8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K/A

(AMENDMENT NO. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: July 18, 2005

SUMMIT BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Texas	0-11986	75-1694807
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer ID No.)

3880 Hulen Street, Fort Worth, Texas 76107

(Address of principal executive offices)

(817) 336-6817

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

                Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.            Results of Operations and Financial Conditions.

                On July 18, 2005, Summit Bancshares, Inc. (“Summit Bancshares”) issued a press release announcing its earnings for the second quarter of 2005.  A copy of Summit Bancshares’ press release is attached hereto as Exhibit 99.1.  The press release is incorporated by reference into this Item 2.02 and the foregoing description of the press release is qualified in its entirety by reference to this exhibit.

ITEM 7.01.		REGULATION F D DISCLOSURE
	See Item 2.02
ITEM 9.01.		Financial Statements and Exhibits
	(c)	Exhibits
		The following exhibits are furnished with this Form 8-K.
		99.1	Press Release dated July 18, 2005

2

SIGNATURE

Pursuant to the requirements 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 BANCSHARES, INC.
DATE: July 19, 2005	By:	/s/ Bob G. Scott
		Bob G. Scott, Chief Operating Officer

3

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Press Release dated July 18, 2005

4

EX-99.1

N E W S  from Summit Bancshares, Inc.

For Immediate Release	For Information Contact:
July 18, 2005	Bob G. Scott, COO
	(817) 877-2660

SUMMIT BANCSHARES REPORTS

SECOND QUARTER 2005 EARNINGS

Fort Worth, Texas - Summit Bancshares, Inc. (NASDAQ: SBIT), a community-oriented bank holding company in Fort Worth, reported second quarter earnings today.  Philip E. Norwood, Chairman, President and Chief Executive Officer stated, “We are pleased to report a positive increase in earnings per share of 19.0% for the second quarter over earnings per share for the same quarter of last year.  The increase in market interest rates that began a year ago has contributed significantly to this increase in earnings.”

He further stated, “Increases in the average balances of loans and deposits for the second quarter of 2005 over the second quarter of the prior year were 12.5% and 9.4%, respectively.  These positive increases also contributed to the overall earnings increase.”

Results of Operations

For the quarter ended June 30, 2005, net income was $3,191,000 compared to $2,596,000 for the same period in 2004.  Net income per diluted share was $0.25 for the three months ended June 30, 2005, compared to $0.21 for the three months ended June 30, 2004.  All prior period per share data has been restated for the two- for-one stock split that was effective December 31, 2004.  Return on average assets and return on average shareholders’ equity for the second quarter of 2005 were 1.27% and 16.71%, respectively.  The Company’s average shareholders’ equity-to-assets ratio was 7.6% for the quarter ended June 30, 2005.

Net income for the six months ended June 30, 2005 was $6,204,000 or $0.49 per diluted share, compared to $5,047,000, or $0.40 per diluted share for the same period last year, a 22.5% increase.  Return on average assets and return on average shareholders’ equity for the six months ended June 30, 2005 were 1.25% and 16.44%, respectively.

Financial Results

Net interest income (tax equivalent) for the second quarter of 2005 was $10.8 million compared to $9.1 million in the second quarter of last year, an 18.7% increase.  The increase reflects the inclusion of Arlington National Bank’s financial results for two months in the second quarter of 2004 versus three months for the second quarter of 2005.  Arlington National Bank was acquired effective May 1, 2004.  The net interest margin increased to 4.57% for the second quarter of 2005 compared to 4.18% for the second quarter of the prior year. The Company believes it is somewhat more sensitive to market interest rate changes than other community banks due to its heavier commercial lending focus.  Since late June 2004, the Federal Reserve has increased the target rate for Federal Funds by 225 basis points; and during this period, the prime lending rate has increased from 4.00% to 6.25%.  This increase in the prime lending rate is reflected in an 89 basis point increase in the Company’s yield on earning assets and a 98 basis point increase in the yield on loans between the second quarter of 2004 and the second quarter of 2005.  The Company, however, experienced an increase in the cost of interest bearing liabilities of 71 basis points during the same period.

