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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



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Form 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended September 30, 2006

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



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SUMMIT BANK CORPORATION

(Exact name of Registrant as specified in its charter)



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|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|GEORGIA                                                        |  | 58-1722476                       
|(State or other jurisdiction of incorporation or organization) |  | (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)



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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 ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes ̈No  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See the definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one).    Large accelerated filer ̈Accelerated filer ̈Non-accelerated
filer  x

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 November 1, 2006
|Common Stock. $.0l par value |  | 7,137,104                      



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The Exhibit Index Appears on Page 24



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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SUMMIT BANK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



|                                                          |  |                    |         |   |                  |   |         |  
|--------------------------------------------------------- |  | ------------------ | ------- | - | ---------------- | - | ------- | -
|(In thousands)                                            |  | September 30, 2006 |         |   | December 31,2005 |  
|ASSETS:                                                   |  |                    |         |   |                  |   |         |  
|Cash and due from banks                                   |  | $                  | 17,551  |   |                  | $ | 18,194  |  
|Interest-bearing deposits with other banks                |  |                    | 307     |   |                  |   | 581     |  
|Investment securities available for sale, at fair value   |  |                    | 102,012 |   |                  |   | 106,416 |  
|Investment securities held to maturity, at amortized cost |  |                    | 29,059  |   |                  |   | 15,756  |  
|Other investments                                         |  |                    | 2,436   |   |                  |   | 3,015   |  
|Loans, net of unearned income                             |  |                    | 467,211 |   |                  |   | 357,986 |  
|Less: allowance for loan losses                           |  |                    | (6,339  | ) |                  |   | (4,555  | )
|                                                          |  |                    |         |   |                  |   |         |  
|Net loans                                                 |  |                    | 460,872 |   |                  |   | 353,431 |  
|                                                          |  |                    |         |   |                  |   |         |  
|Premises and equipment, net                               |  |                    | 13,944  |   |                  |   | 4,606   |  
|Customers acceptance liability                           |  |                    | 5,754   |   |                  |   | 3,769   |  
|Goodwill, net                                             |  |                    | 9,359   |   |                  |   | 1,530   |  
|Bank-owned life insurance                                 |  |                    | 8,303   |   |                  |   | 7,939   |  
|Other real estate owned                                   |  |                    | 2,643   |   |                  |   |        |  
|Other assets                                              |  |                    | 13,424  |   |                  |   | 10,685  |  
|                                                          |  |                    |         |   |                  |   |         |  
|Total assets                                              |  | $                  | 665,664 |   |                  | $ | 525,922 |  
|                                                          |  |                    |         |   |                  |   |         |  
|LIABILITIES AND SHAREHOLDERS EQUITY                      |  |                    |         |   |                  |   |         |  
|LIABILITIES:                                              |  |                    |         |   |                  |   |         |  
|Deposits:                                                 |  |                    |         |   |                  |   |         |  
|Noninterest-bearing demand                                |  | $                  | 112,629 |   |                  | $ | 108,600 |  
|Interest-bearing:                                         |  |                    |         |   |                  |   |         |  
|Demand                                                    |  |                    | 88,933  |   |                  |   | 84,032  |  
|Savings                                                   |  |                    | 12,191  |   |                  |   | 10,543  |  
|Time, $100,000 and over                                   |  |                    | 215,275 |   |                  |   | 131,173 |  
|Other time                                                |  |                    | 120,056 |   |                  |   | 103,884 |  
|                                                          |  |                    |         |   |                  |   |         |  
|Total deposits                                            |  |                    | 549,084 |   |                  |   | 438,232 |  
|                                                          |  |                    |         |   |                  |   |         |  
|Federal Home Loan Bank advances                           |  |                    |        |   |                  |   | 20,000  |  
|Long-term debentures                                      |  |                    | 12,000  |   |                  |   | 12,000  |  
|Other borrowed funds                                      |  |                    | 30,337  |   |                  |   | 8,717   |  
|Acceptances outstanding                                   |  |                    | 5,754   |   |                  |   | 3,769   |  
|Other liabilities                                         |  |                    | 8,714   |   |                  |   | 6,565   |  
|                                                          |  |                    |         |   |                  |   |         |  
|Total liabilities                                         |  |                    | 605,889 |   |                  |   | 489,283 |  
|                                                          |  |                    |         |   |                  |   |         |  
|SHAREHOLDERS EQUITY:                                     |  |                    |         |   |                  |   |         |  
|Common stock                                              |  |                    | 71      |   |                  |   | 57      |  
|Additional paid-in capital                                |  |                    | 37,898  |   |                  |   | 17,504  |  
|Retained earnings                                         |  |                    | 23,782  |   |                  |   | 21,069  |  
|Accumulated other comprehensive loss                      |  |                    | (1,976  | ) |                  |   | (1,991  | )
|                                                          |  |                    |         |   |                  |   |         |  
|Total shareholders equity                                |  |                    | 59,775  |   |                  |   | 36,639  |  
|                                                          |  |                    |         |   |                  |   |         |  
|Total liabilities and shareholders equity                |  | $                  | 665,664 |   |                  | $ | 525,922 |  
|                                                          |  |                    |         |   |                  |   |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



Page 2 of 27



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SUMMIT BANK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)



|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|--------------------------------------------------------------- |  | ------------------------------- | --------- | - | ------------------------------ | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                                |  | Three months endedSeptember 30, |           |   | Nine months endedSeptember 30, |  
|(Dollars in thousands, except share and per share amounts)      |  | 2006                            |           |   | 2005                           |   |           | 2006 |  |   | 2005      |  
|Interest income                                                 |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Loans, including fees                                           |  | $                               | 10,193    |   |                                | $ | 6,514     |      |  | $ | 27,191    |   |  | $ | 18,347    |  
|Interest-bearing deposits in other banks                        |  |                                 | 7         |   |                                |   | 18        |      |  |   | 15        |   |  |   | 24        |  
|Federal funds sold                                              |  |                                 | 10        |   |                                |   | 52        |      |  |   | 151       |   |  |   | 151       |  
|Investment securities                                           |  |                                 | 786       |   |                                |   | 719       |      |  |   | 2,270     |   |  |   | 2,154     |  
|Mortgage-backed securities                                      |  |                                 | 658       |   |                                |   | 712       |      |  |   | 1,992     |   |  |   | 2,250     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Total interest income                                           |  |                                 | 11,654    |   |                                |   | 8,015     |      |  |   | 31,619    |   |  |   | 22,926    |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Interest expense                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Time deposits, $100,000 and over                                |  |                                 | 2,191     |   |                                |   | 1,042     |      |  |   | 5,695     |   |  |   | 2,993     |  
|Other deposits                                                  |  |                                 | 2,103     |   |                                |   | 1,078     |      |  |   | 5,539     |   |  |   | 2,823     |  
|Federal Home Loan Bank advances                                 |  |                                 | 46        |   |                                |   | 228       |      |  |   | 263       |   |  |   | 645       |  
|Short-term borrowings                                           |  |                                 | 177       |   |                                |   | 162       |      |  |   | 310       |   |  |   | 424       |  
|Long-term debentures                                            |  |                                 | 267       |   |                                |   | 205       |      |  |   | 749       |   |  |   | 570       |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Total interest expense                                          |  |                                 | 4,784     |   |                                |   | 2,715     |      |  |   | 12,556    |   |  |   | 7,455     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Net interest income                                             |  |                                 | 6,870     |   |                                |   | 5,300     |      |  |   | 19,063    |   |  |   | 15,471    |  
|Provision for loan losses                                       |  |                                 | 600       |   |                                |   | 50        |      |  |   | 1,250     |   |  |   | 514       |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Net interest income after provision for loan losses             |  |                                 | 6,270     |   |                                |   | 5,250     |      |  |   | 17,813    |   |  |   | 14,957    |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Noninterest income                                              |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Fees for international trade finance services                   |  |                                 | 352       |   |                                |   | 412       |      |  |   | 1,072     |   |  |   | 1,153     |  
|SBA loan servicing fees                                         |  |                                 | 18        |   |                                |   | 24        |      |  |   | 58        |   |  |   | 73        |  
|Service charge income                                           |  |                                 | 139       |   |                                |   | 134       |      |  |   | 402       |   |  |   | 406       |  
|Non-sufficient funds charges                                    |  |                                 | 218       |   |                                |   | 203       |      |  |   | 599       |   |  |   | 625       |  
|Income from bank-owned life insurance                           |  |                                 | 121       |   |                                |   | 115       |      |  |   | 364       |   |  |   | 343       |  
|Net gain on sale of OREO                                        |  |                                 |          |   |                                |   |          |      |  |   |          |   |  |   | 88        |  
|Net gain on sales of investment securities available for sale   |  |                                 |          |   |                                |   |          |      |  |   |          |   |  |   | 3         |  
|Partnership loss in low income housing investment               |  |                                 | (84       | ) |                                |   | (85       | )    |  |   | (228      | ) |  |   | (200      | )
|Other                                                           |  |                                 | 160       |   |                                |   | 123       |      |  |   | 252       |   |  |   | 353       |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Total noninterest income                                        |  |                                 | 924       |   |                                |   | 926       |      |  |   | 2,519     |   |  |   | 2,844     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Noninterest expense                                             |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Salaries and employee benefits                                  |  |                                 | 2,398     |   |                                |   | 2,009     |      |  |   | 7,067     |   |  |   | 5,911     |  
|Equipment                                                       |  |                                 | 486       |   |                                |   | 365       |      |  |   | 1,287     |   |  |   | 993       |  
|Net occupancy                                                   |  |                                 | 398       |   |                                |   | 452       |      |  |   | 1,255     |   |  |   | 1,279     |  
|Other operating expenses                                        |  |                                 | 1,698     |   |                                |   | 1,121     |      |  |   | 4,189     |   |  |   | 3,776     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Total noninterest expense                                       |  |                                 | 4,980     |   |                                |   | 3,947     |      |  |   | 13,798    |   |  |   | 11,959    |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Income before income taxes                                      |  |                                 | 2,214     |   |                                |   | 2,229     |      |  |   | 6,534     |   |  |   | 5,842     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Income tax expense                                              |  |                                 | 594       |   |                                |   | 647       |      |  |   | 1,825     |   |  |   | 1,603     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Net income                                                      |  | $                               | 1,620     |   |                                | $ | 1,582     |      |  | $ | 4,709     |   |  | $ | 4,239     |  
|                                                                |  |                                 |           |   |                                |   |           |      |  |   |           |   |  |   |           |  
|Basic net income per common share                               |  | $                               | .23       |   |                                | $ | .28       |      |  | $ | .71       |   |  | $ | .74       |  
|Diluted net income per common share and potential common shares |  | $                               | .23       |   |                                | $ | .28       |      |  | $ | .71       |   |  | $ | .74       |  
|Weighted-average common shares outstanding - basic              |  |                                 | 7,132,321 |   |                                |   | 5,694,604 |      |  |   | 6,646,371 |   |  |   | 5,694,093 |  
|Weighted-average common shares outstanding - diluted            |  |                                 | 7,155,614 |   |                                |   | 5,694,604 |      |  |   | 6,663,778 |   |  |   | 5,694,093 |  
|Dividends declared per common share                             |  | $                               | .10       |   |                                | $ | .10       |      |  | $ | .30       |   |  | $ | .30       |  

