<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-Q
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF
1934 For quarter ended June 30, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period ..... to .....
Commission file number: 0-15624
-------
SECOND BANCORP, INCORPORATED
----------------------------------------------------
(exact name of registrant as specified in its charter)
Ohio 34-1547453
---- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
108 Main Ave. Warren, Ohio 44482-1311
-------------------------- ----------
(Address of principal executive offices) (Zip Code)
(216) 841-0123
--------------
Registrant's telephone number, including area code
Not applicable
--------------
Former name, former address and former fiscal year, if changed since last
report.
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 periods 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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common Stock, without par value -- 2,525,611 shares outstanding as of July 31,
1995.
Page 1 of 14
<PAGE> 2
SECOND BANCORP, INC. AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page
Number
<S> <C>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated balance sheets -
June 30, 1995 and 1994 and December 31, 1994 ...................... 3
Consolidated statements of income -
Three months and six months ended June 30, 1995 and 1994 ......... 4
Consolidated statements of cash flows -
Six months ended June 30, 1995 and 1994 ........................... 5
Consolidated statement of shareholders' equity -
Year ended December 31, 1994 and
six months ended June 30, 1995 ................. 6
Notes to consolidated financial statements - June 30, 1995 ................. 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations .... 9-10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings .................................. 11
Item 2. Changes in Securities ............................. 11
Item 3. Defaults upon Senior Securities ..................... 11
Item 4. Submission of Matters to a Vote of Security
Holders............................. 11
Item 5. Other Information .................................. 11
Item 6. Exhibits and Reports on Form 8-K ................. 11
SIGNATURES ..................................................... 12
Statement 11 Computation of Earnings per Share ................... 13
Schedule 27 ..................................................... 14
</TABLE>
-2-
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
SECOND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
(Dollars in Thousands) June 30 December 31 June 30
1995 1994 1994
-----------------------------------------------------------------------------------------------------------------
ASSETS (unaudited) (*) (unaudited)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash and Demand Balances Due from Banks $ 26,924 $ 30,546 $ 30,272
Federal Funds Sold 0 0 3,000
Securities:
Held-to-Maturity (market value $131,648,
$135,631 and $95,908, respectively) 129,334 140,260 97,558
Available-for-Sale 78,142 86,953 83,030
-------- -------- --------
Total Securities 207,476 227,213 180,588
Loans:
Commercial 261,078 238,053 222,891
Consumer 202,329 202,343 184,156
Real Estate 64,216 65,502 56,972
Loans Held-for-Sale 4,064 0 0
-------- -------- --------
Total Loans 531,687 505,898 464,019
Reserve for Loan Losses 6,064 6,126 6,011
-------- -------- --------
Net Loans 525,623 499,772 458,008
Premises and Equipment 5,674 5,765 4,593
Accrued Interest Receivable 4,784 4,828 3,721
Goodwill and Intangible Assets 5,065 5,565 2,944
Other Assets 22,781 13,500 12,454
-------- -------- --------
Total Assets $798,327 $787,189 $695,580
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
-----------------------------------------------------------------------------------------------------------------
Liabilities:
Demand Deposits (non-interest bearing) $ 76,104 $ 83,486 $ 68,762
Insured Money Market and Interest
Checking Accounts 122,182 116,935 103,702
Savings Deposits 120,577 129,791 116,012
Time Deposits 322,596 285,551 272,453
------- -------- --------
Total Deposits 641,459 615,763 560,929
Federal Funds Purchased and Securities Sold Under
Agreements to Repurchase 73,543 94,758 63,342
Note Payable 5,000 5,000 0
Borrowed Funds 5,994 3,668 5,995
Federal Home Loan Bank Advances 7,574 7,748 5,901
Accrued Expenses and Other Liabilities 4,643 4,369 4,844
-------- -------- --------
Total Liabilities 738,213 731,306 641,011
Shareholders' Equity:
Preferred Stock, no par value;
Series A: 1,500,000 shares authorized, 718,750 shares
issued and 714,850, 718,750 and 718,750 shares
outstanding, respectively 13,163 13,235 13,235
Series B: authorized 1,500,000 shares 0 0 0
Common Stock, no par value; 10,000,000
shares authorized and 2,521,955 and 2,509,316
and 2,498,675 shares issued, respectively 13,385 13,140 12,945
Unrealized Holding Losses, net of tax (814) (2,820) (1,802)
Retained Earnings 34,380 32,328 30,191
-------- -------- --------
Total Shareholders' Equity 60,114 55,883 54,569
Total Liabilities and -------- -------- --------
Shareholders' Equity $798,327 $787,189 $695,580
======= ======== ========
<FN>
(*) The balance sheet at December 31, 1994 has been derived from the audited financial statements at that date.
