UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 205492

Form 10-Q

|    |  |                                                                                        
|--- |  | ---------------------------------------------------------------------------------------
|[X] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|   
|   
|   
|   
|    |  | For the quarterly period ended June 30, 2001                                           

OR

|      |  |                                                                                         
|----- |  | ----------------------------------------------------------------------------------------
|[   ] |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|     
|     
|     
|     
|      |  | For the transition period from 
to                                                      

Commission File Number 000-21267

SUMMIT BANK CORPORATION
(Exact name of Registrant as specified in its charter)

|                                                                       |  |                                             
|---------------------------------------------------------------------- |  | --------------------------------------------
|GEORGIA
(State or other jurisdiction of
incorporation or organization) |  | 58-1722476
(IRS Employer
Identification No.)

4360 Chamblee-Dunwoody Road
Atlanta, Georgia 30341
(Address of principal executive offices, including Zip Code)

(770) 454-0400
(Registrants telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

| |     |      |  |  |  |    |      |  |  |  |  | 
| | --- | ---- |  |  |  | -- | ---- |  |  |  |  | 
| | Yes | [X ] |  |  |  | No | [  ] | 

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes
of capital stock, as of the latest practicable date.

|                             |  |                               |           | 
|---------------------------- |  | ----------------------------- | --------- | 
|Class                        |  | Outstanding
at August 1, 2001
|Common Stock. $.0l par value |  |                               | 1,975,723 | 

The Exhibit Index Appears on
Page 14

Page 1 of 15



---



PART I. FINANCIAL
INFORMATION

ITEM 1.     FINANCIAL
STATEMENTS

SUMMIT BANK CORPORATION AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                          |                            |                                            |         |          |         |              |         |        |         | 
|--------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------- | -------- | ------- | ------------ | ------- | ------ | ------- | 
|                                                          |                            |                                            |         | June 30, |         | December 31,
|(In thousands)                                            |                            | 2001                                       |         | 2000    
|ASSETS:                                                   |                            |                                            |         |          |         |              |         |        |         | 
|                                                         
|                                                         
|                                                         
|                                                         
|Cash and due from banks                                   |                            | $                                          | 13,213  |          |         | $            | 16,341  |       
|                                                         
|                                                         
|                                                         
|                                                         
|Federal funds sold                                        |                            |                                            | 6,300   |          |         |              | 7,100   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Interest-bearing deposits in other banks                  |                            |                                            | 126     |          |         |              | 129     |       
|                                                         
|                                                         
|                                                         
|                                                         
|Investment securities available for sale, at fair value   |                            |                                            | 87,155  |          |         |              | 57,917  |       
|                                                         
|                                                         
|                                                         
|                                                         
|Investment securities held to maturity, at amortized cost |                            |                                            | 7,556   |          |         |              |        |       
|                                                         
|                                                         
|                                                         
|                                                         
|Other investments                                         |                            |                                            | 1,485   |          |         |              | 1,485   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Loans, net of unearned income                             |                            |                                            | 198,804 |          |         |              | 184,572 |       
|                                                         
|                                                         
|                                                         
|                                                         
|Loans held for sale                                       |                            |                                            | 5,018   |          |         |              | 5,782   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Less: allowance for loan losses                           |                            |                                            | (2,951  | )        |         |              | (3,141  | )     
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Net loans                                  |         |          | 200,871 |              |         |        | 187,213 | 
|                                                          |                            |                                            |         |          |         |              |         |       
|Premises and equipment, net                               |                            |                                            | 3,275   |          |         |              | 3,247   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Customers acceptance liability                           |                            |                                            | 2,551   |          |         |              | 1,740   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Goodwill, net                                             |                            |                                            | 1,576   |          |         |              | 1,622   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Other assets                                              |                            |                                            | 7,573   |          |         |              | 6,609   |       
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Total assets                               |         | $        | 331,681 |              |         | $      | 283,403 | 
|                                                          |                            |                                            |         |          |         |              |         |       
|LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES:         |                            |                                            |         |          |         |              |         |       
|                                                         
|                                                         
|                                                         
|                                                         
|Deposits:                                                 |                            |                                            |         |          |         |              |         |       
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Noninterest-bearing demand |                                            | $       | 60,140   |         |              | $       | 60,727 |        
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Interest-bearing:          |                                            |         |          |         |              |         |        |        
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          |                            | Demand                                     |         |          | 49,170  |              |         |        | 43,276  | 
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          |                            | Savings                                    |         |          | 9,942   |              |         |        | 9,251   | 
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          |                            | Time, $100,000 and over                    |         |          | 70,449  |              |         |        | 56,368  | 
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          |                            | Other time                                 |         |          | 96,476  |              |         |        | 69,652  | 
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Total deposits                             |         |          | 286,177 |              |         |        | 239,274 | 
|                                                          |                            |                                            |         |          |         |              |         |       
|Federal Home Loan Bank advance                            |                            |                                            | 10,000  |          |         |              | 10,000  |       
|                                                         
|                                                         
|                                                         
|                                                         
|Other borrowed funds                                      |                            |                                            | 4,216   |          |         |              | 4,809   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Acceptances outstanding                                   |                            |                                            | 2,551   |          |         |              | 1,740   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Other liabilities                                         |                            |                                            | 1,836   |          |         |              | 1,618   |       
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Total liabilities                          |         |          | 304,780 |              |         |        | 257,441 | 
|                                                          |                            |                                            |         |          |         |              |         |       
|Minority interest in non-bank subsidiary                  |                            |                                            | (22     | )        |         |              | 12      |       
|                                                         
|                                                         
|                                                         
|                                                         
|STOCKHOLDERS EQUITY:                                     |                            |                                            |         |          |         |              |         |       
|                                                         
|                                                         
|                                                         
|                                                         
|Common stock                                              |                            |                                            | 21      |          |         |              | 20      |       
|                                                         
|                                                         
|                                                         
|                                                         
|Additional paid-in capital                                |                            |                                            | 18,842  |          |         |              | 19,254  |       
|                                                         
|                                                         
|                                                         
|                                                         
|Retained earnings                                         |                            |                                            | 8,363   |          |         |              | 7,305   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Accumulated other comprehensive loss                      |                            |                                            | (303    | )        |         |              | (629    | )     
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Total stockholders equity                 |         |          | 26,923  |              |         |        | 25,950  | 
|                                                          |                            |                                            |         |          |         |              |         |       
|                                                          |                            | Total liabilities and stockholders equity |         | $        | 331,681 |              |         | $      | 283,403 | 
|                                                          |                            |                                            |         |          |         |              |         |       