See Accompanying Notes to Condensed Consolidated Financial Statements



Page 3 of 27



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SUMMIT BANK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                                     |  |                                |         |   |      |   |         |  
|------------------------------------------------------------------------------------ |  | ------------------------------ | ------- | - | ---- | - | ------- | -
|                                                                                     |  | Nine months endedSeptember 30, |        
|(In thousands)                                                                       |  | 2006                           |         |   | 2005 |  
|Cash flows from operating activities:                                                |  |                                |         |   |      |   |         |  
|                                                                                     |  |                               
|Net income                                                                           |  | $                              | 4,709   |   |      | $ | 4,239   |  
|Adjustments to reconcile net income to net cash provided by operating activities:    |  |                                |         |   |      |   |         |  
|Depreciation and amortization of premises and equipment                              |  |                                | 1,086   |   |      |   | 780     |  
|Net amortization of premiums/discounts on investment securities                      |  |                                | 71      |   |      |   | 403     |  
|Amortization of servicing assets                                                     |  |                                | 25      |   |      |   | 45      |  
|Amortization of deferred gain on termination of interest rate swap                   |  |                                | (11     | ) |      |   | (7      | )
|Partnership loss in low income housing investment                                    |  |                                | 228     |   |      |   | 200     |  
|Provision for loan losses                                                            |  |                                | 1,250   |   |      |   | 514     |  
|Net gains on sales of investment securities available for sale                       |  |                                |        |   |      |   | (3      | )
|Income from bank-owned life insurance                                                |  |                                | (364    | ) |      |   | (343    | )
|Gain on sale of OREO                                                                 |  |                                |        |   |      |   | (88     | )
|Changes in other assets and liabilities:                                             |  |                                |         |   |      |   |         |  
|Increase in other assets                                                             |  |                                | (326    | ) |      |   | (1,585  | )
|Increase in other liabilities                                                        |  |                                | 2,406   |   |      |   | 2,096   |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Net cash provided by operating activities                                            |  |                                | 9,074   |   |      |   | 6,251   |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Cash flows from investing activities:                                                |  |                                |         |   |      |   |         |  
|                                                                                     |  |                               
|Net cash paid for acquisition of Concord Bank, N.A.                                  |  |                                | (14,549 | ) |      |   |        |  
|Proceeds from maturities and collections of investment securities available for sale |  |                                | 12,949  |   |      |   | 22,359  |  
|Proceeds from maturities and collections of investment securities held to maturity   |  |                                | 280     |   |      |   | 270     |  
|Purchases of investment securities available for sale                                |  |                                | (541    | ) |      |   | (8,506  | )
|Purchases of investment securities held to maturity                                  |  |                                | (13,506 | ) |      |   |        |  
|Net increase in loans                                                                |  |                                | (16,478 | ) |      |   | (6,069  | )
|Proceeds from sale of OREO                                                           |  |                                |        |   |      |   | 434     |  
|Purchase of partnership interest in low income housing investment                    |  |                                | (678    | ) |      |   | (1,416  | )
|Purchases of premises and equipment                                                  |  |                                | (516    | ) |      |   | (1,108  | )
|                                                                                     |  |                                |         |   |      |   |         |  
|Net cash (used in) provided by investing activities                                  |  |                                | (33,039 | ) |      |   | 5,964   |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Cash flows from financing activities:                                                |  |                                |         |   |      |   |         |  
|                                                                                     |  |                               
|Net decrease in demand and savings deposits                                          |  |                                | (8,835  | ) |      |   | (7,639  | )
|Net increase in time deposits                                                        |  |                                | 11,851  |   |      |   | 13,983  |  
|Issuance of common stock                                                             |  |                                | 20,408  |   |      |   | 59      |  
|Dividends paid                                                                       |  |                                | (1,996  | ) |      |   | (1,709  | )
|Net increase/(decrease) in other borrowed funds and FHLB advances                    |  |                                | 1,620   |   |      |   | (26,597 | )
|                                                                                     |  |                                |         |   |      |   |         |  
|Net cash provided by (used in) financing activities                                  |  |                                | 23,048  |   |      |   | (21,903 | )
|                                                                                     |  |                                |         |   |      |   |         |  
|Net decrease in cash and cash equivalents                                            |  |                                | (917    | ) |      |   | (9,688  | )
|Cash and cash equivalents at beginning of period                                     |  |                                | 18,775  |   |      |   | 37,059  |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Cash and cash equivalents at end of period                                           |  | $                              | 17,858  |   |      | $ | 27,371  |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Supplemental disclosures of cash paid during the period:                             |  |                                |         |   |      |   |         |  
|Interest                                                                             |  | $                              | 10,567  |   |      | $ | 6,560   |  
|Income taxes                                                                         |  | $                              | 2,232   |   |      | $ | 1,319   |  
|                                                                                     |  |                                |         |   |      |   |         |  
|Supplemental disclosures of noncash investing activities:                            |  |                                |         |   |      |   |         |  
|Transfer of loans to OREO                                                            |  | $                              | 2,643   |   |      |   |         |  
|Loan to facilitate the sale of OREO                                                  |  | $                              |        |   |      | $ | 1,198   |  
|                                                                                     |  |                                |         |   |      |   |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



Page 4 of 27



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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 (Summit or the Company) prepared the condensed 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. These consolidated financial statements should be read in conjunction with
the Companys audited financial statements and the notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31, 2005.

The condensed 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). All intercompany accounts and transactions have been eliminated in consolidation.

The Company operates through one segment,
providing a full range of banking services to individual and corporate customers through its subsidiary bank.



|2. | ACCOUNTING POLICIES
|-- | -------------------

The Companys accounting
policies are 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, 2005.

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and necessarily include amounts based
on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for income taxes, valuation of intangibles, and allowance for loan losses.



|3. | COMPREHENSIVE INCOME AND SHAREHOLDERS EQUITY
|-- | ---------------------------------------------

Currently, other comprehensive income for the Company consists of items recorded as a component of shareholders equity under Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in
Debt and Equity Securitiesand SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. The total comprehensive income for the third quarter of 2006 was $2,688,000 compared to total comprehensive income of
$1,109,000 for the third quarter of 2005. Total comprehensive income for the nine months ended September 30, 2006 and 2005 was $4,724,000 and $3,032,000, respectively.

