<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to __________________
Commission File Number 33-16366
SUMMIT BANK CORPORATION
(Exact name of Registrant as specified in its charter)
GEORGIA 58-1722476
(State or other jurisdiction of (I.R.S. Employer
incorporation 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
------- ------
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of capital stock, as of the latest practicable date.
Class Outstanding at November 12, 1996
----- -------------------------------
Common Stock. $.01 par value 1,407,688
The Exhibit Index Appears on Page 13
PAGE 1 OF 15
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
(In thousands) 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and due from banks $ 7,559 $ 7,220
Federal funds sold 5,500 3,525
Interest-bearing deposits in other banks 19 60
Investment securities available for sale, at fair value 36,753 32,110
Other investments 682 592
Loans, net of unearned income 81,197 76,695
Loans held for sale 3,062 1,482
Less: allowance for loan losses (1,936) (1,686)
- -------------------------------------------------------------------------------------------------------------------
Net loans 82,323 76,491
- -------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 4,447 2,932
Customers' acceptance liability 1,115 1,907
Other real estate -- --
Deferred income tax 702 205
Other assets 2,116 5,034
- -------------------------------------------------------------------------------------------------------------------
Total Assets $ 141,216 $ 130,076
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILTIES:
Deposits:
Noninterest-bearing demand $ 25,983 $ 24,080
Interest Bearing:
Demand 30,319 29,193
Savings 7,066 7,734
Time, $100,000 and over 23,899 22,766
Other time 33,350 26,043
- -------------------------------------------------------------------------------------------------------------------
Total deposits 120,617 109,816
- -------------------------------------------------------------------------------------------------------------------
Obligation under capital lease 127 152
Other borrowed funds 1,511 --
Acceptances outstanding 1,115 1,907
Other liabilities 1,728 2,788
- -------------------------------------------------------------------------------------------------------------------
Total liabilities $ 125,098 $ 114,663
- -------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 14 14
Additional paid-in capital 12,123 12,123
Retained earnings 4,173 2,939
Net unrealized holding (losses)/gains on investment securities
available for sale, net of income taxes (192) 337
- -------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 16,118 15,413
- -------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 141,216 $ 130,076
===================================================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements
PAGE 2 OF 15
<PAGE> 3
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Three months Nine months
ended September 30, ended September 30,
------------------- -------------------
(Dollars in thousands, except share and per share data) 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income
Loans, including fees $ 2,152 $ 1,900 $ 6,392 $ 5,681
Interest-bearing deposits in other banks 1 1 3 3
Federal funds sold 70 74 160 269
Investment securities-taxable 188 309 480 740
Mortgage-backed securities 454 319 1,388 74
- -------------------------------------------------------------------------------------------------------------------
Total interest income 2,865 2,603 8,423 7,438
- -------------------------------------------------------------------------------------------------------------------
Interest expense
Time deposits, $100,000 and over 310 215 1,003 835
Other deposits 824 861 2,309 2,132
Short-term borrowings and obligation
under capital lease 22 5 50 14
- -------------------------------------------------------------------------------------------------------------------
Total interest expense 1,156 1,081 3,362 2,981
- -------------------------------------------------------------------------------------------------------------------
Net interest income 1,709 1,522 5,061 4,457
Provision for loan losses 99 55 386 382
- -------------------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 1,610 1,467 4,675 4,075
- -------------------------------------------------------------------------------------------------------------------
Non-interest income
Fees for international banking services 248 270 806 832
SBA loan servicing fees 122 112 356 325
Service charge income 59 53 154 165
Overdraft and NSF charges 83 98 255 264
Gains on sales of loans 89 71 440 246
Net gains (losses) on sales of investment securities (11) -- 105 (21)
Other 201 91 363 231
- -------------------------------------------------------------------------------------------------------------------
Total non-interest income 791 695 2,479 2,042
- -------------------------------------------------------------------------------------------------------------------
Non-interest expenses
Salaries and employee benefits 838 736 2,503 2,129
Equipment 127 99 348 294
Net occupancy 102 111 301 309
Other operating expenses 546 471 1,501 1,481
- -------------------------------------------------------------------------------------------------------------------
Total non-interest expenses 1,613 1,417 4,653 4,213
- -------------------------------------------------------------------------------------------------------------------
Income before income taxes 788 745 2,501 1,904
- -------------------------------------------------------------------------------------------------------------------
