<PAGE>   1


                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                   FORM 10-QSB

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

                  For the Quarterly Period Ended March 31, 1997

                         Commission file number 33-29708

        -----------------------------------------------------------------


                                 SUMMIT BANCORP
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


                    Ohio                             34-1599501
        -----------------------------         -----------------------
        (State or other jurisdiction)         (IRS Employer I.D. No.)


                   2680 West Market Street, Akron, Ohio 44333
                   ------------------------------------------
                     (Address of principal executive office)


                                  (330) 864-8080
                           ---------------------------
                           (Issuer's telephone number)

         Check whether the issuer (1) 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, and (2) has been subject to such filing requirements for the past 90
days. Yes X  No 
         ---    ---

         As of May 9, 1997 there were outstanding 234,891 shares, without par
value, of the Company's common stock.

            Transitional Small Business Disclosure Format (Check One)

                                Yes      No  X
                                    ---     ---


                                  Page 1 of 14
                                      

<PAGE>   2



                       SUMMIT BANCORP AND SUBSIDIARIES
                                      
                                    Index

<TABLE>                                                       
<CAPTION>                                                     
                                                            Page Number
                                                          
PART I.  FINANCIAL INFORMATION                            
<S>                <C>                                     <C>
                                                          
         ITEM 1.    UNAUDITED FINANCIAL STATEMENTS        
                                                          
                    Consolidated Condensed Balance Sheets         3   
                                                                      
                    Consolidated Statements                           
                             of Income                            4   
                                                                      
                    Consolidated Statements                           
                             of Cash Flows                        5   
                                                                      
                    Notes to Consolidated                             
                             Financial Statements                 6   
                                                                      
         ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS              
                    OF FINANCIAL CONDITION AND RESULTS                
                    OF OPERATIONS                                 9   
                                                                      
PART II.  OTHER INFORMATION                                           
                                                                      
         ITEMS 1. through 6.                                     13   
                                                                      
         SIGNATURES                                              14   
</TABLE>                                                

                                  Page 2 of 14


<PAGE>   3



SUMMIT BANCORP

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>

                                                                 MARCH 31,                 DECEMBER 31,
                                                                    1997                       1996
                                                              --------------------------------------------
<S>                                                           <C>                          <C>
ASSETS:
Cash and cash equivalents                                      $   2,242,207                $   2,111,588
Securities available-for-sale
  at fair market value                                            18,664,172                   18,073,130
Mortgage loans originated and held for sale                        2,399,900                    3,527,817
Loans:
  Commercial                                                      37,175,786                   35,336,334
  Residential mortgages                                           11,897,724                   12,575,904
  Installment                                                      1,488,418                    1,472,007
  Lines of credit                                                  6,454,300                    5,949,950
  Credit card receivables                                            630,615                      681,103
                                                               ------------------------------------------
                           Total loans                            57,646,843                   56,015,298
   Allowance for loan losses                                        (906,524)                    (837,805)
                                                               ------------------------------------------
                           Net loans                              56,740,319                   55,177,493
Premises and equipment
   Equipment and furniture                                           869,448                      869,448
   Leasehold improvements                                            565,639                      565,639
   Accumulated depreciation                                         (596,370)                    (551,689)
                                                               -------------------------------------------
                           Premises and equipment, net               838,717                      883,398
Accrued interest and other assets                                  1,661,481                    1,472,019
                                                               ------------------------------------------

                           TOTAL ASSETS                        $  82,546,796                $  81,245,445
                                                               ==========================================

LIABILITIES:
Deposits:
   Noninterest bearing demand                                  $   8,226,013                $   8,012,995
   Interest bearing demand                                         5,742,657                    5,528,169
   Savings                                                        18,378,375                   18,729,271
   Time                                                           34,713,755                   35,491,490
                                                               ------------------------------------------
                           Total deposits                         67,060,800                   67,761,925
Borrowings                                                         7,600,000                    5,300,000
Accrued interest payable and other liabilities                       805,118                      975,137
                                                               ------------------------------------------
                           TOTAL LIABILITIES                      75,465,918                   74,037,062