During the nine months ended September 30, 2006, the Company issued 1,437,500 common shares in an underwritten public offering and received proceeds,
net of offering expenses, of approximately $20.4 million.



|4. | STOCK-BASED COMPENSATION
|-- | ------------------------



Page 5 of 27



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The Company has a Stock Incentive Plan (the Plan). The exercise price for incentive options issued under
the Plan is determined by the Board of Directors or Stock Option Committee as of the date the option is granted. The period for the exercise of options does not exceed the earlier of ten years from the date of grant or expiration of the Plan. The
Company has reserved 589,409 shares of common stock for the Plan.

Stock option activity during the nine months ended
September 30, 2006 and 2005 is as follows:



|                                         |  |        |   |      |                                        |       |        |        |   |                                        |   |      
|---------------------------------------- |  | ------ | - | ---- | -------------------------------------- | ----- | ------ | ------ | - | -------------------------------------- | - | -----
|                                         |  | 2006   |   | 2005
|                                         |  | Shares |   |      | WeightedAverageExercise PricePer Share |       | Shares |        |   | WeightedAverageExercise PricePer Share
|Options outstanding at beginning of year |  | 90,000 |   |      | $                                      | 15.04 |        | 4,500  |   |                                        | $ | 12.99
|Options granted                          |  |       |   |      |                                        |      |        | 90,000 |   |                                        |   | 15.04
|Options exercised                        |  | (5,000 | ) |      |                                        | 15.15 |        | (4,500 | ) |                                        |   | 12.99
|Options forfeited                        |  | (5,000 | ) |      |                                        | 15.01 |        |       |   |                                        |   |     
|                                         |  |        |   |      |                                        |       |        |        |   |                                        |   |      
|Options outstanding at the end of period |  | 80,000 |   |      | $                                      | 15.03 |        | 90,000 |   |                                        | $ | 15.04

All options outstanding at September 30, 2006 are exercisable. Of the options outstanding at
September 30, 2006, 70,000 had an exercise price of $15.01 and 10,000 had an exercise price of $15.15, and all had a contractual maturity of nine years. The total intrinsic value of the options exercised during the nine months ended
September 30, 2006 was $40,750. The aggregate intrinsic value of the options outstanding at September 30, 2006 was $661,800. The aggregate intrinsic value has increased significantly since June 30, 2006 due to the increase in
Summits stock price as a result of the announced merger with UCBH Holdings, Inc. (see Recent Developments). Per the merger agreement with UCBH, all outstanding options will be cashed out at $24.50 per share less the exercise price on the
merger date.

The per share weighted average fair value of stock options granted with an exercise price equal to market during the first nine months of
2005 was $6.22, using the Black Scholes option-pricing model with the following weighted average assumptions: expected life of three years; expected annual dividend rate of 4.14%; risk-free interest rate of 3.75%; and expected volatility of 73%
based on historical results. The stock options granted vested immediately upon grant.

In December 2004, the Financial Accounting Standards Board (FASB)
issued SFAS No. 123R, Share-Based Payment,which requires companies to recognize, in the statement of income, the grant-date fair value of stock options and other equity-based compensation issued to employees. On April 14, 2005, the
Securities and Exchange Commission (SEC) amended Rule 4-01(a) of Regulation S-X that amended the compliance date for SFAS No. 123R. The SECs new rule allows companies to implement SFAS No. 123R at the beginning of their next fiscal
year, instead of the next reporting period that begins after June 15, 2005. The Company adopted SFAS No. 123R on January 1, 2006. On March 29, 2005, the SEC issued Staff Accounting Bulletin No. 107 (SAB 107). SAB 107
expresses the views of the SEC staff regarding the interaction between SFAS No. 123R and certain SEC rules and regulations, provides the staffs views regarding the valuation of share-based payments by public companies, and provides
guidance regarding share-based payments with non-employees. For the quarter and nine months ended September 30, 2006, the Company recorded no compensation cost under SFAS No. 123R because no options were granted during 2006, and all
options outstanding at December 31, 2005 were fully vested.

In December 2002, prior to the issuance of SFAS No. 123R, the FASB issued SFAS
No. 148, Accounting for Stock-Based Compensation  Transition and Disclosure an amendment of FASB Statement No. 123. SFAS No. 148 amends SFAS No. 123, Accounting for Stock-Based Compensation, to provide
alternative methods of transition for an entity that voluntarily changes to the fair value based method of accounting for stock-



Page 6 of 27



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based employee compensation. It also amends the disclosure provisions of SFAS No. 123 to require prominent
disclosure about the effects on reported net income of an entitys accounting policy decisions with respect to stock-based employee compensation. Finally, SFAS No. 148 also amends Accounting Principles Board (APB) Opinion No. 28,
Interim Financial Reporting, to require disclosure about those effects in the interim financial information.

Prior to 2006, the Company had
continued to apply APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for its stock option plans. Accordingly, compensation cost was measured as the excess, if any, of the quoted
market price of the Companys stock at the date of grant over the amount an employee must pay to acquire the stock. Compensation cost was not recorded for the nine months ended September 30, 2005, as the quoted market price on the date of
grant for options granted equaled the exercise price. The total intrinsic value of the 4,500 shares exercised in the first quarter of 2005 was $11,582. Compensation cost determined under SFAS No. 123 would not have reduced net income and income
per share for the three months ended September 30, 2005, but net income would have been reduced for the nine months ended September 30, 2005 to the pro forma amounts indicated below (in thousands, except per share amounts):



|                                                                                                                                                   |  |                                      |           |                                     |   |           |  
|-------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------ | --------- | ----------------------------------- | - | --------- | -
|                                                                                                                                                   |  | Three Months EndedSeptember 30, 2005 |           | Nine Months EndedSeptember 30, 2005 |  
|Net income, as reported                                                                                                                            |  | $                                    | 1,582,000 |                                     | $ | 4,239,000 |  
|                                                                                                                                                   |  |                                     
|Deduct: Total stock-based employee compensation expense determined under fair value based method for all stock options, net of related tax
effects |  |                                      |          |                                     |   | (371,000  | )
|                                                                                                                                                   |  |                                      |           |                                     |   |           |  
|Pro forma net income                                                                                                                               |  | $                                    | 1,582,000 |                                     | $ | 3,868,000 |  
|                                                                                                                                                   |  |                                      |           |                                     |   |           |  
|Earnings per share:                                                                                                                                |  |                                      |           |                                     |   |           |  
|                                                                                                                                                   |  |                                     
|Basic - as reported                                                                                                                                |  | $                                    | 0.28      |                                     | $ | 0.74      |  
|Basic - pro forma                                                                                                                                  |  | $                                    | 0.28      |                                     | $ | 0.68      |  
|                                                                                                                                                   |  |                                     
|Diluted - as reported                                                                                                                              |  | $                                    | 0.28      |                                     | $ | 0.74      |  
|Diluted - pro forma                                                                                                                                |  | $                                    | 0.28      |                                     | $ | 0.68      |  



|5. | INVESTMENT SECURITIES
|-- | ---------------------

The following investment
securities available for sale have an unrealized loss as of September 30, 2006 for which an other than temporary impairment has not been recognized.



|                                                |  |                     |  |                     
|----------------------------------------------- |  | ------------------- |  | --------------------
|(In thousands)                                  |  | EstimatedFair Value |  | GrossUnrealized Loss
|Obligations of U.S. government agencies:        |  |                     |  |                     
|With an unrealized loss for less than 12 months |  |                    |  |                    
|With an unrealized loss for more than 12 months |  | 43,999              |  | 1,402               
|Tax-exempt municipal securities:                |  |                     |  |                     
|With an unrealized loss                         |  |                     |  |                     



Page 7 of 27



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|                                                |  |   |        |  |   |      
|----------------------------------------------- |  | - | ------ |  | - | -----
|for less than 12 months                         |  |   | 537    |  |   | 3    
|                                                |  |  
|Mortgage-backed securities:                     |  |   |        |  |   |      
|With an unrealized loss for less than 12 months |  |   | 4,767  |  |   | 73   
|With an unrealized loss for more than 12 months |  |   | 39,795 |  |   | 1,510
|                                                |  |   |        |  |   |      
|                                                |  | $ | 89,098 |  | $ | 2,988
|                                                |  |   |        |  |   |      

At September 30, 2006, there were two tax-exempt municipal securities and five
mortgage-backed securities with an unrealized loss for less than 12 months, as well as thirteen obligations of U.S. government agencies and sixteen mortgage-backed securities with an unrealized loss for more than 12 months. The total estimated fair
value of the securities with an unrealized loss at September 30, 2006 represented 97% of the book value. This unrealized loss is caused by increasing interest rates rather than deteriorating credit quality. While the duration of the impairment
is dependent on the market and a fluctuating yield curve, the duration of 42% of the investment securities with unrealized loss could be shortened by the issuing agency calling the securities.

