<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 September 30, 1996
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 -- 3,358,587 shares outstanding as of October
31, 1996.
Page 1 of 13
<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 -
September 30, 1996 and 1995 and December 31, 1995............ 3
Consolidated statements of income -
Three and nine months ended September 30, 1996 and 1995 ..... 4
Consolidated statements of cash flows -
Nine months ended September 30, 1996 and 1995................ 5
Consolidated statement of shareholders' equity -
Year ended December 31, 1995
and nine months ended September 30, 1996................. 6
Notes to consolidated financial statements - September 30, 1996........ 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ..........8-9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings ................................. 10
Item 2. Changes in Securities ............................. 10
Item 3. Defaults upon Senior Securities ................... 10
Item 4. Submission of Matters to a Vote of Security
Holders............................................ 10
Item 5. Other Information ................................. 10
Item 6. Exhibits and Reports on Form 8-K .................. 10
SIGNATURES ............................................... 11
Statement 11 Re: Computation of Earnings Per Share........... 12
Schedule 27 ................................................. 13
</TABLE>
-2-
<PAGE> 3
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Item 1 - Financial Statements
CONSOLIDATED BALANCE SHEETS SECOND BANCORP, INC.
AND SUBSIDIARY
----------------------------------------
(Dollars in Thousands) September 30 December 31 September 30
1996 1995 1995
----------------------------------------
ASSETS (unaudited) (*) (unaudited)
- ------ ----------------------------------------
<S> <C> <C> <C>
Cash and Demand Balances Due from Banks $ 34,151 $ 29,461 $ 35,242
Federal Funds Sold 0 3,000 0
Securities:
Held-to-Maturity (market value $123,631 at September 30, 1995) 0 0 121,074
Available-for-Sale 220,582 236,534 94,131
--------- -------- ---------
Total Securities 220,582 236,534 215,205
Loans:
Commercial 298,830 269,248 268,363
Consumer 206,867 195,752 199,195
Real Estate 78,018 69,190 66,885
--------- -------- ---------
Total Loans 583,715 534,190 534,443
Reserve for Loan Losses 8,912 6,748 6,278
--------- -------- ---------
Net Loans 574,803 527,442 528,165
Premises and Equipment 7,820 7,276 6,097
Accrued Interest Receivable 5,162 5,028 5,282
Goodwill and Intangible Assets 3,917 4,565 4,815
Other Assets 22,179 20,606 21,825
--------- -------- ---------
Total Assets $ 868,614 $833,912 $ 816,631
========= ======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand Deposits (non-interest bearing) $ 77,237 $ 78,906 $ 77,368
Insured Money Market and Interest
Checking Accounts 105,763 122,513 118,334
Savings Deposits 113,772 122,455 120,170
Time Deposits 361,357 333,977 327,361
--------- -------- ---------
Total Deposits 658,129 657,851 643,233
Federal Funds Purchased and Securities Sold Under
Agreements to Repurchase 98,415 86,942 89,618
Note Payable 5,000 5,000 5,000
Borrowed Funds 5,684 3,164 5,761
Federal Home Loan Bank Advances 29,553 7,396 7,486
Accrued Expenses and Other Liabilities 5,395 7,526 4,014
--------- -------- ---------
Total Liabilities 802,176 767,879 755,112
Shareholders' Equity:
Preferred Stock, no par value;
Series A: 1,500,000 shares authorized, 718,750 shares
issued and 300, 691,366 and 714,850 shares
outstanding, respectively 6 12,731 13,163
Series B: authorized 1,500,000 shares 0 0 0
Common Stock, no par value; 10,000,000
shares authorized and 3,358,587, 2,562,041 and
2,529,267 shares issued, respectively 27,416 14,155 13,546
Treasury Stock, 10,000 shares (319) 0 0
Unrealized Holding (Losses) Gains (958) 2,248 (684)
Retained Earnings 40,293 36,899 35,494
--------- -------- ---------
Total Shareholders' Equity 66,438 66,033 61,519
--------- -------- ---------
Total Liabilities and
Shareholders' Equity $ 868,614 $833,912 $ 816,631
========= ======== =========
<FN>
(*) The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date.
</TABLE>
-3-
<PAGE> 4
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME SECOND BANCORP, INC.