</TABLE>
-3-
<PAGE> 4
SECOND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(Dollars in Thousands, Except Per Share Data) For the Three Months For the Six Months
Ended June 30 Ended June 30
------------- -------------
1995 1994 1995 1994
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans (including fees):
Taxable $11,907 $9,796 $23,461 $19,551
Exempt from Federal Income Taxes 229 184 437 366
Investment Securities:
Taxable 2,706 1,863 5,612 3,434
Exempt from Federal Income Taxes 408 322 830 764
Federal Funds Sold 236 106 319 112
Time Deposits in Banks and Other
Interest Bearing Assets 0 2 0 14
---------------------------- ----------------------------
Total Interest Income 15,486 12,273 30,659 24,241
INTEREST EXPENSE
Deposits 6,447 4,439 12,118 8,720
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 1,072 528 2,263 934
Note Payable 113 0 223 0
Other Borrowed Funds 38 31 90 68
Federal Home Loan Bank Advances 117 85 236 151
---------------------------- ----------------------------
Total Interest Expense 7,787 5,083 14,930 9,873
---------------------------- ----------------------------
NET INTEREST INCOME 7,699 7,190 15,729 14,368
Provision for Loan Losses 593 641 1,169 1,320
Net Interest Income after Provision ---------------------------- ----------------------------
for Loan Losses 7,106 6,549 14,560 13,048
NON-INTEREST INCOME
Trust Fees 550 507 1,100 1,013
Service Charges on Deposit Accounts 577 431 1,157 853
Security (Losses) Gains (12) 3 (67) 50
Other 637 274 1,069 510
---------------------------- ----------------------------
Total Non-Interest Income 1,752 1,215 3,259 2,426
NON-INTEREST EXPENSE
Salaries and Employee Benefits 2,871 2,504 5,805 4,896
Net Occupancy 697 625 1,422 1,240
Assessment on Deposits and Other Taxes 539 491 1,065 972
Professional Services 336 295 716 590
Equipment 382 289 719 601
Data Processing Services 258 262 539 563
Amortization of Goodwill and Other Intangibles 250 178 500 356
Other 1,096 976 2,279 1,978
---------------------------- ----------------------------
Total Non-Interest Expense 6,429 5,620 13,045 11,196
---------------------------- ----------------------------
Income before Federal Income Taxes 2,429 2,144 4,774 4,278
Income Tax Expense 614 558 1,228 1,113
---------------------------- ----------------------------
NET INCOME $1,815 $1,586 $3,546 $3,165
Preferred Stock Dividends (269) (269) (538) (539)
---------------------------- ----------------------------
Net Income Applicable to Common Stock $1,546 $1,317 $3,008 $2,626
============================ ============================
Per Common Share Data:
Primary Earnings $0.61 $0.53 $1.19 $1.05
Fully Diluted Earnings $0.54 $0.48 $1.06 $0.96
Dividends Declared $0.19 $0.16 0.38 0.32
Weighted Average Number of
Primary Common Shares Outstanding 2,528,432 2,506,287 2,524,136 2,504,061
</TABLE>
-4-
<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
SECOND BANCORP, INC. and SUBSIDIARY
<TABLE>
<CAPTION>
For the Six Months Ended June 30
--------------------------------
(Dollars in Thousands) 1995 1994
---------------------------------------------------------------------- ------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES
