**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      DC 20549**





**Form
      10-Q**





T
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE
                ACT OF
                1934





For
      the
      quarterly period ended September 30, 2005





OR





*
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE
                ACT OF
                1934





For
      the
      transition period from to





Commission
      File Number 000-21267





**SUMMIT
      BANK CORPORATION**


(Exact
      name of Registrant as specified in its charter)





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





4360
      Chamblee-Dunwoody Road


Atlanta,
      Georgia 30341


(Address
      of principal executive offices, including Zip Code)





(770)
      454-0400


(Registrant's
      telephone number, including area code)





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





Yes
            X
            
            No





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 an accelerated filer (as defined in
      Rule
      12b-2 of the Exchange Act).


Yes
            
            
            No
            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, 2005Common
                Stock. $.0l par value
            5,694,604







The
            Exhibit Index Appears on Page 211 of 24





**PART
      I. FINANCIAL INFORMATION**





**ITEM
                1.**
            **FINANCIAL
                STATEMENTS**


**SUMMIT
      BANK CORPORATION AND SUBSIDIARIES**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS**


(Unaudited)





(In
                thousands)
            
            September
                30,
              2005
            
            December
                31,
              2004ASSETS:Cash
                and due from banks
            
            $
            20,051
            
            $
            20,810Interest-bearing
                deposits in other banks
            
            
            2,320
            
            
            249Federal
                funds sold
            
            
            5,000
            
            
            16,000Investment
                securities available for sale, at fair value
            
            
            116,991
            
            
            132,856Investment
                securities held to maturity, at amortized cost
            
            
            15,733
            
            
            15,938Other
                investments
            
            
            3,240
            
            
            3,097Loans,
                net of unearned income
            
            
            346,018
            
            
            339,205Less:  allowance
                for loan losses
            
            
            (4,609
            )
            
            (4,549
            )Net
                loans
            
            
            341,409
            
            
            334,656Premises
                and equipment, net
            
            
            4,640
            
            
            4,312Customers'
                acceptance liability
            
            
            4,903
            
            
            3,223Goodwill,
                net
            
            
            1,530
            
            
            1,530Bank
                owned life insurance
            
            
            7,820
            
            
            7,478Other
                real estate owned
            
            
            --
            
            
            1,544Other
                assets
            
            
            10,573
            
            
            6,015Total
                assets
            
            $
            534,210
            
            $
            547,708LIABILITIES
                AND STOCKHOLDERS' EQUITYLIABILITIES:Deposits:Noninterest-bearing
                demand
            
            $
            104,921
            
            $
            104,055Interest-bearing:Demand
            
            
            90,344
            
            
            97,836Savings
            
            
            10,735
            
            
            11,748Time,
                $100,000 and over
            
            
            130,334
            
            
            130,686Other
                time
            
            
            104,463
            
            
            90,128Total
                deposits
            
            
            440,797
            
            
            434,453Federal
                Home Loan Bank advances
            
            
            25,000
            
            
            25,000Long-term
                debentures
            
            
            12,000
            
            
            12,000Other
                borrowed funds
            
            
            8,797
            
            
            35,394Acceptances
                outstanding
            
            
            4,903
            
            
            3,223Other
                liabilities
            
            
            6,702
            
            
            3,009Total
                liabilities
            
            
            498,199
            
            
            513,079STOCKHOLDERS'
                EQUITY:Common
                stock
            
            
            57
            
            
            57Additional
                paid-in capital
            
            
            17,504
            
            
            17,445Retained
                earnings
            
            
            19,765
            
            
            17,235Accumulated
                other comprehensive loss
            
            
            (1,315
            )
            
            (108
            )Total
                stockholders' equity
            
            
            36,011
            
            
            34,629Total
                liabilities and stockholders' equity
            
            $
            534,210
            
            $
            547,708


*See
      Accompanying Notes to Condensed Consolidated Financial
      Statements.*





2
            of
            24





**SUMMIT
      BANK CORPORATION AND SUBSIDIARIES**


**CONDENSED
      CONSOLIDATED INCOME STATEMENTS**


(Unaudited)





Three
                months
              ended
                September 30,
            
            Nine
                months
              ended
                September 30,(Dollars
                in thousands, except share and per share amounts)
            
            2005
            
            2004
            
            2005
            
            2004Interest
                incomeLoans,
                including fees
            
            $
            6,403
            
            $
            5,235
            
            $
            17,998
            
            $
            15,470Interest-bearing
                deposits in other banks
            
            
            18
            
            
            2
            
            
            24
            
            
            4Federal
                funds sold
            
            
            52
            
            
            4
            
            
            151
            
            
            16Investment
                securities
            
            
            719
            
            
            685
            
            
            2,154
            
            
            2,039Mortgage-backed
                securities
            
            
            712
            
            
            739
            
            
            2,250
            
            
            2,113Total
                interest income
            
            
            7,904
            
            
            6,665
            
            
            22,577
            
            
            19,642Interest
                expenseTime
                deposits, $100,000 and over
            