See Accompanying Notes to Condensed Consolidated Financial Statements.

Page 2 of 15



---



SUMMIT BANK CORPORATION AND
SUBSIDIARIES


CONDENSED CONSOLIDATED INCOME
STATEMENTS


(Unaudited)


|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |   |       |   |        | 
|---------------------------------------------------------------- |  | -------------------------------------------------------- | --------- | --------------------------------------------------- | ----- | -------------- | --------- | -------------- | ----- | - | --------- | - | ----- | - | --------- | - | ----- | - | ------ | 
|                                                                 |  |                                                          |           |                                                     |       | Three months   |           | Six months    
|                                                                 |  |                                                          |           |                                                     |       | ended June 30, |           | ended June 30,
|                                                                 |  |                                                          |           |                                                     |       |                |           |               
|(Dollars in thousands, except share and per share amounts)       |  | 2001                                                     |           | 2000                                                |       | 2001           |           | 2000          
|                                                                 |  |                                                          |           |                                                     |       |                |           |               
|Interest income                                                 
|                                                                 |  | Loans, including fees                                    |           | $                                                   | 4,503 |                |           | $              | 4,498 |   |           | $ | 9,288 |   |           | $ | 8,820 |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Interest-bearing deposits in other banks                 |           |                                                     | 3     |                |           |                | 4     |   |           |   | 7     |   |           |   | 7     |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Federal funds sold                                       |           |                                                     | 96    |                |           |                | 49    |   |           |   | 415   |   |           |   | 192   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Investment securities                                    |           |                                                     | 773   |                |           |                | 392   |   |           |   | 1,309 |   |           |   | 764   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Mortgage-backed securities                               |           |                                                     | 669   |                |           |                | 703   |   |           |   | 1,267 |   |           |   | 1,438 |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  |                                                          |           | Total interest income                               |       |                | 6,044     |                |       |   | 5,646     |   |       |   | 12,286    |   |       |   | 11,221 | 
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Interest expense                                                
|                                                                 |  | Time deposits, $100,000 and over                         |           |                                                     | 1,047 |                |           |                | 673   |   |           |   | 2,102 |   |           |   | 673   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Other deposits                                           |           |                                                     | 1,684 |                |           |                | 1,081 |   |           |   | 3,305 |   |           |   | 1,081 |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Federal Home Loan Bank advance                           |           |                                                     | 154   |                |           |                | 157   |   |           |   | 305   |   |           |   | 157   |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  | Short-term borrowings and obligation under capital lease |           |                                                     | 61    |                |           |                | 140   |   |           |   | 134   |   |           |   | 258   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  |                                                          |           | Total interest expense                              |       |                | 2,946     |                |       |   | 2,051     |   |       |   | 5,846     |   |       |   | 4,184  | 
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  |                                                          |           | Net interest income                                 |       |                | 3,098     |                |       |   | 3,595     |   |       |   | 6,440     |   |       |   | 7,037  | 
|                                                                
|                                                                
|                                                                
|                                                                
|Provision for loan losses                                        |  |                                                          | 175       |                                                     |       |                | 200       |                |       |   | 375       |   |       |   | 625       |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  |                                                          |           | Net interest income after provision for loan losses |       |                | 2,923     |                |       |   | 3,395     |   |       |   | 6,065     |   |       |   | 6,412  | 
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Non-interest income                                             
|                                                                 |  | Fees for international banking services                  |           |                                                     | 293   |                |           |                | 343   |   |           |   | 606   |   |           |   | 720   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | SBA loan servicing fees                                  |           |                                                     | 37    |                |           |                | 56    |   |           |   | 81    |   |           |   | 114   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Service charge income                                    |           |                                                     | 143   |                |           |                | 140   |   |           |   | 271   |   |           |   | 287   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Non-sufficient funds charges                             |           |                                                     | 148   |                |           |                | 156   |   |           |   | 301   |   |           |   | 327   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Net losses on sales of investment securities             |           |                                                     |      |                |           |                | (39   | ) |           |   |      |   |           |   | (54   | )
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Other                                                    |           |                                                     | 109   |                |           |                | 181   |   |           |   | 532   |   |           |   | 489   |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  |                                                          |           | Total non-interest income                           |       |                | 730       |                |       |   | 837       |   |       |   | 1,791     |   |       |   | 1,883  | 
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Non-interest expenses                                           
|                                                                 |  | Salaries and employee benefits                           |           |                                                     | 1,348 |                |           |                | 1,306 |   |           |   | 2,765 |   |           |   | 2,592 |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Equipment                                                |           |                                                     | 191   |                |           |                | 177   |   |           |   | 479   |   |           |   | 339   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Net occupancy                                            |           |                                                     | 239   |                |           |                | 208   |   |           |   | 492   |   |           |   | 417   |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Other operating expenses                                 |           |                                                     | 942   |                |           |                | 916   |   |           |   | 1,991 |   |           |   | 1,978 |  
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                 |  | Minority interest in non-bank subsidiary                 |           |                                                     | (10   | )              |           |                | (4    | ) |           |   | (34   | ) |           |   | (5    | )
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  |                                                          |           | Total non-interest expenses                         |       |                | 2,710     |                |       |   | 2,603     |   |       |   | 5,693     |   |       |   | 5,321  | 
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  | Income before income taxes                               |           |                                                     | 943   |                |           |                | 1,629 |   |           |   | 2,163 |   |           |   | 2,974 |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Income tax expense                                               |  |                                                          | 333       |                                                     |       |                | 584       |                |       |   | 755       |   |       |   | 1,052     |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|                                                                 |  | Net income                                               |           | $                                                   | 610   |                |           | $              | 1,045 |   |           | $ | 1,408 |   |           | $ | 1,922 |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Basic net income per common share                                |  | $                                                        | .31       |                                                     |       | $              | .53       |                |       | $ | .71       |   |       | $ | .97       |  
|                                                                
|                                                                
|                                                                
|                                                                
|Diluted net income per common share and
common share equivalents |  | $                                                        | .31       |                                                     |       | $              | .53       |                |       | $ | .71       |   |       | $ | .97       |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Weighted-average shares outstanding  basic                      |  |                                                          | 1,975,723 |                                                     |       |                | 1,986,316 |                |       |   | 1,976,372 |   |       |   | 1,986,316 |  
|                                                                
|                                                                
|                                                                
|                                                                
|Weighted-average shares outstanding  diluted                    |  |                                                          | 1,975,723 |                                                     |       |                | 1,986,316 |                |       |   | 1,976,372 |   |       |   | 1,986,316 |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  
|Dividends declared per common share                              |  | $                                                        | .18       |                                                     |       | $              | .18       |                |       | $ | .36       |   |       | $ | .3        |  
|                                                                 |  |                                                          |           |                                                     |       |                |           |                |       |   |           |   |       |   |           |  

