<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, 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 -- 3,343,345 shares outstanding as of July 15,
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 -
June 30, 1996 and 1995 and December 31, 1995 ........................... 3
Consolidated statements of income -
Three and six months ended June 30, 1996 and 1995 ...................... 4
Consolidated statements of cash flows -
Six months ended June 30, 1996 and 1995 ................................ 5
Consolidated statement of shareholders' equity -
Year ended December 31, 1995 and
six months ended June 30, 1996 ................................ 6
Notes to consolidated financial statements - June 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
Item 1 - Financial Statements
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS SECOND BANCORP, INC.
AND SUBSIDIARY
-----------------------------------------
(Dollars in Thousands) June 30 December 31 June 30
1996 1995 1995
-----------------------------------------
ASSETS (unaudited) (*) (unaudited)
-----------------------------------------
<S> <C> <C> <C>
Cash and Demand Balances Due from Banks $ 32,285 $ 29,461 $ 26,924
Federal Funds Sold 0 3,000 0
Securities:
Held-to-Maturity (market value $131,648 at June 30, 1995) 0 0 129,334
Available-for-Sale 227,930 236,534 78,142
--------- -------- ---------
Total Securities 227,930 236,534 207,476
Loans:
Commercial 269,236 269,248 261,078
Consumer 194,707 195,752 202,329
Real Estate 76,607 69,190 68,280
--------- -------- ---------
Total Loans 560,550 534,190 531,687
Reserve for Loan Losses 6,751 6,748 6,064
--------- -------- ---------
Net Loans 553,799 527,442 525,623
Premises and Equipment 7,528 7,276 5,674
Accrued Interest Receivable 5,074 5,028 4,784
Goodwill and Intangible Assets 4,133 4,565 5,065
Other Assets 23,421 20,606 22,781
--------- -------- ---------
Total Assets $ 854,170 $833,912 $ 798,327
========= ======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand Deposits (non-interest bearing) $ 73,369 $ 78,906 $ 76,104
Insured Money Market and Interest
Checking Accounts 112,762 122,513 122,182
Savings Deposits 115,781 122,455 120,577
Time Deposits 368,164 333,977 322,596
--------- -------- ---------
Total Deposits 670,076 657,651 641,459
Federal Funds Purchased and Securities Sold Under
Agreements to Repurchase 90,357 86,942 73,543
Note Payable 5,000 5,000 5,000
Borrowed Funds 5,030 3,164 5,994
Federal Home Loan Bank Advances 12,023 7,396 7,574
Accrued Expenses and Other Liabilities 6,572 7,526 4,643
--------- -------- ---------
Total Liabilities 789,058 767,879 738,213
Shareholders' Equity;
Preferred Stock, no par value;
Series A: 1,500,000 shares authorized, 7l8,750 shares
issued and 9,475, 691,366 and 714,850 shares
outstanding, respectively 175 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 3,338,203, 2,562,041 and
2,521,955 shares issued, respectively 27,010 14,155 13,385
Unrealized Holding (Losses) Gains (1,422) 2,248 (814)
Retained Earnings 39,349 36,899 34,380
--------- -------- ---------
Total Shareholders' Equity 65,112 66,033 60,114
--------- -------- ---------
Total Liabilities and
Shareholders' Equity $ 854,170 $833,912 $ 798,327
========= ======== =========
<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 Six Months
Ended June 30 Ended June 30
------------- -------------
1996 1995 1996 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans (including fees):
Taxable $ 12,370 $ 11,907 $ 24,705 $ 23,461
Exempt from Federal Income Taxes 170 229 323 437
Investment Securities,
Taxable 3,088 2,706 6,108 5,612
Exempt from Federal Income Taxes 511 408 971 830
Federal Funds Sold 131 236 224 319
-------------------------- --------------------------
Total Interest Income 16,270 15,486 32,331 30,659
INTEREST EXPENSE
Deposits 6,702 6,447 13,344 12,118
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 932 1,072 1,792 2,263
Note Payable 91 113 184 223
Other Borrowed Funds 30 38 65 90
Federal Home Loan Bank Advances 175 117 329 236
-------------------------- --------------------------
Total Interest Expense 7,930 7,787 15,714 14,930
-------------------------- --------------------------
NET INTEREST INCOME 8,340 7,699 16,617 15,729
Provision for Loan Losses 693 593 1,448 1,169
-------------------------- --------------------------
Net Interest Income after Provision
for Loan Losses 7,647 7,106 15,169 14,560
NON-INTEREST INCOME
Trust Fees 559 550 1,167 1,100