The following investment securities held to maturity have an unrealized loss as of September 30, 2006 for which an other than temporary impairment
has not been recognized.



|                                                                                |  |                     |       |                      |   |   
|------------------------------------------------------------------------------- |  | ------------------- | ----- | -------------------- | - | --
|(In thousands)                                                                  |  | Estimatedfair value |       | GrossUnrealized loss
|Tax-exempt municipal securities with an unrealized loss for less than 12 months |  |                     | 4,344 |                      |   | 25
|                                                                                |  |                    
|Tax-exempt municipal securities with an unrealized loss for more than 12 months |  | $                   | 1,097 |                      | $ | 15
|                                                                                |  |                     |       |                      |   |   
|                                                                                |  | $                   | 5,441 |                      | $ | 40
|                                                                                |  |                     |       |                      |   |   

Seven securities held to maturity had unrealized losses at September 30, 2006. This
impairment is based on increasing interest rates rather than deteriorating credit quality. The duration of the loss appears to be short-term in nature, although it is a function of the general market environment and constantly changing yield curve.



|6. | RECENT ACCOUNTING PRONOUNCEMENTS
|-- | --------------------------------

In September
2006, the FASB issued SFAS No. 157,Fair Value Measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about
fair value measurements. SFAS No. 157 applies to other accounting pronouncements that require or permit fair value measurements, whereby the Board previously concluded in those accounting pronouncements that fair value is the relevant
measurement attribute. Accordingly, SFAS No. 157 does not require any new fair value measurements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. The
Company does not expect the impact of SFAS No. 157 on its financial position, results of operations or cash flows to be material.

In
September 2006, the EITF reached a consensus on EITF Issue No. 06-5 (EITF 06-5), Accounting for Purchases of Life InsuranceDetermining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin
No. 85-4. EITF 06-5 requires that a determination of the amount that could be



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realized under an insurance contract should (1) consider any additional amounts beyond cash
surrender value included in the contractual terms of the policy and (2) be based on an assumed surrender at the individual policy or certificate level, unless all policies or certificates are required to be surrendered as a group. EITF 06-5 is
effective for fiscal periods beginning after December 15, 2006. The Company is currently evaluating the impact of adopting EITF 06-5 on its financial position, results of operations and cash flows, but has yet to complete its assessment.

In September 2006, the U.S. Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 108 (SAB No. 108),Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements. SAB No. 108 states that registrants should use both a balance sheet (iron curtain) approach and an income
statement (rollover) approach when quantifying and evaluating the materiality of a misstatement and provides guidance for correcting errors in prior years. SAB No. 108 is effective for periods ended after November 15, 2006. The
Company does not expect the impact of adopting SAB No. 108 to be material to its financial position, results of operations and cash flows.

In June, 2006, the FASB issued Interpretation 48, Uncertainty in Income Taxes, which defines the threshold for recognizing the benefits of tax return positions in the financial statements as more-likely-than-not to
be sustained by the taxing authority. Uncertainty in income taxes refers to uncertainty about how some transactions will be treated under the tax law, and whether tax positions taken on tax returns should be reflected in the
financial statements. Interpretation 48 will be effective for fiscal years beginning after December 15, 2006. Summit is currently assessing the effect the adoption of Interpretation 48 will have, if any, on its financial statements.

In July 2005, the FASB issued a FASB Staff Position (FSP) (entitled FSP FAS 115-1, The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments) which supersedes Emerging Issues Task Force (EITF) Issue No. 03-1 and replaces the guidance set forth in paragraphs 10-18 of the issue with references to existing other than temporary impairment guidance,
such as SFAS No. 115, Securities and Exchange Commission (SEC) Staff Accounting Bulletin 59, Accounting for Noncurrent Marketable Equity Securities, and APB Opinion No. 18, The Equity Method of Accounting for Investments in Common Stock.
FSP FAS 115-1 codifies the guidance set forth in EITF Topic D-44, Recognition of Other-Than-Temporary Impairment upon the Planned Sale of a Security Whose Cost Exceeds Fair Value and clarifies that an investor should recognize an impairment loss no
later than when the impairment is deemed other-than-temporary, even if a decision to sell has not been made. In September 2005, the FASB decided to include in the final FSP FAS 115-1 guidance similar to that provided in EITF Issue No. 03-1
regarding the accounting for debt securities subsequent to an other-than-temporary impairment. In addition, the FASB decided that FSP FAS 115-1 would be applied prospectively for reporting periods beginning after December 15, 2005. FSP FAS
115-1 nullifies certain requirements of EITF Issue 03-1 and supersedes EITF Topic No. D-44. The Company does not consider the adoption of FSP FAS 115-1 to have a material impact on the Companys financial position or results of operations given
the nature of the Companys investments.

In December 2004, the FASB issued SFAS No. 123R, Share-Based Payment which requires
companies to recognize, in the statement of income, the grant-date fair value of stock options and other equity-based compensation issued to employees. The Companys adoption of SFAS No. 123R is discussed in Note 4.

In December 2003, the AICPA issued Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. This
statement addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investors initial investment in loans or debt securities (loans) acquired in a transfer if those differences are
attributable, at least in part, to credit quality. It includes such loans acquired in purchase business combinations. The Company followed the requirements of this statement in the acquisition of Concord Bank, N.A (Concord)  (see Note 7). At
the date of the acquisition of Concord, none of its loans were within the scope of SOP 03-3



Page 9 of 27



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and accordingly, its allowance for loan losses of $1.1 million, which relates to loans excluded from the
scope of SOP 03-3, was added to the Companys allowance in recording the acquisition.



|7. | BUSINESS COMBINATION
|-- | --------------------

On April 1, 2006, the
Company acquired all of the issued and outstanding common shares of Concord Bank, N.A. (Concord), headquartered in Houston, Texas through the merger of Concord with and into the Bank. The acquisition was accounted for using the purchase method of
accounting, and accordingly, the results of operations of Concord have been included in the Companys consolidated financial statements beginning April 1, 2006.

The aggregate purchase price was $23.7 million, including approximately $55,000 in direct acquisition costs. A preliminary total of $9.3 million of goodwill, which is expected to be deductible for tax purposes, and
other intangible assets, which consist of the core deposit premium with an estimated ten-year life, were recorded as of the date of acquisition. The core deposit premium is being amortized using an accelerated method.

The preliminary purchase price allocation is presented below:



|                                         |  |                  |        
|---------------------------------------- |  | ---------------- | -------
|(In thousands)                           |  | At April 1, 2006
|Cash and due from banks                  |  | $                | 472    
|Federal funds sold                       |  |                  | 8,700  
|Investment securities available for sale |  |                  | 7,618  
|Loans, net                               |  |                  | 94,856 
|Premises and equipment, net              |  |                  | 9,907  
|Goodwill                                 |  |                  | 7,829  
|Core deposits premium                    |  |                  | 1,490  
|Other assets                             |  |                  | 1,106  
|                                         |  |                  |        
|Total assets acquired                    |  |                  | 131,978
|                                         |  |                  |        
|Deposits                                 |  |                  | 107,836
|Other liabilities                        |  |                  | 421    
|                                         |  |                  |        
|Total liabilities assumed                |  |                  | 108,257
|                                         |  |                  |        
|Net assets acquired                      |  | $                | 23,721 
|                                         |  |                  |        

The pro forma information for the three and nine months ended September 30, 2006 and
September 30, 2005 related to the impact of the acquisition on the Companys consolidated financial statements is presented below:



|                           |      |                                 |       |                                |       |  |      |        |  |       
|-------------------------- | ---- | ------------------------------- | ----- | ------------------------------ | ----- |  | ---- | ------ |  | ------
|(In thousands)             |      | Three Months EndedSeptember 30, |       | Nine Months EndedSeptember 30,
|                           | 2006 |                                 | 2005  |                                | 2006  |  | 2005
|Net Interest Income        |      | $                               | 6,870 |                                | 6,384 |  | $    | 20,293 |  | 18,532
|Net Income                 |      | $                               | 1,620 |                                | 1,740 |  | $    | 4,554  |  | 4,689 
|                           |      |                                 |       |                               
|Basic Earnings per Share   |      |                                 | 0.23  |                                | 0.31  |  |      | 0.69   |  | 0.82  
|Diluted Earnings per Share |      | $                               | 0.23  |                                | 0.31  |  | $    | 0.68   |  | 0.82  



Page 10 of 27



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|8. | PENDING ACQUISITION OF SUMMIT BANK CORPORATION
|-- | ----------------------------------------------

On
September 18, 2006, Summit entered into a definitive agreement with UCBH Holdings, Inc. (Nasdaq: UCBH) whereby UCBH would acquire Summit for approximately $175.5 million. UCBH is the holding company for United Commercial Bank, a $8.35 billion
state chartered bank headquartered in San Francisco, California. United Commercial Bank serves the Chinese community and American businesses doing business in greater China, and has California offices in the San Francisco Bay area, Sacramento,
Stockton, Los Angeles and Orange County. It also has branches in the Pacific Northwest, New York, New England and Hong Kong, as well as representative offices in Shenzhen, China and Taipei, Taiwan. The transaction, expected to close at year end
2006, is subject to approval by Summits shareholders and regulatory approval.