See Accompanying
Notes to Condensed Consolidated Financial Statements.

Page 3 of 15



---



SUMMIT BANK CORPORATION AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                  |                                                                 |      |                |         |   |   |         |         |  
|--------------------------------------------------------------------------------- | --------------------------------------------------------------- | ---- | -------------- | ------- | - | - | ------- | ------- | -
|                                                                                  |                                                                 |      | Six months    
|                                                                                  |                                                                 |      | ended June 30,
|                                                                                  |                                                                 |      |               
|(In thousands)                                                                    |                                                                 | 2001 |                | 2000   
|                                                                                  |                                                                 |      |                |         |  
|Cash flows from operating activities:                                             |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Net income                                                                        |                                                                 | $    | 1,408          |         |   | $ | 1,922   |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Adjustments to reconcile net income to net cash
provided by operating activities: |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Depreciation and amortization of premises and equipment         |      |                | 400     |   |   |         | 244     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Net amortization of premiums/discounts on investment securities |      |                | 122     |   |   |         | 131     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Amortization of intangibles                                     |      |                | 183     |   |   |         | 177     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Provision for loan losses                                       |      |                | 375     |   |   |         | 625     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Net losses on sales of investment securities                    |      |                |        |   |   |         | 54      |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Changes in other assets and liabilities:                                          |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Net decrease in loans held for sale                             |      |                | 764     |   |   |         | 310     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | (Increase) decrease in other assets                             |      |                | (2,096  | ) |   |         | 9       |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Increase (decrease) in other liabilities                        |      |                | 218     |   |   |         | (444    | )
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|                                                                                  | Net cash provided by operating activities                       |      |                | 1,374   |   |   |         | 3,028   |  
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|Cash flows from investing activities:                                             |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Proceeds from maturities of investment securities, available for sale             |                                                                 |      | 5,500          |         |   |   |        |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Principal collections on investment securities, available for sale                |                                                                 |      | 2,362          |         |   |   | 3,214   |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Principal collections on investment securities, held for maturity                 |                                                                 |      | 3              |         |   |   |        |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Proceeds from sales of investment securities, available for sale                  |                                                                 |      |               |         |   |   | 6,386   |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Purchases of investment securities available for sale                             |                                                                 |      | (36,695        | )       |   |   | (5,556  | )      
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Purchases of investment securities held to maturity                               |                                                                 |      | (7,565         | )       |   |   |        |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Loans made to customers, net of principal collected on loans                      |                                                                 |      | (13,997        | )       |   |   | (10,703 | )      
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Proceeds from sales of premises                                                   |                                                                 |      |               |         |   |   | 824     |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Purchases of premises and equipment                                               |                                                                 |      | (428           | )       |   |   | (172    | )      
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|                                                                                  | Net cash used in investing activities                           |      |                | (50,820 | ) |   |         | (6,007  | )
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|Cash flows from financing activities:                                             |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Net increase in demand and savings deposits                                       |                                                                 |      | 5,998          |         |   |   | 3,159   |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Net increase (decrease) in time deposits                                          |                                                                 |      | 40,905         |         |   |   | (16,369 | )      
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Purchase of treasury shares                                                       |                                                                 |      | (49            | )       |   |   |        |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Dividends paid                                                                    |                                                                 |      | (712           | )       |   |   | (596    | )      
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Net (decrease) increase in borrowed funds                                         |                                                                 |      | (593           | )       |   |   | 545     |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Net decrease in minority interest in non-bank subsidiary                          |                                                                 |      | (34            | )       |   |   | (5      | )      
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|                                                                                  | Net cash provided by (used in) financing activities             |      |                | 45,515  |   |   |         | (13,266 | )
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|Net decrease in cash and cash equivalents                                         |                                                                 |      | (3,931         | )       |   |   | (16,245 | )      
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Cash and cash equivalents at beginning of period                                  |                                                                 |      | 23,570         |         |   |   | 31,607  |        
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|Cash and cash equivalents at end of period                                        |                                                                 | $    | 19,639         |         |   | $ | 15,362  |        
|                                                                                  |                                                                 |      |                |         |   |   |         |        
|Supplemental disclosures of cash paid during the period:                          |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Interest                                                        |      | $              | 5,567   |   |   | $       | 4,485   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Income taxes                                                    |      | $              | 614     |   |   | $       | 1,716   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Supplemental disclosures of noncash investing activities:                         |                                                                 |      |                |         |   |   |         |        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Transfer of branch office to other real estate owned            |      | $              |        |   |   |         | 595     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Transfer of loan collateral to other real estate owned          |      | $              | 800     |   |   |         |        |  
|                                                                                  |                                                                 |      |                |         |   |   |         |        

See Accompanying Notes to Condensed Consolidated Financial Statements.

