Summit Bank Corporation Announces First Quarter Earnings.

ATLANTA -- Summit Bank Corporation (SBGA) (NASDAQ: SBGA), parent company of The Summit National Bank, announces first quarter 2006 earnings of $1.41 million, or $0.25 diluted earnings per share, up 7.9% over the $1.31 million, or $0.23 diluted earnings per share, for the first quarter last year. Net income for the first quarter, 2006 represented a return on average shareholders' equity of 15.20%, an increase over the 15.06% for the first quarter of last year. The increase in earnings was attained largely due to increased net interest income resulting from improvement in net interest margin and loan growth.

Total assets increased to $553.7 million at March 31, 2006 from $525.9 million at December 31, 2005 and $522.3 million at March 31, 2005 primarily due to loan growth and $17.6 million of net proceeds from the Company's recently completed common stock offering. Total loans grew 8.5% over the past twelve months from $335.0 million at March 31, 2005 to $363.4 million at March 31, 2006. During the first quarter, loans grew $5.4 million, or 1.5%. Non-performing assets at March 31, 2006 remained flat compared to year end 2005 at $1.2 million, or 0.32% of loans, but have declined from $2.4 million, or 0.72% of loans, at March 31, 2005. Approximately half of the non-performing assets at March 31, 2006 were fully guaranteed by the SBA. The allowance for loan losses totaled $4.8 million, or 1.33% of loans, at March 31, 2006 compared to $4.6 million, or 1.27% of loans, at December 31, 2005 and $4.4 million, or 1.31% of loans, one year ago.

Deposits increased from $435.0 million at March 31, 2005 to $460.9 million at March 31, 2006, an increase of 5.9%. During the first quarter, deposits grew $22.6 million, or 5.2%. Borrowed funds have declined from $44.1 million at March 31, 2005 to $40.7 million at December 31, 2005 and $25.9 million at March 31, 2006 as part of the deleveraging strategy the Company has deployed. Shareholders' equity has increased from $34.1 million at March 31, 2005 to $36.6 million at December 31, 2005 and $54.9 million at March 31, 2006 due to earnings and the common stock offering, the net proceeds of which were used on April 1, 2006 to fund the $23.7 million Concord Bank, N.A. acquisition.

The rising interest rate environment over the past year resulted in net interest income increasing from $5.04 million for the first quarter of 2005 to $5.49 million for the same period this year. Net interest margin improved to 4.50% for the first quarter of 2006 from 4.08% for the same quarter last year. For the fourth quarter ended December 31, 2005, net interest income was $5.52 million, representing a net interest margin of 4.55%.

Total noninterest income was $796,000 for the first quarter of 2006, down from $933,000 for the first quarter last year primarily due to losses on the Bank's low income housing tax credit investment and interest rate floor that were both initiated after the first quarter of 2005. The former was offset by federal income tax credit benefit and the latter has only a remaining $61,000 book value should the instrument remain ineffective going forward. Noninterest income for the fourth quarter of 2005 was $789,000.

Noninterest expenses increased 5.5% from $3.87 million in the first quarter of 2005 to $4.09 million for the same period this year. The increase was primarily due to increased salaries and benefits and occupancy and equipment partially due to one new branch opened in the past year and increased temporary staffing and accrued incentive expense. Noninterest expense for the fourth quarter of 2005 was only $3.62 million primarily due to a $240,000 fourth quarter recovery on a 2004 loss.

Summit Bank completed the purchase of Concord Bank, N.A. in Houston, Texas on April 1, 2006. Concord had approximately $120 million in assets, $96 million in loans and $108 million in deposits at the closing date. The integration of Concord is presently taking place and the results of the combined banks will be reported at the end of the second quarter.

Chief Executive Officer, Pin Pin Chau, said, "We are pleased with the result of the common stock offering and we believe that the proceeds have been applied to a good use which will reward all of our shareholders. The integration of Concord with Summit has been very smooth thus far and we anticipate a very effective combination of two solid organizations. We can look forward to Concord's continued success in the vibrant Houston market."

Summit Bank Corporation is the parent company of The Summit National Bank, a nationally chartered full-service community bank specializing in the small business and international trade finance markets. It currently operates five branches in the metropolitan Atlanta area and two in the South Bay area of San Francisco, California. Concord Bank now operates as a division of Summit Bank in one location in Houston, Texas. Summit also operates a loan production office in San Diego, California and a representative office in Shanghai, China.