SHAREHOLDERS' EQUITY:
Common Stock, no par value,
  3,000,000 shares authorized,
  252,590 shares issued                                            6,138,895                    6,138,895
Retained earnings                                                  1,749,246                    1,807,517
Treasury Stock, at cost, 17,699 shares
  held at March 31, 1997 and 17,674 at
  December 31, 1996                                                 (576,349)                    (574,724)
Unearned restricted stock awards                                    (100,800)                    (100,800)
Securities equity valuation account                                 (130,114)                     (62,505)
                                                               ------------------------------------------
                           TOTAL SHAREHOLDERS' EQUITY              7,080,878                    7,208,383
                                                               ------------------------------------------
                           TOTAL LIABILITIES AND
                           SHAREHOLDERS' EQUITY                $  82,546,796                $  81,245,445
                                                               ==========================================
</TABLE>


See notes to consolidated financial statements.

                                  Page 3 of 14


<PAGE>   4



SUMMIT BANCORP

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    FOR THE THREE MONTHS ENDED
                                                                             MARCH 31,
                                                                      1997                 1996
                                                                ---------------        -------------
<S>                                                            <C>                       <C>        
INTEREST INCOME:
Loans                                                          $   1,352,454             $ 1,187,347
Taxable securities                                                   280,617                 283,553
Tax exempt securities                                                 12,604                       -
Deposits with banks                                                    2,844                   3,990
                                                                ------------------------------------
     TOTAL INTEREST INCOME                                         1,648,519               1,474,890
                                                                ------------------------------------

INTEREST EXPENSE:

Deposits                                                             709,499                 623,545
Other borrowings                                                      86,561                  84,712
                                                                ------------------------------------
     TOTAL INTEREST EXPENSE                                          796,060                 708,257
                                                                ------------------------------------

     NET INTEREST INCOME                                             852,459                 766,633

Provision for loan losses                                             75,000                  30,000
                                                                ------------------------------------
     NET INTEREST INCOME AFTER PROVISION
        FOR LOAN LOSSES                                              777,459                 736,633

NONINTEREST INCOME:
Origination fees on loans sold                                       136,964                 253,682
Customer service fees                                                 40,477                  36,964
Commissions                                                           41,476                  19,532
Net gain/(loss) on sales of securities                                  (860)                 32,313
Other income                                                          16,022                  15,797
                                                                ------------------------------------
     TOTAL NONINTEREST INCOME                                        234,079                 358,288
                                                                ------------------------------------

NONINTEREST EXPENSE:

Salaries and employee benefits                                       425,315                 426,901
Net occupancy expense                                                 55,594                  46,719
Depreciation and amortization                                         46,406                  49,016
Professional services                                                 39,743                  43,692
EDP and communications                                                87,297                  85,512
Ohio franchise tax                                                    23,629                  23,769
FDIC insurance                                                         1,693                     500
Other insurance                                                        9,431                   8,302
Merger related expenses                                              280,794                       -
Other operating costs                                                 98,919                  78,619
                                                                ------------------------------------
     TOTAL NONINTEREST EXPENSE                                     1,068,821                 763,030
                                                                ------------------------------------

INCOME (LOSS) BEFORE INCOME TAXES                                    (57,283)                331,891
Federal income taxes                                                   1,000                 120,000
                                                                ------------------------------------

NET INCOME (LOSS)                                              $     (58,283)            $   211,891
                                                               =====================================
Earnings per common share
Primary (Note A)                                               $       (0.24)            $      0.90
                                                               =====================================

Fully diluted (Note A)                                         $       (0.24)            $      0.90
                                                               =====================================
</TABLE>


See notes to consolidated financial statements.