AND SUBSIDIARY
(Dollars in Thousands, Except Per Share Data) For the Three Months For the Nine Months
Ended September 30 Ended September 30
1996 1995 1996 1995
--------------------------- ------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans (including fees):
Taxable $12,873 $12,384 $37,578 $35,845
Exempt from Federal Income Taxes 226 209 549 646
Investment Securities:
Taxable 2,847 2,703 8,955 8,315
Exempt from Federal Income Taxes 586 398 1,557 1,228
Federal Funds Sold 7 103 231 422
--------------------------- ------------------------------
Total Interest Income 16,539 15,797 48,870 46,456
INTEREST EXPENSE
Deposits 6,505 6,565 19,849 18,683
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 1,102 1,018 2,894 3,281
Note Payable 95 111 279 334
Other Borrowed Funds 42 51 107 141
Federal Home Loan Bank Advances 217 116 546 352
--------------------------- ------------------------------
Total Interest Expense 7,961 7,861 23,675 22,791
--------------------------- ------------------------------
NET INTEREST INCOME 8,578 7,936 25,195 23,665
Provision for Loan Losses 2,788 709 4,236 1,878
--------------------------- ------------------------------
Net Interest Income after Provision
for Loan Losses 5,790 7,227 20,959 21,787
NON-INTEREST INCOME
Service Charges on Deposit Accounts 696 630 1,993 1,787
Trust Fees 584 555 1,751 1,655
Security (Losses) Gains 376 0 447 (67)
Other 664 582 1,835 1,651
--------------------------- ------------------------------
Total Non-Interest Income 2,320 1,767 6,026 5,026
NON-INTEREST EXPENSE
Salaries and Employee Benefits 2,906 3,043 9,117 8,848
Net Occupancy 769 797 2,262 2,219
Professional Services 327 313 1,075 1,029
Equipment 283 328 1,075 1,047
Data Processing Services 282 245 837 784
Assessment on Deposits and Other Taxes 209 445 696 1,510
Amortization of Goodwill and Other Intangibles 216 250 648 750
Other 1,171 1,052 3,594 3,331
--------------------------- ------------------------------
Total Non-Interest Expense 6,163 6,473 19,304 19,518
--------------------------- ------------------------------
Income before Federal Income Taxes 1,947 2,521 7,681 7,295
Income Tax Expense 264 654 1,747 1,882
--------------------------- ------------------------------
NET INCOME $1,683 $1,867 $5,934 $5,413
Preferred Stock Dividends / Redemption 0 (268) (456) (806)
--------------------------- ------------------------------
Net Income Applicable to Common Stock $1,683 $1,599 $5,478 $4,607
=========================== ==============================
Per Common Share Data:
Primary Earnings $0.50 $0.63 $1.85 $1.82
Fully Diluted Earnings $0.50 $0.56 $1.75 $1.62
Dividends Declared $0.22 $0.19 $0.66 $0.57
Weighted Average Number of
Primary Common Shares Outstanding 3,383,698 2,550,128 2,962,499 2,534,301
</TABLE>
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<PAGE> 5
<TABLE>
<CAPTION>
SECOND BANCORP, INC. and SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30
--------------------------------------
(Dollars in Thousands) 1996 1995
- --------------------- ---- ----
<S> <C> <C>
OPERATING ACTIVITIES
- ----------------------------------------------------------
Net Income $5,934 $5,413
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Loan Losses 4,236 1,878
Provision for Depreciation 909 792
Provision for Amortization of Intangibles 648 750
Amortization of Investment Discount and Premium 265 462
Amortization of Time Deposits with Banks and Other
Interest Bearing Assets Discount and Premium 0 0
Deferred Income Taxes (61) (116)
Securities (Gains) Losses (448) 67
Other Gains, net (398) (167)
(Increase) Decrease in Interest Receivable (134) (454)
Increase (Decrease) in Interest Payable (68) 935
Originations of Loans Held-for-Sale (14,100) (14,642)
Proceeds from Sale of Loans Held-for-Sale 14,391 13,181
(Increase) in Other Assets 140 (9,306)
(Decrease) Increase in Other Liabilities (2,063) (1,290)
----------------------------
Net Cash (Used by) Provided by Operating Activities 9,251 (2,497)
INVESTING ACTIVITIES
- ----------------------------------------------------------
Proceeds from Maturities of Securities - Held-to Maturity 0 17,209
Proceeds from Maturities of Securities - Available-for-Sale 58,062 29,102