            
            1,042
            
            
            973
            
            
            2,993
            
            
            2,797Other
                deposits
            
            
            1,078
            
            
            715
            
            
            2,823
            
            
            2,097Federal
                Home Loan Bank advances
            
            
            228
            
            
            164
            
            
            645
            
            
            453Short-term
                borrowings
            
            
            162
            
            
            97
            
            
            424
            
            
            281Long-term
                debentures
            
            
            205
            
            
            147
            
            
            570
            
            
            411Total
                interest expense
            
            
            2,715
            
            
            2,096
            
            
            7,455
            
            
            6,039Net
                interest income
            
            
            5,189
            
            
            4,569
            
            
            15,122
            
            
            13,603Provision
                for loan losses
            
            
            50
            
            
            250
            
            
            514
            
            
            915Net
                interest income after provision for loan losses
            
            
            5,139
            
            
            4,319
            
            
            14,608
            
            
            12,688Noninterest
                incomeFees
                for international banking services
            
            
            523
            
            
            348
            
            
            1,502
            
            
            932SBA
                loan servicing fees
            
            
            24
            
            
            13
            
            
            73
            
            
            51Service
                charge income
            
            
            134
            
            
            151
            
            
            406
            
            
            490Non-sufficient
                funds charges
            
            
            203
            
            
            237
            
            
            625
            
            
            694Increase
                in CSV of bank owned life insurance
            
            
            115
            
            
            109
            
            
            343
            
            
            325Net
                gain on sale of OREO
            
            
            --
            
            
            --
            
            
            88
            
            
            --Net
                gains on sales of investment securities available for sale
            
            
            --
            
            
            15
            
            
            3
            
            
            143Partnership
                loss in low income housing investment
            
            
            (85
            )
            
            --
            
            
            (200
            )
            
            --Other
            
            
            123
            
            
            92
            
            
            353
            
            
            291Total
                noninterest income
            
            
            1,037
            
            
            965
            
            
            3,193
            
            
            2,926Noninterest
                expenseSalaries
                and employee benefits
            
            
            2,009
            
            
            1,814
            
            
            5,911
            
            
            5,240Equipment
            
            
            365
            
            
            278
            
            
            993
            
            
            789Net
                occupancy
            
            
            452
            
            
            350
            
            
            1,279
            
            
            1,005Other
                operating expenses
            
            
            1,121
            
            
            896
            
            
            3,776
            
            
            2,812Total
                noninterest expense
            
            
            3,947
            
            
            3,338
            
            
            11,959
            
            
            9,846Income
                before income taxes
            
            
            2,229
            
            
            1,946
            
            
            5,842
            
            
            5,768Income
                tax expense
            
            
            647
            
            
            609
            
            
            1,603
            
            
            1,819Net
                income
            
            $
            1,582
            
            $
            1,337
            
            $
            4,239
            
            $
            3,949Basic
                net income per common share
            
            $
            .28
            
            $
            .23
            
            $
            .74
            
            $
            .69Diluted
                net income per common share andcommon
                share equivalents
            
            $
            .28
            
            $
            .23
            
            $
            .74
            
            $
            .69Weighted-average
                shares outstanding - basic
            
            
            5,694,604
            
            
            5,689,876
            
            
            5,694,093
            
            
            5,685,374Weighted-average
                shares outstanding - diluted
            
            
            5,694,604
            
            
            5,690,962
            
            
            5,694,093
            
            
            5,685,926Dividends
                declared per common share
            
            $
            .10
            
            $
            .10
            
            $
            .30
            
            $
            .30


*See
      Accompanying Notes to Condensed Consolidated Financial
      Statements.*





3
            of
            24





**SUMMIT
      BANK CORPORATION AND SUBSIDIARIES**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**





(Unaudited)
            
            Nine
                months ended
              September
                30,(In
                thousands)
            
            2005
            
            2004Cash
                flows from operating activities:Net
                income
            
            $
            4,239
            
            $
            3,949Adjustments
                to reconcile net income to net cash provided by operating
                activities:Depreciation
                and amortization of premises and equipment
            
            
            780
            
            
            533Net
                amortization of premiums/discounts on investment
                securities
            
            
            403
            
            
            342Amortization
                of intangibles
            
            
            45
            
            
            100Amortization
                of gain on termination of interest rate swap
            
            
            (7
            )
            
            (22
            )Partnership
                loss in low income housing investment
            
            
            200
            
            
            --Provision
                for loan losses
            
            
            514
            
            
            915Net
                gains on sales of investment securities available for sale
            
            
            (3
            )
            
            (143
            )Unrecognized
                gain on termination of interest rate swap
            
            
            --
            
            
            45Increase
                in CSV of bank owned life insurance
            
            
            (343
            )
            
            (325
            )Gain
                on sale of OREO
            
            
            (88
            )
            
            --Changes
                in other assets and liabilities:Net
                decrease in loans held for sale
            
            
            --
            
            
            2,890Increase
                in other assets
            
            
            (1,585
            )
            
            (642
            )Increase
                in other liabilities
            
            
            2,096
            
            
            463Net
                cash provided by operating activities
            
            
            6,251
            
            
            8,105Cash
                flows from investing activities:Proceeds
                from maturities, sales, and collections of investment securities
                available
                for sale
            