----------------------------------------------------------------------
Net Income $3,546 $3,165
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Loan Losses 1,169 1,320
Provision for Depreciation 530 459
Provision for Amortization of Intangibles 500 356
Goodwill Disposed of from Sale of Student Loans 0 82
Amortization of Investment Discount and Premium 358 945
Amortization of Time Deposits with Banks and Other
Interest Bearing Assets Discount and Premium 0 (13)
Deferred Income Taxes (97) (841)
Securities Losses (Gains) 66 (48)
Other Gains, net (150) (47)
Decrease in Interest Receivable 44 1,363
Increase in Interest Payable 822 138
Originations of Loans Held-for-Sale (11,174) (7,153)
Proceeds from Sale of Loans Held-for-Sale 7,106 30,213
(Increase) in Other Assets (10,217) (1,635)
(Decrease) Increase in Other Liabilities (548) 1,294
---------- ----------
Net Cash (Used by) Provided by Operating Activities (8,045) 29,598
INVESTING ACTIVITIES
----------------------------------------------------------------------
Proceeds from Maturities of Securities - Held-to Maturity 9,035 7,592
Proceeds from Maturities of Securities - Available-for-Sale 7,522 8,353
Proceeds from Sales of Securities - Held-to-Maturity 1,991 0
Proceeds from Sales of Securities - Available-for-Sale 24,150 28,097
Purchases of Securities - Held-to-Maturity (250) (47,677)
Purchases of Securities - Available-for-Sale (20,096) (16,866)
Net Decrease in Time Deposits with
Banks and Other Interest Bearing Assets 0 1,007
Net Increase in Revolving Credit Receivables (339) (50)
Net Increase in Loans (22,483) (16,445)
Net Increase in Premises and Equipment (419) (668)
---------- ----------
Net Cash Used by Investing Activities (889) (36,657)
FINANCING ACTIVITIES
----------------------------------------------------------------------
Net (Decrease) Increase in Demand Deposits, Insured
Money Market and Interest Checking Accounts, and
Savings Deposits (11,349) 10,128
Net Increase (Decrease) in Time Deposits 37,045 (4,079)
Net (Decrease) Increase in Federal Funds Purchased
and Securities Sold Under Agreements
to Repurchase (21,215) 8,388
Net Increase (Decrease) in Borrowings 2,326 (4)
Net (Repayments) Advances from Federal Home Loan Bank (174) 4,933
Cash Dividends (1,494) (1,338)
Issuance of Common Stock 173 182
---------- ----------
Net Cash Provided by Financing Activities 5,312 18,210
---------- ----------
(Decrease) Increase in Cash and Cash Equivalents (3,622) 11,151
Cash and Cash Equivalents at Beginning of Year 30,546 22,121
---------- ----------
Cash and Cash Equivalents at End of Year $26,924 $33,272
========== ==========
</TABLE>
Supplementary Cash Flow Information: Cash paid for 1) Federal income
taxes - $1,770,000 and $2,279,480 for the six months ended June 30, 1995 and
1994, respectively and 2) Interest - $14,108,000 and $9,735,000 for the six
months ended June 30, 1995 and 1994, respectively 3) FAS 115 mark to market
adjustments on the Available-for-Sale portfolio totaled $3,039,000 and
$(2,730,000) for the six months ended June 30, 1995 and 1994 , respectively,
with a resulting period end unrealized holding loss adjustment of $814,000
and $1,802,000, respectively.