Page 4 of 15



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SUMMIT BANK CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. |  | BASIS OF PRESENTATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   |  | Summit Bank Corporation and subsidiaries (the Company) prepared the
consolidated financial statements included herein, without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally
included in consolidated financial statements prepared in accordance
with accounting principles generally accepted in the United States of
America have been omitted, although the Company believes that the
disclosures are adequate to make the information presented not
misleading. In the opinion of management, the information in the
condensed consolidated financial statements reflects all adjustments
necessary to present fairly the Companys financial position, results
of operations and cash flows for such interim periods. Management
believes that all interim period adjustments are of a normal recurring
nature. You should read these consolidated financial statements in
conjunction with the Companys audited financial statements and the
notes thereto as of December 31, 2000, included in the Companys Annual
Report on Form 10-K for the fiscal year ended December 31, 2000.
|  
|   |  | The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiaries, The Summit National Bank
(the Bank) and The Summit Merchant Banking Corporation (inactive), as
well as an 80%-owned subsidiary, CashMart, Inc. All intercompany
accounts and transactions have been eliminated in consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   |  | The Company primarily operates through one segment, providing a full
range of banking services to individual and corporate customers through
its subsidiary bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |  | In 1999, the Company invested $120,000 in a newly created subsidiary,
CashMart, Inc. (CashMart), a check cashing company. In the first
quarter of 2000, the Company received regulatory approval for and began
operation of the subsidiary. CashMart provided payroll check cashing
services through several locations throughout metropolitan Atlanta
until it ceased operations in second quarter of 2001 due to lower than
planned revenues from those operations. CashMarts operations were
wholly separate and apart from the Banks operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|2. |  | ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |  | We refer to the Companys accounting policies described in the notes to
consolidated financial statements contained in the Companys Annual
Report on Form 10-K for the year ended December 31, 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|3. |  | COMPREHENSIVE INCOME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   |  | Currently, other comprehensive income for the Company consists solely
of items previously recorded as a component of stockholders equity
under Statement of Financial Accounting Standards (SFAS) No. 115,
Accounting for Certain Investments in Debt and Equity Securities. The
total comprehensive income for the six months ended June 30, 2001 was
$1,734,000 compared to $1,596,000 for the six months ended June 30,
2000. The total comprehensive income for the three months ended June
30, 2001 was $1,301,000 compared to $1,099,000 for the three months
ended June 30, 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|4. |  | RECENT ACCOUNTING PRONOUNCEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   |  | In July 2001, the Financial Accounting Standards Board (FASB) issued
SFAS No. 141, Business Combinations, and SFAS No. 142, Goodwill and
Other Intangible Assets. SFAS No. 141 requires that the purchase method
of accounting be used for all business combinations initiated after
June 30, 2001 as well as all purchase method business combinations
completed after June 30, 2001. SFAS No. 141 also specifies criteria
intangible assets acquired in a purchase method business combination
must meet to be recognized and reported apart from goodwill, noting
that any purchase price allocable to an assembled workforce may not be
accounted for separately. SFAS No. 142 will require that goodwill and
intangible assets with indefinite useful lives no longer be amortized,
but instead tested for impairment at least annually in accordance with
the provisions of SFAS No. 142. SFAS No. 142 will also require that
intangible assets with definite useful lives be amortized over their
respective estimated useful lives to                                                                                                                                                  

Page 5 of 15



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | their estimated residual values, and reviewed for impairment in
accordance with SFAS No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | The Company is required to adopt the provisions of SFAS No. 141
immediately, except with regard to business combinations initiated
prior to July 1, 2001, which it expects to account for using the
pooling-of-interests method, and SFAS No. 142 effective January 1,
2002. Furthermore, any goodwill and any intangible asset determined to
have an indefinite useful life that are acquired in a purchase business
combination completed after June 30, 2001 will not be amortized, but
will continue to be evaluated for impairment in accordance with the
appropriate pre-SFAS No. 142 accounting literature. Goodwill and
intangible assets acquired in business combinations completed before
July 1, 2001 will continue to be amortized prior to the adoption of
SFAS No. 142.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | SFAS No. 141 will require upon adoption of SFAS No. 142, that the
Company evaluate its existing intangible assets and goodwill that were
acquired in a prior purchase business combination, and to make any
necessary reclassifications in order to conform with the new criteria
in SFAS No. 141 for recognition apart from goodwill. Upon adoption of
SFAS No. 142, the Company will be required to reassess the useful lives
and residual values of all intangible assets acquired in purchase
business combinations, and make any necessary amortization period
adjustments by the end of the first interim period after adoption. In
addition, to the extent an intangible asset is identified as having an
indefinite useful life, the Company will be required to test the
intangible asset for impairment in accordance with the provisions of
SFAS No. 142 within the first interim period. Any impairment loss will
be measured as of the date of adoption and recognized as the cumulative
effect of a change in accounting principle in the first interim period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | In connection with the transitional goodwill impairment evaluation,
SFAS No. 142 will require the Company to perform an assessment of
whether there is an indication that goodwill and equity-method goodwill
is impaired as of the date of adoption. To accomplish this the Company
must identify its reporting units and determine the carrying value of
each reporting unit by assigning the assets and liabilities, including
the existing goodwill and intangible assets, to those reporting units
as of the date of adoption. The Company will then have up to six months
from the date of adoption to determine the fair value of each reporting
unit and compare it to the reporting units carrying amount. To the
extent a reporting units carrying amount exceeds its fair value, an
indication exists that the reporting units goodwill may be impaired
and the Company must perform the second step of the transitional
impairment test. In the second step, the Company must compare the
implied fair value of the reporting units goodwill, determined by
allocating the reporting units fair value to all of its assets
(recognized and unrecognized) and liabilities in a manner similar to a
purchase price allocation in accordance with SFAS No. 141, to its
carrying amount, both of which would be measured as of the date of
adoption. This second step is required to be completed as soon as
possible, but no later than the end of the year of adoption. Any
transitional impairment loss will be recognized as the cumulative
effect of a change in accounting principle in the Companys statement
of earnings.
|
| |  | And finally, any unamortized negative goodwill and negative
equity-method goodwill existing at the date SFAS No. 142 is adopted
must be written off as the cumulative effect of a change in accounting
principle.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Because of the extensive effort needed to comply with adopting
Statements 141 and 142, it is not practicable to reasonably estimate
the impact of adopting these Statements on the Companys financial
statements at the date of this report, including whether any
transitional impairment losses will be required to be recognized as the
cumulative effect of a change in accounting principle.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Page 6 of 15