            
            22,359
            
            
            36,206Proceeds
                from maturities, sales, and collections of investment securities
                held to
                maturity
            
            
            270
            
            
            1,010Purchases
                of investment securities available for sale
            
            
            (8,506
            )
            
            (40,770
            )Purchases
                of investment securities held to maturity
            
            
            --
            
            
            (4,692
            )Loans
                made to customers, net of principal collected on loans
            
            
            (6,069
            )
            
            (21,284
            )Proceeds
                from sale of OREO
            
            
            434
            
            
            --Purchase
                of low income housing partnership interests
            
            
            (1,416
            )
            
            --Purchases
                of premises and equipment
            
            
            (1,108
            )
            
            (519
            )Net
                cash provided by (used in) investing activities
            
            
            5,964
            
            
            (30,049
            )Cash
                flows from financing activities:Net
                (decrease)/increase in demand and savings deposits
            
            
            (7,639
            )
            
            10,776Net
                increase in time deposits
            
            
            13,983
            
            
            14,557Issuance
                of common stock
            
            
            59
            
            
            187Dividends
                paid
            
            
            (1,709
            )
            
            (1,706
            )Net
                decrease in other borrowed funds
            
            
            (26,597
            )
            
            (4,496
            )Net
                cash (used in) provided by financing activities
            
            
            (21,903
            )
            
            19,318Net
                decrease in cash and cash equivalents
            
            
            (9,688
            )
            
            (2,626
            )Cash
                and cash equivalents at beginning of period
            
            
            37,059
            
            
            18,238Cash
                and cash equivalents at end of period
            
            $
            27,371
            
            $
            15,612Supplemental
                disclosures of cash paid during the period:Interest
            
            $
            6,560
            
            $
            5,453Income
                taxes
            
            $
            1,319
            
            $
            2,114Supplemental
                disclosures of noncash investing activities:Transfer
                of loans to loans held for sale
            
            $
            --
            
            $
            14,300Transfer
                of loan collateral to other real estate owned
            
            $
            --
            
            $
            1,544Loan
                to facilitate sale of OREO
            
            $
            1,198
            
            $
            --


*See
      Accompanying Notes to Condensed Consolidated Financial
      Statements.*





4
            of
            24





**SUMMIT
      BANK CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**


(Unaudited)





**1.**
            **BASIS
                OF PRESENTATION**





Summit
      Bank Corporation and subsidiaries (the "Company") prepared the 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 man-agement, 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, 2004.





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 primarily 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, 2004.





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 litigation, income
      taxes, valuation of intangibles and loan loss allowances.





**3.**
            **COMPREHENSIVE
                INCOME**





Currently,
      other comprehensive income for the Company consists of items recorded as a
      component of stockholders' equity under Statement of Financial Accounting
      Standards (SFAS) No. 115, *Accounting
      for Certain Investments in Debt and Equity Securities* and
      SFAS
      No. 133 *,
      Accounting for Derivative Instruments and Hedging Activities* .
      The
      total comprehensive income for the third quarter of 2005 was $1,109,000 compared
      to total comprehensive income of $3,172,000 for the third quarter of 2004.
      Total
      comprehensive income for the nine months ended September 30, 2005 and 2004
      was
      $3,032,000 and $3,458,000, respectively.





**4.**
            **STOCK-BASED
                COMPENSATION**





In
      December 2002, the Financial Accounting Standards Board (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-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.





5
            of
            24





The
      following table illustrates the effect on net income and earnings per share
      if
      the Company had applied the fair value recognition provisions of SFAS No. 123, *Accounting
      for Stock-Based Compensation* (as
      amended by SFAS No. 148) *,* to
      stock-based employee compensation.





**Three
                Months Ended**
              **September
                30,**
            
            **Nine
                Months Ended**
              **September
                30,****2005**
            
            
            **2004**
            
            
            **2005**
            
            
            **2004**Net
                income, as reported
            
            $
            1,582,000
            
            
            1,337,000
            
            $
            4,239,000
            
            
            3,949,000Deduct:
                Total stock-based employee compensation expense determined under
                fair
                value based method for all stock options, net of related tax
                effects
            
            
            --
            
            
            --
            
            
            (371,000
            )
            
            (17,000
            )Pro
                forma net income
            
            $
            1,582,000
            
            
            1,337,000
            
            $
            3,868,000
            
            
            3,932,000Earnings
                per share:Basic
                - as reported
            
            $
            0.28
            
            
            0.23
            
            $
            0.74
            
            
            0.69Basic
                - pro forma
            
            $
            0.28
            
            
            0.23
            
            $
            0.68
            
            
            0.69Diluted
                - as reported
            
            $
            0.28
            
            
            0.23
            
            $
            0.74
            
            
            0.69Diluted
                - pro forma
            
            $
            0.28
            
            
            0.23
            
            $
            0.68
            
            
            0.69





There
      were 90,000 and 6,000 stock options granted during the nine months ended
      September 30, 2005 and 2004, respectively, which vested immediately upon grant.
      During the three and nine months ended September 30, 2005, the 90,000
      outstanding stock options are not included in the determination of common stock
      equivalents as the effect would be anti-dilutive.