-5-
<PAGE> 6
SECOND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
Unrealized
(Dollars in Thousands) Preferred Common Holding Retained
Stock Stock Losses Earnings Total
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1993 $13,235 $12,763 $0 $28,364 $54,362
Net Income 6,643 6,643
Cash Dividends Declared
Common Stock (1,601) (1,601)
Preferred Stock (1,078) (1,078)
Issuance of Common Stock - Dividend
Reinvestment Plan 342 342
Exercise of Stock Options 35 35
Adjustment to Unrealized Gains (Losses) on
Available-for-Sale securities, net of tax (2,820) (2,820)
----------------------------------------------------------------------------------
Balance, December 31, 1994 13,235 13,140 (2,820) 32,328 55,883
Net Income 3,546 3,546
Cash Dividends Declared
Common Stock (956) (956)
Preferred Stock (538) (538)
Issuance of Common Stock - Dividend
Reinvestment Plan 173 173
Conversion of Preferred Stock to
Common Stock (72) 72 0
Adjustment to Unrealized Gains (Losses) on
Available-for-Sale securities, net of tax 2,006 2,006
----------------------------------------------------------------------------------
Balance, June 30, 1995 $13,163 $13,385 ($814) $34,380 $60,114
==================================================================================
</TABLE>
-6-
<PAGE> 7
SECOND BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1995
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six month period ended June 30, 1995
are not necessarily indicative of the results that may be expected for the year
ended December 31, 1995. Certain reclassifications have been made to amounts
previously reported in order to conform with current period presentations. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1994.
NOTE B - PER SHARE DATA
The per share data is based upon the weighted average number of shares,
including common stock equivalents, outstanding during the period, as restated
for the three for two stock split effective May 1, 1995.
NOTE C - FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT 114,
"ACCOUNTING BY CREDITORS FOR IMPAIRMENT OF LOANS".
Effective January 1, 1995, the Company adopted Financial Accounting Standards
Board Statement 114, "Accounting by creditors for impairment of loans". Under
the new standard, the 1995 reserve for loan losses related to loans that are
considered impaired is based on discounted cash flows using the loan's initial
effective interest rate and the fair value of the collateral for certain
collateral dependent loans. The effect of adopting this new standard did not
have a material effect on the company's results of operations.
The company's definition of impaired loans includes nonaccrual and past due
loans. The reserve for loan losses related to impaired loans was approximately
$275,000.
-7-
<PAGE> 8
NOTE D - FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT 122,
"ACCOUNTING FOR MORTGAGE SERVICING RIGHTS".
Effective April 1, 1995, the Company adopted Financial Accounting Standards
Board Statement 122 (FAS No. 122), "Accounting for Mortgage Servicing Rights"
an amendment to FAS No. 65. FAS No. 122 requires, when mortgage loans are sold
and servicing is retained, a portion of the cost of originating a mortgage
loan to be allocated to the mortgage servicing rights based on its fair value
relative to the loan as a whole. To determine the fair value of the servicing
rights, the Company used a valuation model that calculates the present value of
future cash flows, incorporating, among other factors, the estimated future net
servicing income, the discount rate and prepayment speeds. FAS No. 122
prohibits retroactive application to 1994. Accordingly, the Company's financial
statement reporting for 1994 was accounted for under the original FAS No. 65.
The impact of FAS No. 122 on second quarter 1995 results was an increase to net
income of $53,000 or $.02 per fully diluted share.
-8-
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Second Bancorp, Incorporated (the "Company") achieved net income of $1,815,000
for the second quarter of 1995, 14.4% higher than the $1,586,000 earned during
the same period last year. On a per share basis, as restated to reflect the
three for two stock split of May 1, 1995, primary earnings for the quarter were
$.61, up from the $.53 per share reported for the second quarter, 1994. Fully
diluted earnings per share were $.54 for the first quarter of 1995, 12.5%
greater than the $.48 per share reported for the same period in 1994. Return on
assets (ROA) and return on equity (ROE) were .90% and 13.57% respectively for
the second quarter of 1995 compared to .92% and 12.78% for last year's second
quarter.
For the first six months of 1995, net income was $3,546,000, or 12.0% greater
than the $3,165,000 reported as net income for the first half of 1994. Primary
earnings per share were $1.19 for the first six months of 1995 compared to
$1.05 for the first six months of 1994. Similarly, fully diluted earnings per
share increased from $.96 for the first six months of 1994 to $1.06 for the
same period of 1995. ROA and ROE were .89% and 13.47%, respectively for the
first half of 1995, compared to .93 and 12.67% for the same period of 1994.