                                  Page 4 of 14


<PAGE>   5



SUMMIT BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                FOR THE THREE MONTHS ENDED
                                                                                         MARCH 31,
                                                                              1997                         1996
                                                                         ------------------------------------------
<S>                                                                      <C>                         <C>          
CASH FLOW FROM OPERATING ACTIVITIES:
     Net income                                                          $    (58,283)               $     211,891
     Adjustments to reconcile net income
     to net cash from operating activities:
        Provision for loan losses                                              75,000                       30,000
        Depreciation and amortization                                          46,406                       49,016
        Amortization of securities available for sale premiums, net            51,549                       40,954
        Securities net loss/(gain)                                                860                      (32,313)
        FHLB stock dividends received                                         (18,000)                     (20,900)
        Deferred income taxes                                                 (51,872)                      (2,280)
     Mortgage loans originated for sale                                    (5,353,595)                 (11,619,199)
     Proceeds from the sale of loan originations                            6,481,512                   12,310,867
     Changes in:
        Accrued interest receivable and other assets                          (92,932)                    (386,659)
        Accrued interest payable and other liabilities                       (170,019)                     325,728
                                                                         -----------------------------------------
NET CASH FROM OPERATING ACTIVITIES                                            910,626                      907,105

CASH FLOWS FROM INVESTING ACTIVITIES:

     Purchases of securities available for sale                            (3,659,369)                  (7,210,412)
     Proceeds from the sales of securities available for sale               1,877,780                    6,228,121
     Proceeds from maturities of securities available for sale              1,042,158                    1,121,892
     Net increase in loans                                                 (1,637,826)                  (2,569,868)
     Purchase of premises and equipment                                             -                     (188,463)
                                                                         -----------------------------------------
NET CASH FROM INVESTING ACTIVITIES                                         (2,377,257)                  (2,618,730)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Changes in deposits                                                     (701,125)                    (550,857)
     Purchase of treasury stock                                               (29,315)                    (107,032)
     Proceeds from the sale of treasury stock                                  27,690                            -
     Long-term advances from FHLB                                           2,000,000                    1,000,000
     Repayment of long-term advances from FHLB                               (500,000)                           -
     Changes in short-term borrowings                                         800,000                      400,000
                                                                         -----------------------------------------
NET CASH FROM FINANCING ACTIVITIES                                          1,597,250                      742,111
                                                                         -----------------------------------------

Net change in cash and cash equivalents                                       130,619                     (969,514)
Cash and cash equivalents at the beginning of the period                    2,111,588                    3,432,431
                                                                         -----------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD                       $  2,242,207                $   2,462,917
                                                                         =========================================
</TABLE>


See notes to consolidated financial statements.

                                  Page 5 of 14


<PAGE>   6



                         SUMMIT BANCORP AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

               For the Three Months Ended March 31, 1997 and 1996

                                   (UNAUDITED)

NOTE A - BASIS OF PRESENTATION

The unaudited consolidated financial statements include the accounts of Summit
Bancorp and its wholly owned subsidiaries, Summit Bank and Summit Banc
Investments Corporation. All significant intercompany transactions have been
eliminated.

These accompanying unaudited interim consolidated financial statements have been
prepared in accordance with the instructions of Form 10-QSB and therefore do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principles. All adjustments which are in the
opinion of management necessary for a fair statement of the financial statements
for the periods covered by this report have been included. All such adjustments
are of a normal recurring nature.

The consolidated financial statements included herein should be read in
conjunction with the consolidated financial statements and notes thereto, and
the Report of Independent Auditors included in Summit Bancorp's Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1996. Reference is made to
the accounting policies of Summit Bancorp described in the notes to financial
statements contained in the Company's Annual Report on Form 10-KSB for the
fiscal year ended December 31, 1996. Summit Bancorp has consistently followed
those policies in preparing this report. Certain items from 1996 have been
reclassified to conform to the 1997 presentation.

The provision for income taxes is based upon the effective tax rate expected to
be applicable for the entire year.

Earnings per share: Primary earnings per share is based on the weighted average 
number of shares outstanding year-to-date and the assumed exercise of dilutive 
stock options less the number of treasury shares assumed to be purchased from 
the proceeds using the average market price of Summit Bancorp's common stock. 
Fully diluted earnings per share reflects the additional dilution related to 
the stock options due to the use of the stock's market price at March 31, 1997. 
The primary and fully diluted weighted average shares outstanding for the 
quarter ended March 31, 1997 were 242,972 and 243,754, and for the quarter 
ended March 31, 1996 were 236,608 and 236,650.