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ITEM 2.      MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

This quarterly report contains forward-looking statements and information
relating to our subsidiaries and us. The words believes, expects, may,
will, should, projects, contemplates, anticipates, forecasts,
intends or similar terminology identify forward-looking statements. These
statements reflect managements beliefs and assumptions, and are based on
information currently available to management. Because these statements
reflect the current views of management concerning future events, they involve
risks, uncertainties and assumptions, including the risk that unanticipated
changes in the interest rate environment could reduce our margins, competition
or general economic conditions could be worse than we expect, and legislative
or regulatory changes could adversely affect our business. Actual results may
differ significantly from the results discussed in the forward-looking
statements. We undertake no obligation to update publicly any forward-looking
statement for any reason, even if new information becomes available.

All share and per share data in this report reflect the effect of the Companys
February 2001 20% stock dividend.

Performance Overview

The Company reported net income of $610,000 for the second quarter of 2001,
compared to $1,045,000 for the second quarter of 2000. The decline in earnings
was primarily due to lower net interest income resulting from a sharp decrease
in the prime rate, upon which the majority of the loan portfolio is based, as
well as a higher cost of funds due to a larger volume of time deposits. Net
earnings per share for second quarter of 2001 were $.31 (basic and diluted)
compared to $.53 (basic and diluted) for second quarter 2000. Offsetting some
of the pressure on interest income during the quarter was significant asset
growth compared to second quarter 2000. However, the loan to deposit ratio at
June 30, 2001 declined to 70% from the June 30, 2000 ratio of 80%, as deposit
growth outpaced loan growth, and excess funds were placed in the Banks
investment portfolio. Non-interest income decreased for the quarter compared
to second quarter last year, while non-interest expenses increased 4% to $2.7
million in second quarter 2001 compared to the same quarter in 2000.

Net earnings for the six months ended June 30, 2001 were $1,408,000, a 27%
decrease from net earnings through June 2000 of $1,922,000. The Prime Rate
declined 275 basis points in the first six months of this year, while time
deposits grew 32%, increasing the Banks cost of funds. As a result, the net
interest margin has experienced considerable pressure. The net interest margin
was 4.39% for the six months ended June 30, 2001 compared to 5.68% for the six
months ended June 30, 2000. The annualized return on average stockholders
equity for the 2001 six-month period was 10.7% versus 16.8% for the 2000
six-month period, and the return on average assets was .9% compared to 1.4% in
2000. Book value per share was $13.63 at June 30, 2001 compared to $13.11 at
December 31, 2000 and $11.98 at June 30, 2000. In the second quarters of both
2001 and 2000, the Company paid a cash dividend of $.18 per share for an
annualized dividend per share of $.72.

Summits balance sheet reflects strong growth in total assets for the first six
months of the year with a June 30, 2001 total of $332 million, an increase of
17%, or $48 million, since December 31, 2000. Assets also increased during the
current quarter by $3 million. The increase early this year was largely due to
an influx of time deposit funds, which were placed in liquid assets until loan
volume can absorb the excess funds. Total loans at the end of the current
quarter were $204 million. This represents a net increase of 8%, or $16
million, in loans during second quarter 2001 and a net increase of 7%, or $13
million, since year-end. This growth came at a time when it appeared that the
economy was beginning to slow down, which bodes well for placing funds in
higher yielding assets if loan production continues at the current pace.
However, excess federal funds sold were also used to purchase several long-term
investment securities during the quarter to improve the Companys overall
current yield on incremental funds. At June 30, 2001, investment securities
totaled $95 million, a net increase of 64%, or $37 million, since year-end and
a net increase of 6%, or $6 million during second quarter.

Total deposits grew 20%, or $47 million, during the first six months of the
year, primarily in the time deposit category. In the first quarter of this
year, customers locked in high yields on certificates of deposits (CDs) in
anticipation of the declining rate environment. This resulted in an additional
$38 million in CDs while another $4 million was added in second quarter 2001.
Time deposits totaled $167 million at June 30, 2001, up 32% from year-end 2000.
The Companys net interest margin should improve as these time deposits mature
and reprice at lower rates. Non-interest bearing demand deposits were flat at
the end of second quarter compared to December 31, 2000.

