~~Dec.~~UNITED ~~2003~~STATES SECURITIES ~~Sept.~~AND ~~2003~~EXCHANGE ~~June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- EARNINGS: Net interest income $ 14~~COMMISSION Washington,~~181~~ $ 13,817 $ 13,790 $ 14,083 $ 13,946 Provision for loan losses 1,486 1,096 2,855 2,173 2,350 Non-interest income 5,581 3,491 10,700 14,211 7,314 Security gains (losses) 967 3,566 0 51 (67) Trading account losses 0 0 0 0 0 Non-interest expense 13,998 13,076 14,016 13,673 14,575 Federal income taxes 1,096 1,795 2,181 3,838 840 ----------- ----------- ----------- ----------- ----------- NET INCOME $ 4,149 $ 4,907 $ 5,438 $ 8,661 $ 3,428 =========== =========== =========== =========== =========== PER SHARE: Basic earnings 0D.~~44 0~~C.52 0.57 0.90 0.35 Diluted earnings 0.43 0.51 0.57 0.89 0.34 Common dividends 0.19 0.19 0.19 0.19 0.18 Book value 14.47 14.34 14.81 14.36 13.91 Tangible book value 12.17 12.05 12.40 11.95 11.69 Market value 26.40 27.24 25.80 22.15 26.50 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 9,471,371 9,474,925 9,484,646 9,620,401 9,835,995 Diluted 9,616,188 9,610,350 9,575,001 9,714,253 9,967,373 PERIOD END BALANCE SHEET: Assets $ 2,116,530 $ 2,074,750 $ 1,926,233 $ 1,909,027 $ 1,894,775 Securities 620,696 602,893 556,434 539,309 523,669 Total loans 1,349,820 1,301,618 1,199,630 1,215,481 1,167,791 Allowance for loan losses 18,874 18,372 18,030 17,756 17,595 Deposits 1,215,342 1,165,281 1,172,816 1,121,866 1,195,112 Total shareholders' equity 137,016 135,799 140,215 136,369 136,334 Tier I capital 146,397 144,583 140,335 137,595 138,000 Tier I ratio 10.2% 10.4% 10.8% 10.5% 10.8% Total capital 164,396 161,946 156,613 154,010 153,925 Total capital ratio 11.4% 11.7% 12.0% 11.7% 12.1% Total risk-adjusted assets 1,439,030 1,388,065 1,300,512 1,311,849 1,272,335 Tier I leverage ratio 7.1% 7.3% 7.6% 7.5% 7.7% AVERAGE BALANCE SHEET: Assets $ 2,092,553 $ 2,004,789 $ 1,908,978 $ 1,869,524 $ 1,825,714 Earning assets 1,957,682 1,871,145 1,789,611 1,750,900 1,712,604 Loans 1,317,153 1,245,980 1,197,300 1,177,617 1,171,162 Deposits 1,196,389 1,157,817 1,159,719 1,135,681 1,180,609 Shareholders' equity 133,653 134,844 139,269 135,254 137,229 KEY RATIOS: (%) Return on average assets (ROA) 0.79 0.98 1.14 1.85 0.75 Return on average shareholders' equity (ROE) 12.42 14.56 15.62 25.61 9.99 Net interest margin 3.00 3.06 3.19 3.33 3.38 Net overhead 1.72 2.05 0.74 (0.12) 1.70 Efficiency ratio 69.12 73.49 56.10 47.48 66.94 CREDIT QUALITY: Non-accrual loans $ 13,348 $ 12,735 $ 12,238 $ 12,709 $ 13,123 Restructured loans 1,017 461 340 374 378 90 day past due and accruing 8,879 8,625 7,231 6,623 5,692 ----------- ----------- ----------- ----------- ----------- Non-performing loans 23,244 21,821 19,809 19,706 19,193 Other real estate owned 713 753 621 1,270 1,371 ----------- ----------- ----------- ----------- ----------- Non-performing assets $ 23,957 $ 22,574 $ 20,430 $ 20,976 $ 20,564 =========== =========== =========== =========== =========== Charge-offs $ 1,111 $ 918 $ 2,721 $ 2,213 $ 2,558 Recoveries 126 165 139 201 360 ----------- ----------- ----------- ----------- ----------- Net charge-offs $ 985 $ 753 $ 2,582 $ 2,012 $ 2,198 =========== =========== =========== =========== =========== Allowance for loan losses as a percent of period-end loans (%) 1.40 1.41 1.50 1.46 1.51 Net charge-offs (annualized) as a percent of average loans (%) 0.30 0.24 0.86 0.68 0.75 Non-performing loans as a percent of loans 1.72 1.68 1.65 1.62 1.64 Non-performing assets as a percent of assets 1.13 1.09 1.06 1.10 1.0920549