Income tax expense 297 275 943 697
- -------------------------------------------------------------------------------------------------------------------
Net income $ 491 $ 470 $ 1,558 $ 1,207
- -------------------------------------------------------------------------------------------------------------------
Net income per common share and
common share equivalents $ .31 $ .30 $ .97 $ .78
- -------------------------------------------------------------------------------------------------------------------
Weighted-average common shares outstanding and
common share equivalents 1,630,160 1,630,610 1,630,610 1,630,610
- -------------------------------------------------------------------------------------------------------------------
Dividends declared per common share $ .08 $ .07 $ .23 $ .21
===================================================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements
PAGE 3 OF 15
<PAGE> 4
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months
ended September 30,
-------------------
(in thousands) 1996 1995
- -------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities:
<S> <C> <C>
Net Income $ 1,558 $ 1,207
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of leasehold improvements 196 158
Deferred tax benefits (177) (299)
Net amortization of premiums/discounts on investment securities 42 57
Amortization of negative goodwill (82) (82)
Provision for loan losses 386 382
Gains on sales of loans (440) (246)
Proceeds from sales of loans 3,772 4,145
Net (gains)/losses on sales of investment securities (105) 21
Changes in other assets and liabilities:
Decrease (increase) in other assets 2,918 (400)
Decrease (increase)in other liabilities (978) 660
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 7,090 5,603
- -------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Proceeds from maturities of investment securities available for sale 1,850 1,259
Principal collections on investment securities available for sale 3,762 --
Proceeds from sales of investment securities available for sale 6,745 972
Purchases of investment securities available for sale (17,876) (11,037)
Purchases of investment securities held to maturity -- (19,401)
Proceeds from maturities and principal collections on investment
securities held to maturity -- 8,830
Loans made to customers, net of principal collected on loans (9,550) (3,176)
Purchases of premises and equipment (1,711) (551)
- -------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (16,780) (23,104)
- -------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net increase in demand and savings deposits 2,361 12,404
Net increase in time deposits 8,440 5,649
Principal payments for obligation under capital lease (25) (22)
Dividends paid (324) (296)
Net increase in borrowed funds 1,511 16
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 11,963 17,751
- -------------------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 2,273 250
Cash and cash equivalents at beginning of period 10,805 9,872
- -------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 13,078 $ 10,122
===================================================================================================================
Supplemental disclosures of cash paid during the period:
Interest $ 4,214 $ 2,745
Income taxes $ 1,001 $ 1,000
===================================================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements
PAGE 4 OF 15
<PAGE> 5
SUMMIT BANK CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The consolidated financial statements included herein have been
prepared by Summit Bank Corporation and Subsidiaries (the "Company"),
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 generally accepted accounting principles have been
omitted, although the company believes that the disclosures are
adequate to make the information presented not misleading. In the
opinion of management, the information furnished 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 as of December 31, 1995, included in the company's
Annual Report of Form 10-K for the fiscal year ended December 31,
1995.
The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiaries, The Summit National Bank
(the "Bank") and The Summit Merchant Banking corporation. All
intercompany accounts and transactions have been eliminated in
consolidation.
2. ACCOUNTING POLICIES
Reference is made to the accounting policies of the Company 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,
1995.
3. RECLASSIFICATIONS
Certain 1995 amounts have been reclassified for comparative purposes
in order to conform the prior period to the 1996 presentation.
PAGE 5 OF 15
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
For the three-month and nine-month periods ended September 30, 1996
and 1995
Performance Overview
Summit Bank Corporation and Subsidiaries (the "Company") reported net income of
$491,000 for the third quarter of 1996, representing a 4.5% increase over
earnings for the same period last year. The earnings improvement is attributed
to higher net interest income resulting primarily from a higher volume of
earning assets. Net earnings per share for third quarter 1996 were $.31 as
compared to $.30 for third quarter 1995. The Company's nine-month earnings for
1996 were $1,558,000 compared to $1,207,000 last year, an increase of 29%. The
annualized return on average stockholders' equity for 1996 was 13.2% versus
11.7% for the 1995 nine-month period, while the return on average assets was
1.51% compared to 1.32% in 1995. Book value per share increased to $11.45 at
September 30, 1996, from $10.95 at December 31, 1995.