Page 7 of 15



---



As mentioned above, net interest income decreased 16%, or $472,000 in second
quarter 2001, compared to second quarter 2000 to a total of $2.9 million. The
decline was due to the higher cost of funds experienced recently as a result of
a higher percentage of time deposits to total deposits than one year ago. For
the six months ended June 30, 2001, net interest income decreased 5% compared
to the same period in 2000, due to the higher cost of funds (resulting from the
volume of CD funds) and a declining rate environment. The decrease in prime
rate has affected 68% of the Banks loan portfolio.

The provision for loan losses was only slightly lower in the second quarter of
2001 compared to the same period last year, however; the provision decreased
$250,000 to $375,000 for the six months ended June 30, 2001 compared to
$625,000 for the six months ended June 30, 2000. This was due primarily to
improved credit quality of the portfolio in general, offset to a certain extent
by continued loan growth. The Company has experienced a sharp decline in
classified and criticized loans since December 31, 2000 resulting in a decrease
in the provision in 2001. Gross charged off loans for the year to date through
June 2001 totaled $648,000 while recoveries for the period totaled $83,000, for
an annualized net charge-off rate of .58% of average total loans. The net
charge-off rate for the first half of 2000 was .1%.

Non-interest income decreased 13% in second quarter 2001 to $730,000 compared
to $837,000 in the same period in 2000. Half of the decrease was attributed to
a decline in international fee income of $50,000 due to fewer import and export
transactions. International fee income was also down for the six-month period
by $114,000 compared to last year to date for the same reason. The remaining
variance in non-interest income for the second quarter compared to last year
was due to prior year recoveries from pre-acquisition charge-offs totaling
$66,000 in second quarter 2000.

Compared to second quarter 2000, non-interest expenses were 4% higher this
year, with increases in all categories, from salaries and benefits to other
operating expenses. These increases are representative of the normal growth of
the institution as assets have grown 23% since June 30, 2000. For the year to
date, non-interest expenses increased 7% over last year to date. A portion of
this increase was due to $260,000 in non-recurring charges in first quarter of
this year. These charges consisted of $135,000 of legal fees associated with
an acquisition attempt and a $125,000 impairment charge related to the
CashMart, Inc. subsidiary. The Bank completed its transition to an in-house
item processing system in the first quarter, resulting in lower data processing
costs offset by higher personnel, space and equipment costs. For the year to
date through June, the Companys efficiency ratio increased significantly to
69% from 60% for the same period last year, primarily due to the lower net
interest income this year, as well as the non-recurring expenses mentioned
above.

CashMart had a total net operating loss of $51,000 for the second quarter of
2001, of which 80%, or $41,000 was recorded by Summit Bank Corporation. Total
net operating losses for the six months ended June 30, 2001 were $172,000, of
which the Company recorded $138,000. Operations of this subsidiary were ceased
in April 2001 due to lower than planned revenues. An impairment charge of
$125,000 was recorded in first quarter of 2001 as a result of the decision to
end this venture and attempt to liquidate all assets. At June 30, 2001,
liquidation efforts are still pending. No further material losses are
anticipated.

Asset Quality

Non-performing assets were flat at $2 million at June 30, 2001 compared to the
total at year-end 2000. Non-performing assets represented .98% of total loans
and other real estate owned as of June 30, 2001 compared to 1.06% at December
31, 2000. Non-performing loans at June 30, 2001 consisted of four fully
guaranteed SBA credits totaling $297,000 and a commercial credit for $325,000.
The commercial credit is primarily collateralized with business assets, and the
Bank has allocated a specific reserve for this credit of $138,000. One SBA
credit, previously reported as a non-accrual loan, was foreclosed upon and the
property transferred to other real estate in June 2001 at a value of $800,000.
This property is expected to be liquidated through auction in August 2001.
Non-performing assets also included the premises that housed the East Marietta
branch office until June 2000. The balance of $595,000 was reclassified as
other real estate owned at the time of closure. There were no loans past due
90 days or more as to principal or interest payments and still accruing at June
30, 2001.

Page 8 of 15



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Non-performing Assets

|                                                                                 |                             |      |          |              |  |  |       |       |  | 
|-------------------------------------------------------------------------------- | --------------------------- | ---- | -------- | ------------ |  |  | ----- | ----- |  | 
|                                                                                 |                             |      | June 30, | December 31,
|(Dollars in thousands)                                                           | 2001                        | 2000
|                                                                                 |                             |      |          |              |  | 
|Loans on non-accrual                                                            
|                                                                                 | SBA guaranteed              |      | $        | 297          |  |  | $     | 300   | 
|                                                                                
|                                                                                
|                                                                                
|                                                                                
|                                                                                 | Non-SBA guaranteed          |      |          | 325          |  |  |       | 1,134 | 
|                                                                                 |                             |      |          |              |  |  |       |      
|Total loans on non-accrual                                                       |                             |      | 622      |              |  |  | 1,434 |      
|                                                                                
|                                                                                
|                                                                                
|                                                                                
|Other real estate                                                                |                             |      | 1,395    |              |  |  | 595   |      
|                                                                                 |                             |      |          |              |  |  |       |      
|                                                                                 | Total non-performing assets |      | $        | 2,017        |  |  | $     | 2,029 | 
|                                                                                 |                             |      |          |              |  |  |       |      
|Total non-performing assets as a
percentage of total loans and other real estate |                             |      | .98      | %            |  |  | 1.06  | %    
|                                                                                
|                                                                                
|                                                                                
|                                                                                
|Total non-performing loans as a percentage of total loans                        |                             |      | .31      | %            |  |  | .75   | %    

The allowance for loan losses decreased to $2,951,000 at June 30, 2001 from
$3,141,000 at year-end 2000, a decrease of 6%. The decrease was primarily due
to the reduction in criticized and classified assets during the first six
months of the year. These are the assets for which a higher rate of reserve
must be allocated, ranging from 5% to 100%. Combined criticized and classified
assets at June 30, 2001 were $4,313,000, a 42% decrease from the total at
December 31, 2000 of $7,387,000. Loan losses were higher this year to date
compared to the first six months of 2000, with gross charge-offs of $648,000
offset by recoveries of $83,000, resulting in a net annualized charge-off rate
of .58% of average total loans. The net annualized charge-off rate for the
year ended December 31, 2000 was .35% of average total loans. The allowance
for loan losses represented 1.45% and 1.65%, respectively, of total loans
outstanding at June 30, 2001 and December 31, 2000.