The current rising interest rate environment also has had a positive impact on net interest income for that portion of earning assets supported by the Company’s non-interest bearing deposits.  For the second quarter of 2005 non-interest bearing deposits averaged 30.0% of total deposits.  As the Company’s interest earning assets reprice to reflect the increased interest rates in the market already experienced and if interest rates continue to rise the Company believes that its interest rate sensitive position will increase earnings.  However, earnings may be somewhat impacted if rates on deposit and other interest bearing liabilities increase significantly faster than interest rates on earning assets.

Non-interest income increased $312,000 or 18.1% for the second quarter of 2005 compared to the same quarter in the prior year with positive increases in merchant card income and investment service fees which were primarily due to the acquisition in March 2005 of the investment group Dignum Financial Services.  In addition, in the second quarter of 2005, the Company realized a gain of $169,000 on the sale of student loans.  Growth of non-interest income continues to be one of the areas of the Company’s focus.

Non-interest expenses for the second quarter increased $1,208,000 or 19.0% over the same quarter of the previous year.  This increase includes the impacts of: (a) the expenses of the Arlington locations being included in the Company’s financial results an additional month versus the same quarter last year; (b) the inclusion in the second quarter of 2005 of the expenses of Dignum Financial Services; (c) the expenses incurred in the new Hulen Motor Bank facility and the permanent office for the Euless Branch, both of which were occupied in the fourth quarter of 2004; and (d) certain staff additions in lending and support functions.

The provision for loan losses was $225,000 in the second quarter of 2005.  This was a decrease of $175,000 over the same quarter last year.  In the second quarter of 2005, the Company had net loan recoveries of $54,000.   The Allowance for Loan Losses as a percent of outstanding loans was 1.50% (or 1.53% when loans are reflected net of the guaranteed portion of SBA loans and guaranteed student loans, which management believes is a more useful number because of the loan guarantees) at June 30, 2005 as compared to 1.46% at the end of the second quarter of 2004.  For the first six months of 2005, the Company recorded net recoveries of previously charged-off loans of $161,000.

Non-performing assets totaled $3.4 million ($2.0 million net of principal guaranteed by the SBA), or 0.47% of loans and foreclosed assets at June 30, 2005, compared to $3.3 million, or 0.49% of loans and foreclosed assets, at June 30, 2004.  The Allowance for Loan Losses was 317% of non-performing loans at June 30, 2005.  The Company continues to maintain favorable measures of asset quality.

The Company’s loans were $721 million at June 30, 2005, an increase of $48 million, or 7.2%, from June 30, 2004.  Deposits increased over the same period from $776 million to $804 million, an increase of $28 million, or 3.7%.  Shareholders’ equity at June 30, 2005 was $77.6 million.

The Company will host a conference call Tuesday, July 19^th at 10:30 a.m. (CT).  To access the live call, please call (800) 289-0730 and enter code 1504863.  A toll free replay of the call will be available for two weeks beginning at 3:00 p.m. (CT), July 19, 2005 through midnight, August 2, 2005.  You may access this replay by calling (888) 203-1112 and entering code 1504863.  Additional information regarding the Company is available on the Company’s website at www.summitbank.net.

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 “Factors That May Affect Future Results” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2004.

Summit Bancshares, Inc.  •  3880 Hulen, Ste. 300  •  Fort Worth, Texas 76107

Telephone (817) 336-6817  •  FAX (817) 877-2672  •  Web Site: www.summitbank.net

Exhibit 99.1

SUMMIT BANCSHARES, INC.