This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting Summit's operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced Summit's assumptions, but that are beyond Summit's control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the international, national and local business environments and securities markets, (iv) adverse changes in the regulatory requirements affecting Summit, (v) greater competitive pressures among financial institutions in Summit's markets, (vi) greater loan losses than historic levels, a (vii) difficulties in integrating the operations of Concord Bank, N.A. with those of Summit, and (viii) difficulties in expanding into a new geographic market. Additional information and other factors that could affect future financial results are included in Summit's Annual Report on Form 10-K and its filings with the Securities and Exchange Commission.

Selected Financial Information
                           March 31, 2006
                (In thousands, except per share data)

                                  March 31,              December 31,
                             ---------------------       -------------
                                                    %
                               2006       2005    Change       2005
                             ---------- --------- -------     --------
Summary Balance Sheet:
Cash and Short Term
 Investments                $   41,513 $   18,408  125.5%    $ 18,775
Investments                    123,871    144,494  -14.3%     125,187

Commercial Loans               304,355    278,336    9.3%     300,609
SBA Loans                       58,101     55,657    4.4%      56,686
Other Loans                        925      1,047  -11.7%         691
Total Loans                    363,381    335,040    8.5%     357,986
Allowance for Loan Loss         (4,848)    (4,373)  10.9%      (4,555)
Net Loans                      358,533    330,667             353,431
Other Assets                    29,825     28,700    3.9%      28,529
Total Assets                $  553,742 $  522,270    6.0%    $525,922

Demand Deposits -
 Noninterest-Bearing        $  104,542 $  112,135   -6.8%    $108,600
NOW & MMA                       80,432     86,175   -6.7%      84,032
Savings & CDs                  275,886    236,700   16.6%     245,600
Total Deposits                 460,860    435,010    5.9%     438,232
Borrowed Funds                  25,922     44,143  -41.3%      40,717
Other Liabilities               12,067      9,010   33.9%      10,334
Stockholders Equity             54,893     34,107   60.9%      36,639
Total Liabilities &
 Stockholders Equity        $  553,742 $  522,270    6.0%    $525,922

                              Three Months Ended
                                   March 31,
                                                   %
Summary Income Statement:      2006       2005    Change
                             ---------- -----------------
Interest Income             $    8,760 $    7,336   19.4%
Interest Expense                 3,268      2,300   42.1%
Net Interest Income              5,492      5,036    9.0%
Provision for Loan Losses          300        264   13.6%
Net Interest Income after
 Provision for Loan Loss         5,192      4,772    8.8%
Service Charges on Deposits        325        342   -4.9%
International Fee Income           356        332    7.3%
BOLI                               121        122   -0.6%
Other noninterest
 income/(loss)                      (6)       137 -104.7%
Total Noninterest Income           796        933  -14.6%
Salaries & Benefits              2,240      2,000   12.0%
Occupancy                          356        298   19.3%
Premises & Equipment               448        397   12.8%
Other noninterest expense        1,042      1,178  -11.5%
Total Noninterest Expense        4,086      3,873    5.5%
Income before Tax                1,902      1,832    3.9%
Income Tax Expense                 493        526   -6.2%
Net Income                  $    1,409 $    1,306    7.9%

Average Balances:
Average Assets              $  530,427 $  531,437   -0.2%
Average Earning Assets         487,620    494,221   -1.3%
Average Total Loans            361,485    340,292    6.2%
Average Deposits               447,307    437,228    2.3%
Average Total Funds            482,914    492,111   -1.9%
Average Shareholder Equity      37,088     34,689    6.9%

Per Share Data:
Basic Earnings per Share    $     0.25 $     0.23    8.7%
Diluted Earnings per Share  $     0.25 $     0.23    8.7%
Dividend Per Share          $     0.10 $     0.10    0.0%
Weighted - Average Shares
 Outstanding - Basic         5,708,493  5,693,054
Weighted - Average Shares
 Outstanding - Diluted       5,710,724  5,699,227
Common Shares Outstanding    6,944,604  5,694,604

Key Ratios:
Return on Average Assets          1.06%      0.98%
Return on Average
 Shareholder Equity              15.20%     15.06%
Yield on Earning Assets           7.21%      5.95%
Cost of Funds                     2.71%      1.87%
Net Interest Margin               4.50%      4.08%
Noninterest Income as % of
 Average Assets                   0.60%      0.70%
Noninterest Expense as % of
 Average Assets                   3.08%      2.92%
Efficiency Ratio                 64.98%     64.92%

ALLL as % of Total Loans          1.33%      1.31%
Nonperforming Assets as % of
 Total Loans and ORE              0.32%      0.72%
Net Chargeoffs(Recoveries)
 as % of Average Loans            0.01%      0.52%