~~Dec.~~FORM 2003 Sept. 2003 June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- EARNINGS: Net interest income $ 55,871 $ 41,690 $ 27,873 $ 14,083 $ 56,460 Provision for loan losses 7,610 6,124 5,028 2,173 6,159 Non-interest income 33,983 28,402 24,911 14,211 22,853 Security gains (losses) 4,584 3,617 51 51 592 Trading account losses 0 0 0 0 (20) Non-interest expense 54,763 40,765 27,689 13,673 49,496 Federal income taxes 8~~,910 7,814 6,019 3,838 6,230~~ -~~----------~~K CURRENT ----------- ----------- ----------- ----------- NET INCOME $ 23,155 $ 19,006 $ 14,099 $ 8,661 $ 18,000 =========== =========== =========== =========== =========== PER SHARE: Basic earnings 2.43 1.99 1.48 0.90 1.82 Diluted earnings 2.41 1.97 1.46 0.89 1.79 Common dividends 0.76 0.57 0.38 0.19 0.72 Book value 14.47 14.34 14.81 14.36 13.97 Tangible book value 12.17 12.05 12.40 11.95 11.75 Market value 26.40 27.24 25.80 22.15 26.50 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 9,512,324 9,526,125 9,552,149 9,620,401 9,905,832 Diluted 9,623,388 9,631,663 9,644,621 9,714,253 10,040,001 PERIOD END BALANCE SHEET: Assets $ 2,116,530 $ 2,074,750 $ 1,926,233 $ 1,909,027 $ 1,894,775 Securities 620,696 602,893 556,434 539,309 523,669 Total loans 1,349,820 1,301,618 1,199,630 1,215,481 1,167,791 Allowance for loan losses 18,874 18,372 18,030 17,756 17,595 Deposits 1,215,342 1,165,281 1,172,816 1,121,866 1,195,112 Total shareholders' equity 137,016 135,799 140,215 136,369 136,334 Tier I capital 146,397 144,583 140,335 137,595 138,000 Tier I ratio 10.2% 10.4% 10.8% 10.5% 10.8% Total capital 164,396 161,946 156,613 154,010 153,925 Total capital ratio 11.4% 11.7% 12.0% 11.7% 12.1% Total risk-adjusted assets 1,439,030 1,388,065 1,300,512 1,311,849 1,272,335 Tier I leverage ratio 7.1% 7.3% 7.6% 7.5% 7.7% AVERAGE BALANCE SHEET: Assets $ 1,969,670 $ 1,928,259 $ 1,889,360 $ 1,869,524 $ 1,754,156 Earning assets 1,842,980 1,804,326 1,770,363 1,750,900 1,642,907 Loans 1,234,926 1,207,216 1,187,513 1,177,617 1,121,777 Deposits 1,162,555 1,151,153 1,147,766 1,135,681 1,159,350 Shareholders' equity 135,748 136,454 137,273 135,254 134,178 KEY RATIOS: (%) Return on average assets (ROA) 1.18 1.31 1.49 1.85 1.03 Return on average shareholders' equity (ROE) 17.06 18.57 20.54 25.61 13.42 Net interest margin 3.14 3.19 3.26 3.33 3.56 Net overhead 1.13 0.91 0.31 (0.12) 1.62 Efficiency ratio 59.63 56.95 51.48 47.48 60.81 CREDIT QUALITY: Non-accrual loans $ 13,348 $ 12,735 $ 12,238 $ 12,709 $ 13,123 Restructured loans 1,017 461 340 374 378 90 day past due and accruing 8,879 8,625 7,231 6,623 5,692 ----------- ----------- ----------- ----------- ----------- Non-performing loans 23,244 21,821 19,809 19,706 19,193 Other real estate owned 713 753 621 1,270 1,371 ----------- ----------- ----------- ----------- ----------- Non-performing assets $ 23,957 $ 22,574 $ 20,430 $ 