<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 205492
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 000-21267
SUMMIT BANK CORPORATION
(Exact name of Registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
GEORGIA 58-1722476
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
</TABLE>
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 MAY 1, 2000
_____ __________________________
Common Stock. $.0l par value 1,655,263
The Exhibit Index Appears on Page 12
PAGE 1 OF 14
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
(In thousands) 2000 1999
--------- ------------
<S> <C> <C>
ASSETS:
Cash and due from banks $ 13,088 $ 16,721
Federal funds sold 11,970 14,440
Interest-bearing deposits in other banks 561 445
Investment securities available for sale,
at fair value 68,234 69,269
Other investments 1,171 1,171
Loans, net of unearned income 168,630 164,144
Loans held for sale 3,274 3,575
Less: allowance for loan losses (2,958) (2,525)
-------- --------
Net loans 168,946 165,194
-------- --------
Premises and equipment, net 3,504 4,351
Customers' acceptance liability 2,422 2,030
Goodwill, net 1,686 1,708
Other assets 6,014 3,377
-------- --------
Total assets $277,596 $281,268
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $ 57,742 $ 53,958
Interest-bearing:
Demand 42,777 44,310
Savings 8,993 8,648
Time, $100,000 and over 53,141 53,498
Other time 64,704 72,527
-------- --------
Total deposits 227,357 232,941
-------- --------
Federal Home Loan Bank advance 10,000 10,000
Other borrowed funds 12,179 11,371
Acceptances outstanding 2,422 2,030
Other liabilities 2,625 2,111
-------- --------
Total liabilities 254,583 258,453
-------- --------
Minority interest in non-bank subsidiary 28 29
STOCKHOLDERS' EQUITY:
Common stock 18 18
Additional paid-in capital 13,499 13,498
Retained earnings 11,143 10,565
Accumulated other comprehensive loss (1,675) (1,295)
-------- --------
Total stockholders' equity 22,985 22,786
-------- --------
Total liabilities and stockholders' equity $277,596 $281,268
======== ========
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
PAGE 2 OF 14
<PAGE> 3
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
-----------------------
Dollars in thousands, except share and per share amounts) 2000 1999
---------- ----------
<S> <C> <C>
Interest income
Loans, including fees $ 4,322 $ 3,207
Interest-bearing deposits in other banks 2 3
Federal funds sold 142 135
Investment securities 372 514
Mortgage-backed securities 701 701
---------- ----------
Total interest income 5,575 4,560
---------- ----------
Interest expense
Time deposits, $100,000 and over 737 519
Other deposits 1,130 1,266
Federal Home Loan Bank advance 149 126
Short-term borrowings and obligation under capital lease 118 50
---------- ----------
Total interest expense 2,133 1,958
---------- ----------
Net interest income 3,442 2,602
Provision for loan losses 425 99
---------- ----------
Net interest income after provision for loan losses 3,017 2,503
---------- ----------
Non-interest income
Fees for international banking services 377 303
SBA loan servicing fees 58 67
Service charge income 147 115
Overdraft and NSF charges 171 140
Gains on sales of loans -- 79
Net gains on sales of investment securities (15) 1
Other 308 137
---------- ----------
Total non-interest income 1,046 842
---------- ----------
Non-interest expense
Salaries and employee benefits 1,286 1,210
Equipment 162 166
Net occupancy 209 189
Other operating expenses 1,061 817
Minority interest in non-bank subsidiary 1 --
---------- ----------
Total non-interest expenses 2,718 2,382
---------- ----------
Income before income tax 1,345 963
---------- ----------
Income tax expense 468 341
---------- ----------
Net income $ 877 $ 622
---------- ----------
Basic net income per common share $ .53 $ .35
Diluted net income per common share and common
share equivalents $ .53 $ .35
---------- ----------
Weighted-average common shares outstanding - basic 1,655,263 1,771,127
Weighted-average common shares outstanding - diluted 1,655,263 1,772,071
---------- ----------
Dividends declared per common share $ .18 $ .10
========== ==========
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
PAGE 3 OF 14
<PAGE> 4
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
----------------------