Total assets at September 30, 1996 were $141 million, an increase of 10% during
the last twelve months and 9% since year ended 1995. Deposits have grown $12
million during the last twelve months, or 11%, and $10.8 million, or 10%, since
December 31, 1995. Net loans increased $5.8 million, or 8%, to $82.3 million at
September 30, 1996, since December 31, 1995. During the last twelve months net
loans grew 15%, or $10.7 million, from $71.6 million at September 30, 1995.
Investment in premises and equipment increased to $4.4 million at September 30,
1996 as compared to $2.9 million at year end 1995. This increase represents two
additional branch sites acquired by the Bank in 1996, as well as, applicable
furniture, fixtures and equipment. The second branch was purchased in third
quarter, 1996 and is scheduled to open in November in the Gwinnett county
market. This will be the Bank's fifth banking office now placing the Company in
the North metropolitan Atlanta, Georgia markets of DeKalb, Cobb and Gwinnett
counties. Other assets declined to $2.1 million at September 30, 1996, from $5
million at year-end 1995, as a result of the completion of Small Business
Administration (SBA) loan sales in early 1996.
Net interest income increased 12% in third quarter 1996 to $1.7 million as
compared to the same period last year due, primarily, to a higher level of
earning assets. For the nine month comparable periods, 1996 net interest income
increased 14% to $5.1 million from $4.5 million. The Company's net interest
margin through September 30, 1996 declined to 5.5% from 5.7% for the comparable
period in 1995 due to a change in earning assets mix.
Provision for loan losses increased from $55,000 to $99,000 for the respective
second quarters of 1995 and 1996. Gross charged off loans for the nine-months
ended September 30, 1996 were $271,000 offset by recoveries of $135,000,
resulting in an annualized net charge-off rate of .22% of total loans. This
compares favorably to net losses of $183,000 for the comparable period last year
which resulted in annualized net charge-offs of .34%. Non-interest income
increased 14% to $791,000 for third quarter 1996 from $695,000 last year. Net
gains from sales of loans, including recognition of excess servicing, increased
to $89,000 during the quarter, up slightly from $71,000 for third quarter last
year. For the nine-month comparable periods, non-interest income increased 21%,
to $2.5 million in 1996 from $2.0 million in 1995. Net gains from loan sales
accounted for $194,000 of this increase while net gains from investment
securities accounted for an additional $126,000.
Non-interest expenses increased 14% in the third quarter of 1996 as compared to
the same period last year. This increase was mostly attributed to higher
personnel costs resulting from recent expansion. Total personnel costs increased
$102,000 in 1996 for the comparable three month periods and $374,000 for the
comparable nine-month periods. Additional staff have been hired primarily for
branch expansion since the bank opened its fourth office in May, 1996 and will
open a fifth office this year, as well. Equipment expenses increased $28,000, or
28%, to $127,000 in third quarter 1996 as compared to the same period last year.
The largest increases in equipment are
PAGE 6 OF 15
<PAGE> 7
due to higher software maintenance and depreciation expenses relative to a
computer conversion in second quarter of 1995. Occupancy expenses declined
slightly from $111,000 to $102,000 for respective third quarters of 1995 and
1996. For the nine-month periods equipment expenses increased $54,000, or 18%,
while occupancy costs decreased $8,000. Other operatiing expenses increased 16%
to $546,000 for the three-month period ended September 30, 1996 as compared to
the same quarter last year. For the nine month periods, other operating expenses
increased only $20,000, in 1996 to $1,501,000. Savings resulting from suspension
of Federal Deposit Insurance Corporation ("FDIC") insurance premiums accounted
for a $96,000 reduction in other operating expenses while data/item processing
expenses increased $85,000. Marketing expenses also increased $78,000 as
compared to the nine-month period last year. This increase was the result of a
heightened advertising campaign and costs associated with branch expansion. The
Company's efficiency ratio for the nine-month period of 1996 improved to 62% as
compared to 65% for the same period last year.