The Company, through its subsidiary bank, grants residential, commercial, and
consumer loans to customers located in Northern Ohio. Residential mortgage,
commercial and all other loans comprise 21%, 64%, and 15% of total loans at
March 31, 1997.

The Company in its normal course of business, makes commitments to extend credit
which are not reflected in the financial statements. At March 31, 1997, unused
credit lines amounted to approximately $11.4 million. Since many commitments to
make loans expire without being used, the amount does not necessarily represent
future cash commitments.

Collateral obtained related to the commitments is determined using management's
credit evaluation of the borrower and may include real estate, vehicles,
business assets, deposits, and other items.

                                  Page 6 of 14


<PAGE>   7



In management's opinion these commitments represent normal banking transactions,
and no material losses are expected to result therefrom.

SFAS No. 125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities," was issued by the FASB in 1996. It revises the
accounting for transfers of financial assets, such as loans and securities, and
for distinguishing between sales and secured borrowings. It was originally
effective for some transactions in 1997 and others in 1998. SFAS No. 127,
"Deferral of the Effective Date of Certain Provisions of FASB Statement No. 125"
was issued in December 1996. SFAS No. 127 defers for one year the effective date
of provisions related to securities lending, repurchase agreements and other
similar transactions. The remaining portions of SFAS No. 125 will continue to be
effective January 1, 1997. SFAS No. 125 did not have a material impact on Summit
Bancorp's financial statements.

In March 1997, the FASB issued SFAS No. 128, "Earnings Per Share" which is
effective for financial statements for periods ending after December 15, 1997,
including interim periods. SFAS No. 128 simplifies the calculation of earnings
per share by replacing the primary EPS with basic EPS. It also requires dual
presentation of basic EPS and diluted EPS for entities with complex capital
structures. Basic EPS includes no dilution and is computed by dividing income
available to common shareholders by the weighted-average common shares
outstanding for the period. Diluted EPS reflects the potential dilution of
securities that could share in earnings such as stock options, warrants or other
common stock equivalents. All prior period EPS data will be restated to conform
with the new presentation.  

NOTE B - SECURITIES

The amortized cost and estimated fair values of securities are as follows:

<TABLE>
<CAPTION>
                                                                 Gross         Gross
                                                Amortized   Unrealized    Unrealized        Estimated
                                                     Cost        Gains        Losses       Fair Value
                                             --------------------------------------------------------
<S>                                           <C>              <C>          <C>           <C>        
MARCH 31, 1997
SECURITIES AVAILABLE FOR SALE:

Mortgage-backed securities                    $14,339,708      $ 3,284      $169,277      $14,173,715
Municipal securities                            1,320,936         --          25,490        1,295,446
Other debt security                                32,032         --           6,406           25,625
U.S. Treasuries obligations                     1,997,223        6,214          --          2,003,437
                                             --------------------------------------------------------
Total debt securities available for sale       17,689,898        9,498       201,173       17,498,223
Other securities                                1,168,393         --           2,444        1,165,949
                                             --------------------------------------------------------
Total securities available for sale           $18,858,291      $ 9,498      $203,617      $18,664,172
                                             ========================================================


DECEMBER 31, 1996
SECURITIES AVAILABLE FOR SALE:

Mortgage-backed securities                    $14,961,116      $ 4,233      $113,377      $14,851,972
Other debt security                                44,105         --           8,821           35,284
U.S. Treasuries obligations                     1,996,974       21,463          --          2,018,437
                                             --------------------------------------------------------
Total debt securities available for sale       17,002,195       25,696       122,198       16,905,693
Other securities                                1,167,437         --            --          1,167,437
                                             --------------------------------------------------------
Total securities available for sale           $18,169,632      $25,696      $122,198      $18,073,130
                                             ========================================================
</TABLE>


During the first quarter of 1997, the Company sold two available for sale
securities totaling $1,877,780. Gains on securities sold totaled $447 and losses
totaled $1,307. Proceeds from these sales were reinvested in available for sale
securities, consisting of mortgage backed securities and municipal securities.
First quarter purchases totaled $3,659,369.