20,976 $ 20,564 =========== =========== =========== =========== =========== Charge-offs $ 6,963 $ 5,852 $ 4,934 $ 2,213 $ 6,584 Recoveries 631 505 340 201 1,325 ----------- ----------- ----------- ----------- ----------- Net charge-offs $ 6,332 $ 5,347 $ 4,594 $ 2,012 $ 5,259 =========== =========== =========== =========== =========== Allowance for loan losses as a percent of period-end loans (%) 1.40 1.41 1.50 1.46 1.51 Net charge-offs (annualized) as a percent of average loans (%) 0.51 0.59 0.77 0.68 0.47 Non-performing loans as a percent of loans 1.72 1.68 1.65 1.62 1.64 Non-performing assets as a percent of assets 1.13 1.09 1.06 1.10 1.09REPORT

~~Dec.~~Pursuant 2003 Sept. 2003 June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- INTEREST INCOME Loans (including fees): Taxable $ 19,286 $ 18,950 $ 18,814 $ 18,605 $ 19,637 Exempt from federal income taxes 209 212 206 211 219 Securities: Taxable 5,819 5,348 5,518 6,234 5,566 Exempt from federal income taxes 703 689 714 728 735 Federal funds sold and other temp. investments 27 30 136 123 154 ----------- ----------- ----------- ----------- ----------- Total interest income 26,044 25,229 25,388 25,901 26,311 INTEREST EXPENSE Deposits 5,338 5,118 5,563 5,779 6,771 Federal funds purchased and securities sold under agreements to repurchase 682 613 596 581 700 Note Payable 47 50 54 63 28 Other borrowed funds 3 2 3 3 14 Federal Home Loan Bank advances 4,971 4,895 4,649 4,659 4,119 Debentures and capital securities 822 734 733 733 733 ----------- ----------- ----------- ----------- ----------- Total interest expense 11,863 11,412 11,598 11,818 12,365 ----------- ----------- ----------- ----------- ----------- Net interest income 14,181 Section 13~~,817~~ ~~13,790~~or 14,083 13,946 Provision for loan losses 1,486 1,096 2,855 2,173 2,350 ----------- ----------- ----------- ----------- ----------- Net interest income after provision for loan losses 12,695 12,721 10,935 11,910 11,596 NON-INTEREST INCOME Mortgage banking income 441 15(~~1,157~~d) ~~6,550 4,358 2,658 Service charges on deposit accounts 1,628 1,549 1,555 1,527 1,587 Trust fees 757 631 563 609 637 Security gains (losses) 967 3,566 0 51 (67) Gain on sale~~ of ~~banking~~the ~~centers~~Securities 0Exchange 0Act 0 5,619 0 Other operating income 2,755 2,468 2,032 2,098 2,432 ----------- ----------- ----------- ----------- ----------- Total non-interest income 6,548 7,057 10,700 14,262 7,247 NON-INTEREST EXPENSE Salaries and employee benefits 7,636 6,701 7,642 7,604 7,217 Net occupancy 1,236 1,180 1,125 1,199 1,099 Equipment 909 1,045 1,059 1,039 742 Professional services 805 707 1,138 767 648 Assessment on deposits and other taxes 222 501 388 392 354 Amortization of intangible assets 124 113 112 118 144 Merger costs 0 0 0 0 10 Banking center reconfiguration 0 0 0 0 2,096 Other operating expenses 3,066 2,829 2,552 2,554 2,265 ----------- ----------- ----------- ----------- ----------- Total non-interest expense 13,998 13,076 14,016 13,673 14,575 ----------- ----------- ----------- ----------- ----------- Income before federal income taxes 5,245 6,702 7,619 12,499 4,268 Income tax expense 1,096 1,795 2,181 3,838 840 ----------- ----------- ----------- ----------- ----------- Net income $ 4,149 $ 4,907 $ 5,438 $ 8,661 $ 3,428 =========== =========== =========== =========== =========== NET INCOME PER COMMON SHARE: Basic $ 0.44 $ 0.52 $ 0.57 $ 0.90 $ 0.35 Diluted $ 0.43 $ 0.51 $ 0.57 $ 0.89 $ 0.34 Weighted average common shares outstanding: Basic 9,471,371 9,474,925 9,484,646 9,620,401 9,835,995 Diluted 9,616,188 9,610,350 9,575,001 9,714,253 9,967,373 Note: Fully taxable equivalent adjustment $ 491 $ 485 $ 495 $ 506 $ 5141934