(Unaudited)

(Dollars in thousands, except per share data)

	Quarter Ended						Six Months Ended
	June 30,				%		June 30,					%
EARNINGS SUMMARY	2005		2004		Change		2005			2004		Change
Interest income	$	14,378	$	11,302	27.2	%	$	27,751		$	21,501	29.1	%
Interest expense	3,656		2,274		60.8	%	6,796			4,190		62.2	%
Net interest income	10,722		9,028		18.8	%	20,955			17,311		21.1	%
Provision for loan losses	225		400		-43.8	%	450			1,005		-55.2	%
Service charges on deposits	990		1,078		-8.2	%	1,972			1,984		-0.6	%
Gain on sale of investment securities	—		—		0.0	%	—			—		0.0	%
Other income	1,045		645		62.0	%	1,943			1,306		48.8	%
Salaries and benefits expense	4,448		3,772		17.9	%	8,717			7,140		22.1	%
Occupancy and equipment expense	1,231		1,117		10.2	%	2,433			2,050		18.7	%
Other expense	1,879		1,461		28.6	%	3,660			2,690		36.1	%
Earnings before income taxes	4,974		4,001		24.3	%	9,610			7,716		24.5	%
Provision for income taxes	1,783		1,405		26.9	%	3,406			2,669		27.6	%
Net earnings	$	3,191	$	2,596	22.9	%	$		6,204	$	5,047	22.9	%
Basic earnings per share	$	0.26	$	0.21	23.8	%	$		0.50	$	0.41	22.0	%
Basic weighted average shares outstanding	12,418		12,320				12,398			12,312
Diluted earnings per share	$	0.25	$	0.21	19.0	%	$		0.49	$	0.40	22.5	%
Diluted weighted average shares outstanding	12,734		12,638				12,726			12,664

	Average for Quarter Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
BALANCE SHEET SUMMARY	2005		2005		2004		2004		2004
Total loans	$	723,535	$	706,902	$	694,177	$	678,915	$	642,935
Total investment securities	216,825		220,161		226,530		218,831		196,972
Earning assets	945,251		932,258		924,557		914,595		871,084
Total assets	1,007,680		993,154		984,814		976,911		925,830
Noninterest bearing deposits	239,127		225,519		235,846		226,462		207,815
Interest bearing deposits	558,905		559,853		560,341		557,329		521,812
Total deposits	798,032		785,372		796,187		783,791		729,628
Other borrowings	128,684		128,174		109,713		118,083		121,193
Shareholders’ equity	76,575		75,602		74,543		71,038		70,583

	Average for Six Months
	Ended- June 30,				%
BALANCE SHEET SUMMARY	2005		2004		Change
Total loans	$	715,265	$	608,398	17.6	%
Total investment securities	218,484		192,480		13.5	%
Earning assets	938,791		819,179		14.6	%
Total assets	1,000,457		866,936		15.4	%
Noninterest bearing deposits	232,361		193,603		20.0	%
Interest bearing deposits	559,376		488,083		14.6	%
Total deposits	791,737		681,685		16.1	%
Other borrowings	128,430		111,271		15.4	%
Shareholders’ equity	76,091		70,350		8.2	%

	Ending Balance
	June 30,			March 31,			December 31,			September 30,			June 30,
BALANCE SHEET SUMMARY	2005			2005			2004			2004			2004
Total loans	$	721,161		$	716,714		$	702,619		$	689,906		$	672,686
Total investment securities	214,750			214,222			223,351			219,264			214,991
Total earning assets	945,661			939,934			930,990			928,638			905,228
Allowance for loan losses	(10,798		)	(10,519		)	(10,187		)	(10,079		)	(9,844		)
Premises and equipment	15,563			15,462			15,749			15,643			15,145
Total assets	1,008,475			999,914			989,117			990,406			969,708
Noninterest bearing deposits	241,643			232,556			235,399			232,586			218,343
Interest bearing deposits	562,846			565,002			556,865			558,938			557,347
Total deposits	804,489			797,558			792,264			791,524			775,690
Other borrowings	122,203			124,007			118,094			121,355			121,785
Total liabilities	930,891			925,477			914,627			916,858			901,009
Shareholders’ equity	77,584			74,437			74,490			73,548			68,699

