FORT WORTH, Texas, July 17 /PRNewswire-FirstCall/ -- Summit
Bancshares, Inc. (NASDAQ:SBIT), the bank holding company for Summit
Bank, N.A., today reported net income for the second quarter of
2006 of $3,523,000, or $0.28 per diluted common share, compared to
$3,191,000, or $.25 per diluted common share, for the comparable
2005 period, a 12.0% increase in per share earnings. For the six
months ended June 30, 2006, net income was $5,949,000, or $0.47 per
diluted common share, a 4.1% decrease over the same period of the
prior year. This decrease for the six months reflects the somewhat
large provision for loan losses that was recorded in the first
quarter of 2006. Philip E. Norwood, Chairman, President and Chief
Executive Officer stated, "The fundamentals of the Company remain
strong with an 18.4% increase in net interest income for the
quarter compared to the same period of the prior year. Also,
average loans and average deposits for the quarter increased 14.7%
and 12.1%, respectively, from the second quarter of 2005. These
increases contributed to a double digit increase in earnings per
share for the quarter." He further stated, "We are excited about
the pending merger with Cullen/Frost Bankers, Inc. that was
announced on July 3, 2006. We think this will provide many new
opportunities to provide banking services to our customers in
Tarrant County." Net interest income (tax equivalent) for the
second quarter of 2006 was $12.7 million compared to $10.8 million
in the second quarter of last year, an 18.4% increase. Contributing
to this increase was a 13.6% increase in average earning assets and
an increase in net interest margin of 19 basis points to 4.76%,
comparing second quarter 2006 to second quarter 2005. For the six
months ended June 30, 2006, net interest income (tax equivalent)
was $24.8 million, an increase of 18.2% over the first six months
of 2005. The increase in net interest margin continues to reflect
the increase in market interest rates and the Company's sensitivity
to changes in market interest rates. Non-interest income for the
second quarter of 2006 was $2,196,000, an increase of $161,000, or
7.9% over the reported amount for the second quarter of the prior
year. This increase reflected increases in investment service fees,
mortgage origination fees, insurance commissions and debit card
fees. For the six months ended June 30, 2006, non-interest income
was $4,069,000, an increase of 3.9% over the first six months of
2005. Non-interest expenses of $8,284,000 for the second quarter of
2006 increased $726,000, or 9.6% compared to the second quarter of
last year. Approximately half of this increase was due to increases
in salary expenses for merit raises and staff additions. Also, the
increase reflects higher occupancy expense, professional fees and
the addition in 2006 of expense for stock options. Non-interest
expense for the six months ended June 30, 2006, was $16,420,000
compared to $14,810,000 for the same period in the prior year, an
increase of 10.9%. This increase in the six months' expense also
reflects increases in salary expense and occupancy expense. The
provision for loan losses was $1,100,000 for the second quarter of
2006 compared to $225,000 for the same quarter of 2005. This
provision, along with the somewhat extraordinary provision for loan
losses recorded in the first quarter of 2006, was necessary because
of the net loan charge-offs of $4.2 million recorded in the second
quarter. Also, the dynamic loan growth experienced in the quarter
required the increased provision. The allowance for loan losses was
1.18% of total loans as of June 30, 2006. As of June 30, 2006,
non-accrual loans were $6.1 million, or .72% of total loans. The
Company's loans were $842 million at June 30, 2006, an increase of
16.8% over June 30, 2005. Deposits increased 12.5% to $905 million
at June 30, 2006. At June 30, 2006, shareholders' equity was $84.3
million or a book value of $6.68 per outstanding share. Return on
average assets and return on average shareholders' equity were
1.24% and 16.80%, respectively for the quarter ended June 30, 2006
and 1.06% and 14.39% respectively for the six months ended June 30,
2006. Summit files annual, quarterly and special reports, proxy
statements and other information with the SEC. Investors may read
and copy any of these reports, statements and other information at
the SEC's public reference room located at 450 Fifth Street, N.W.,
Washington, D.C. 20549. Investors should call the SEC at
1-800-SEC-0330 for further information on the public reference
room. The reports, statements, and other information filed by
Summit with the SEC are also available free at the SEC's web site
at http://www.sec.gov/ . You can also obtain a free copy of these
reports, statements and other information from Summit's web site at
http://www.summitbank.net/ . The Company will host a conference
call at 10:30 a.m. (CT) on Tuesday, July 18, 2006 to discuss the
Company's performance for the quarter ended June 30, 2006. To
participate, please call (800) 479-9001 and enter confirmation code
3052444. If you are unable to participate an audio playback of the
call will be available starting Tuesday, July 18, 2006 at 3:00 p.m.