Under the merger agreement, UCBH will pay cash and
issue shares of its common stock in exchange for all outstanding shares of Summit common stock. The merger agreement provides that each share of Summit common stock outstanding prior to the effective time of the merger will be converted, at the
election of the holder, to either cash in the amount of $24.50 per share or 1.3521 shares of UCBH common stock, subject to adjustment as described in the merger agreement. The total mix of cash and stock received in exchange for all of a
shareholders shares of Summit common stock will be subject to allocation by UCBHs exchange agent in order to ensure that 50% of Summits outstanding shares of common stock immediately prior to the merger are exchanged for cash and
the other 50% for stock, or as close an approximation to that division as is possible. In addition to the foregoing consideration, options to purchase shares of Summit common stock that are outstanding and unexercised immediately prior to the
effective time of the merger will be canceled in exchange for cash in the amount equal to the difference between $24.50 and the exercise price per share of the option, multiplied by the number of shares subject to the option.

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of our statements contained in this
quarterly report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or our future financial performance and include statements
about the competitiveness of the banking industry, potential regulatory obligations, our entrance and expansion into other markets, our other business strategies and other statements that are not historical facts. Forward-looking statements are not
guarantees of performance or results. When we use words like may, plan, contemplate, anticipate, believe, intend, continue, expect, project,
predict, estimate, could, should, would, will, and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing.
These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared.

These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to the following:



| |  |  | the effects of future local, national and international political and economic conditions;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | governmental monetary and fiscal policies, as well as legislative and regulatory changes and compliance;
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | international currency fluctuations;
| | - |  | ------------------------------------



| |  |  | the risks of changes in interest rates on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and
liabilities;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | interest rate and credit risks;
| | - |  | -------------------------------



Page 11 of 27



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| |  |  | the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, and other financial institutions operating in our
market area and elsewhere;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the effects of any mergers, acquisitions or other transactions, including our acquisition of Concord Bank, to which the Company or its subsidiary may from time to time be a party,
including, without limitation, our ability to successfully integrate any businesses that we acquire;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the possibility that the merger with UCBH may not close on a timely basis or at all (see Recent Developments)
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | the failure of assumptions underlying the establishment of allowances for loan losses;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | international currency fluctuations; and
| | - |  | ----------------------------------------



| |  |  | the effects of the war on terrorism, and conflicts in the Middle East.
| | - |  | ----------------------------------------------------------------------

All written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this Cautionary Note. Our actual results may differ significantly from those we discuss in these
forward-looking statements. We do not intend to update or revise, and assume no responsibility for updating or revising, any forward-looking statements contained in, or incorporated by reference into, this report, whether as a result of new
information, future events or otherwise.

Critical Accounting Estimates

In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies which are used in
preparing the consolidated financial statements of the Company. These policies are described in Note 1 to the consolidated financial statements which were presented in the Companys 2005 Annual Report on Form 10-K. Of these policies, Management
believes that the accounting for the allowance for loan losses is the most critical. This is because the amount of the allowance is established based on a variety of subjective factors. The allowance is replenished by means of a provision for loan
losses that is charged against the Companys earnings. As a result, earnings will vary based, in part, on subjective judgments made by Management in this area.

Losses on loans result from a broad range of causes ranging from borrower specific problems, to industry issues, and to the impact of the economic environment. The identification of these factors that lead to default
or non-performance under a borrower loan agreement and the estimation of loss in these situations are very subjective. In addition, a dramatic change in the performance of one or a small number of borrowers can have a significant impact in the
estimate of losses. The depth and duration of any economic recession could impact the credit risk associated with the loan portfolio. Another factor that could affect credit risk is a consideration of concentrations of credit within specific
industry sectors.

Management has implemented a process that has been applied consistently to systematically consider the many variables that impact the
estimation of the allowance for loan losses. See Allowance for Loan Losses on page 16.

Recent Developments

On September 19, 2006, Summit announced that they had entered into a definitive agreement with UCBH Holdings, Inc. (Nasdaq: UCBH) whereby UCBH
would acquire Summit for approximately $175.5 million. UCBH is the holding company for United Commercial Bank, a $8.35 billion state chartered bank headquartered in San Francisco, California. United Commercial Bank serves the Chinese community and
American businesses doing business in greater China, and has California offices in the San Francisco Bay area, Sacramento, Stockton, Los Angeles and Orange County. It also has branches in the Pacific Northwest, New York, New England and Hong Kong,
as well as representative offices in Shenzhen, China and Taipei, Taiwan. The transaction, expected to close at year end 2006, is subject to approval by Summits shareholders and regulatory approval.



Page 12 of 27



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Statement of Financial Condition

Total assets increased to $665.7 million at September 30, 2006 from $525.9 million at December 31, 2005, representing a 26.6% increase, and from $534.2 million
at September 30, 2005, representing a 24.6% increase. This was primarily due to the acquisition of Concord, which contributed $123 million in assets as of the April 1, 2006 closing date. Loans increased from $346.0 million at
September 30, 2005 to $358.0 million at December 31, 2005, and to $467.2 million at September 30, 2006, an increase of $121.2 million, or 35%, over the third quarter last year. Of this growth, $105.3 million is due to the acquisition
of Concord. Total investment securities at September 30, 2006 were $133.5 million compared to $125.2 million at December 31, 2005 and $136.0 million at September 30, 2005. The investment securities portfolio declined from
September 30, 2005 to December 31, 2005 primarily as a result of one maturing agency investment in the fourth quarter of 2005, and increased from December 31, 2005 to September 30, 2006 primarily due to purchases of additional
securities during the year, partially offset by one maturing agency investment in the third quarter of 2006, and principal paydowns on mortgage-backed securities during 2006.

Total deposits have increased to $549.1 million at September 30, 2006 from $440.8 million one year ago and have increased from $438.2 million at December 31, 2005. The growth in deposits during 2006 has been
mainly in organic growth in certificates of deposits and $107.8 million in deposits from the acquisition of Concord. Subsequent to that acquisition, Concord brokered deposits and public funds have declined by $49.1 million due to maturities, and
have primarily been replaced by the organic growth in certificate of deposits. Noninterest bearing deposits increased slightly from 23.8% of deposits at September 30, 2005 to 24.8% at December 31, 2005, but then decreased to 20.5% of
deposits at September 30, 2006 due to strong growth in certificates of deposit and the acquisition of Concord. Borrowed funds have declined from $45.8 million at September 30, 2005 to $40.7 million at December 31, 2005 and then
increased to $42.3 million at September 30, 2006. Shareholders equity has increased from $36.0 million at September 30, 2005 to $36.6 million at December 31, 2005 and $59.8 million at September 30, 2006 due to earnings in
both periods and the common stock offering in 2006.

The following table details selected components of the Companys average balance sheet for the
current period and the same period last year to illustrate the resulting change over the past year:



|                              |      |                                 |         |         |   |         |  |        |  
|----------------------------- | ---- | ------------------------------- | ------- | ------- | - | ------- |  | ------ | -
|(In thousands)                |      | Three months endedSeptember 30, |         | %Change |  
|                              | 2006 |                                 | 2005    |        
|Total investment securities   |      | $                               | 133,353 |         | $ | 138,906 |  | -4.00  | %
|Total loans                   |      |                                 | 460,781 |         |   | 340,683 |  | 35.25  |  
|Earning assets                |      |                                 | 595,453 |         |   | 487,309 |  | 22.19  |  
|Total assets                  |      |                                 | 660,688 |         |   | 529,041 |  | 24.88  |  
|                              |      |                                 |        
|Non-interest-bearing deposits |      |                                 | 113,085 |         |   | 106,573 |  | 6.11   |  
|Interest-bearing deposits     |      |                                 | 445,392 |         |   | 319,508 |  | 39.40  |  
|Borrowed funds                |      |                                 | 29,719  |         |   | 57,965  |  | -48.73 |  
|Total funds                   |      |                                 | 588,196 |         |   | 484,046 |  | 21.52  |  
|                              |      |                                 |        
|Total equity                  |      |                                 | 58,278  |         |   | 35,561  |  | 63.88  |  

Results of Operations

The Company reported net income of $1.62 million for the third quarter of 2006, compared to $1.58 million for the third quarter of 2005, an increase of 2.5%. The primary
reason for the increased earnings was an increase in net interest income due to the rising prime rates effect on the Banks floating rate commercial loan portfolio and Concords contribution to net income. Diluted net earnings per
share for the third quarter



Page 13 of 27



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of 2006 were $0.23, down from the $0.28 diluted earnings per share for the third quarter of 2005. The annualized return
on average stockholders equity for the three-month period ended September 30, 2006 was 11.12% versus 17.79% for the same period in 2005, and the return on average assets was .98% in the third quarter of 2006, compared to 1.20% in the
third quarter of 2005. The book value per share was $8.38 at September 30, 2006 compared to $6.43 at December 31, 2005 and $6.32 at September 30, 2005. The significant increase in the book value per share at September 30, 2006,
and the decline in earnings per share and return on shareholders equity, is largely due to the proceeds received March 31, 2006 from the additional 1,250,000 shares sold through the common stock offering. An additional 187,500 shares were
sold in April, 2006 as the underwriter exercised an option to purchase shares to cover over-allotments from the offering. In the third quarters of both 2006 and 2005, the Company paid a cash dividend of $.10 per share.