                                  Page 7 of 14


<PAGE>   8



The amortized cost and estimated fair value of debt securities at March 31, 1997
by contractual maturity, are shown below. Actual maturities may differ from
contractual maturities because borrowers may have the right to call or prepay
obligations.

<TABLE>
<CAPTION>
                                                                          Amortized             Estimated
                                                                               Cost            Fair Value
                                                                     ------------------------------------
<S>                                                                 <C>                   <C>           
SECURITIES AVAILABLE FOR SALE:
Due within 1 year                                                    $      281,960        $      274,912
Due after 1 year through 5 years                                          4,412,654             4,407,807
Due after 5 years through 10 years                                        3,671,629             3,631,246
Due after 10 years                                                        9,323,655             9,184,258
Other securities                                                          1,168,393             1,165,949
                                                                     ------------------------------------

TOTAL SECURITIES AVAILABLE FOR SALE                                  $   18,858,291        $   18,664,172
                                                                     ====================================
</TABLE>


NOTE C - ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses for the three month periods ending
March 31, 1997 and 1996 were as follows:

<TABLE>
<CAPTION>
                                                                           1997                  1996
                                                                     -----------------------------------
<S>                                                                  <C>                   <C>          
Balance at beginning of period                                       $     837,805         $     739,062
Charge-offs                                                                 (8,360)              (24,492)
Recoveries                                                                   2,079                23,960
Provision for loan losses                                                   75,000                30,000
                                                                     -----------------------------------
Balance at end of period                                             $     906,524         $     768,530
                                                                     ===================================
</TABLE>


NOTE D - PROPOSED AFFILIATION

The Company entered into an Agreement of Affiliation and Plan of Merger with
FirstFederal Financial Services Corp of Wooster, Ohio (FirstFederal) on December
30, 1996. Under the terms of the agreement, FirstFederal will exchange 1.87
shares of its common stock for each share of the Company's stock. Based on the
average of FirstFederal's closing bid and ask price of $39.375 on December 30,
1996, the transaction would be valued at approximately $17.3 million. The
merger, which will be accounted for as a pooling of interests, is expected to be
consummated during the third quarter of 1997, pending Summit Bancorp shareholder
approval, regulatory approval and other customary conditions of closing. The
transaction is expected to be a tax-free reorganization for federal income tax
purposes.

McDonald and Company Securities, Inc. is serving as the Company's financial
advisor in connection with this transaction.

Under the Merger Agreement, Summit has agreed to pay FirstFederal a fee of 
$750,000 in the event the merger is not consummated and certain events occur.

                                  Page 8 of 14


<PAGE>   9



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

INTRODUCTION

           The purpose of this discussion is to focus on information about
Summit Bancorp ("Company"), its financial condition and results of operations
which is not otherwise apparent from the consolidated financial statements. This
discussion should be read in conjunction with the interim consolidated financial
statements and footnotes included in this Form 10-QSB. The Company is not aware
of any market or institutional trends, events or uncertainties that will have or
are reasonably likely to have a material effect on liquidity, capital resources
or operations except as discussed herein. The Company is not aware of any
current recommendations by regulatory authorities which would have such effect
if implemented.

SOURCES AND USES OF FUNDS

           The Company functions as a financial intermediary, and as such, its
financial condition should be examined in terms of trends in its sources and
uses of funds. The Company uses its funds primarily to support its lending
activities. Year to date in 1997, total loans have increased $1.6 million to
$57.6 million and represent 73% of earning assets. Commercial loans grew $1.8
million (a 5% increase), residential mortgages decreased $.7 million (5%) and
other loans increased $.5 million (6%) when compared to December 31, 1996
balances.

           Securities, a major use of funds, increased $.6 million during the
first quarter of 1997. Security purchases of $3.7 million were funded primarily
by sales and maturities. The security portfolio of $18.7 million represents 24%
of earning assets at March 31, 1997. The balance of mortgage loans originated
and held for sale decreased $1.1 million from December 31, 1996. These loans are
normally held less than 30 days before they are sold to private investors and
FNMA. Loans originated for sale were $5.4 million during the first three months
of 1997.