**5.**
            **INVESTMENT
                SECURITIES**





The
      following investment securities available for sale have an unrealized loss
      as of
      September 30, 2005 for which an other than temporary impairment has not been
      recognized.





Estimated
            
            Unrealized(In
                thousands)
            
            Fair
                Value
            
            LossObligations
                of U.S. government agencies:With
                an unrealized loss for more than 12 months
            
            $
            36,897
            
            $
            981Mortgage-backed
                securities:With
                an unrealized loss for less than 12 months
            
            
            26,597
            
            
            372With
                an unrealized loss for more than 12 months
            
            
            22,674
            
            
            656$
            86,168
            
            $
            2,009





At
      September 30, 2005, there were seven mortgage-backed securities with an
      unrealized loss for less than 12 months, as well as seven obligations of U.S.
      government agencies and seven 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, 2005 represented 98% of the book value;
      therefore, the impairment is not considered severe. While the duration of the
      impairment is dependent on the market and a fluctuating yield curve, the
      duration of 43% of the investment securities with unrealized loss could be
      shortened by the issuing agency calling the securities.





6
            of
            24





The
      following investment securities held to maturity have an unrealized loss as
      of
      September 30, 2005 for which an other than temporary impairment has not been
      recognized.





(In
                thousands)
            
            Estimated
              fair
                value
            
            Unrealized
              lossTax-exempt
                municipal securities with an unrealized loss for less than 12
                months
            
            
            --
            
            
            --Tax-exempt
                municipal securities with an unrealized loss for more than 12
                months
            
            $
            891
            
            $
            15$
            891
            
            $
            15





One
      security held to maturity had an unrealized loss at September 30, 2005. The
      unrealized loss was considered immaterial to the financial statements, and
      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**





The
      Emerging Issues Task Force on November 13, 2003 issued EITF Issue No. 03-1, *The
      Meaning of Other-Than-Temporary Impairment and Its Application to Certain
      Investments* .
      This
      guidance was to be applied in other-than-temporary impairment evaluations
      performed in reporting periods beginning after June 15, 2004. Disclosures are
      effective in annual financial statements for fiscal years ending after December
      15, 2003, for investments accounted for under FASB Statements No. 115, *Accounting
      for Certain Investments in Debt and Equity Securities* ,
      and No.
      124, *Accounting
      for Certain Investments Held by Not-for-Profit Organizations* .
      The
      disclosure requirements for all other investments are effective in annual
      financial statements for fiscal years ending after June 15, 2004. In September
      2004, the FASB issued FASB Staff Position, (FSP) EITF Issue 03-1-1 which delays
      the effective date for the measurement and recognition guidance set forth in
      paragraphs 10 - 20 of EITF Issue No. 03-1 until additional implementation
      guidance is issued by the FASB. In July 2005, the FASB decided not to provide
      additional guidance on the meaning of other-than-temporary impairment, but
      to
      issue proposed FSP EITF 03-1-a, *Implementation
      Guidance for the Application of Paragraph 16 of EITF issue No.
      03-1* ,
      as
      final. The final FSP (retitled FSP FAS 115-1, *The
      Meaning of Other-Than-Temporary Impairment and Its Application to Certain
      Investments* )
      will
      supersede EITF Issue No. 03-1 and replace the guidance set forth in paragraphs
      10-18 of the issue with references to existing other than temporary impairment
      guidance, such as FASB Statement No. 115, 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 will codify the guidance set forth in Topic D-44 and clarify 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. Given the nature of the Company's
      investments, the Company does not expect the adoption of FSP FAS 115-1 or its
      implementation guidance to have a significant impact on its consolidated
      financial statements.





7
            of
            24





In
      December 2004, the FASB issued SFAS No. 123R, " *Share-Based
      Payment* ."
      SFAS
      No. 123R establishes standards for the accounting for transactions in which
      an
      entity exchanges its equity instruments for goods or services. It also addresses
      transactions in which an entity incurs liabilities in exchange for goods or
      services that are based on the fair value of the entity's equity instruments
      or
      that may be settled by the issuance of those equity instruments. Under SFAS
      No.
      123R, the Company must measure the cost of employee services received in
      exchange for an award of equity instruments based on the grant-date fair value
      of the award. That cost will be recognized over the period during which an
      employee is required to provide service in exchange for the award. SFAS No.
      123R
      applies to all awards granted after the required effective date and to awards
      modified, repurchased, or cancelled after that date. Compensation cost will
      be
      recognized on or after the required effective date for the portion of
      outstanding awards for which the requisite service has not yet been rendered,
      based on the grant-date fair value of those awards calculated under SFAS No.
      123R for either recognition or pro forma disclosures.





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 has determined that it will not adopt SFAS No. 123R until
      January 1, 2006.





On
      March
      29, 2005, the SEC issued Staff Accounting Bulletin No. 107 (SAB 107),
      " *Share-Based
      Payment* ."
      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.





The
      Company has not determined the full impact of adoption of SFAS No.
      123R.