For the nine months ended September 30, 2006, the Company reported net income of $4.71 million, an increase of 11.1% over the $4.24 million for the first nine
months of 2005. This improvement was for the same reasons as noted above for the quarterly increase. Year to date diluted earnings per share for 2006 were $0.71, compared to $0.74 for the first nine months of 2005. The annualized return on
shareholders equity for the nine month period ended September 30, 2006 was 12.38% compared to 16.15% last year. The decline in earnings per share and annualized return on shareholders equity is due to the same reasons noted in the
previous paragraph. Return on average assets year to date was 1.02% compared to 1.07% last year.

Net interest income increased by 29.6% from $5.30 million
for the third quarter in 2005 to $6.87 million for the third quarter in 2006. For the nine months ended September 30, 2006, net interest income was $19.06 million compared to $15.47 million last year for the same period, reflecting a 23.2%
increase. For the nine months ended September 30, 2006, interest income is up $8.69 million, or 37.9%, and interest expense is up $5.10 million, or 68.4%, over the same period last year. The increased net interest income for the quarter and the
year has primarily been the result of upward repricing of the $292 million floating rate commercial loan portfolio along with Concords contribution to net interest income since the acquisition.

The net interest rate margin for the quarter ended September 30, 2006 was 4.61%, up from 4.35% for the same period last year. For the nine months ended
September 30, 2006, the net interest margin was 4.53%, again up from 4.22% last year. The yield on earning assets has increased from 6.59% for the three months ended September 30, 2005 to 7.80% for the three months ended September 30,
2006. On a year to date basis, yield on earning assets has increased from 6.27% last year to 7.54% this year. The cost of interest bearing funds has increased from 2.24% for the three months ended September 30, 2005 to 3.25% for the three
months ended September 30, 2006. On a year to date basis, cost of interest bearing funds has increased from 2.04% last year to 3.02% this year. Also increasing was the cost of funds related to the $12 million in trust preferred securities which
is tied to LIBOR. The rate on these funds has increased to 8.60% for the third quarter of 2006 from 6.59% for the third quarter 2005.

For the third
quarter of 2006, the loan loss provision was $600,000 compared to $50,000 for the third quarter last year. The larger third quarter 2006 provision was primarily due to $280,000 in loan chargeoffs and the increase in the reserve of $177,000 for the
downgrade of one loan for $1.3 million in September, 2006. The loan loss provision for the nine months ended September 30, 2006 was $1,250,000 compared to $514,000 last year. See Allowance for Loan Losses below.

Noninterest income was $924,000 for the quarter ended September 30, 2006, a slight decrease from the $926,000 last year for the third quarter, mainly due to a
decline in both international fee income and SBA loan servicing fees, offset by an increase in NSF service charges and a gain recorded for the increase in fair value on the interest rate floor. The interest rate floor has a remaining book value of
$66,000 at September 30, 2006. On a year to date basis, noninterest income has decreased from $2.8 million last year to $2.5 million this year, mainly due to a decline in both international fee income and NSF service charges and an $88,000 gain
on the sale of other real estate property during the 2005 period. Additionally, the company recorded a year to date loss of $92,000 for the decline in the fair value of the interest rate floor purchased in the fourth quarter 2005.



Page 14 of 27



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Noninterest expenses increased to $4.98 million in the third quarter of 2006 compared to $3.95 million in the same period
last year. The 26.2% increase was primarily due to increased salaries and benefits, equipment expenses, and professional fees; and the addition of these same expenses from Concord. Salaries and benefits increased by 19.4% from $2.00 million for the
third quarter last year to $2.40 million for the third quarter this year, due to increased temporary staffing and accrued bonus and incentive expense and employee benefits expense, in addition to the impact of the acquisition of Concord. Occupancy
and equipment expense increased this quarter from a year ago partially due to one new branch opened in the past year. Additionally, in June 2006 the Company recorded $39,000 in expense relating to the fair value of the liability associated with the
remaining lease rentals (reduced by the estimated sublease rentals) to be incurred due to the early termination of its Phoenix Boulevard branch lease. That office was closed in June 2006. Other operating expenses have increased by 51.4% from $1.12
million for the third quarter last year to $1.70 million for the quarter ended September 30, 2006 due primarily to increased accounting and professional fees and core deposit intangible amortization, offset by reduced 2006 marketing expense.
For the nine months ended September 30, 2006, total noninterest expense increased by 15.4% to $13.80 million from $11.96 million last year. That increase is primarily due to the same reasons as outlined above. The efficiency ratio was 63.90%
for the third quarter of 2006, up slightly from 63.39% for the same period last year. On a year to date basis through September 30, 2006 the operating efficiency ratio was 63.93% compared to 65.31% last year. The increases in noninterest
expenses have not materially increased the Companys operating efficiency ratio due to corresponding increases in net interest income and additional Concord revenue. The efficiency ratio is calculated by dividing noninterest expense by net
interest income plus noninterest income (less gain/loss on sale of securities).

Non-performing Assets

Non-performing assets are defined as non-accrual loans, renegotiated loans and other real estate acquired by foreclosure. Non-performing assets were $5.89 million at
September 30, 2006, representing 1.26% of total loans and other real estate, compared to $1.18 million, or .33%, at December 31, 2005 and $679,000 or 0.20% at September 30, 2005.

We downgraded two loans totaling $4.3 million to substandard in January 2006 as a result of declining financial condition of one of the related borrowers. These two
loans were placed on non accrual status in April 2006 due to becoming 90 days delinquent. Subsequent to these loans being placed on non-accrual, the Company foreclosed on two properties securing the two loans and assumed ownership in July, 2006, and
recorded $2.6 million of other real estate. Additionally, Summit reached an agreement with the borrowers and guarantors evidenced by a consent order calling for their payment of $1.7 million to Summit prior to December 31, 2006.

In addition to this consent order, Summit holds additional inventory collateral on the $1.7 million loan, which inventory is the subject of a bankruptcy case in which
Summits claim as a creditor is being litigated. On October 30, 2006, a hearing was held and the judge issued certain directives and orders to be accomplished by the next hearing to assist in resolving the issues. That hearing is not yet
scheduled.

Based on valuations of the collateral related to the loan, we reassessed our allowance for loan losses and increased the loan loss reserve for
this loan to $154,000 as of June 30, 2006 and maintained that level of reserve during the third quarter of 2006.Management continues to review the status of the loan described above, as well as monitoring the progress of the bankruptcy
case, and will make further adjustments to the reserve to the extent appropriate under Summits policies governing the allowance for loan loss.

Non-performing assets at September 30, 2006 also included eight loans totaling $1.55 million, seven of which were fully guaranteed by the Small Business Administration (SBA). The eighth loan was 85% guaranteed. The
remaining non-performing assets consist of the other real estate and $1.7 million non-



Page 15 of 27



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accrual loan discussed above.



|                                                                                |  |                   |   |  |                  |   |  |                   |  
|------------------------------------------------------------------------------- |  | ----------------- | - |  | ---------------- | - |  | ----------------- | -
|(Dollars in thousands)                                                          |  | September 30,2006 |   |  | December 31,2005 |   |  | September 30,2005 |  
|Loans on non-accrual                                                            |  |                   |   |  |                  |   |  |                   |  
|                                                                                |  |                   |  
|SBA guaranteed                                                                  |  | 1,549             |   |  | 578              |   |  | 595               |  
|Non-SBA guaranteed                                                              |  | 1,700             |   |  | 605              |   |  | 84                |  
|Other Real Estate Owned                                                         |  | 2,643             |   |  | 0                |   |  | 0                 |  
|Total non-performing assets                                                     |  | 5,892             |   |  | 1,183            |   |  | 679               |  
|                                                                                |  |                   |   |  |                  |   |  |                   |  
|Total non-performing loans as a percentage of total loans and other real estate |  | 1.26              | % |  | 0.33             | % |  | 0.20              | %

Impaired loans are defined as those loans as to which we believe it is probable that we will be unable to collect
all principal or interest according to the contractual terms of the note agreement. At September 30, 2006, December 31, 2005 and September 30, 2005, we had loans totaling $3.25 million, $1.18 million and $679,000, respectively,
that were considered impaired.