(In thousands) 2000 1999
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 877 $ 622
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of premises and equipment 123 124
Net amortization of premiums/discounts on investment securities 73 175
Amortization of goodwill 22 21
Provision for loan losses 425 99
Proceeds from sales of loans -- 1,419
Gains on sales of loans -- (79)
Net gains on sales of investment securities 15 (1)
Changes in other assets and liabilities:
Net decrease (increase) in loans held for sale 301 (41)
Decrease in other assets 152 319
Increase in other liabilities 515 404
------- -------
Net cash provided by operating activities 2,503 3,062
-------- -------
Cash flows from investing activities:
Proceeds from maturities of investment securities available for sale -- 22,773
Principal collections on investment securities available for sale 1,918 8,111
Proceeds from sales of investment securities available for sale 2,974 495
Purchases of investment securities available for sale (4,554) (19,679)
Loans made to customers, net of principal collected on loans (4,478) (4,977)
Proceeds from sales of premises 824 --
Purchases of premises and equipment (100) (125)
------- -------
Net cash used in investing activities (3,416) (6,598)
------- -------
Cash flows from financing activities:
Net increase in demand and savings deposits 2,596 1,569
Net decrease in time deposits (8,180) (8,098)
Purchase of treasury shares -- (858)
Dividends paid (298) (178)
Net increase (decrease) in borrowed funds 808 (917)
Net (decrease) in minority interest in non-bank subsidiary (1) --
------- -------
Net cash used in financing activities (5,075) (8,483)
------- -------
Net (decrease) increase in cash and cash equivalents (5,988) 1,177
Cash and cash equivalents at beginning of period 31,607 21,440
Cash and cash equivalents at end of period $25,619 $ 22,617
======= =======
Supplemental disclosures of cash paid during the period:
Interest $ 2,033 $ 1,827
Income taxes $ 860 $ 294
Supplemental disclosures of non-cash items:
Loans transferred to other real estate $ -- $ 825
======= ========
See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>
PAGE 4 OF 14
<PAGE> 5
SUMMIT BANK CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
Summit Bank Corporation and Subsidiaries (the "Company") prepared the
consolidated financial statements included herein, without audit, pursuant
to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in
consolidated financial statements prepared in accordance with 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 in
the condensed consolidated financial statements reflects all adjustments
necessary to present fairly the Company's financial position, results of
operations and cash flows for such interim periods. Management believes
that all interim period adjustments are of a normal recurring nature. You
should read these consolidated financial statements in conjunction with the
Company's audited financial statements and the notes thereto as of December
31, 1999, included in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1999.
The consolidated financial statements include the accounts of the Company
and its wholly owned subsidiaries, The Summit National Bank (the "Bank")
and The Summit Merchant Banking Corporation (inactive), as well as an
80%-owned subsidiary, CashMart, Inc., described below. 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.
During 1999, the Company invested $120,000 into a newly created subsidiary,
CashMart, Inc. ("CashMart"), a check cashing company. In the first quarter
of 2000, the Company received regulatory approval for and began operation
of the subsidiary. The consolidated subsidiary is 80% owned by the Company.
CashMart's business plan is to provide payroll check cashing services,
unrelated to the bank subsidiary, through several locations throughout
metropolitan Atlanta. CashMart generates revenues from fees charged to
customers for cashing payroll checks. The subsidiary currently operates
from one location in metropolitan Atlanta, occupying leased space inside a
convenience store.
2. ACCOUNTING POLICIES
We refer to the Company's accounting policies described in the notes to
consolidated financial statements contained in the Company's Annual Report
on Form 10-K for the year ended December 31, 1999.