The increase in net income for the second quarter of 1995 was largely due to a
7% increase in net interest income totaling $509,000 along with a $552,000
increase in non-interest income. The increase in net interest income to
$7,699,000 for the second quarter can be attributed to a 14.9% increase in
average earning assets to $747,098,000 for the most current quarter offset
partially by a decrease in net interest margin from 4.58% for the second
quarter of 1994 to 4.30% for the latest quarter. The decrease in the net
interest margin resulted from a steep increase in interest rates caused by
Federal Reserve Bank efforts during the last year to slow the economy and
control inflation coupled with the Company's negative short term interest rate
gap position. The increased short term rates have flattened the yield curve and
increased deposit costs faster and greater than assets could reprice.
Non-interest income showed significant improvement over the past year. DDA
service charge income increased by $146,000, or 34%, over the second quarter of
1994 while other income improved by 132% or $363,000 as the Company generated
increased income from loan sales, new income programs and a bank owned life
insurance used to offset future benefit costs. Security sales for the quarter
resulted in a $12,000 loss compared to a $3,000 gain for the second quarter of
1994.
Second quarter 1995 expenses increased 14.4% over 1994's second quarter, in
line with Second Bancorp's asset growth during that period. Assets totaled
$798,327,000 as of June 30 , 1995, 14.8% greater than the $695,580,000 reported
for the same date a year ago. The third quarter 1994 acquisition of four
Portage County, Ohio branches from the Resolution Trust Corporation was
primarily responsible for a 14.7% increase in salaries and benefits, an 11.5%
increase in net occupancy expense and a 40% increase in amortization of
goodwill and other intangible expenses. Expenses are expected to stabilize as
the Company completes consolidation of the acquired branches allowing its net
overhead ratio to continue its recent improvement.
-9-
<PAGE> 10
The Company's asset quality position remained strong with its reserve for loan
losses standing at 1.14% of total loans at the end of the second quarter and
its non-performing loans representing only .93% of quarter-end loans. The
Company's coverage ratio at the end of second quarter of 1995 was 123%, 5
percentage points higher than at the end of the first quater of 1995. Net
charge-offs averaged an annualized .58% of total loans for the quarter which is
slightly greater than the Company's low charge-off levels for the last two
years. The charge-off activity for the second quarter of 1995 represented a
quick and healthy response to a limited number of recent credit problems.
Management expects net charge-offs for the year to average near or slightly
higher than the .34% ratio experienced in both 1993 and 1994.
Loan growth remains strong with commercial loans increasing by 17.1% to exceed
$260 million at the end of the second quarter from a year ago, while total
earning assets have increased by 14.1% and now represent 92.6% of total assets.
Shareholders' equity has increased by 10.2% over the same period, with retained
earnings increasing by 13.9%. Unrealized holding losses were $814,000 as of
June 30, 1995 which is an decrease of almost $1,000,000 in unrealized losses as
of June 30, 1994. The tier I leverage ratio was 7.03% as of June 30, 1995,
down from 7.69% as of the same date in 1994 due to the steep increase in assets
associated with the above mentioned acquisition. Similarly, risk based capital
decreased from 11.40% as of June 30, 1994 to 10.73% as of the end of the most
recent quarter.
-10-
<PAGE> 11
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS -
The Company is subject to various pending and threatened lawsuits in which
claims for monetary damages are asserted in the ordinary course of business.
While any litigation involves an element of uncertainty, in the opinion of
management, liabilities, if any, arising from such litigation or threat thereof
will not have a material impact on the financial position or results of
operations of the Company.
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 -
(a) Second Bancorp, Incorporated's Annual Shareholders Meeting was held
on May 9, 1995.
(b) Proxies were solicited by Second Bancorp, Incorporated's management
pursuant to Regulation 14 under Securities Exchange Act of 1934.
Elected to serve as a director until the 1997 Annual Shareholders
Meeting were the management's nominees Norman C. Harbert, John L. Pogue
and R. J. Wean, III. Directors who were not up for re-election but
continue to serve as directors include Alan G. Brant, John A. Anderson,
John C. Gibson and Robert J. Webster.