(CT) through midnight, Tuesday, August 1, 2006 (CT) by calling
888-203-1112 and entering confirmation code 3052444. Certain
statements contained in this press release that are not historical
in nature, including statements regarding the Company's and/or
management's intentions, strategies, beliefs, expectations,
representations, plans, projections, or predictions of the future,
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be
covered by the safe harbor provisions for forward-looking
statements contain in such Act. We are including this statement for
purposes of invoking these safe harbor provisions. Forward-looking
statements are based on assumptions involving certain known and
unknown risks and uncertainties, many of which are beyond the
Company's control, and the other important factors that could cause
actual results, performance or achievements to differ materially
from the expectations expressed or implied by such forward-looking
statements. These risks and uncertainties are listed from time to
time in the Company's filings with the Securities and Exchange
Commission, including but not limited to, those set forth under the
heading "Risk Factors" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2005. SUMMIT BANCSHARES, INC.
(Unaudited) (Dollars in thousands, except per share data) Quarter
Ended Six Months Ended June 30, % June 30, % EARNINGS SUMMARY 2006
2005 Change 2006 2005 Change Interest income $18,912 $14,378 31.5%
$36,478 $27,751 31.4% Interest expense 6,239 3,656 70.7% 11,755
6,796 73.0% Net interest income 12,673 10,722 18.2% 24,723 20,955
18.0% Provision for loan losses 1,100 225 388.9% 3,100 450 588.9%
Service charges on deposits 1,001 990 1.1% 1,922 1,972 -2.5% Gain
on sale of investment securities --- --- 0.0% --- --- 0.0% Other
income 1,195 1,045 14.4% 2,147 1,943 10.5% Salaries and benefits
expense 4,943 4,448 11.1% 9,836 8,717 12.8% Occupancy and equipment
expense 1,418 1,231 15.2% 2,848 2,433 17.1% Other expense 1,923
1,879 2.3% 3,736 3,660 2.1% Earnings before income taxes 5,485
4,974 10.3% 9,272 9,610 -3.5% Provision for income taxes 1,962
1,783 10.0% 3,323 3,406 -2.4% Net earnings $3,523 $3,191 10.4%
$5,949 $6,204 -4.1% Basic earnings per share $0.29 $0.26 11.5%
$0.48 $0.50 -4.0% Basic weighted average shares outstanding 12,551
12,418 12,503 12,398 Diluted earnings per share $0.28 $0.25 12.0%
$0.47 $0.49 -4.1% Diluted weighted average shares outstanding
12,777 12,734 12,758 12,726 Average for Quarter Ended BALANCE SHEET
June 30, March 31, Dec. 31, Sept. 30, June 30, SUMMARY 2006 2006
2005 2005 2005 Total loans $830,097 $793,536 $753,311 $735,109
$723,535 Total investment securities 242,468 253,197 252,508
226,441 216,825 Earning assets 1,073,869 1,048,192 1,017,095
974,844 945,251 Total assets 1,139,224 1,116,659 1,082,477
1,038,628 1,007,680 Noninterest bearing deposits 258,103 251,034
259,062 242,849 239,127 Interest bearing deposits 636,102 608,619
608,863 590,390 558,905 Total deposits 894,205 859,653 867,925
833,239 798,032 Other borrowings 155,510 169,405 128,368 121,435
128,684 Shareholders' equity 84,121 82,609 80,684 79,053 76,575
Average for Six Months Ended June 30, % BALANCE SHEET SUMMARY 2006
2005 Change Total loans $811,917 $715,265 13.5% Total investment
securities 247,803 218,484 13.4% Earning assets 1,061,101 938,791