3. COMPREHENSIVE INCOME
Statement of Financial Accounting Standards No. 130, "Reporting
Comprehensive Income" ("SFAS 130") establishes standards for reporting and
displaying of comprehensive income and its components in a full set of
general-purpose financial statements. For interim period financial
statements, enterprises are required to disclose a total for comprehensive
income in those financial statements. The term "comprehensive income" is
used in SFAS 130 to describe the total of all components of comprehensive
income including net income. "Other comprehensive income" refers to
revenues, expenses, gains, and losses that are included in comprehensive
income but excluded from earnings under current accounting standards.
Currently, "other comprehensive income" for the Company consists solely of
items previously recorded as a component of stockholders' equity under SFAS
115, "Accounting for Certain Investments in Debt and Equity Securities".
The Company adopted the interim-period disclosure requirements of SFAS 130
effective March 31, 1998 and adopted the annual financial statement
reporting and disclosure requirements of SFAS 130 effective December 31,
1998.
Total comprehensive income for the three months ended March 31, 2000 was
$268,000 compared to $431,000 for the three months ended March 31, 1999.
PAGE 5 OF 14
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This quarterly report contains forward-looking statements and information
relating to our subsidiaries and us. The words "believes," "expects," "may,"
"will," "should," "projects," "contemplates," "anticipates," "forecasts,"
"intends" or similar terminology identify forward-looking statements. These
statements reflect management's beliefs and assumptions, and are based on
information currently available to management. Because these statements reflect
the current views of management concerning future events, they involve risks,
uncertainties and assumptions. 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.
PERFORMANCE OVERVIEW
The Company reported net income of $877,000 for the first quarter of 2000,
compared to $622,000 in first quarter of 1999. The 41% increase was largely
attributed to strong loan growth during the last year, which resulted in higher
net interest income in the first quarter of 2000. Net earnings per share for
first quarter 2000 were $.53 (basic and diluted) as compared to $.35 (basic and
diluted) for first quarter 1999. In addition to the increase in net interest
income, the stock repurchase plan completed in 1999 reduced the number of
outstanding shares resulting in an additional $.03 to the earnings per share.
The cost of the repurchased shares is reflected as a reduction to additional
paid-in-capital in the stockholders' equity section of the balance sheet. The
repositioning of the balance sheet last year, i.e., growth of higher yielding
assets, has resulted in a solid increase in core earnings of the Company. The
annualized return on average stockholders' equity for the 2000 three-month
period was 15.5% versus 10.2% for the 1999 three-month period, and the return on
average assets was 1.3% compared to 1.0% in 1999. Book value per share was
$13.89 at March 31, 2000 compared to $13.76 at December 31, 1999 and $13.75 at
March 31, 1999. In first quarter 2000, the Company paid a cash dividend of
$.18 per share compared to $.10 per share for the same period last year,
reflecting an increase of 80%.
Total assets at March 31, 2000 were $278 million, an increase of 9%, or
$22 million, during the last twelve months, although a slight decline of 1% from
December 31, 1999. The small first quarter decline in total assets from December
31, 1999 was due to the increased liquidity in the form of cash and federal
funds sold that were available at year-end in preparation for the century date
change. The excess funds were reduced in January 2000. The twelve-month increase
was largely due to an increase of 26% in the loan portfolio during that period.
Total loans at the end of the current quarter were $169 million. This also
represents a growth of 2%, or $4 million, in loans during the first quarter
of 2000. Investment securities available for sale totaled $68 million at
March 31, 2000 compared to $69 million at December 31, 1999 and $83 million at
March 31, 1999. The decline over the past twelve months is the result of the
Bank reinvesting these funds in higher yielding loans, thus contributing to
a higher net interest margin.
Total deposits have grown $15 million, or 7%, during the last twelve months.