8
            of
            24





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





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





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 2004 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, 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 12.




Performance
      Overview





Total
      assets of the Company were $534.2 million at September 30, 2005, up 6.6% over
      the $500.9 at September 30, 2004. Assets have declined from the $547.7 million
      at year end 2004 due to reduction of short-term investments and short-term
      borrowings. Loans have increased slightly over last year, rising from $333.6
      million at September 30, 2004 to $346.0 million at September 30, 2005. Total
      loans have increased slightly from $339.2 million at December 31, 2004. The
      investment security portfolio has declined since year-end primarily as a result
      of principal paydowns on mortgage-backed securities. Total investment securities
      at September 30, 2005 were $136.0 million compared to $151.9 million at December
      31, 2004.





Total
      deposits have increased to $440.8 million at September 30, 2005 from $393.9
      million one year ago and have increased from $434.5 million at December 31,
      2004. The growth in deposits during the third quarter 2005 and since September
      30, 2004 has been in all categories of deposits. Noninterest bearing demand
      and
      interest-bearing demand (NOW and money market accounts) grew 21.0% and 25.4%
      respectively over last year. Noninterest-bearing deposits remained strong
      compared to total deposits, increasing from 22.0% of deposits at September
      30,
      2004 to 23.8% of deposits at September 30, 2005. As previously reported, the
      Company had $20 million in temporary commercial deposits at December 31, 2004
      which accounts for the smaller increase in total deposits since that
      date.





9
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            24





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:





Three
                months
              endedSeptember
                30,
            
            %
              Change(In
                thousands)
            
            2005
            
            2004Total
                investment securities
            
            $
            138,906
            
            $
            138,362
            
            
            0.39
            %Total
                Loans
            
            
            340,683
            
            
            331,172
            
            
            2.87Earning
                assets
            
            
            487,309
            
            
            471,035
            
            
            3.45Total
                assets
            
            
            529,041
            
            
            505,820
            
            
            4.59Non-interest-bearing
                deposits
            
            
            106,573
            
            
            89,400
            
            
            19.21Interest-bearing
                deposits
            
            
            319,508
            
            
            315,406
            
            
            1.30Borrowed
                funds
            
            
            57,965
            
            
            65,137
            
            
            -11.01Total
                funds
            
            
            484,046
            
            
            469,943
            
            
            3.00Total
                equity
            
            
            35,561
            
            
            33,123
            
            
            7.36








The
      Company reported net income of $1,582,000 for the third quarter of 2005,
      compared to $1,337,000 for the third quarter of 2004, an increase of 18.3%.
      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, a reduction in loan loss provision expense, and an increase
      in
      noninterest income from the growing volume of international fee business.
      Noninterest income for the quarter grew over last year despite the recording
      of
      $85,000 in losses relating to the Company’s share of partnership loss on a low
      income housing project investment entered into during the first quarter of
      2005.
      These increases were partially offset by increases in noninterest expenses
      related to additional branch locations opened in the last twelve months and
      expense for additional compliance and risk management resources. Diluted net
      earnings per share for the third quarter of 2005 were $0.28, up 17.4% from
      the
      $0.23 diluted earnings per share for the third quarter of 2004. The annualized
      return on average stockholders' equity for the three-month period ended
      September 30, 2005 was 17.79% versus 16.15% for the same period in 2004, and
      the
      return on average assets was 1.20% in the third quarter of 2005, compared to
      1.06% in the third quarter of 2004. The book value per share was $6.32 at
      September 30, 2005 compared to $6.09 at both December 31, 2004 and September
      30,
      2004. In the third quarters of both 2005 and 2004, the Company paid a cash
      dividend of $.10 per share.





For
      the
      nine months ended September 30, 2005, the Company reported net income of
      $4,239,000, an increase of 7.3% over the $3,949,000 for the first nine months
      of
      2004. This improvement was for the same reasons as noted above for the quarterly
      increase. In addition, two other significant factors affect the comparison
      of
      the Company’s year to date net income to last year. In the second quarter of
      2005, $452,000 of expense was recorded related to additional claims arising
      in
      2005 on a check fraud that occurred in late 2004. Also, the Company’s effective
      tax rate and related expense has declined due to additional tax credits recorded
      in 2005 from the low income housing investment previously mentioned. Year to
      date diluted earnings per share for 2005 were $0.74, compared to $0.69 for
      the
      first nine months of 2004. The annualized return on stockholders’ equity for the
      nine month period ended September 30, 2005 was 16.15% compared to 15.80% last
      year. Return on average assets year to date was 1.07% compared to 1.06% last
      year.





Net
      interest income increased from $4.57 million for the third quarter in 2004
      to
      $5.19 million for the third quarter in 2005. Quarterly interest income was
      up
      over $1.24 million while quarterly interest expense was up only $619,000 over
      last year. For the nine months ended September 30, 2005, net interest income
      was
      $15.12 million compared to $13.60 million last year for the same period. For
      the
      year, interest income is up $2.94 million and interest expense is up $1.42
      million over last year. The increased net interest income for the quarter and
      the year has primarily been the result of upward repricing of the $289.5 million
      floating rate commercial loan portfolio and the increased percentage of
      noninterest bearing deposits to total deposits.