(c) (1) The results of the voting for directors were as follows:
Norman C. Harbert - 2,008,068.3374 votes, John L. Pogue -
2,005,764.1984 votes and R. J. Wean, III - 1,997,163.8146 votes.
(2) Also voted upon at the meeting was an issue ratifying Ernst &
Young, LLP as independent Certified Public Accountants of
Second Bancorp, Incorporated. The vote was 2,019,905.3374 for;
2,190 against and 12,747 abstaining.
(d) Not applicable.
ITEM 5. OTHER INFORMATION - Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
The following exhibits are included herein:
(11) Statement re: computation of earnings per share
(27) Financial Data Schedule
The Corporation did not file any reports on Form 8-K during the three months
ended June 30, 1995.
-11-
<PAGE> 12
SIGNATURES
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.
SECOND BANCORP, INC.
Date: August 11, 1995 /s/ David L. Kellerman
--------------- -----------------------
David L. Kellerman, Treasurer
Signing on behalf of the registrant and
as principal accounting officer and
principal financial officer.
-12-
<PAGE> 1
SECOND BANCORP, INCORPORATED AND SUBSIDIARY
STATEMENT 11 RE: COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
(Dollars in Thousands, Except Per Share Data) Three Months Ended Six Months Ended
June 30 June 30
------ -------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
PRIMARY:
Average shares outstanding 2,518,701 2,495,904 2,515,224 2,493,645
Net effect of dilutive stock options -
based on the treasury stock method
using average market price. 9,731 10,383 8,912 10,416
--------- --------- --------- ---------
2,528,432 2,506,287 2,524,136 2,504,061
Net income applicable to Common Stock $1,546 $1,317 $3,008 $2,626
Per share amount $0.61 $0.53 $1.19 $1.05
FULLY DILUTED:
Average shares outstanding 2,518,701 2,495,904 2,515,224 2,493,645
Net effect of dilutive stock options -
based on the treasury stock method
using average market price or period-
end market price, whichever is higher. 15,754 11,301 15,754 11,429
Assumed conversion of $1.50 Preferred
Stock Series A-1 800,853 803,420 802,093 803,420
--------- --------- --------- ---------
3,335,308 3,310,625 3,333,071 3,308,493
Net income $1,815 $1,586 $3,546 $3,165
Per share amount $0.54 $0.48 $1.06 $0.96
</TABLE>
-13-
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000803112
<NAME> SECOND BANCORP, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 26,924
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 78,142
<INVESTMENTS-CARRYING> 129,334
<INVESTMENTS-MARKET> 131,648
<LOANS> 531,687
<ALLOWANCE> 6,064
<TOTAL-ASSETS> 798,327
<DEPOSITS> 641,459
<SHORT-TERM> 84,537
<LIABILITIES-OTHER> 4,643
<LONG-TERM> 7,574
<COMMON> 13,385
0
13,163
<OTHER-SE> 34,380
<TOTAL-LIABILITIES-AND-EQUITY> 798,327
<INTEREST-LOAN> 12,136
<INTEREST-INVEST> 3,114
<INTEREST-OTHER> 236
<INTEREST-TOTAL> 15,486
<INTEREST-DEPOSIT> 6,447
<INTEREST-EXPENSE> 7,787
<INTEREST-INCOME-NET> 7,699
<LOAN-LOSSES> 593
<SECURITIES-GAINS> (12)
<EXPENSE-OTHER> 1,096
<INCOME-PRETAX> 2,429
<INCOME-PRE-EXTRAORDINARY> 2,429
<EXTRAORDINARY> 0
<CHANGES> 53
<NET-INCOME> 1,815
<EPS-PRIMARY> .61
<EPS-DILUTED> .54
<YIELD-ACTUAL> 8.50
<LOANS-NON> 3,447
<LOANS-PAST> 1,443
<LOANS-TROUBLED> 375
<LOANS-PROBLEM> 7,743
<ALLOWANCE-OPEN> 6,226
<CHARGE-OFFS> 903
<RECOVERIES> 164
<ALLOWANCE-CLOSE> 6,064
<ALLOWANCE-DOMESTIC> 5,524
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 540
</TABLE>