Service Charges on Deposit Accounts 713 577 1,297 1,157
Security (Losses) Gains 36 (12) 71 (67)
Other 602 637 1,171 1,069
--------------------------- -------------------------
Total Non-interest Income 1,910 1,752 3,706 3,259
NON-INTEREST EXPENSE
Salaries and Employee Benefits 3,093 2,871 6,211 5,805
Net Occupancy 749 697 1,493 1,422
Assessment an Deposits and Other Taxes 252 539 487 1,065
Professional Services 374 336 748 716
Equipment 423 382 792 719
Data Processing Services 282 258 555 539
Amortization of Goodwill and Other Intangibles 216 250 432 500
Other 1,245 1,096 2,423 2,279
-------------------------- --------------------------
Total Non-Interest Expense 6,634 6,429 13,141 13,045
-------------------------- --------------------------
Income before Federal Income Taxes 2,923 2,429 5,734 4,774
Income Tax Expense 745 614 1,483 1,228
-------------------------- --------------------------
NET INCOME $ 2,178 $ 1,815 $ 4,251 $ 3,546
Preferred Stock Dividends/Redemption (229) (269) (460) (538)
-------------------------- --------------------------
Net Income Applicable to Common Stock $ 1,949 $ 1,546 $ 3,791 $ 3,008
========================== ==========================
Per Common Share Data:
Primary Earnings $ 0.69 $ 0.61 $ 1.38 $ 1.19
Fully Diluted Earnings $ 0.65 $ 0.54 $ 1.26 $ 1.06
Dividends Declared $ 0.22 $ 0.19 $ 0.44 $ 0.38
Weighted Average Number of
Primary Common Shares Outstanding 2,821,956 2,528,432 2,747,911 2,524,136
</TABLE>
-4-
<PAGE> 5
SECOND BANCORP, INC. and SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months Ended June 30
--------------------------------
(Dollars in Thousands) 1996 1995
- ---------------------- ---- ----
<S> <C> <C>
OPERATING ACTIVITIES
- --------------------------------------------------------
Net Income $ 4,251 $ 3,546
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Loan Losses 1,448 1,169
Provision for Depreciation 597 530
Provision for Amortization of Intangibles 432 500
Amortization of Investment Discount and Premium 147 358
Amortization of Time Deposits with Banks and Other
Interest Bearing Assets Discount and Premium 0 0
Deferred Income Taxes (32) (97)
Securities (Gains) Losses (71) 66
Other Gains, net (227) (150)
(Increase) in Interest Receivable (46) 44
Increase In Interest Payable 284 822
Originations of Loans Held-for-Sale (6,739) (11,174)
Proceeds from Sale of Loans Held-for-Sale 6,961 7,106
(Increase) in Other Assets (894) (10,217)
(Decrease) Increase in Other Liabilities (1,238) (548)
--------------------
Net Cash Provided by (Used by) Operating Activities 4,873 (8,045)
INVESTING ACTIVITIES
- --------------------------------------------------------
Proceeds from Maturities of Securities - Held-to Maturity 0 9,035
Proceeds from Maturities of Securities - Available-for-Sale 47,268 7,522
Proceeds from Sales of Securities - Held-to-Maturity 0 1,991
Proceeds from Sales of Securities - Available-for-Sale 28,266 24,150
Purchases of Securities - Held-to-Maturity 0 (250)
Purchases of Securities - Available-for-Sale (72,565) (20,096)
Net (Increase) Decrease in Revolving Credit Receivables (1,612) (339)
Net Increase in Loans (26,193) (22,483)
Net Increase in Premises and Equipment (844) (419)
--------------------
Net Cash Provided by (Used by) Investing Activities (25,680) (889)
FINANCING ACTIVITIES
- --------------------------------------------------------
Net (Decrease) in Demand Deposits, Insured
Money Market and Interest Checking Accounts, and
Savings Deposits (21,962) (11,349)
Net Increase In Time Deposits 34,187 37,045
Net (Decrease) increase in Federal Funds Purchased
and Securities Sold Under Agreements
to Repurchase 3,415 (21,215)
Net Increase (Decrease) in Borrowings 1,866 2,326
Net Advances(Repayments) from Federal Home Loan Bank 4,627 (174)
Cash Dividends (1,797) (1,494)
Conversion/Redemption Preferred Stock (32)
Issuance of Common Stock 327 173
--------------------
Net Cash Provided by Financing Activities 20,631 5,312
--------------------
Increase in Cash and Cash Equivalents (176) (3,622)
--------------------
Cash and Cash Equivalents at Beginning of Year 32,461 30,546
--------------------
Cash and Cash Equivalents at End of Period $ 32,285 $ 26,924
====================
Supplementary Cash Flow Information:
Cash paid for 1) Federal Income taxes - $1,525,000 and $1,770,000 for the six months ended
June 30, 1996 and 1995, respectively and 2) Interest - $15,430,000 and $14,108,000
for the six months ended June 30, 1996 and 1995, respectively.