13.0% Total assets 1,128,004 1,000,457 12.7% Noninterest bearing
deposits 254,588 232,361 9.6% Interest bearing deposits 622,437
559,376 11.3% Total deposits 877,025 791,737 10.8% Other borrowings
162,419 128,430 26.5% Shareholders' equity 83,369 76,091 9.6%
Ending Balance BALANCE SHEET June 30, March 31, Dec. 31, Sept. 30,
June 30, SUMMARY 2006 2006 2005 2005 2005 Total loans $841,961
$808,606 $774,886 $754,153 $721,161 Total investment securities
235,246 247,882 256,842 236,544 214,750 Total earning assets
1,084,382 1,058,892 1,032,620 1,006,368 945,661 Allowance for loan
losses (9,958) (13,092) (11,208) (11,131) (10,798) Premises and
equipment 16,791 16,855 16,515 15,620 15,563 Total assets 1,160,731
1,121,269 1,099,735 1,074,261 1,008,475 Noninterest bearing
deposits 262,264 262,087 263,027 258,644 241,643 Interest bearing
deposits 643,036 627,810 615,749 607,384 562,846 Total deposits
905,300 889,897 878,776 866,028 804,489 Other borrowings 165,848
144,527 134,231 123,892 122,203 Total liabilities 1,076,480
1,038,928 1,018,402 994,534 930,891 Shareholders' equity 84,251
82,341 81,333 79,727 77,584 SUMMIT BANCSHARES, INC. (Unaudited)
(Dollars in thousands) June 30, March 31, Dec. 31, Sept. 30, June
30, NONPERFORMING ASSETS 2006 2006 2005 2005 2005 Nonaccrual loans
$6,058 $11,164 $3,000 $4,989 $3,372 Restructured loans --- --- ---
--- --- Other real estate & foreclosed assets --- 387 --- ---
--- Total nonperforming assets $6,058 $11,551 $3,000 $4,989 $3,372
Total nonperforming assets as a percentage of loans and foreclosed
assets 0.72% 1.43% 0.39% 0.66% 0.47% Accruing loans past due 90
days or more $--- $--- $--- $2,178 $36 Quarter Ended June 30, March
31, Dec. 31, Sept. 30, June 30, ALLOWANCE FOR LOAN LOSSES 2006 2006
2005 2005 2005 Balance at beginning of period $13,092 $11,208
$11,131 $10,798 $10,519 Loans charged off (4,311) (257) (286) (25)
(147) Loan recoveries 77 141 23 43 201 Net (charge-offs) recoveries
(4,234) (116) (263) 18 54 Provision for loan losses 1,100 2,000 340
315 225 Balance at end of period $9,958 $13,092 $11,208 $11,131
$10,798 Allowance for loan losses as a percentage of total loans
1.18% 1.62% 1.45% 1.48% 1.50% Allowance for loan losses as a
percentage of nonperforming loans 164.38% 117.27% 373.66% 223.11%
320.23% Net charge-offs (recoveries) as a percentage of average
loans 0.51% 0.01% 0.03% 0.00% -0.01% Provision for loan losses as a
percentage of average loans 0.13% 0.25% 0.05% 0.04% 0.03% Quarter
Ended June 30, March 31, Dec. 31, Sept. 30, June 30, SELECTED
RATIOS 2006 2006 2005 2005 2005 Return on average assets
(annualized) 1.24% 0.88% 1.29% 1.32% 1.27% Return on average equity
(annualized) 16.80% 11.91% 17.29% 17.34% 16.71% Average
shareholders' equity to average assets 7.38% 7.40% 7.45% 7.61%
7.60% Yield on earning assets 7.09% 6.82% 6.55% 6.32% 6.12% Cost of
interest bearing funds 3.16% 2.88% 2.53% 2.38% 2.13% Net interest
margin (tax equivalent) 4.76% 4.68% 4.71% 4.58% 4.57% Efficiency
ratio 55.46% 58.20% 58.70% 56.84% 59.07% End of period book value
per common share $6.68 $6.60 $6.54 $6.41 $6.25 End of period common
shares outstanding 12,604 12,484 12,444 12,429 12,421 SUMMIT
BANCSHARES, INC. (Unaudited) (Dollars in thousands) Three Months
Ended June 30, 2006 Average YIELD ANALYSIS Balance Interest Yield