Proceeds from Sales of Securities - Held-to-Maturity 0 1,991
Proceeds from Sales of Securities - Available-for-Sale 58,343 24,360
Purchases of Securities - Held-to-Maturity 0 (250)
Purchases of Securities - Available-for-Sale (105,128) (57,700)
Net (Increase) Decrease in Revolving Credit Receivables (3,352) (962)
Net Increase in Loans (48,145) (27,696)
Net Increase in Premises and Equipment (1,446) (1,109)
----------------------------
Net Cash Provided by (Used by) Investing Activities (41,666) (15,055)
FINANCING ACTIVITIES
- ----------------------------------------------------------
Net (Decrease) Increase in Demand Deposits, Insured
Money Market and Interest Checking Accounts, and
Savings Deposits (27,102) (14,340)
Net Increase (Decrease) in Time Deposits 27,380 41,810
Net (Decrease) Increase in Federal Funds Purchased
and Securities Sold Under Agreements
to Repurchase 11,473 (5,140)
Net Increase (Decrease) in Borrowings 2,520 2,093
Net Advances (Repayments) Advances from Federal Home Loan Bank 22,157 (262)
Cash Dividends (2,536) (2,247)
Redemption / Conversion of Preferred Stock (33) 0
Purchase of Treasury Stock (319) 0
Issuance of Common Stock 565 334
----------------------------
Net Cash Provided by Financing Activities 34,105 22,248
----------------------------
Increase in Cash and Cash Equivalents 1,690 4,696
----------------------------
Cash and Cash Equivalents at Beginning of Year 32,461 30,546
----------------------------
Cash and Cash Equivalents at End of Period $34,151 $35,242
============================
Supplementary Cash Flow Information: Cash paid for 1) Federal income
taxes - $2,595,000 and $2,370,000 for the nine months ended September 30, 1996 and 1995,
respectively and 2) Interest - $23,743,000 and $21,856,000 for the nine months ended
September 30, 1996 and 1995, respectively.
</TABLE>
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<PAGE> 6
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY SECOND BANCORP, INC.
AND SUBSIDIARY
Unrealized
(Dollars in Thousands) Preferred Common Treasury Holding Retained
Stock Stock Stock Losses Earnings Total
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1995 $13,235 $13,140 $0 ($2,820) $32,328 $55,883
Net Income 7,565 7,565
Cash Dividends Declared
Common Stock (1,928) (1,928)
Preferred Stock (1,066) (1,066)
Issuance of Common Stock - Dividend
Reinvestment Plan 478 478
Exercise of Stock Options 33 33
Conversion of Preferred Stock to
Common Stock (504) 504 0
Adjustment to Unrealized (Losses) Gains on
Available-for-Sale securities, net of tax 5,068 5,068
-------- ------- ----- -------- ------- -------
Balance, December 31, 1995 12,731 14,155 0 2,248 36,899 66,033
Net Income 5,934 5,934
Cash Dividends Declared
Common Stock (2,080) (2,080)
Preferred Stock (456) (456)
Issuance of Common Stock - Dividend
Reinvestment Plan 289 289
Exercise of Stock Options 276 276
Conversion of Preferred Stock to
Common Stock (12,700) 12,696 (4)
Redemption of Preferred Stock (25) (4) (29)
Purchase of Treasury Stock (319) (319)
Adjustment to Unrealized (Losses) Gains on
Available-for-Sale securities, net of tax (3,206) (3,206)
-------- ------- ----- -------- ------- -------
Balance, September 30, 1996 $6 $27,416 ($319) ($958) $40,293 $66,438
=======================================================================
</TABLE>
-6-
<PAGE> 7
SECOND BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
September 30, 1996
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 three and nine month periods ended
September 30, 1996 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1996. 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, 1995.
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 - The Company announced during the second quarter the redemption of its
$1.50 Cumulative Convertible Preferred Stock, Series A-1 ("Preferred Stock") on
June 25, 1996. The Preferred Stock was redeemable for cash at the rate of $21.05
per share. Each share was also convertible at the shareholders' option into
1.1177 shares of the Company's common stock any time prior to redemption. Of the
original 718,750 shares of Preferred Stock originally issued in 1992, all but
1,666 preferred shares have been converted into common stock as of October 31,
1996.