</TABLE>
-5-
<PAGE> 6
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY SECOND BANCORP, INC.
AND SUBSIDIARY
Unrealized
(Dollars in Thousands) Preferred Common Holding Retained
Stock Stock Losses Earnings Total
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1995 $ 13,235 $ 13,140 ($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 Gains (Losses) on
Available-for-Sale securities, net of tax 5,068 5,068
-----------------------------------------------------------
Balance, December 31, 1995 12,731 14,155 2,248 36,899 66,033
Net Income 4,251 4,251
Cash Dividends Declared
Common Stock (1,341) (1,341)
Preferred Stock (456) (456)
Issuance of Common Stock - Dividend
Reinvestment Plan 148 148
Exercise of Stock Options 179 179
Conversion and Redemption of Preferred Stock (12,556) 12,528 (4) (32)
Adjustment to Unrealized Gains (Losses) on
Available-for-Sale securities, net of tax (3,670) (3,670)
-----------------------------------------------------------
Balance, June 30, 1996 $ 175 $ 27,010 ($ 1,422) $ 39,349 $ 65,112
===========================================================
</TABLE>
-6-
<PAGE> 7
SECOND BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 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 six month periods ended June
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
1,866 preferred shares have been converted into common stock as of August 7,
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 June 30, 1996, the Company had consolidated total assets of $854 million,
deposits of $670 million and shareholders' equity of $65 million. Since June 30,
1995, total assets have grown by 7%. Loan growth remains strong with commercial
loans increasing by 11% from a year ago to approximately $289 million at June
30, 1996, while total earning assets have increased by 7% and now total $788
million or 92.3% of total assets. To accommodate the demand for commercial
lending , the Company deceased balances in consumer loans over the past year.
Funding growth has primarily been generated through time deposits. While
deposits have increased by 4.5% over the past year, time deposits have increased
by 14% to $368 million. Retail repurchase agreement accounts have also provided
funding for the Company, increasing, along with Federal funds purchased , to
over $90 million as of June 30, 1996 versus $73.5 million as of the same date in
1995.
RESULTS OF OPERATIONS
GENERAL. The Company achieved net income of $2,178,000 for the second quarter of
1996, 20% higher than the $1,815,000 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 $.69, up from the $.61 per share
reported for the second quarter of 1995. Fully diluted earnings per share were
$.65 for the second quarter of 1996, 20% greater than the $.54 per share
reported for the same period in 1995. Return on assets (ROA) and return on total
shareholders' equity (ROE) were 1.03% and 13.50% respectively for the second
quarter of 1996 compared to .90% and 12.37% for last year's second quarter.
NET INTEREST INCOME. The increase in net income for the second quarter of 1996
was in part due to an 8% increase in net interest income. Net interest income
was $8,340,000 for the second quarter of 1996 while net interest income for the
same period of 1995 was $7,699,000. The increase in net interest income for the
second quarter can be attributed to a 5.5% increase in average earning assets to
$788,153,000 for the most recent quarter coupled with an increase in net
interest margin from 4.30% for the second quarter of 1995 to 4.41% for the
latest quarter.
-8-
<PAGE> 9
NON-INTEREST INCOME. Non-interest income showed significant improvement over the
past year. For the second quarter of 1996, deposit service charge income
increased by $136,000, or 24%, over the second quarter of 1995. Trust fee income
was higher by $9,000 while other income totaled $602,000 for the second quarter
of 1996 versus $637,000 for the same period in 1995. i Security sales for the
quarter generated $36,000 in income compared to sales that generated a $12,000
loss for the second quarter of 1995.
NON-INTEREST EXPENSE. Second quarter 1996 expenses were 3% greater than for the
same period in 1995. Increases in the categories of salaries and employee
benefits (7.7%), net occupancy (7.5%), professional services (11.3%), equipment
(10.7%), data processing services (9.3%) and other expenses (13.6%) were
attributable to normal growth factors and were partially offset by decreases in
the assessment on deposits and other taxes and amortization of goodwill and
other intangibles. Assessments on deposits and other taxes expense decreased by
$287,000 from the second quarter of the prior year due to the decline in the
FDIC assessment rate for bank insured deposits.