Asset Quality
Non-performing assets increased to $785,000 at September 30, 1996 compared to
$111,000 at year end 1995. Non-performing assets represented .93% of total loans
as of September 30, 1996 compared to .14% at December 31, 1995. Although this is
a sharp increase in the percentage of non-performing loans, the total represents
only one credit. Management believes this credit is adequately secured and does
not expect a material loss in excess of the specific reserve of $105,000
established with respect to the credit, although no assurance can be given that
the assumptions or circumstances underlying management's assessment will not
change. The Company had no loans 90 days or more past due and still accruing at
September 30, 1996.
NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
(Dollars in thousands) 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Loans on nonaccrual $ 785 $ 111
Other real estate -- --
Restructured loans -- --
- -------------------------------------------------------------------------------------------------------------------
Total non-performing assets $ 785 $ 111
- -------------------------------------------------------------------------------------------------------------------
Loans 90 days past due and still accruing interest $ -- $ --
Total non-performing assets as a
percentage of total loans and ORE .93% .14%
Loans ninety days past due and still accruing
interest as a percentage of total loans --% --%
</TABLE>
PAGE 7 OF 15
<PAGE> 8
The allowance for loan losses increased to $1,936,000 at September 30, 1996 from
$1,686,000 at year end 1995, an increase of 15%. A significant decline in loan
losses was realized this year as gross charge-offs of $271,000 offset by
recoveries of $135,000, resulted in a net annualized charge-off rate of .22% of
average total loans compared to .43% for the entire year of 1995. The allowance
for loan losses represented 2.30% of total loans outstanding at September 30,
1996.
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES AT SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
(In thousands)
- --------------------------------------------------------------------------------
<S> <C>
Allowance for loan losses at December 31, 1995 $1,686
- --------------------------------------------------------------------------------
Charge-offs:
Commercial 230
Real estate --
Installment 41
- --------------------------------------------------------------------------------
Total 271
- --------------------------------------------------------------------------------
Recoveries:
Commercial 81
Real estate --
Installment 54
- --------------------------------------------------------------------------------
Total 135
- --------------------------------------------------------------------------------
Net charge-offs 136
- --------------------------------------------------------------------------------
Provision charged to income 386
- --------------------------------------------------------------------------------
Allowance for loan losses at September 30, 1996 $1,936
================================================================================
</TABLE>
The loan portfolio is periodically reviewed to evaluate the outstanding loans
and to measure both the performance of the portfolio and the adequacy of the
allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses and internal credit ratings. Based on this analysis
management considers the allowance for loan losses at September 30, 1996 to be
adequate to cover possible loan losses in the portfolio as of that date.
However, because of the inherent uncertainty of assumptions made during the
evaluation process, there can be no assurance 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.
PAGE 8 OF 15
<PAGE> 9
Liquidity and Capital Adequacy
Liquidity has continued to improve during 1996 as a result of the growth in
deposits. At September 30, 1996, the Company's net loan to deposit ratio was
68.2%, down from 69.7% at year end. The Bank's liquid assets as a percent of
total deposits was 39% at September 30, 1996. Management also analyzes the level
of off-balance sheet assets 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 no potential
shortfall exists. Additionally, the Bank has $15 million of borrowing capacity
under a secured line of credit available from the Federal Home Loan Bank of
Atlanta. Based on this analysis, management believes that the Company has
adequate liquidity to meet short-term operational requirements.
Stockholders' equity of the Company increased $705,000 to $16.1 million at
September 30, 1996, an increase of 4.6% from December 31, 1995, and 12.4% from
September 30, 1995. The capital level of the Bank exceeds all prescribed
regulatory capital guidelines. Regulations require that most highly rated
national 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 declined to 9.3% at September 30, 1996 compared to 11.9% at year end 1995
as a result of asset growth. 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, 1996, the Bank had a risk-weighted total capital
ratio of 15.9%, unchanged from year end 1995, and a Tier 1 risk-weighted capital
ratio of 14.7% compared to 13.6% at year end 1995.