-7-
<PAGE> 8
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
GENERAL
Second Bancorp, Incorporated, (the "Company") is a one-bank holding company
which owns The Second National Bank of Warren (the "Bank"), a Warren, Ohio based
commercial bank. Operating through twenty-six branches and one loan production
office, the Bank offers a wide range of commercial and consumer banking and
trust services primarily to business and individual customers in various
communities in a five county area in northeastern Ohio.
The Bank focuses its marketing efforts primarily on local independent and
professional firms and individuals who are the owners and principals of such
firms. The Bank has emphasized commercial lending and market area expansion.
FINANCIAL CONDITION
At September 30, 1996, the Company had consolidated total assets of $869
million, deposits of $658 million and shareholders' equity of $66 million. Since
September 30, 1995, total assets have grown by 6%. Loan growth remains strong
with commercial loans increasing by 11% from a year ago to approximately $299
million at September 30, 1996 and real estate loans growing by 17% to
approximately $78 million as of the same date. Total earning assets have
increased by 7% and now total $804 million or 92.6% of total assets. To
accommodate the demand for commercial lending , the Company deceased balances in
securities over the past year.
Funding growth has primarily been generated through time deposits and Federal
Home Loan Bank (FHLB) advances. While deposits have increased by 2.3% over the
past year, time deposits have increased by 10% to $361 million. FHLB advances
have increased by $22 million over the past year and now total almost $30
million as of September 30, 1996. Retail repurchase agreement accounts have also
provided funding for the Company, increasing, along with Federal funds
purchased, to over $98 million as of September 30, 1996 versus $90 million as of
the same date in 1995.
RESULTS OF OPERATIONS
GENERAL. The Company achieved net income of $1,683,000 for the third quarter of
1996, 10% less than the $1,867,000 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 $.50, down from the $.63 per share
reported for the third quarter of 1995. Fully diluted earnings per share were
also $.50 for the third quarter of 1996, 11% less than the $.56 per share
reported for the same period in 1995. Return on assets (ROA) and return on total
shareholders' equity (ROE) were .79% and 10.21%, respectively for the third
quarter of 1996 compared to .93% and 13.61% for last year's third quarter.
-8-
<PAGE> 9
ASSET QUALITY. The Company's asset quality position was weakened in the third
quarter of 1996. The Company placed an additional allocation to the loan loss
reserve in the third quarter of $2 million as a result of the deterioration of a
small group of related commercial loans. The additional allocation is expected
to fully cover anticipated losses associated with these loans. The total of the
loans in question exceeded $4.2 million. As a result of this action. the reserve
for loan losses were 1.53% of total loans at the end of the third quarter.
Non-performing loans increased dramatically due to the aforementioned loans and
totaled $9,759,000 as of September 30, 1996 versus $4,989,000 as of the same
date last year. Net charge-offs averaged an annualized .50% of average loans for
the third quarter which represents an increase from the level of .44% of average
loans for the third quarter of 1995. An increase in consumer loan charge-offs
was responsible for the increase.
NET INTEREST INCOME. Net interest income for the third quarter of 1996 increased
by 8% to $8,578,000. The increase came both from an improvement in the net
interest margin from 4.43% during the third quarter 1995 to 4.53% during the
third quarter of 1996 along with an increase of almost 7% in average earning
assets to $795 million. For the first nine months of 1996, net interest income
was $25,195,000, or 6.5% greater than the same period in 1995. Net interest
margin was 4.46% for the first three quarters of 1996, compared to 4.40% for the
same period in 1995.
NON-INTEREST INCOME. Non-interest income showed significant improvement over the
past year. For the third quarter of 1996, deposit service charge income
increased by $66,000, or 10%, over the third quarter of 1995. Trust fee income
was higher by $29,000, or 5%, while other income totaled $664,000 for the third
quarter of 1996 versus $582,000 for the same period in 1995. Sales of SBA and
real estate loans as well as sales of alternative investment products helped
generate the increase in other income. Security sales for the quarter generated
$376,000 in income versus no sales for the third quarter of 1995.
NON-INTEREST EXPENSE. The expenses for the third quarter of 1996 were 5% lower
than for the same period in 1995. Expense decreases were realized in five of the
eight major expense categories reported. The largest decrease was in the area of
salaries and employee benefits which declined by $137,000 or 4.5%, largely due
to reductions in incentive bonus accruals. Net occupancy, equipment, data
processing services, assessment on deposits and amortization of intangibles also
decreased during the quarter as compared to the same quarter last year.