Total delinquent loans were $7.76 million or 1.67% of total loans at September 30, 2006, compared to $2.08 million or
0.58% of total loans at December 31, 2005 and $1.48 million or 0.43% of loans at September 30, 2005. Delinquent loans primarily consisted of commercial loans and include all of the impaired loans discussed above.

We consider all loans categorized as criticized or classified by the Banks internal rating system as potential problem loans. The loans categorized as criticized
or classified (loans rated as special mention, substandard, doubtful or loss) which includes loans on non-accrual as set forth above, increased to $7.47 million, or 1.60% of total loans, at September 30, 2006 compared to $4.83 million, or 1.35%
of total loans at December 31, 2005 and $6.00 million, or 1.73% of loans at September 30, 2005.

Allowance
for Loan Losses

The allowance for loan losses represents a reserve for probable loan losses in the loan portfolio. The adequacy of the allowance for
loan losses is evaluated periodically based on a review of all significant loans, with particular emphasis on impaired, non-accruing, past due, and other loans that Management believes require special attention. The determination of the allowance
for loan losses is subjective and considered a critical accounting estimate of the Company.

When reviewing the allowance for loan losses, it is important
to understand to whom the Company lends. The loan portfolio is primarily comprised of loans to small businesses. In particular, the Company has developed lending niches in a number of industries, the most prevalent of which include restaurants,
convenience stores, retail merchants, and strip shopping centers. At September 30, 2006, the Banks largest concentrations are commercial real estate loans which totaled approximately $199.0 million, or 259.2%, of Bank equity capital;
retail trade loans to convenience stores, restaurants, food stores, and liquor stores, which totaled approximately $152.8 million, or 199.1%, of Bank equity capital; and loans to service providers: financial, health, lodging and dry cleaners, which
totaled approximately $60.8 million, or 79.2%, of Bank equity capital. These concentrations are all within established policy limits. Management has not identified any specific industry weakness that may negatively impact the loan portfolio.



Page 16 of 27



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Notwithstanding the foregoing, lending to these types of businesses does involve risk, given their vulnerability to
changes in economic conditions. The Company has mitigated the risk to these types of borrowers in several ways. First, a portion of these loans is supported by government guarantees obtained from the Small Business Administration. Secondly, the
majority of the Companys loans are well secured with marketable real estate, and thirdly, the Company performs in-depth economic analyses on these industries in order to remain abreast of current trends and conditions. Management monitors loan
concentrations in given industries in relation to the Banks equity capital and has established limits to mitigate risk.

The Bank has established a
multifaceted methodology to analyze the adequacy of the allowance for loan losses. This methodology includes consideration of the Banks credit risk rating system, historical charge-offs, loan impairment as defined by SFAS No. 114, loss
ratios on criticized and classified loans, and finally, adjustments related to various qualitative factors that may change the risk profile of all or portions of the portfolio. The analysis is used to arrive at a recommended allowance for loan
losses.

A general allowance for losses is calculated based on estimates of inherent losses which probably exist as of the evaluation date, taking into
account the loans as they are impacted by the above factors. The general allowance for losses on problem loans in these categories is based on a review and evaluation of these loans, taking into consideration financial condition and strengths of the
borrower, related collateral, cash flows available for debt repayment, and known and expected economic trends and conditions. General loss percentages for the problem loans are determined based upon historical loss experience and regulatory
guidelines. For loans considered impaired, specific allowances are provided in the event that the specific collateral analysis on each problem loan indicates probable loss upon liquidation of collateral if the loan is collateral dependent or if the
present value of expected future cash flows is less than the loan balance. In addition to these allocated reserves, the Company has established an unallocated reserve of $235,000 at September 30, 2006. The basis for the unallocated reserve is
due to a number of qualitative factors, such as migration trends in the portfolio, trends in volume, the risk identification process, changes in the outlook for local and regional economic conditions and concentrations of credit, none of which are
adequately or completely captured in the aforementioned components of the allowance for loan losses.

The determination of the allowance for loan losses
rests upon Managements judgment about factors affecting loan quality, assumptions about the economy, and other factors; however, Managements judgment is based upon a number of assumptions, which are believed to be reasonable, but which
may or may not prove valid. Thus, because of the inherent uncertainty of the assumptions used in loan analyses, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases
in the allowance for loan losses will not be required. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Companys allowance for loan losses. Such agencies may require the
Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.

The
allowance for loan losses totaled $6.34 million at September 30, 2006, an increase from the $4.56 million at December 31, 2005 and $4.61 million at September 30, 2005. The increase of the allowance for loan losses was largely caused
by the acquisition of Concord, which resulted in an additional loan loss allowance of $1.1 million. The allowance for loan losses represented 1.36%, 1.27% and 1.33% of total loans outstanding at September 30, 2006, December 31, 2005
and September 30, 2005, respectively. Gross charged-off loans for the year to date through September 30, 2006 totaled $783,000, while recoveries for the period totaled $217,000, for an annualized net charge-off ratio of 0.18% of average
total loans. The net charge-off ratio for the same period in 2005 was also 0.18%. The provision for loan losses was $600,000 in the third quarter of 2006 compared to $50,000 during the same period last year. On a year to date basis, the provision
for loan losses was $1.25 million for the first nine months to date compared to $514,000 for the same period last year. The provision increased in the third quarter of 2006 over the second quarter of 2006 due to three charge-offs totaling $280,000,
and the downgrading of one loan for $1.3 million to substandard.



Page 17 of 27



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The following table represents an analysis of the Companys allowance for loan losses including the provision for
loan losses and net loan charge-offs for the nine months ended September 30, 2006 and 2005.

Analysis of Allowance for Loan Losses

for the Nine Months Ended September 30,



|                                                                 |  |      |       |      |   |      
|---------------------------------------------------------------- |  | ---- | ----- | ---- | - | -----
|(In thousands)                                                   |  | 2006 |       | 2005
|Allowance for loan losses at beginning of period                 |  | $    | 4,555 |      | $ | 4,549
|                                                                 |  |      |       |      |   |      
|Charge-offs:                                                     |  |      |       |      |   |      
|Commercial, financial, and agricultural                          |  |      | 420   |      |   | 345  
|SBA                                                              |  |      | 358   |      |   | 406  
|Installment                                                      |  |      | 5     |      |   |     
|                                                                 |  |      |       |      |   |      
|Total                                                            |  |      | 783   |      |   | 751  
|                                                                 |  |      |       |      |   |      
|Recoveries:                                                      |  |      |       |      |   |      
|Commercial, financial, and agricultural                          |  |      | 146   |      |   | 137  
|SBA                                                              |  |      | 57    |      |   | 160  
|Installment                                                      |  |      | 14    |      |   |     
|                                                                 |  |      |       |      |   |      
|Total                                                            |  |      | 217   |      |   | 297  
|                                                                 |  |      |       |      |   |      
|Net charge-offs                                                  |  |      | 566   |      |   | 454  
|                                                                 |  |      |       |      |   |      
|Provision for loan losses charged to income                      |  |      | 1,250 |      |   | 514  
|Provision for loan losses from acquisition of Concord Bank, N.A. |  |      | 1,100 |      |   |      
|                                                                 |  |      |       |      |   |      
|Allowance for loan losses at end of period                       |  | $    | 6,339 |      | $ | 4,609
|                                                                 |  |      |       |      |   |      

In performing an evaluation of the loans acquired by the Company in the acquisition of Concord Bank, N.A.,
management determined that for none of the loans acquired was it probable at the date of acquisition that the Company would be unable to collect all contractually required payments. Accordingly, the allowance of $1.1 million recorded by Concord was
recorded as an addition to the Companys allowance for loan losses at the date of acquisition.

Based on an analysis performed by management at
September 30, 2006, the allowance for loan losses is considered adequate to cover loan losses in the portfolio as of that date.