Analysis of Allowance for Loan Losses
for the Six Months Ended June 30,

|                                            |                                                  |      |       |       |  |   |       |       |  | 
|------------------------------------------- | ------------------------------------------------ | ---- | ----- | ----- |  | - | ----- | ----- |  | 
|(In thousands)                              |                                                  | 2001 |       | 2000 
|                                            |                                                  |      |       |       |  |   |       |       | 
|                                            | Allowance for loan losses at beginning of period |      | $     | 3,141 |  |   | $     | 2,525 | 
|                                            |                                                  |      |       |       |  |   |       |       | 
|                                            | Charge-offs:                                     |      |       |       |  |   |       |       | 
|                                           
|                                           
|                                           
|                                           
|                                            | Commercial, financial, and agricultural          |      |       | 371   |  |   |       | 248   | 
|                                           
|                                           
|                                           
|                                           
|                                            | SBA                                              |      |       | 118   |  |   |       | 42    | 
|                                           
|                                           
|                                           
|                                           
|                                            | Real estate                                      |      |       | 139   |  |   |       |      | 
|                                           
|                                           
|                                           
|                                           
|                                            | Installment loans to individuals                 |      |       | 20    |  |   |       | 7     | 
|                                            |                                                  |      |       |       |  |   |       |       | 
|                                            | Total                                            |      |       | 648   |  |   |       | 297   | 
|                                            |                                                  |      |       |       |  |   |       |       | 
|                                           
|                                           
|                                           
|                                           
|Recoveries:                                 |                                                  |      |       |       |  |   |       |      
|                                           
|                                           
|                                           
|                                           
|                                            | Commercial, financial, and agricultural          |      |       | 29    |  |   |       | 80    | 
|                                           
|                                           
|                                           
|                                           
|                                            | SBA                                              |      |       | 29    |  |   |       | 111   | 
|                                           
|                                           
|                                           
|                                           
|                                            | Real estate                                      |      |       | 18    |  |   |       |      | 
|                                           
|                                           
|                                           
|                                           
|                                            | Installment loans to individuals                 |      |       | 7     |  |   |       | 26    | 
|                                            |                                                  |      |       |       |  |   |       |       | 
|                                            | Total                                            |      |       | 83    |  |   |       | 217   | 
|                                           
|                                           
|                                           
|                                           
|                                            | Net charge-offs                                  |      |       | 565   |  |   |       | 80    | 
|                                            |                                                  |      |       |       |  |   |       |       | 
|Provision for loan losses charged to income |                                                  |      | 375   |       |  |   | 625   |      
|                                            |                                                  |      |       |       |  |   |       |       | 
|Allowance for loan losses at end of period  |                                                  | $    | 2,951 |       |  | $ | 3,070 |      
|                                            |                                                  |      |       |       |  |   |       |       | 

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Management regularly analyzes our loan portfolio to evaluate the outstanding
loans and to measure both the performance of the portfolio and the adequacy of
the allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses and internal credit ratings. Based on this analysis,
management considers the allowance for loan losses at June 30, 2001 to be
adequate to cover loan losses in the portfolio as of that date. However,
because of the inherent uncertainty of the assumptions we use in our loan
analyses, management cannot assure that loan losses in future periods will not
exceed the allowance for loan losses or that additional allocations to the
allowance will not be required.

Liquidity and Capital Adequacy

Liquidity has decreased to a stable, satisfactory level from its peak in first
quarter 2001 that resulted from the strong influx of time deposit funds. At
June 30, 2001, the Companys average net loan to average deposit ratio was 71%,
down from 77% at year-end, which was also due to the strong growth in time
deposits. Management also analyzes the level of off-balance sheet assets and
liabilities such as unfunded loan commitments and outstanding letters of credit
as they relate to the levels of cash, cash equivalents, liquid investments, and
available federal funds lines to ensure that a potential shortfall does not
arise. Additionally, the Bank has $25 million of borrowing capacity under a
secured line of credit available from the Federal Home Loan Bank of Atlanta, of
which $10 million was being utilized at June 30, 2001. Based on this analysis,
management believes that the Company has adequate liquidity to meet short-term
operational requirements.

Stockholders equity of the Company remained stable during second quarter 2001,
at $27 million. Offsetting normal earnings growth, the Company paid
shareholders $356,000 in cash dividends and other comprehensive income declined
$100,000 during the quarter. For the year, stockholders equity of the Company
increased $1 million for both the six months ended June 30, 2001 and 2000.

The capital level of the Bank exceeds all prescribed regulatory capital
guidelines. Regulations require that the most highly rated banks maintain a
minimum Tier 1 leverage ratio of 3%, and require other banks to maintain a
minimum Tier 1 leverage ratio of 3% plus an additional cushion of at least 1 to
2 percentage points. Tier 1 capital consists of stockholders equity less
certain intangible assets. The Banks Tier 1 leverage ratio was 7.1% at June
30, 2001 compared to 7.0% at year-end 2000. Regulations require that the Bank
maintain a minimum total risk weighted capital ratio of 8% with 50%, or 4%, of
this amount made up of Tier 1 capital. Risk-weighted assets consist of balance
sheet assets adjusted by risk category and off-balance sheet asset equivalents
similarly adjusted. At June 30, 2001, the Bank had a risk-weighted total
capital ratio of 11.9% and a Tier 1 risk-weighted capital ratio of 10.6% which
compares favorably to year end 2000 ratios of 11.2% and 10.0%, respectively.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of June 30, 2001, there were no substantial changes from the interest rate
sensitivity analysis or the market value of portfolio equity for various
changes in interest rates calculated as of December 31, 2000. The foregoing
disclosures related to the market risk of the Company should be read in
conjunction with the Companys audited consolidated financial statements,
related notes and managements discussion and analysis of financial condition
and results of operations for the year ended December 31, 2000 included in the
Companys 2000 Annual report on Form 10K.