LIQUIDITY AND CAPITAL RESOURCES. The Company provides funds for asset growth,
deposit withdrawals and other liability maturities through maturing securities,
payments made on loans, and through the acquisition of new deposits. The Company
also has the ability to borrow in excess of $20 million in overnight funds
through correspondent banks to satisfy short-term liquidity needs. The Company
also uses advances from the Federal Home Loan Bank to provide funding for
growth.
Shareholders' equity has increased by 8% over the past year, with retained
earnings increasing by 13.5%. Unrealized holding losses were $958,000 as of
September 30, 1996. The tier I leverage ratio was 7.34% as of September 30,
1996, up from 7.07% as of the same date in 1995. Similarly, risk based capital
ratio increased from 11.00% as of September 30, 1995 to 11.53% as of the end of
the most recent quarter.
-9-
<PAGE> 10
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) - (d) Second Bancorp, Incorporated's Annual Shareholders Meeting
will be held on May 14, 1996. The results of the votes on the
matters presented to shareholders were disclosed in the Form 10-Q
for the quarter ended June 30, 1996.
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
The Corporation filed a report on Form 8-K dated October 10, 1996 relating to
the disclosure of lower earnings as a result of the additional allocation for
loan losses of $2 million during the third quarter of 1996.
-10-
<PAGE> 11
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: November 14, 1996 /s/ David L. Kellerman
-------------------------------------
David L. Kellerman, Treasurer
Signing on behalf of the registrant and as
principal accounting officer and principal
financial officer.
-11-
<PAGE> 12
<TABLE>
SECOND BANCORP, INCORPORATED AND SUBSIDIARY
STATEMENT 11 RE: COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------ ------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
PRIMARY:
Average shares outstanding 3,352,090 2,526,228 2,934,642 2,518,932
Net effect of dilutive stock options -
based on the treasury stock method
using average market price. 31,608 23,900 27,857 15,369
------ ------ ------ ------
3,383,698 2,550,128 2,962,499 2,534,301
Net income applicable to Common Stock $1,683 $1,599 $5,478 $4,607
Per share amount $0.50 $0.63 $1.85 $1.82
FULLY DILUTED:
Average shares outstanding 3,352,090 2,526,228 2,934,642 2,518,932
Net effect of dilutive stock options -
based on the treasury stock method
using average market price or period-
end market price, whichever is higher. 34,022 29,440 34,765 29,704
Assumed conversion of $1.50 Preferred
Stock Series A-1 1,469 798,988 415,132 801,047
- ----- ------- ------- -------
3,387,581 3,354,656 3,384,539 3,349,683
Net income $1,683 $1,867 $5,934 $5,413
Per share amount $0.50 $0.56 $1.75 $1.62
</TABLE>
-12-
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000803112
<NAME> SECOND BANCORP INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 34,151
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 220,582
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 583,715
<ALLOWANCE> 8,912
<TOTAL-ASSETS> 868,614
<DEPOSITS> 658,129
<SHORT-TERM> 10,684
<LIABILITIES-OTHER> 5,395
<LONG-TERM> 29,553
<COMMON> 27,416
0
6
<OTHER-SE> 39,016
<TOTAL-LIABILITIES-AND-EQUITY> 868,614
<INTEREST-LOAN> 38,127
<INTEREST-INVEST> 10,512
<INTEREST-OTHER> 231
<INTEREST-TOTAL> 48,870
<INTEREST-DEPOSIT> 19,849
<INTEREST-EXPENSE> 23,675
<INTEREST-INCOME-NET> 25,195
<LOAN-LOSSES> 4,236
<SECURITIES-GAINS> 447
<EXPENSE-OTHER> 3,594
<INCOME-PRETAX> 7,681
<INCOME-PRE-EXTRAORDINARY> 7,681
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,934
<EPS-PRIMARY> 1.85
<EPS-DILUTED> 1.75
<YIELD-ACTUAL> 4.46
<LOANS-NON> 7,605
<LOANS-PAST> 2,128
<LOANS-TROUBLED> 168
<LOANS-PROBLEM> 9,666
<ALLOWANCE-OPEN> 6,748
<CHARGE-OFFS> 2,653
<RECOVERIES> 581
<ALLOWANCE-CLOSE> 8,912
<ALLOWANCE-DOMESTIC> 8,912
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