~~Dec.~~Date ~~2003~~of ~~Sept. 2003 June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- INTEREST INCOME Loans (including fees)~~Report: Taxable $ 75,655 $ 56,369 $ 37,419 $ 18,605 $ 79,671 Exempt from federal income taxes 838 629 417 211 922 Securities: 0 Taxable 22,919 17,100 11,752 6,234 22,648 Exempt from federal income taxes 2,834 2,131 1,442 728 2,946 Federal funds sold and other temp. investments 316 289 259 123 1,085 ----------- ----------- ----------- ----------- ----------- Total interest income 102,562 76,518 51,289 25,901 107,272 INTEREST EXPENSE Deposits 21,798 16,460 11,342 5,779 29,400 Federal funds purchased and securities sold under agreements to repurchase 2,472 1,790 1,177 581 2,499 Note Payable 214 167 117 63 38 Other borrowed funds 11 8 6 3 42 Federal Home Loan Bank advances 19,174 14,203 9,308 4,659 15,900 Debentures and capital securities 3,022 2,200 1,466 733 2,933 ----------- ----------- ----------- ----------- ----------- Total interest expense 46,691 34,828 23,416 11,818 50,812 ----------- ----------- ----------- ----------- ----------- Net interest income 55,871 41,690 27,873 14,083 56,460 Provision for loan losses 7,610 6,124 5,028 2,173 6,159 ----------- ----------- ----------- ----------- ----------- Net interest income after provision for loan losses 48,261 35,566 22,845 11,910 50,301 NON-INTEREST INCOME Mortgage banking revenue 10,194 9,751 10,908 4,358 6,409 Service charges on deposit accounts 6,259 4,631 3,082 1,527 5,823 Trust fees 2,560 1,803 1,172 609 2,715 Trading account losses 0 0 0 0 (20) Security gains (losses) 4,584 3,617 51 51 592 Gain on sale of banking centers 5,619 5,619 5,619 5,619 0 Other operating income 9,351 6,598 4,130 2,098 7,906 ----------- ----------- ----------- ----------- ----------- Total non-interest income 38,567 32,019 24,962 14,262 23,425 NON-INTEREST EXPENSE Salaries and employee benefits 29,583 21,947 15,246 7,604 May 26,~~345~~ Net occupancy 4,740 3,504 2,324 1,199 4,480 Equipment 4,052 3,143 2,098 1,039 3,898 Professional services 3,417 2,612 1,905 767 2,139 Assessment on deposits and other taxes 1,503 1,281 780 392 1,397 Amortization of intangible assets 467 343 230 118 475 Merger costs 0 0 0 0 134 Banking center reconfiguration 0 0 0 0 2,096 Other operating expenses 11,001 7,935 5,106 2,554 8,532 ----------- ----------- ----------- ----------- ----------- Total non-interest expense 54,763 40,765 27,689 13,673 49,496 ----------- ----------- ----------- ----------- ----------- Income before federal income taxes 32,065 26,820 20,118 12,499 24,230 Income tax expense 8,910 7,814 6,019 3,838 6,230 ----------- ----------- ----------- ----------- ----------- Net income $ 23,155 $ 19,006 $ 14,099 $ 8,661 $ 18,000 ----------- ----------- ----------- ----------- ----------- NET INCOME PER COMMON SHARE: Basic $ 2.43 $ 1.99 $ 1.48 $ 0.90 $ 1.82 Diluted $ 2.41 $ 1.97 $ 1.46 $ 0.89 $ 1.79 Weighted average common shares outstanding: Basic 9,512,324 9,526,125 9,552,149 9,620,401 9,905,832 Diluted 9,623,388 9,631,663 9,644,621 9,714,253 10,040,001 Note: Fully taxable equivalent adjustment $ 1,977 $ 1,486 $ 1,001 $ 506 $ 2,0832004