However, total deposits declined in the first quarter of 2000 by $5.6 million
primarily due to maturing Certificates of Deposits ("CD's") held at year-end as
additional funding for the century date change. While most of the CD's issued in
fourth quarter 1999 at higher promotional rates have matured, many of them were
renewed at lower current rates. Despite the decline in total deposits during
first quarter 2000, demand deposits have actually grown to $58 million at
March 31, 2000 from $54 million at December 31, 1999. Demand deposits now
represent over 25% of total deposits. Since March 31, 1999, demand deposits
have increased $8 million, or 15%. The balance in accounts held under overnight
repurchase agreements has also shown a positive growth rate over the past
twelve months, increasing to $12 million at March 31, 2000 from $5 million at
the end of first quarter 1999. The increase is primarily due to the addition
of several new commercial accounts during the past year.
Net interest income significantly increased when comparing the first quarter
of 2000 to the same period in 1999. Through March 31, 2000 and 1999, net
interest income was $3.4 million and $2.6 million, respectively, for an
increase of 32%. The increase was attributed to the increased volume of loans
for the twelve months ended March 31, 2000. The Company's net interest margin
through March 31, 2000 has continued to improve with the higher yielding mix of
earning assets, moving to 5.48% at the end of the current quarter from 4.41%
through March 31, 1999. This improvement is also partially the result of the
rising rate environment during the past few quarters, as well as the attrition
of the promotional CD's issued last year at premium interest rates.
PAGE 6 OF 14
<PAGE> 7
The provision for loan losses increased to $425,000 for the quarter ended
March 31, 2000 compared to $99,000 for the quarter ended March 31, 1999 due
primarily to higher loan volume. Gross charged off loans for the quarter ended
March 31, 2000 totaled $174,000 while recoveries for the period totaled
$182,000, for an annualized net recovery rate of .02% of total loans. This rate
compares favorably to the annualized charge-off rate of .63% for the first
quarter of 1999, although a large portion of the amount charged off last year
was due to the write-down of $154,000 on foreclosed property subsequently
transferred to Other Real Estate Owned.
Non-interest income rose 24% in first quarter 2000 to $1 million compared to
$842,000 in the same period in 1999. The largest contributor to this increase
was a recovery of $183,000 related to a loan loss pre-dating the acquisition of
California Security Bank. Service charge income, including overdraft charges,
improved along with the growth in demand deposits, for a 25% increase to
$318,000 in first quarter 2000 compared to $255,000 during the same period last
year. The Bank's international department has continued to expand its trade
finance transaction volume over the past year, resulting in 24% more fee income,
or a total of $377,000 through March 31 of this year compared to $303,000 during
the first quarter of 1999. There were no sales of SBA-guaranteed loans to date
in 2000, while there was a gain recognized in first quarter 1999 of $79,000.
Although non-interest expenses increased approximately $300,000, or 14%, in the
first quarter of 2000 compared to the same period last year, efforts to control
costs have reduced the rate of increase from year to year. Last year's increase
from first quarter 1998 was 24%. This year salaries and benefits only increased
6% over first quarter last year and equipment costs were flat, comparing first
quarter 2000 to the same period in 1999. Increases in occupancy costs for the
first quarter of 2000 compared to last year through March 31 were minimal. Most
of the increase in non-interest expenses was due to higher data processing,
legal and accounting fees, as well as operating losses, which were up this year
by $41,000, $69,000, $39,000, and $45,000, respectively. A recently renewed
contract with the Bank's third party data processor includes additional savings
over last year, so these costs should stabilize throughout the rest of this
year. The majority of the legal fees during first quarter 2000 were
loan-related. The Company's efficiency ratio for the three-month period of 2000
improved significantly to 61% from 69% for the same period last year, primarily
due to the stronger net interest income this year.
CashMart had a total net operating loss of $3,800 for the first quarter of 2000,
of which $3,000 was recorded for Summit Bank Corporation's portion.