SUMMIT BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

	June 30,			March 31,			December 31,			September 30,			June 30,
NONPERFORMING ASSETS	2005			2005			2004			2004			2004
Nonaccrual loans	$	3,372		$	3,294		$	2,587		$	2,545		$	2,832
Restructured loans	—			—			—			—			—
Other real estate & foreclosed assets	—			—			—			4			369
Accruing loans past due 90 days or more	36			—			18			2,300			111
Total nonperforming assets	$	3,408		$	3,294		$	2,605		$	4,849		$	3,312
Total nonperforming assets as a percentage of loans and foreclosed assets	0.47		%	0.46		%	0.37		%	0.70		%	0.49		%

	Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
ALLOWANCE FOR LOAN LOSSES	2005			2005			2004			2004			2004
Balance at beginning of period	$	10,519		$	10,187		$	10,079		$	9,844		$	8,320
Balance acquired in Arlington National Bank Acquisition	—			—			—			—			1,254
Loans charged off	(147		)	(84		)	(293		)	(415		)	(196		)
Loan recoveries	201			191			111			155			66
Net (charge-offs) recoveries	54			107			(182		)	(260		)	(130		)
Provision for loan losses	225			225			290			495			400
Balance at end of period	$	10,798		$	10,519		$	10,187		$	10,079		$	9,844
Allowance for loan losses as a percentage of total loans	1.50		%	1.47		%	1.45		%	1.46		%	1.46		%
Allowance for loan losses as a percentage of nonperforming loans	316.84		%	319.34		%	393.82		%	396.03		%	347.60		%
Net charge-offs (recoveries) as a percentage of average loans	-0.01		%	-0.02		%	0.03		%	0.04		%	0.02		%
Provision for loan losses as a percentage of average loans	0.03		%	0.03		%	0.04		%	0.07		%	0.06		%

	Quarter Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
SELECTED RATIOS	2005		2005		2004		2004		2004
Return on average assets (annualized)	1.27		1.23		1.18		1.14		1.13
Return on average equity (annualized)	16.71		16.16		15.58		15.66		14.79
Average shareholders’ equity to average assets	7.60		7.63		7.57		7.27		7.62
Yield on earning assets	6.12		5.83		5.61		5.39		5.23
Cost of interest bearing funds	2.13		1.85		1.65		1.49		1.42
Net interest margin (tax equivalent)	4.57		4.47		4.41		4.29		4.18
Efficiency ratio	59.07		59.69		59.71		59.23		58.90
End of period book value per common share	$	6.25	$	6.01	$	6.03	$	5.96	$	5.57
End of period common shares outstanding	12,421		12,390		12,359		12,334		12,372

SUMMIT BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

	Three Months Ended
	June 30, 2005								June 30, 2004
	Average								Average
YIELD ANALYSIS	Balance				Interest		Yield		Balance				Interest		Yield
Interest Earning Assets:
Federal funds sold & due from time	$		4,891		$	36	2.95	%	$		31,177		$	75	0.96	%
Investment securities (taxable)	208,367				1,914		3.67	%	190,212				1,778		3.76	%
Investment securities (tax-exempt)	8,458				110		5.20	%	6,760				88		5.26	%
Loans	723,535				12,356		6.85	%	642,935				9,391		5.87	%
Total Interest Earning Assets	945,251				14,416		6.12	%	871,084				11,332		5.23	%
Noninterest Earning Assets:
Cash and due from banks	30,139								28,813
Other assets	42,973								35,256
Allowance for loan losses	(10,683			)					(9,323			)
Total Noninterest Earning Assets	62,429								54,746
Total Assets	$	1,007,680							$	925,830
Interest Bearing Liabilities:
Transaction and money market accounts	$	231,313			797		1.38	%	$		238,697		637		1.07	%
Savings deposits	162,065				704		1.74	%	143,322				408		1.15	%
Certificates and other time deposits	165,527				1,151		2.79	%	139,794				792		2.28	%
Other borrowings	128,684				1,004		3.13	%	121,193				437		1.45	%
Total Interest Bearing Liabilities	687,589				3,656		2.13	%	643,006				2,274		1.42	%
Noninterest Bearing Liabilities:
Demand deposits	239,127								207,815
Other liabilities	4,389								4,426
Shareholders’ equity	76,575								70,583
Total Noninterest Bearing Liabilities	320,091								282,824
Total Liabilities and Shareholders’ Equity	$	1,007,680							$		925,830
Net Interest Income and Margin (tax equivalent)					$	10,760	4.57	%					$	9,058	4.18	%