~~Dec.~~Second 31Bancorp ~~Sept.~~Incorporated 30 June 30 March 31 Dec. 31 2003 2003 2003 2003 2002 ----------- ----------- ----------- ----------- ----------- ASSETS Cash and due from banks $ 40,773 $ 57,305 $ 42,194 $ 43,334 $ 60,822 Federal funds sold and other temp. investments 6,529 13,128 44,505 29,523 61,449 Securities available-for-sale (atExact ~~market~~name value) 620,696 602,893 556,434 539,309 523,669 Loans: Commercial 631,170 598,762 571,788 558,499 542,693 Consumer 399,137 372,826 339,723 325,819 322,840 Real estate (including loans held for sale) 319,513 330,030 288,119 331,163 302,258 ----------- ----------- ----------- ----------- ----------- Total loans 1,349,820 1,301,618 1,199,630 1,215,481 1,167,791 Less allowance for loan losses 18,874 18,372 18,030 17,756 17,595 ----------- ----------- ----------- ----------- ----------- Net loans 1,330,946 1,283,246 1,181,600 1,197,725 1,150,196 Premises and equipment 19,013 17,944 17,048 16,125 16,632 Accrued interest receivable 8,501 8,710 8,289 9,414 8,762 Goodwill and intangible assets 20,047 20,117 20,230 20,343 20,422 Servicing assets 20,936 19,827 14,880 13,743 12,403 Other assets 49,089 51,580 41,053 39,511 40,420 ----------- ----------- ----------- ----------- ----------- Total assets $ 2,116,530 $ 2,074,750 $ 1,926,233 $ 1,909,027 $ 1,894,775 =========== =========== =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand - non-interest bearing $ 170,176 $ 165,242 $ 155,285 $ 155,892 $ 179,714 Demand - interest bearing 142,709 164,186 204,430 147,747 103,583 Savings 346,851 350,231 347,722 363,443 405,437 Time deposits 555,606 485,622 465,379 454,784 506,378 ----------- ----------- ----------- ----------- ----------- Total deposits 1,215,342 1,165,281 1,172,816 1,121,866 1,195,112 Federal funds purchased and securities sold under agreements to repurchase 216,761 238,047 175,011 206,069 138,796 Note payable 7,750 7,750 7,750 14,000 7,000 Other borrowed funds 1,301 1,579 1,219 155 3,863 Accrued expenses and other liabilities 14,524 17,562 19,612 20,089 17,331 Federal Home Loan Bank advances 492,299 478,198 379,089 379,971 365,844 Debentures 31,537 0 0 0 0 Corporation-obligated mandatorily redeemable capital securities of ~~subsidiary~~registrant ~~trust~~as 0specified 30,534 30,521 30,508 30,495 ----------- ----------- ----------- ----------- ----------- Total liabilities 1,979,514 1,938,951 1,786,018 1,772,658 1,758,441 Shareholders' equity: Common stock, no par value; 30,000,000 shares authorized; 42,973 42,815 41,750 41,745 41,763 Treasury stock (36,173) (36,173) (34,771) (33,740) (27,180) Other comprehensive income (834) 457 7,642 6,410 6,656 Retained earnings 131,050 128,700 125,594 121,954 115,095 ----------- ----------- ----------- ----------- ----------- Total shareholders' equity 137,016 