10
            of
            24





The
      net
      interest rate margin for the quarter ended September 30, 2005 was 4.26%, up
      from
      3.88% for the same period last year. For the nine months ended September 30,
      2005, the net interest margin was 4.13%, again up over the 3.92% last year.
      The
      yield on earning assets has increased 84 basis points from the third quarter
      last year to the third quarter this year. On a year to date basis, yield on
      earning assets has increased from 5.67% last year to 6.17% this year. The yield
      on the $346 million loan portfolio has increased from 6.31% last year to 7.10%
      this year. The cost of funds has increased over last year, but not as
      significantly as the increase in the yield on earning assets. Comparing the
      third quarter last year to this year, the cost of funds has increased from
      1.78%
      to 2.24%. For the year, cost of funds has increased from 1.75% last year to
      2.04% this year. The most significant increase in the cost of funds was related
      to the $12 million in trust preferred securities which is tied to LIBOR. The
      rate on these funds has increased to 6.59% for third quarter 2005 from 4.69%
      for
      the third quarter 2004. For the year, the cost of the trust preferred securities
      has risen 195 basis points over last year. The overall cost of deposits has
      increased 53 basis points over last year on a quarterly basis and 27 basis
      points on a year to date basis.





As
      a
      result of slower loan growth this year to date and improved asset quality,
      the
      loan loss provision for the nine months ended September 30, 2005 was $514,000
      compared to $915,000 last year. For the third quarter of 2005, the loan loss
      provision was $50,000 compared to $250,000 for the third quarter last year.
      Nonperforming assets, criticized and classified assets and loan delinquencies
      have all declined since December 31, 2004.





Noninterest
      income increased to $1.04 million for the quarter ended September 30, 2005,
      an
      increase of 7.4% over the $965,000 last year for the quarter. For the year,
      noninterest income has increased from $2.93 million last year to $3.19 million
      this year. Significant increases in fee income from international banking
      services have predominantly contributed to these increases. Growth in the
      customer base and transaction volume, particularly import letters of credit
      for
      domestic customers resulted in a $175,000 increase in fees for the quarter
      over
      last year and a $570,000 increase for the year to date over last year. For
      both
      the quarter and year to date, the increases in international fees have been
      partially offset by declines in service charges on deposit accounts. In
      addition, the Company recorded gains on the sale of securities totaling $143,000
      in the first nine months of 2004 compared to $3,000 for the same period in
      2005.
      In comparing noninterest income for the nine months ended September 30, 2005
      to
      last year, an $88,000 gain on the sale of the other real estate property
      partially offset the share of loss, amounting to $200,000, from the Bank’s low
      income housing investment during the 2005 period.





Noninterest
      expenses increased to $3.95 million in the third quarter 2005 compared to $3.34
      million in the same period last year. The 18.2% increase was primarily due
      to
      additional expenses related to infrastructure, namely staffing and branch
      facilities. Salaries and benefits increased from $1.81 million for the third
      quarter last year to $2.01 million for the third quarter this year due to
      increased staffing for two new branch locations in the last year, for additional
      resources for our risk management and compliance functions, and for increased
      retirement benefits costs. The Company employs 133.5 full-time equivalent
      employees at September 30, 2005, an increase of 2.5 over last year. Both
      occupancy and equipment expense increased this quarter from a year ago due
      to
      those two new branches and the relocation of our San Jose, California branch
      in
      December, 2004. The lease on the original space in San Jose, which continues
      to
      be used for operations, expires in early 2006. Other noninterest expense has
      increased from $896,000 for the third quarter last year to $1.12 million for
      the
      third quarter ended September 30, 2005 due primarily to legal fees related
      to
      compliance and fraud issues and to branch expansion related expenses such as
      data processing, marketing and advertising and supplies. For the nine months
      ended September 30, 2005, total noninterest expense increased to $11.96 million
      from $9.85 million last year. That increase is primarily due to the same reasons
      as outlined above. In addition, the year to date increase in expense was
      partially due to the $452,000 of expense recorded in the second quarter of
      2005
      for the check fraud case previously mentioned. The Company has had no further
      claims related to this case in the third quarter and expects to receive a
      partial recovery in the fourth quarter, 2005. As of this filing date, final
      details were being negotiated on a settlement involving four parties whereby
      Summit will receive a recovery of approximately 20-25% of its recorded losses
      in
      this case. These increases in noninterest expenses have had an impact on the
      Company's operating efficiency ratio, which was 63.4% for the third quarter
      of
      2005, up from 60.5% for the same period last year. On a year to date basis
      through September 30, 2005 the operating efficiency ratio was 65.3% compared
      to
      60.0% last year.





11
            of
            24





In
      the
      first quarter of 2005, the Bank entered into a contract to purchase $3.1 million
      of low income housing credits which will have a fifteen-year federal income
      tax
      benefit. Approximately $1.4 million of the commitment was paid through September
      30, 2005 with the remainder due over the next two years. This purchase has
      reduced the Company's effective tax rate in the current year to 27.4% from
      31.5
      % last year.