           As the primary source of funds, deposits have decreased $.7 million
when compared to the December 31, 1996 balances. Demand deposits have grown $.2
million (3%) year to date when compared to December 31, 1996. Interest bearing
deposits have decreased $.9 million (2%) year to date. The cost to acquire
retail deposits compared to market indices, such as US Treasury rates, has
increased over the past 12 months due to competitive pressures; consequently,
the Company has chosen to increase its use of wholesale funds in 1997 to control
the cost to fund earning assets. Wholesale funds represent 9.6% of the total
funding at March 31, 1997 compared to 6.8% at December 31, 1996. The Company's
cost to fund earning assets averaged 4.11% during the first three months of 1997
which is comparable to 4.01% for the same period for 1996.


                                  Page 9 of 14


<PAGE>   10


LIQUIDITY

           The primary functions of asset/liability management are to assure
adequate liquidity and maintain an appropriate balance between
interest-sensitive earning assets and interest-bearing liabilities. Liquidity
management involves the ability to meet the cash flow requirements of customers
who may be either depositors wanting to withdraw funds or borrowers needing
assurance that sufficient funds will be available to meet their credit needs.
Interest rate sensitivity management seeks to avoid fluctuating net interest
margins and to enhance consistent growth of net interest income through periods
of changing interest rates.

           Securities available for sale are a primary source of liquidity.
Projected cash flow from the securities portfolio between April 1, 1997 and
March 31, 1998 is $4.7 million. Other types of assets, such as mortgages held
for sale and maturing loans are sources of liquidity. Liquidity is further
enhanced because of the significant aggregate amount of core deposits.
Additionally, the Company has available lines of credit aggregating $11.2
million which enhance liquidity. Advances on these lines total $2.0 million at
March 31, 1997.

CAPITAL RESOURCES

           The Company maintains a strong capital base to take advantage of
business opportunities while ensuring that it has resources to absorb the risks
inherent in the business. The Federal Reserve Board has set standards for
measuring capital adequacy for U.S. banking organizations. In general, the
standards require banks and bank holding companies to maintain capital based on
"risk-adjusted" assets so that categories of assets with potentially higher
credit risk will require more capital backing than assets with lower risk. In
addition, banks and bank holding companies are required to maintain capital to
support, on a risk-adjusted basis, certain off-balance-sheet activities such as
loan commitments and interest rate swaps.

           The Federal Reserve Board standards classify capital into two tiers,
referred to as Tier 1 and Tier 2. Tier 1 capital consists of common
shareholders' equity, noncumulative and cumulative (bank holding companies only)
perpetual preferred stock, and minority interests less goodwill. Tier 2 capital
consists of allowance for loan and lease losses, perpetual preferred stock (not
included in Tier 1), hybrid capital instruments, term subordinated debt, and
intermediate-term preferred stock. Banks are required to meet a minimum ratio of
8% of qualifying total capital to risk-adjusted total assets with at least 4%
Tier 1 capital. Capital that qualifies as Tier 2 capital is limited to 100% of
Tier 1 capital.

                                  Page 10 of 14


<PAGE>   11



           Federal Reserve Board regulations have also established a minimum
leverage capital ratio of 3%. The leverage capital ratio is defined as Tier 1
capital to total average assets. The FDIC defines a well capitalized bank as
exceeding Tier 1 capital of 6%, total risk-based capital of 10% and a leverage
ratio of 5%. The table below illustrates the Company's subsidiary bank's
regulatory capital ratios:

<TABLE>
<CAPTION>
                                                                  March 31, 1997
(Thousands of dollars)                                            --------------

<S>                                                                   <C>      
Tier 1 Capital                                                        $   5,794
Tier 2 Capital                                                            1,874
                                                                      ---------
           Total Qualifying Capital                                   $   7,668
                                                                      =========
Risk Adjusted Total Assets
 (including off-balance sheet exposures)                              $  59,779
                                                                      =========

Tier 1 Risk-Based Capital Ratio                                             10%
Total Risk-Based Capital Ratio                                              13%
Leverage Ratio                                                               7%
</TABLE>


           The ability of the Company to pay dividends is dependent upon the
Bank paying dividends to the Company. These payments by the Bank are restricted
by the regulatory agencies. For the three months ended March 31, 1997, the Bank
has not paid dividends to the Company. The Bank has accumulated earnings of $1.8
million available for distribution to the Company. To date the Company has
decided to reinvest earnings rather than pay a dividend to shareholders.