135,799 140,215 136,369 136,334 ----------- ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $ 2,116,530 $ 2,074,750 $ 1,926,233 $ 1,909,027 $ 1,894,775 =========== =========== =========== =========== =========== Miscellaneous data: Common shares issued 10,991,460 10,990,460 10,936,760 10,922,720 11,041,263 Treasury shares 1,520,089 1,520,089 1,468,541 1,426,841 1,279,009 Bank owned life insurance (in ~~other~~its ~~assets~~charter) $ 34,742 $ 34,149 $ 33,769 $ 33,489 $ 33,086 Loans serviced for others $ 1,750,733 $ 1,692,880 $ 1,631,790 $ 1,463,926 $ 1,320,316 Goodwill $ 16,700 $ 16,647 $ 16,647 $ 16,647 $ 16,708 Other intangibles 3,347 3,470 3,583 3,696 3,714 ----------- ----------- ----------- ----------- ----------- Total goodwill and intangible assets $ 20,047 $ 20,117 $ 20,230 $ 20,343 $ 20,422 =========== =========== =========== =========== =========== Mortgage servicing rights (net of allowance) $ 20,512 $ 19,378 $ 14,429 $ 13,299 $ 11,967 Other servicing assets 424 449 451 444 436 ----------- ----------- ----------- ----------- ----------- $ 20,936 $ 19,827 $ 14,880 $ 13,743 $ 12,403 =========== =========== =========== =========== =========== Valuation allowance for mortgage servicing rights included above $ (2,393) $ (2,774) $ (6,304) $ (4,783) $ (3,794) =========== =========== =========== =========== ===========

ASSETS Dec. 2003 Sept. 2003 June 2003 March 2003 Dec. 2002 ------ --------- ---------- --------- ---------- --------- Cash and demand balances due from banks $ 40,524 $ 43,675 $ 37,686 $ 38,392 $ 35,454 Federal funds sold and other temp. investments 12,219 14,697 50,390 44,849 47,197 Securities: Trading 0 0 0 0 0 Available-for-sale 628,310 610,468 541,921 528,434 494,245 ----------- ----------- ----------- ----------- ----------- Total securities 628,310 610,468 541,921 528,434 494,245 Loans: Commercial 613,183 584,553 562,499 551,882 533,996 Consumer 389,303 353,299 336,303 324,729 323,939 Real estate (including loans held for sale) 314,667 308,128 298,498 301,006 313,227 ----------- ----------- ----------- ----------- ----------- Total loans 1,317,153 1,245,980 1,197,300 1,177,617 1,171,162 Allowance for loan losses 18,463 18,137 17,787 17,566 17,345 ----------- ----------- ----------- ----------- ----------- Net loans 1,298,690 1,227,843 1,179,513 1,160,051 1,153,817 Premises and equipment 19,020 17,666 16,828 16,508 16,611 Goodwill and intangible assets 20,076 20,166 20,282 20,461 19,676 Servicing assets 20,105 17,377 14,859 13,310 11,832 Other 53,609 52,897 47,499 47,519 46,882 ----------- ----------- ----------- ----------- ----------- Total assets $ 2,092,553 $ 2,004,789 $ 1,908,978 $ 1,869,524 $ 1,825,714 =========== =========== =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Demand deposits (non-interest bearing) $ 167,689 $ 161,281 $ 159,636 $ 153,223 $ 156,607 Demand deposits (interest bearing) 152,202 187,231 183,323 117,469 100,240 Savings 353,391 346,965 356,281 382,673 411,109 Time deposits 523,107 462,340 460,479 482,316 512,653 ----------- ----------- ----------- ----------- ----------- Total deposits 1,196,389 1,157,817 1,159,719 1,135,681 1,180,609 Federal funds purchased and securities sold under agreements to