PAGE 9 OF 15
<PAGE> 10
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
PAGE 10 OF 15
<PAGE> 11
Item 6. Exhibits and Reports on Form 8-K
a). Exhibits
Exhibit 11.1
Statement Regarding Computation of Per Share Earnings
Exhibit 27.1
Financial Data Schedule (for SEC use only).
b) Reports on Form 8-K - none
PAGE 11 OF 15
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned,
thereunto duly authorized.
SUMMIT BANK CORPORATION
BY: /s/ David Yu
-----------------------------------------
David Yu
President and Chief Executive Officer
BY: /s/ Gary K. McClung
-----------------------------------------
Gary K. McClung
Executive Vice President
(Principal Financial Officer
and Principal Accounting Officer)
DATE: November 12, 1996
-----------------------------------------
PAGE 12 OF 15
<PAGE> 13
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Page
- ------- ----
<S> <C> <C>
11.1 Statement Regarding Computation of Per Share Earnings 14
27.1 Financial Data Schedule (for SEC use only). 15
</TABLE>
PAGE 13 OF 15
<PAGE> 1
EXHIBIT 11.1
STATEMENT REGARDING COMPUTATION
OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
State Regarding Computation of Three months Nine months
Per Share Earnings ended September 30, ended September 30,
--------------------------- ---------------------------
1996 1995
<S> <C> <C> <C> <C>
Earnings per share:
Weighted average shares
outstanding 1,407,688 1,407,688 1,407,688 1,407,688
Net income per share $ .35 $ .33 $ 1.11 $ .86
Primary earnings per share:
Weighted average shares 1,407,688 1,407,688 1,407,688 1,407,688
outstanding 463,235 463,235 463,235 463,235
Dilutive warrants 41,225 41,225 41,225 41,225
Dilutive stock options
Repurchased under treasury stock
method(1) (281,538) (281,538) (281,538) (281,538)
---------- ---------- ---------- ----------
Weighted average common shares
outstanding and common share
equivalents 1,630,610 1,630,610 1,630,610 1,630,610
---------- ---------- ---------- ----------
Net income $ 491,000 $ 470,000 $1,558,000 $1,207,000
Imputed interest income under the
treasury stock method (net of tax) 7,000 22,000 31,000 68,000
---------- ---------- ---------- ----------
Imputed net income 498,000 492,000 1,589,000 1,275,000
========== ========== ========== ==========
Net income per share $ .31 $ .30 $ .97 $ .78
========== ========== ========== ==========
</TABLE>
(1) Dilutive warrants and options calculated up to 20% of total shares
outstanding in the applicable periods.
PAGE 14 OF 15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM
10-Q FINANCIAL STATEMENTS OF SUMMIT BANK CORPORATION FOR THE PERIOD ENDED
SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 7,559
<INT-BEARING-DEPOSITS> 19
<FED-FUNDS-SOLD> 5,500
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 36,753
<INVESTMENTS-CARRYING> 682
<INVESTMENTS-MARKET> 682
<LOANS> 84,259
<ALLOWANCE> 1,936
<TOTAL-ASSETS> 141,216
<DEPOSITS> 120,617
<SHORT-TERM> 1,511
<LIABILITIES-OTHER> 2,970
<LONG-TERM> 0
0
0
<COMMON> 14
<OTHER-SE> 16,104
<TOTAL-LIABILITIES-AND-EQUITY> 141,216
<INTEREST-LOAN> 6,392
<INTEREST-INVEST> 1,868
<INTEREST-OTHER> 163
<INTEREST-TOTAL> 8,423
<INTEREST-DEPOSIT> 3,312
<INTEREST-EXPENSE> 3,362
<INTEREST-INCOME-NET> 5,061
<LOAN-LOSSES> 386
<SECURITIES-GAINS> 105
<EXPENSE-OTHER> 4,653
<INCOME-PRETAX> 2,501
<INCOME-PRE-EXTRAORDINARY> 2,501
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,558
<EPS-PRIMARY> .97
<EPS-DILUTED> .97
<YIELD-ACTUAL> 5.54
<LOANS-NON> 785
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,686
<CHARGE-OFFS> 271
<RECOVERIES> 135
<ALLOWANCE-CLOSE> 1,936
<ALLOWANCE-DOMESTIC> 1,936
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