Interest Earning Assets: Federal funds sold & interest bearing
deposits $1,304 $16 4.92% Investment securities (taxable) 228,017
2,297 4.03% Investment securities (tax-exempt) 14,451 196 5.43%
Loans 830,097 16,471 7.96% Total Interest Earning Assets 1,073,869
18,980 7.09% Noninterest Earning Assets: Cash and due from banks
30,375 Other assets 48,362 Allowance for loan losses (13,382) Total
Noninterest Earning Assets 65,355 Total Assets $1,139,224 Interest
Bearing Liabilities: Transaction and money market accounts $263,205
1,379 2.10% Savings deposits 154,334 1,014 2.64% Certificates and
other time deposits 218,563 2,075 3.81% Other borrowings 155,510
1,771 4.57% Total Interest Bearing Liabilities 791,612 6,239 3.16%
Noninterest Bearing Liabilities: Demand deposits 258,103 Other
liabilities 5,388 Shareholders' equity 84,121 Total Noninterest
Bearing Liabilities 347,612 Total Liabilities and Shareholders'
Equity $1,139,224 Net Interest Income and Margin (tax equivalent)
$12,741 4.76% SUMMIT BANCSHARES, INC. (Unaudited) (Dollars in
thousands) Three Months Ended June 30, 2005 Average YIELD ANALYSIS
Balance Interest Yield Interest Earning Assets: Federal funds sold
& interest bearing deposits $4,891 $36 2.95% Investment
securities (taxable) 208,367 1,914 3.67% Investment securities
(tax-exempt) 8,458 110 5.20% Loans 723,535 12,356 6.85% Total
Interest Earning Assets 945,251 14,416 6.12% Noninterest Earning
Assets: Cash and due from banks 30,139 Other assets 42,973
Allowance for loan losses (10,683) Total Noninterest Earning Assets
62,429 Total Assets $1,007,680 Interest Bearing Liabilities:
Transaction and money market accounts $231,313 797 1.38% Savings
deposits 162,065 704 1.74% Certificates and other time deposits
165,527 1,151 2.79% Other borrowings 128,684 1,004 3.13% Total
Interest Bearing Liabilities 687,589 3,656 2.13% Noninterest
Bearing Liabilities: Demand deposits 239,127 Other liabilities
4,389 Shareholders' equity 76,575 Total Noninterest Bearing
Liabilities 320,091 Total Liabilities and Shareholders' Equity
$1,007,680 Net Interest Income and Margin (tax equivalent) $10,760
4.57% SUMMIT BANCSHARES, INC. (Unaudited) (Dollars in thousands)
Six Months Ended June 30, 2006 Average YIELD ANALYSIS Balance
Interest Yield Interest Earning Assets: Federal funds sold &
interest bearing deposits $1,381 $32 4.67% Investment securities
(taxable) 234,585 4,695 4.00% Investment securities (tax-exempt)
13,218 356 5.39% Loans 811,917 31,519 7.83% Total Interest Earning
Assets 1,061,101 36,602 6.96% Noninterest Earning Assets: Cash and
due from banks 31,881 Other assets 47,588 Allowance for loan losses
(12,566) Total Noninterest Earning Assets 66,903 Total Assets
$1,128,004 Interest Bearing Liabilities: Transaction and money
market accounts $261,407 2,566 1.98% Savings deposits 151,430 1,834
2.44% Certificates and other time deposits 209,600 3,806 3.66%
Other borrowings 162,419 3,549 4.41% Total Interest Bearing
Liabilities 784,856 11,755 3.02% Noninterest Bearing Liabilities:
Demand deposits 254,588 Other liabilities 5,191 Shareholders'
equity 83,369 Total Noninterest Bearing Liabilities 343,148 Total
Liabilities and Shareholders' Equity $1,128,004 Net Interest Income
and Margin (tax equivalent) $24,847 4.72% SUMMIT BANCSHARES, INC.