ASSET QUALITY. The Company's asset quality position remained strong with its
reserve for loan losses standing at 1.20% of total loans at the end of the
second quarter and its non-performing loans representing only .95% of
quarter-end loans. This represents an improvement over the status of the same
ratios at the end of the second quarter of 1995. The reserve for loans losses
was 1.14% of loans and the non-performing loan ratio was .93% of loans as of
June 30, 1995. Net charge-offs averaged an annualized .52% of average loans for
the quarter which is down slightly from the level of .58% of average loans for
the second quarter of 1995.
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 10% over the past year, with retained
earnings increasing by 14.5%. Unrealized holding losses were $1,422,000 as of
June 30, 1996. The tier I leverage ratio was 7.34% as of June 30, 1996, up from
7.03% as of the same date in 1995. Similarly, risk based capital ratio increased
from 10.73% as of June 30, 1996 to 11.48% 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 are as follows:
On Issue 1 to set the number of Directors of the Board at seven:
For - 2,457,896; Against - 7,449; Abstain - 19,752
On Issue 2 regarding the vote for individual directors:
<TABLE>
<CAPTION>
For
---
<S> <C>
Alan G. Brant 2,400,430
John A. Anderson 2,400,833
J. C. Gibson 2,400,106
Robert J. Webster 2,396,756
</TABLE>
On Issue 3 regarding the retention of Ernst & Young as
Independent Auditors:
For: 2,459,364; Against - 8,006, Abstain - 15,226
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 did not file any reports on Form 8-K during the three months
ended June 30, 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: August 13, 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> 1
SECOND BANCORP, INCORPORATED AND SUBSIDIARY
STATEMENT 11 RE: COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
------- -------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
PRIMARY:
Average shares outstanding 2,800,173 2,518,701 2,723,624 2,515,224
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 21,783 9,731 24,287 8,912
---------- ---------- ---------- ----------
2,821,956 2,528,432 2,747,911 2,524,136
Net income applicable to Common Stock $ 1,949 $ 1,546 $ 3,791 $ 3,008
Per share amount $ 0.69 $ 0.61 $ 1.38 $ 1.19
FULLY DILUTED,
Average shares outstanding 2,800,173 2,518,701 2,723,624 2,515,224
Net effect of dilutive stock options -
based on the treasury stock method
using average market price or period-
end market price, whichever is higher 23,322 15,754 24,287 15,754
Assumed conversion of $1.50 Preferred
Stock Series A-1 550,150 800,853 624,237 802,093
---------- ---------- ---------- ----------
3,373,645 3,335,308 3,372,148 3,333,071
Net Income $ 2,178 $ 1,815 $ 4,251 $ 3,546
Per share amount $ 0.65 $ 0.54 $ 1.26 $ 1.06
</TABLE>
-12-
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000803112
<NAME> SECOND BANCORP INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 32,285
<INT-BEARING-DEPOSITS> 596,707
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 227,930
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 560,550
<ALLOWANCE> 6,751
<TOTAL-ASSETS> 854,170
<DEPOSITS> 670,076
<SHORT-TERM> 5,030
<LIABILITIES-OTHER> 6,572
<LONG-TERM> 12,023
<COMMON> 27,010
0
175
<OTHER-SE> 39,349
<TOTAL-LIABILITIES-AND-EQUITY> 854,170
<INTEREST-LOAN> 25,028
<INTEREST-INVEST> 7,079
<INTEREST-OTHER> 224
<INTEREST-TOTAL> 32,331
<INTEREST-DEPOSIT> 13,344
<INTEREST-EXPENSE> 15,714
<INTEREST-INCOME-NET> 16,617
<LOAN-LOSSES> 1,448
<SECURITIES-GAINS> 71
<EXPENSE-OTHER> 2,423
<INCOME-PRETAX> 5,734
<INCOME-PRE-EXTRAORDINARY> 5,734
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,791
<EPS-PRIMARY> 1.38
<EPS-DILUTED> 1.26
<YIELD-ACTUAL> 8.20
<LOANS-NON> 3,428
<LOANS-PAST> 1,231
<LOANS-TROUBLED> 142
<LOANS-PROBLEM> 11,060
<ALLOWANCE-OPEN> 6,748
<CHARGE-OFFS> 1,863
<RECOVERIES> 418
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
