primarily due to competition for loans in the marketplace.  The 
increase in interest income from investments was due to total average 
outstanding investments volume increase of $1,578,000 for the first quarter 
1998 versus 1997. This increase was primarily due to increase in deposit 
balances. The yield on investments showed a increase of 26 basis points 
reflective of market conditions. Interest expense increased from $456,000 as 
of the end of the first three months of 1997 to $502,000 in 1998.  This 
increase was brought about by a increase in average interest-bearing deposit 
accounts of $6,605,000 during the first quarter of 1998 versus the same 
period last year.  The average cost of funds for the period ending March 31, 
1998 was 6 basis points less than the same period last year.  As a result of 
these factors, net interest margin for the first three months of 1998 
decreased to 6.96% from 7.10% compared to the same period last year. 

OTHER OPERATING INCOME

Service charges on deposit accounts as of the end of the first three months 
of 1998 increased to $86,000 versus $74,000 for the same period in 1997.  The 
decrease was due to lower fees collected in service charges related to return 
check and overdraft charges.  Other charges and fees decreased $4,000 
primarily due to lower fees collected on merchant mastercard/visa accounts.


<PAGE>

LOAN LOSS PROVISION

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

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

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 three months ended March 31, 1997 and 1996.


<TABLE>
<CAPTION>
                                         THREE MONTHS ENDED
                                          (000.00 Omitted)
                                          3-31-97  3-31-96
<S>                                      <C>       <C>
Balance, beginning of the period           $1,070   $1,025
Provision for loan losses                      75       85
Recoveries                                      1        1
Loans charged-off                               0        0
                                           ------   ------
Balance, end of the period                 $1,146   $1,111
</TABLE>

The balance in the allowance for loan losses at March 31, 1997 was 2.16% of 
total loans compared to 2.39% of total loans at March 31, 1996.


<PAGE>


OTHER OPERATING EXPENSES

Total other operating expenses increased $52,000 as of the end of the first
three months of 1997 compared to the same period last year.  This increase was
primarily due to an increase in salaries and employee expense. The Bank's
committment to grow increased the number of employees from 39 to 42 primarily in
the sales area. The increase was also attributed to increase in regular raises
in pay and increased cost of benefits.

PROVISION FOR INCOME TAXES

The Company's provision for income taxes as of the end of the first three months
of 1997 increased from $249,000 in 1996 to $275,000.  This increase is
attributed to increased income from regular business operations. For the same
period in 1997 the Company's total effective tax rate was 41.9% compared to
43.2% in 1996. 

NET INCOME

Net income for the first quarter of 1997 increased from $327,000 for the same
period in 1996 to $382,000, or a increase of 16.8%. 

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.

The Company expects its year 2000 date conversion project to be completed on
a timely basis. During the execution of this project, the Company will incur
internal staff costs as well as consulting and other expenses related to
enhancements necessary to prepare the systems for the year 2000. 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.

<PAGE>

PART II  -  OTHER INFORMATION



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

ITEM 2 - CHANGES IN SECURITIES
          None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
          None

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

ITEM 5 - OTHER INFORMATION
          None

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

          11   Statement re: computation of per share
               earnings

          27   Financial Data Schedule   

          (b)  Reports on Form 8-K

                None

<PAGE>

SIGNATURES


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


                                       SUMMIT BANCSHARES, INC.
                                       Registrant



  DATE:                                By:
       -------------------------          --------------------------------
                                           Shirley W. Nelson
                                           Chairman and CEO
                                           (Principal Executive Officer)


  DATE:                                By:
       -------------------------          --------------------------------
                                            Kikuo Nakahara
                                            Chief Financial Officer
                                            (Principal Financial Officer)


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