Derivative Instruments and Hedging Activities

The Company utilizes interest rate swaps and floor contracts to hedge
against significant movements in interest rates and resulting variable cash flows that could negatively impact net interest income and serve as a critical tool in our asset and liability management. An interest rate swap involves a financial
transaction whereby we enter into an agreement to pay a floating or fixed rate of interest on a notional amount. In return, we are paid a fixed or floating rate of interest. In the third quarter of 2006 our only currently outstanding interest rate
swap provided for a fixed yield in exchange for paying a floating rate, which resulted in a reduction of interest income of $327,000 compared to $40,000 of additional interest income for the same period in 2005. As the prime rate increased in 2005
and 2006, the value of the swap contract which matures in 2008 declined resulting in a liability of $866,000 at September 30, 2006. Because the interest rate swap qualified as a hedging instrument, the change in fair value is recorded in
accumulated other comprehensive income/(loss) within shareholders equity.



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In 2005, we decided to enter into an interest rate floor contract to protect our increasing yield on the loan portfolio.
The five year, $25.0 million interest rate floor purchased in October, 2005 at a cost of $246,000 will result in Summit Bank being paid if and when the prime rate falls below 6%. As a result of the decline in rates in the third quarter of 2006, the
floor has regained value, resulting in a $36,000 recording of income in the third quarter 2006. On a year to date basis, $92,000 in expense has been recorded for the nine months ended September 30, 2006 due to the additional prime rate
increases in early 2006. At September 30, 2006 the book value of the interest rate floor was $66,000. The interest rate floor was determined not to qualify for hedge accounting; therefore, the change in value is recorded through earnings.

Liquidity and Capital Adequacy

Management 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. Based on this analysis, management believes that the Company has adequate liquidity to meet short-term operational requirements. Cash and short-term investments
totaled $17.9 million, $18.8 million and $27.4 million at September 30, 2006, December 31, 2005 and September 30, 2005, respectively. On March 31, 2006, $17.6 million in proceeds from the common stock offering were invested
in overnight funds and used on April 1, 2006 to fund the majority of the $23.7 million Concord Bank N.A. acquisition. On April 25, 2006, $2.7 million in proceeds were received from the exercise of the over-allotment option of the common
stock offering. These funds were injected into the Bank. Also related to liquidity, during 2005 and the first six months of 2006, deposit growth and investment runoff allowed the Company to de-leverage its balance sheet by reducing Federal Home Loan
Bank advances and wholesale borrowings, but during the third quarter, deposits decreased and borrowed funds increased. Borrowed funds have declined from $45.8 million at September 30, 2005 to $40.7 million at December 31, 2005 and
increased to $42.3 million at September 30, 2006.

Shareholders equity of the Company increased to $59.8 million at September 30, 2006
compared to $36.6 million at December 31, 2005. The increase was due to earnings and the proceeds from the common stock offering previously mentioned.

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 shareholders equity less certain intangible assets. The Banks Tier 1 leverage ratio was 9.45% at September 30, 2006
compared to 9.16% at year-end 2005. 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 September 30, 2006, the Bank had a total risk-weighted capital ratio of 13.49% and a Tier 1 risk-weighted capital ratio of 12.24%, a slight decrease from year-end
2005 ratios of 13.84% and 12.63%, respectively.

Commitments and Contractual Obligations

In addition to the Companys contractual obligations such as deposits, FHLB advances and other borrowed funds, the Company has commitments to its customers under
lines of credit. The total of these commitments at September 30, 2006 was approximately $62 million. The lines include conventional revolving lines of credit that consist of commercial working capital lines that renew annually. Commitments also
include annually renewing international lines for letters of credit availability. There are commitments under lines of credit which are not revolving that are used by customers for specific purposes, as well as various types of consumer lines of
credit. These include lines secured by mortgages on residential real estate and unsecured revolving credit lines. Although management regularly monitors the balance of outstanding commitments to ensure funding availability should the need arise,
historical records indicate that the total of outstanding commitments is a very consistent amount, and the risk of all customers fully drawing on all these lines at the same time is remote.



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The following table is a summary of the Companys commitments to extend credit and commitments under contractual
leases, as well as the Companys contractual obligations, consisting of deposits, FHLB advances and borrowed funds, by contractual maturity date.



|                                               |  |               |         |                |   |                |  |                |       |                |   |                  |  |   |       |  |   |       
|---------------------------------------------- |  | ------------- | ------- | -------------- | - | -------------- |  | -------------- | ----- | -------------- | - | ---------------- |  | - | ----- |  | - | ------
|In thousands                                   |  | Due in 1 Year |         | Due in 2 Years |   | Due in 3 Years |  | Due in 4 Years |       | Due in 5 Years |   | Due after 5Years
|Demand and savings deposits                    |  | $             | 213,753 |                | $ |               |  | $              |      |                | $ |                 |  | $ |      |  | $ |      
|Time deposits                                  |  |               | 315,399 |                |   | 10,411         |  |                | 1,864 |                |   | 2,228            |  |   | 5,398 |  |   | 31    
|Other borrowed funds                           |  |               | 30,337  |                |   |               |  |                |      |                |   |                 |  |   |      |  |   |      
|Commitments to customers under lines of credit |  |               | 62,384  |                |   |               |  |                |      |                |   |                 |  |   |      |  |   |      
|Commitments under Lease agreements             |  |               | 1,174   |                |   | 759            |  |                | 656   |                |   | 647              |  |   | 372   |  |   | 1,290 
|Long-term debentures                           |  |               |        |                |   |               |  |                |      |                |   |                 |  |   |      |  |   | 12,000
|                                               |  |               |         |                |   |                |  |                |       |                |   |                  |  |   |       |  |   |       
|                                               |  | $             | 623,047 |                | $ | 11,170         |  | $              | 2,520 |                | $ | 2,875            |  | $ | 5,770 |  | $ | 13,321
|                                               |  |               |         |                |   |                |  |                |       |                |   |                  |  |   |       |  |   |       



Page 20 of 27



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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of September 30, 2006, 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, 2005. 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, 2005 included in the Companys 2005 Annual Report on Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period
covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Companys management, including the Companys Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of the Companys disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Companys Chief Executive Officer and Chief Financial Officer concluded that the
Companys disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) that is required to be included in the Companys periodic filings
with the Securities and Exchange Commission. There have been no changes in the Companys internal controls or, to the Companys knowledge, in other factors that have materially affected, or are reasonably likely to materially affect, the
Companys internal controls over financial reporting.



Page 21 of 27



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PART II. - OTHER INFORMATION



|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                   
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------
|ITEM 1. |  | Legal Proceedings - Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 
|ITEM    |  | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 
|1A.     |  | In addition to the other information set forth in this report, you should consider the factors discussed in Part 1, Item 1A. Risk Factors in the Companys Annual
Report on Form 10-K for the year ended December 31, 2005, which could materially affect the Companys business, financial condition or future results. The risks described in the Annual Report on Form 10-K are not the only risks facing the
Company. Additional risks and uncertainties not currently known to us or that management currently deems to be immaterial also may materially adversely affect the Companys business, financial condition and/or operating
results.
|        | 
|ITEM 2. |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        |  | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Not Applicable                                                                                                    
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        |  | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Not Applicable                                                                                                    
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        |  | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | The Company did not have a stock repurchase plan in effect and there were no repurchases during the current period
|        | 
|ITEM 3. |  | Defaults Upon Senior Securities - Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 
|ITEM 4. |  | Submission of Matters to a Vote of Security Holders None.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 
|ITEM 5. |  | Other Information  Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 
|ITEM 6. |  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 
|        |  | Exhibit 2.1  Agreement and Plan of Merger among Summit, UCBH Holdings, Inc. and UCB Merger Sub, LLC dated September 18, 2006 (incorporated by reference to Appendix A to Summits
Preliminary Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 5, 2006, File No. 000-21267)                                                                                                                                                                                                                                                                                                                            
|        | 
|        |  | Exhibit 31. 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        |  | Certifications of Chief Executive Officer and Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 
|        |  | Exhibit 32.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        |  | Certifications of Chief Executive Officer and Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



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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 CORPORATIONBY:

/s/ Pin Pin ChauPin Pin ChauChief Executive OfficerBY:

/s/ Thomas J. FlournoyThomas J. FlournoyChief Financial OfficerDATE: November 14, 2006




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INDEX TO EXHIBITS



|     |  |                                                                                                                                                                                                                                                                                                              |  |      
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----
|2.1  |  | Agreement and Plan of Merger among Summit, UCBH Holdings, Inc. and UCB Merger Sub, LLC dated September 18, 2006 (incorporated by reference to Appendix A to Summits Preliminary
Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 5, 2006 (File No. 000-2126 |  |     
|     |  |                                                                                                                                                                                                                                                                                                             
|31.1 |  | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (the Act)                                                                                                                                                                  |  | 25-26
|     |  |                                                                                                                                                                                                                                                                                                             
|32.1 |  | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Act                                                                                                                                                                                                     |  | 27   



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