Asset
      Quality





Non-performing
      assets decreased to $679,000 at September 30, 2005, representing 0.20% of total
      loans and other real estate, compared to $2.8 million, or .84%, at year-end
      2004. The decrease was primarily due to the second quarter sale of a foreclosed
      other real estate property carried on the books at $1.5 million and the first
      quarter sale of a commercial real estate loan in the amount of $337,000. The
      other real estate property was sold at a gain of $88,000 and the loan was sold
      for $300,000 and the remaining balance charged off. Non-performing assets at
      September 30, 2005 included six loans totaling $679,000, five of which were
      fully guaranteed Small Business Administration ("SBA") loans totaling $595,000.
      These loans have all defaulted and are in the process of liquidation.
      Non-performing assets at December 31, 2004 consisted of nine SBA loans, totaling
      $958,000, which were fully guaranteed by the SBA, and the previously mentioned
      commercial real estate loan totaling $337,000 and other real estate owned
      resulting from the foreclosure of commercial real estate totaling $1.5 million.
      There were no loans past due 90 days or more as to principal or interest
      payments and still accruing at September 30, 2005. The balance of non-guaranteed
      impaired loans was less than $100,000 at September 30, 2005.





Non-performing
      Assets




(Dollars
                      in thousands)
                  
                  September
                        30,
                    2005
                  
                  December
                      31,
                    2004Loans
                      on non-accrualSBA
                      guaranteed
                  
                  $
                  595
                  
                  $
                  958Non-SBA
                      guaranteed
                  
                  
                  84
                  
                  
                  337Other
                      real estate owned
                  
                  
                  --
                  
                  
                  1,544Total
                      non-performing assets
                  
                  $
                  679
                  
                  $
                  2,839Total
                      non-performing assets as a percentage of total loans and other
                      real
                      estate
                  
                  
                  .20
                  %
                  
                  .84
                  %Total
                      non-performing loans as a percentage of total loans
                  
                  
                  .20
                  %
                  
                  .38
                  %





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, 2005,
      the
      Bank's largest concentrations are retail trade loans to convenience stores,
      restaurants, food stores, and liquor stores, which totaled approximately $125.2
      million, or 240.6%, of Bank equity capital; commercial real estate loans which
      totaled approximately $121.8 million, or 234.1%, of Bank equity capital; and
      loans to service providers: financial, health, lodging and dry cleaners, which
      totaled approximately $42.4 million, or 81.6%, 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.





12
            of
            24





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 that the probable loss upon liquidation of collateral would be in
      excess of the expected value of the collateral if the loan is collateral
      dependent or if the present value of expected future cash flows are less than
      the loan balance. In addition to these allocated reserves, the Company has
      established an unallocated reserve of $255,000 at September 30, 2005. 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
      allowance for loan losses totaled $4.61 million at September 30, 2005, slightly
      below the $4.66 million at year-end 2004. During the first nine months of 2005,
      increases in the allowance for loan losses due to additional provisions were
      offset by net charge-offs. However, total nonperforming loans and criticized
      and
      classified assets both declined during the current quarter and for the year.
      Criticized and classified assets at September 30, 2005 decreased to $6.0 million
      from $6.7 million at December 31, 2004, due to the sale of the other real estate
      previously mentioned. Gross charged-off loans for the year to date through
      September 30, 2005 totaled $751,000, while recoveries for the period totaled
      $297,000, for an annualized net charge-off ratio of 0.18% of average total
      loans. The net charge-off ratio for the first nine months of 2004 was 0.12%.
      The
      provision for loan losses decreased to $514,000 in the first nine months of
      2005
      compared to $915,000 during the same period last year. The decline was due
      to
      the minimal loan growth during this current year and the improved loan quality.
      The provision for loan losses for the third quarter of 2005 was $50,000 compared
      to $250,000 last year.





The
      allowance for loan losses represented 1.33% and 1.34% of total loans outstanding
      at September 30, 2005 and December 31, 2004, respectively. The slight decrease
      was due to the general improvement in the overall quality of the loan portfolio
      since all but $84,000 of the nonperforming loans at September 30, 2005 were
      fully guaranteed by the SBA, and because criticized and classified assets have
      declined from year-end. 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, 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.





13
            of
            24





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, 2005 and 2004.





**Analysis
      of Allowance for Loan Losses**


**for
      the Nine Months Ended September 30,**





(In
                thousands)
            
            2005
            
            2004Allowance
                for loan losses at beginning of period
            
            $
            4,549
            
            $
            4,047Charge-offs:Commercial,
                financial, and agricultural
            
            
            345
            
            
            492SBA
            
            
            406
            
            
            189Installment
            
            
            --
            
            
            3Total
            
            
            751
            
            
            684Recoveries:Commercial,
                financial, and agricultural
            
            
            137
            
            
            322SBA
            
            
            160
            
            
            53Installment
                loans to individuals
            
            
            --
            
            
            4Total
            
            
            297
            
            
            379Net
                charge-offs
            
            
            454
            
            
            305Provision
                for loan losses charged to income
            
            
            514
            
            
            915Allowance
                for loan losses at end of period
            
            $
            4,609
            
            $
            4,657




Based
      on
      an analysis performed by management at September 30, 2005 the allowance for
      loan
      losses is considered to be adequate to cover loan losses in the portfolio as
      of
      that date. However, because of the inherent uncertainty of the assumptions
      we
      use in our loan analyses, management cannot assure that loan losses in future
      periods will not exceed the allowance for loan losses or that additional
      allocations to the allowance will not be required.