ASSET QUALITY
Non-performing assets decreased to $1,156,000 at March 31, 2000 compared to
$1,289,000 at year-end 1999 and $4,237,000 at March 31, 1999. Non-performing
assets represented .67% of total loans and other real estate owned as of
March 31, 2000 compared to .77% at December 31, 1999. Non-performing loans at
March 31, 2000 consist of one fully guaranteed SBA credit for $387,000, one
partially guaranteed SBA credit for $99,000, of which $84,000 is fully
guaranteed, and a real estate credit for $670,000, for which the Bank believes
it is well secured. Although there were no commercial loans past due 90 days or
more as to principal or interest payments and still accruing at March 31, 2000,
there was one consumer loan of less than $7,000 past due 90 days or more as to
principal or interest payments and still accruing at quarter-end.
PAGE 7 OF 14
<PAGE> 8
NON-PERFORMING ASSETS
<TABLE>
<S> <C> <C>
March 31, December 31,
(Dollars in thousands) 2000 1999
--------- ------------
Loans on non-accrual
SBA guaranteed $ 471 $ 494
Non-SBA guaranteed 685 795
Other real estate -- --
Restructured loans - SBA guaranteed -- --
------ ------
Total non-performing assets $1,156 $1,289
====== ======
Loans 90 days past due and still accruing interest $ 7 --
Total non-performing assets as a
percentage of total loans and ORE .67% .77%
Loans ninety days past due and still accruing
interest as a percentage of total loans --% --%
</TABLE>
The allowance for loan losses increased to $2,958,000 at March 31, 2000 from
$2,525,000 at year-end 1999, an increase of 17%. The increase was primarily due
to the recent strong growth in our loan portfolio. Loan losses have declined
this year to date compared to first quarter 1999, with gross charge-offs of
$174,000 offset by recoveries of $182,000, resulting in a net annualized
recovery rate of .02% of average total loans. For the first quarter of 1999 the
net annualized charge-off rate was .63%. The allowance for loan losses
represented 1.72% and 1.67%, respectively, of total loans outstanding at
March 31, 2000 and December 31, 1999.
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES AT MARCH 31, 2000
<TABLE>
<C> <S>
(In thousands)
--------------
Allowance for loan losses at December 31, 1999 $2,525
------
Charge-offs:
Commercial, financial, and agricultural 170
SBA 4
Real estate --
Installment loans to individuals --
------
Total 174
Recoveries:
Commercial, Financial, and Agricultural 69
SBA 89
Real estate --
Installment loans to individuals 24
------
Total 182
------
Net charge-offs (recoveries) (8)
------
Provision for loan losses charged to income 425
------
Allowance for loan losses at March 31, 2000 $2,958
------
</TABLE>
PAGE 8 OF 14
<PAGE> 9
Management periodically analyzes our loan portfolio to evaluate the outstanding
loans and to measure both the performance of the portfolio and the adequacy of
the allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses and internal credit ratings. Based on this analysis,
management considers the allowance for loan losses at March 31, 2000 to be
adequate to cover loan losses in the portfolio as of that date. However, because
of the inherent uncertainty of the assumptions we use in our loan analyses,
management cannot assure that loan losses in future periods will not exceed the
allowance for loan losses or that additional allocations to the allowance will
not be required.
LIQUIDITY AND CAPITAL ADEQUACY
Liquidity has remained fairly stable since the end of 1999. At March 31, 2000,
the Company's average net loan to deposit ratio was 75%, up from 72% at
year-end. 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 $16 million of borrowing capacity under a secured line of credit available
from the Federal Home Loan Bank of Atlanta, of which $10 million was being
utilized at March 31, 2000. Based on this analysis, management believes that the
Company has adequate liquidity to meet short-term operational requirements.