Page 10 of 15



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PART II.   OTHER INFORMATION

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|ITEM 1. |  | Legal Proceedings  Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|ITEM 2. |  | Changes in Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|        |  | a) Not Applicable
b) Not Applicable
c) Not Applicable
d) Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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|ITEM 3. |  | Defaults Upon Senior Securities  Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|ITEM 4. |  | Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|        |  | The 2001 Annual Meeting of the Shareholders (the Meeting) of the
Company was held on May 5, 2001. Proxies were solicited prior to
the meeting from shareholders of record at the close of business
on March 15, 2001, for the primary purposes of electing six
members to the Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|        |  | Article Fourteen of the Companys Amended and Restated Articles of
Incorporation provides that the Board of Directors shall be
divided into three classes with each class to be as nearly equal
in number as possible. Article Fourteen also provides that the
three classes of directors are to have staggered terms, so that
the terms of only approximately one-third of the Board will expire
at each annual meeting of shareholders and each director serves a
three-year term. Six Class III Directors were nominated at the
meeting to serve until the Annual Shareholders Meeting in 2004:
Gerald L. Allison, Jose I. Gonzalez, James S. Lai, Nack Y. Paek,
Carl L. Patrick, Jr., and David Yu. All six nominees were
elected.
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|        |  | Proxies for 80%, or 1,587,165 of the 1,975,723 outstanding common
shares, were received prior to the meeting. A quorum was present
by proxy. Votes were cast as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|                     |  |  |           |  |  |          |     | 
|-------------------- |  |  | --------- |  |  | -------- | --- | 
|                     |  |  | Votes     |  |  | Votes   
|Director             |  |  | For       |  |  | Withheld
|Gerald L. Allison    |  |  | 1,554,868 |  |  |          | 0   | 
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|Jose I. Gonzalez     |  |  | 1,554,748 |  |  |          | 120 | 
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|James S. Lai         |  |  | 1,554,228 |  |  |          | 640 | 
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|Nack Y. Paek         |  |  | 1,554,228 |  |  |          | 640 | 
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|Carl L. Patrick, Jr. |  |  | 1,554,868 |  |  |          | 0   | 
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|David Yu             |  |  | 1,554,132 |  |  |          | 640 | 

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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| |  | The following Class I and Class II directors, whose terms did not
expire at the Annual Shareholders Meeting, continued to serve as
directors following the meeting: Aaron I. Alembik, Jack N. Halpern,
Sion Nyen (Francis) Lai, Shih Chien (Raymond) Lo, W. Clayton
Sparrow, Jr., Pin Pin Chau, Peter M. Cohen, Donald R. Harkleroad,
Daniel T. Huang, Shafik H. Ladha, Paul C. Y. Chu, Howard H. L. Tai,
and P. Carl Unger.                                                                                                                                                                                                                                                    
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| |  | Pursuant to Rule 14a-4(c)(1) promulgated under the Securities
Exchange Act of 1934, as amended, shareholders desiring to present
a proposal for consideration at the Companys 2002 Annual Meeting
of Shareholders must notify the Company in writing at its principal
office at 4360 Chamblee Dunwoody Road, Atlanta, Georgia, 30341 of
the contents of such proposal no later than February 15, 2002.
Failure to timely submit such a proposal will enable the proxies
appointed by management to exercise their discretionary voting
authority when the proposal is raised at the Annual Meeting of
Shareholders without any discussion of the matter in the proxy
statement.

Page 11 of 15



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|        |  |                                                      
|------- |  | -----------------------------------------------------
|ITEM 5. |  | Other Information  Not Applicable                   
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|ITEM 6. |  | Exhibits and Reports on Form 8-K                     
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|        |  | a) Exhibits                                          
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|        |  | Exhibit 11. 1                                        
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|        |  | Statement Regarding Computation of Per Share Earnings
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|        |  | b) Reports on Form 8-K  none                        

Page 12 of 15



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned,
thereunto duly authorized.

|  |  |  |  |                                                                                                        
|- |  |  |  | -------------------------------------------------------------------------------------------------------
|  |  |  |  | SUMMIT BANK CORPORATION                                                                                
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|  |  |  |  | BY: /s/ Pin Pin Chau                                                                                   
|  |  |  |  |                                                                                                        
|  |  |  |  | Pin Pin Chau
Chief Executive Officer                                                                   
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|  |  |  |  | BY: /s/ Gary K. McClung                                                                                
|  |  |  |  |                                                                                                        
|` |  |  |  | Gary K. McClung
Executive Vice President
(Principal Financial Officer
and Principal Accounting Officer)
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|  |  |  |  | DATE:
August 7, 2001                                                                                   

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|                  |  |                                                       |  |  |    |      |  | 
|----------------- |  | ----------------------------------------------------- |  |  | -- | ---- |  | 
|INDEX TO EXHIBITS |  |                                                       |  | 
|                  |  |                                                       |  | 
|Exhibit           |  |                                                       |  |  |    | Page
|                  |  |                                                       |  |  |    |     
|11.1              |  | Statement Regarding Computation of Per
Share Earnings |  |  | 15 |     

Page 14 of 15