Derivative
      Instruments and Hedging Activities





Interest
      rate swap transactions generally involve the exchange of fixed and floating
      rate
      interest rate obligations without the exchange of underlying principal amounts.
      Entering into interest rate contracts involves not only interest rate risk,
      but
      also the risk of counterparties' failure to fulfill their legal obligation.
      Notional principal amounts often are used to express the volume of these
      transactions, but the amounts potentially subject to credit risk are much
      smaller.




In
      second
      quarter 2003, the Company entered into an interest rate swap contract with
      a
      notional amount of $25 million to reduce the interest rate risk on certain
      variable rate loans. The interest rate swap changed the variable-rate cash
      flow
      exposure on a portion of the loan portfolio to fixed rate cash flows. This
      swap
      is currently designated as a hedge instrument against those cash flows and,
      therefore, any fluctuations in fair value of the interest rate swap, to the
      extent that the hedge relationship has been effective, are recorded as an
      adjustment to accumulated other comprehensive income (loss). At September 30,
      2005, the fair value of this interest rate swap was a loss of $854 thousand.
      This swap matures on July 31, 2008.





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Liquidity
      and Capital Adequacy





Liquidity
      fluctuated during the first quarter of 2005 as temporary deposits at December
      31, 2004 allowed for the reduction of wholesale borrowings as the loan
      portfolio, federal funds sold, and the investment security portfolio declined
      during that time period. During April 2005, the majority of the temporary
      deposits from fourth quarter 2004 were reduced and another large balance of
      maturing certificate of deposits for one specific customer were withdrawn,
      necessitating additional usage of wholesale borrowings in the second quarter.
      During the third quarter 2005, deposit growth enabled the Company to reduce
      these borrowings back to the level present at December 31, 2004. 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.





Stockholders'
      equity of the Company increased to $36.0 million at September 30, 2005 compared
      to $34.6 million at December 31, 2004. This is due to earnings in excess of
      dividends paid with a decrease in accumulated other comprehensive income.





The
      capital level of the Bank exceeds all prescribed regulatory capital guidelines.
      Regulations require that the most highly rated banks maintain a minimum Tier
      1
      leverage ratio of 3%, and require other banks to maintain a minimum Tier 1
      leverage ratio of 3% plus an additional cushion of at least 1 to 2 percentage
      points. Tier 1 capital consists of stockholders' equity less certain intangible
      assets. The Bank's Tier 1 leverage ratio was 8.84% at September 30, 2005
      compared to 8.19% at year-end 2004.  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, 2005, the Bank had a
      risk-weighted total capital ratio of 13.82% and a Tier 1 risk-weighted capital
      ratio of 12.57%, an increase from year-end 2004 ratios of 13.12% and 11.87%,
      respectively. The increase was mainly due to earnings improving the Bank’s
      capital position.





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, 2005
      was
      approximately $44 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
                5
              YearsDemand
                and savings deposits
            
            $
            206,000
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -Time
                deposits
            
            
            183,864
            
            
            41,437
            
            
            3,498
            
            
            1,563
            
            
            4,348
            
            
            87Federal
                Home LoanBank
                advances
            
            
            15,000
            
            
            10,000
            
            
            -
            
            
            -
            
            
            -
            
            
            -Other
                borrowed funds
            
            
            8,797
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Commitments
                to customers under lines of credit
            
            
            44,458
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Commitments
                underlease agreements
            
            
            1,406
            
            
            1,284
            
            
            938
            
            
            878
            
            
            845
            
            
            2,334Long-term
                debentures
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            12,000$
            459,525
            
            $
            52,721
            
            $
            4,436
            
            $
            2,441
            
            $
            5,193
            
            $
            14,421





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**ITEM
                3.**
            **QUANTITATIVE
                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**





As
      of
      September 30, 2005, 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, 2004. 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, 2004 included in the Company's 2004
      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
      significant changes in the Company's internal controls or, to the Company's
      knowledge, in other factors that could significantly affect those internal
      controls subsequent to the date the Company carried out its evaluation, and
      there have been no corrective actions with respect to significant deficiencies
      or material weaknesses.





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**PART
      II. - OTHER INFORMATION**





ITEM
                1.
            Legal
                Proceedings - Not Applicable





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 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
                10,
                2005





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INDEX
      TO
      EXHIBITS





Exhibit
            
            Page31.1
            Certifications
                of Chief Executive Officer and Chief Financial Officer Pursuant to
                Section
                302 of theSarbanes-Oxley
                Act of 2002 (the "Act")
            22-2332.1
            Certifications
                of Chief Executive Officer and Chief Financial Officer Pursuant to
                Section
                906 of the Act
            24




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