(Unaudited) (Dollars in thousands) Six Months Ended June 30, 2005
Average YIELD ANALYSIS Balance Interest Yield Interest Earning
Assets: Federal funds sold & interest bearing deposits $5,042
$67 2.68% Investment securities (taxable) 210,249 3,840 3.65%
Investment securities (tax-exempt) 8,235 216 5.25% Loans 715,265
23,702 6.68% Total Interest Earning Assets 938,791 27,825 5.98%
Noninterest Earning Assets: Cash and due from banks 30,099 Other
assets 42,073 Allowance for loan losses (10,506) Total Noninterest
Earning Assets 61,666 Total Assets $1,000,457 Interest Bearing
Liabilities: Transaction and money market accounts $233,490 1,514
1.31% Savings deposits 165,188 1,340 1.64% Certificates and other
time deposits 160,698 2,130 2.67% Other borrowings 128,430 1,812
2.85% Total Interest Bearing Liabilities 687,806 6,796 1.99%
Noninterest Bearing Liabilities: Demand deposits 232,361 Other
liabilities 4,199 Shareholders' equity 76,091 Total Noninterest
Bearing Liabilities 312,651 Total Liabilities and Shareholders'
Equity $1,000,457 Net Interest Income and Margin (tax equivalent)
$21,029 4.52% SUMMIT BANCSHARES, INC. (Unaudited) (Dollars in
thousands, except per share data) June 30, June 30, LOAN PORTFOLIO
2006 % 2005 % Commercial and industrial $302,998 36.0% $257,362
35.7% Real estate: Commercial 276,563 32.8% 236,142 32.7%
Residential 94,015 11.2% 86,558 12.0% Construction and development
133,982 15.9% 105,256 14.6% Consumer 34,403 4.1% 35,843 5.0% Total
loans (gross) 841,961 100.0% 721,161 100.0% Unearned discounts ---
0.0% --- 0.0% Total loans (net) $841,961 100.0% $721,161 100.0%
June 30, June 30, REGULATORY CAPITAL DATA 2006 2005 Tier 1 Capital
$90,123 $79,991 Tier 1 Ratio 10.49% 10.34% Total Capital (Tier 1 +
Tier 2) $100,081 $89,671 Total Capital Ratio 11.65% 11.60% Total
Risk-Adjusted Assets $859,044 $773,286 Tier 1 Leverage Ratio 7.99%
7.93% June 30, June 30, OTHER DATA 2006 2005 Full Time Equivalent
Employees (FTE's) 265 257 Stock Price Range (For the Quarter
Ended): High $21.73 $18.65 Low $17.93 $16.00 Close $21.21 $17.30
http://www.newscom.com/cgi-bin/prnh/20041025/DASBANKLOGO
http://photoarchive.ap.org/ DATASOURCE: Summit Bancshares, Inc.
CONTACT: Bob G. Scott, COO of Summit Bancshares, Inc.,
+1-817-877-2660 Web site: http://www.summitbank.net/
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