Stockholders' equity of the Company increased $200,000 to $23 million at
March 31, 2000 from December 31, 1999. This total represented a decline of
$915,000, or 4%, from equity at March 31, 1999. Offsetting normal earnings
growth, the stockholders' equity decrease over the past twelve months was due
to the repurchase of common stock under the Company's stock repurchase plan, as
well as to a change in 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 remained fairly
stable at 7.7% at March 31, 2000 compared to 7.6% at year-end 1999. 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 March 31, 2000, the Bank had a
risk-weighted total capital ratio of 12.6% and a Tier 1 risk-weighted capital
ratio of 11.4% which compares favorably to year end 1999 ratios of 12.5% and
11.2%, respectively.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As of March 31, 2000, there were no substantial changes from the interest rate
sensitivity analysis or the market value of portfolio equity for various changes
in interest rate calculated as of December 31, 1999. 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 noted and
management's discussion and analysis of financial condition and results of
operations for the year ended December 31, 1999 included in the Company's 1999
Annual report on Form 10K.
PAGE 9 OF 14
<PAGE> 10
PART II. - OTHER INFORMATION
ITEM 1. Legal Proceedings - Not Applicable
ITEM 2. Changes in Securities and Use of Proceeds
a) Not Applicable
b) Not Applicable
c) Not Applicable
d) 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) 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 10 OF 14
<PAGE> 11
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/ Pin Pin Chau
------------------------------------
Pin Pin Chau
Chief Executive Officer
BY: /S/ Gary K. McClung
------------------------------------
Gary K. McClung
Executive Vice President
(Principal Financial Officer
and Principal Accounting Officer)
DATE: May 11, 2000
----------------------------------
PAGE 11 OF 14
<PAGE> 12
INDEX TO EXHIBITS
Exhibit Page
- ------- ----
11.1 Statement Regarding Computation of Per Share Earnings 13
27.1 Financial Data Schedule 14
PAGE 12 OF 14
<PAGE> 1
Exhibit 11.1
STATEMENT REGARDING COMPUTATION
OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
Statement Regarding Computation of Year to Date
Per Share Earnings ended March 31,
--------------------
2000 1999
---- ----
<S> <C> <C>
Basic earnings per share:
Weighted-average shares outstanding 1,655,263 1,771,127
Net income per share $ .53 $ .35
Diluted earnings per share:
Weighted average shares outstanding 1,655,263 1,771,127
Dilutive stock options -- 20,000
Assumed repurchased under treasury
stock method (1) -- (19,056)
---------- ----------
Weighted-average common shares
outstanding and common share
equivalents 1,655,263 1,772,071
---------- ----------
Net income $ 877,000 $ 622,000
========== ==========
Diluted net income per share $ .53 $ .35
========== ==========
</TABLE>
[FN]
(1) 20,000 shares of common stock equivalents were excluded from the
computation of earnings per share at March 31, 2000 because they were
antidilutive.
</FN>
PAGE 13 OF 14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
31, 2000 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 13,088
<INT-BEARING-DEPOSITS> 561
<FED-FUNDS-SOLD> 11,970
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 69,405
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 171,905
<ALLOWANCE> 2,958
<TOTAL-ASSETS> 277,597
<DEPOSITS> 227,357
<SHORT-TERM> 22,179
<LIABILITIES-OTHER> 5,075
<LONG-TERM> 0
0
0
<COMMON> 18
<OTHER-SE> 22,966
<TOTAL-LIABILITIES-AND-EQUITY> 277,597
<INTEREST-LOAN> 4,322
<INTEREST-INVEST> 1,073
<INTEREST-OTHER> 144
<INTEREST-TOTAL> 5,575
<INTEREST-DEPOSIT> 1,867
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<INTEREST-INCOME-NET> 3,442
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<SECURITIES-GAINS> (15)
<EXPENSE-OTHER> 2,718
<INCOME-PRETAX> 1,346
<INCOME-PRE-EXTRAORDINARY> 1,346
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 877
<EPS-BASIC> .53
<EPS-DILUTED> .53
<YIELD-ACTUAL> 5.48
<LOANS-NON> 1,156
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<ALLOWANCE-OPEN> 2,525
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<ALLOWANCE-CLOSE> 2,958
<ALLOWANCE-DOMESTIC> 2,958
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