REGULATORY MATTERS

           Examination procedures require examiners to make judgements about a
borrower's ability to repay loans, sufficiency of collateral values and the
effects of changing economic circumstances. These judgements are similar to
those employed by the Company in determining the adequacy of the allowance for
loan losses and in classifying loans. Judgements made by regulatory examiners
may differ from those made by management.

           Management and the boards of directors of the Company and Bank
evaluate existing practices and procedures on an ongoing basis. In addition,
regulators often make recommendations during the course of their examinations
that relate to the operations of the Company and its subsidiary. As a matter of
practice, management and the boards of directors of the Company and its
subsidiaries consider such recommendations promptly.

           During September 1996, the Federal Reserve Bank of Cleveland
conducted an examination of the Company and its subsidiaries, which included an
evaluation of the Bank's asset quality. The Bank's level and classification of
identified potential problem loans was not revised as a result of this
regulatory examination.

                                  Page 11 of 14


<PAGE>   12



RESULTS OF OPERATIONS

           The Company's net interest margin year to date 1997 is 4.24% compared
to 4.14% for the same period in 1996. The net interest margin is calculated by
dividing net interest income before the provision for loan losses by average
earning assets. As with net interest income, the net interest margin is affected
by the level and mix of earning assets, the proportion of earning assets funded
by noninterest bearing liabilities and the interest rate spread.

           Year to date net interest income before the provision for loan losses
has increased $86,000 over the same period in the prior year. Net interest
income increased $82,000 due to volume changes and increased $4,000 due to rate
changes. For the first three months of 1997 in comparison with the same period
in 1996, average earning assets increased $6.8 million. Average total loans grew
$7.4 million while average total securities declined $.4 million. Growth in
earning assets was funded primarily by an increase of $6.5 million in average
deposits. The yield on earning assets was 8.54% and 8.34% during the first three
months of 1997 and 1996. Deposits and borrowings had an average rate of 4.41% in
the first three months of 1997 compared to 4.27% during the same period in 1996.

           Noninterest income decreased $124,000 year to date 1997 in comparison
to 1996. The decrease resulted primarily from the decline in mortgage loan
originations and gains from the sale of SBA guaranteed loans. During the first
three months of 1997, originations totaled $5.4 million compared to $11.6
million in 1996.

           1997 year to date total noninterest expenses have increased $306,000
in comparison to the same period in 1996. The increase is primarily the result
of merger related expenses, which totaled $280,794. For further explanation, see
the footnote D "Proposed Affiliation".

                                  Page 12 of 14


<PAGE>   13



PART II.  OTHER INFORMATION

           ITEM 1.        LEGAL PROCEEDINGS - Not applicable.

           ITEM 2.        CHANGES IN SECURITIES - Not applicable.

           ITEM 3.        DEFAULTS UPON SENIOR SECURITIES - Not applicable.

           ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS -
                          Not applicable

           ITEM 5.        OTHER INFORMATION - Not applicable.

           ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

                          A)  Exhibit #27.  Financial Data Schedule.

                          B)  On January 8, 1997 Form 8-K was filed by Summit
                              Bancorp. Filing stated: On December 31, 1996,
                              Summit Bancorp issued a press release announcing
                              the signing of a definitive agreement for the
                              acquisition of the stock of Summit Bancorp by
                              FirstFederal Financial Services Corp. The
                              acquisition is expected to close in July 1997 and
                              is subject to the approval of Summit Bancorp's
                              shareholders and regulatory approval.



                                  Page 13 of 14


<PAGE>   14


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                 SUMMIT BANCORP

                                            /s/ DAVID C. VERNON
Dated: May 13, 1997              By:        __________________________________
                                            David C. Vernon
                                            Chairman of the Board, President and
                                            Chief Executive Officer


                                            /S/ CHARLES P. MURPHY
                                 By:        __________________________________
                                            Charles P. Murphy
                                            Comptroller

                                  Page 14 of 14