SUMMIT BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

	Six Months Ended
	June 30, 2005							June 30, 2004
	Average							Average
YIELD ANALYSIS	Balance			Interest		Yield		Balance			Interest		Yield
Interest Earning Assets:
Federal funds sold & due from time	$	5,042		$	67	2.68	%	$	18,300		$	88	0.96	%
Investment securities (taxable)	210,249			3,840		3.65	%	185,701			3,496		3.77	%
Investment securities (tax-exempt)	8,235			216		5.25	%	6,779			178		5.27	%
Loans	715,265			23,702		6.68	%	608,398			17,805		5.89	%
Total Interest Earning Assets	938,791			27,825		5.98	%	819,178			21,567		5.29	%
Noninterest Earning Assets:
Cash and due from banks	30,099							26,975
Other assets	42,073							29,417
Allowance for loan losses	(10,506		)					(8,651		)
Total Noninterest Earning Assets	61,666							47,741
Total Assets	$	1,000,457						$	866,919
Interest Bearing Liabilities:
Transaction and money market accounts	$	233,490		1,514		1.31	%	$	217,810		1,155		1.07	%
Savings deposits	165,188			1,340		1.64	%	137,301			793		1.16	%
Certificates and other time deposits	160,698			2,130		2.67	%	132,972			1,530		2.31	%
Other borrowings	128,430			1,812		2.85	%	111,271			712		1.29	%
Total Interest Bearing Liabilities	687,806			6,796		1.99	%	599,354			4,190		1.41	%
Noninterest Bearing Liabilities:
Demand deposits	232,361							193,605
Other liabilities	4,199							3,610
Shareholders’ equity	76,091							70,350
Total Noninterest Bearing Liabilities	312,651							267,565
Total Liabilities and Shareholders’ Equity	$	1,000,457						$	866,919
Net Interest Income and Margin (tax equivalent)				$	21,029	4.52	%				$	17,377	4.27	%

SUMMIT BANCSHARES, INC.

(Unaudited)

(Dollars in thousands, except per share data)

	June 30,				June 30,
LOAN PORTFOLIO	2005		%		2004		%
Commercial and industrial	$	257,362	35.7	%	$	249,230	37.0	%
Real estate:
Commercial	236,142		32.7	%	192,956		28.7	%
Residential	86,558		12.0	%	83,398		12.4	%
Construction and development	105,256		14.6	%	104,237		15.5	%
Consumer	35,843		5.0	%	42,865		6.4	%
Total loans (gross)	721,161		100.0	%	672,686		100.0	%
Unearned discounts	—		0.0	%	—		0.0	%
Total loans (net)	$	721,161	100.0	%	$	672,686	100.0	%

	June 30,				June 30,
REGULATORY CAPITAL DATA	2005				2004
Tier 1 Capital	$		79,995		$	72,430
Tier 1 Ratio	10.47			%	10.02			%
Total Capital (Tier 1 + Tier 2)	$		89,549		$	81,478
Total Capital Ratio	11.74			%	11.27			%
Total Risk-Adjusted Assets	$	763,086			$		723,022
Tier 1 Leverage Ratio	8.03			%	7.91			%

	June 30,		June 30,
OTHER DATA	2005		2004
Full Time Equivalent Employees (FTE’s)		257		262
Stock Price Range (For the Quarter Ended):
High	$	18.65	$	15.13
Low	$	16.00	$	13.50
Close	$	17.30	$	14.55