repurchase 230,115 208,549 178,618 164,329 165,504 Note payable 7,749 7,750 8,369 9,733 4,107 Borrowed funds 370 563 186 455 1,281 Accrued expenses and other liabilities 15,693 17,626 18,243 17,863 14,306 Federal Home Loan Bank advances 478,044 447,116 374,061 375,710 291,957 Debentures and capital securities 30,540 30,524 30,513 30,499 30,721 ----------- ----------- ----------- ----------- ----------- Total liabilities 1,958,900 1,869,945 1,769,709 1,734,270 1,688,485 Shareholders' equity: Common stock 42,839 42,506 41,747 41,757 41,153 Treasury shares (36,172) (35,646) (34,127) (30,666) (25,050) Other comprehensive income (2,128) 939 7,434 6,778 7,032 Retained earnings 129,114 127,045 124,215 117,385 114,094 ----------- ----------- ----------- ----------- ----------- Total shareholders' equity 133,653 134,844 139,269 135,254 137,229 ----------- ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $ 2,092,553 $ 2,004,789 $ 1,908,978 $ 1,869,524 $ 1,825,714 =========== =========== =========== =========== ===========


Ohio	0-15624	34-1547453

(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

ASSETS Dec. 2003 Sept. 2003 June 2003 March 2003 Dec. 2002 ------ --------- ---------- --------- ---------- --------- Cash and demand balances due from banks $ 40,085 $ 39,937 $ 38,037 $ 38,392 $ 34,606 Federal funds sold 30,406 36,535 47,635 44,849 68,503 Securities: Trading 0 0 0 0 40 Available-for-sale 577,648 560,575 535,215 528,434 452,587 ----------- ----------- ----------- ----------- ----------- Total securities 577,648 560,575 535,215 528,434 452,627 Loans: Commercial 578,215 566,431 557,220 551,882 517,185 Consumer 351,092 338,215 330,548 324,729 313,760 Real estate (including loans held for sale) 305,619 302,570 299,745 301,006 290,832 ----------- ----------- ----------- ----------- ----------- Total loans 1,234,926 1,207,216 1,187,513 1,177,617 1,121,777 Allowance for loan losses 17,991 17,832 17,677 17,566 16,992 ----------- ----------- ----------- ----------- ----------- Net loans 1,216,935 1,189,384 1,169,836 1,160,051 1,104,785 Premises and equipment 17,513 17,005 16,669 16,508 16,602 Goodwill and intangible assets 20,245 20,302 20,371 20,461 19,018 Servicing assets 16,434 15,197 14,089 13,310 10,520 Other 50,404 49,324 47,508 47,519 47,495 ----------- ----------- ----------- ----------- ----------- Total assets $ 1,969,670 $ 1,928,259 $ 1,889,360 $ 1,869,524 $ 1,754,156 =========== =========== =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Demand deposits (non-interest bearing) $ 160,499 $ 158,076 $ 156,447 $ 153,223 $ 146,598 Demand deposits (interest bearing) 160,226 162,930 150,578 117,469 101,222 Savings 359,712 361,842 369,404 382,673 374,313 Time deposits 482,118 468,305 471,337 482,316 537,217 ----------- ----------- ----------- ----------- ----------- Total deposits 1,162,555 1,151,153 1,147,766 1,135,681 1,159,350 Federal funds purchased and securities sold under agreements to repurchase 195,619 183,994 171,513 164,329 136,041 Note payable 8,393 8,610 9,047 9,733 1,335 Borrowed funds 394 402 320 455 1,726 Accrued expenses and other liabilities 17,351 17,910 18,054 17,863 12,000 Federal Home Loan Bank advances 419,091 399,224 374,881 375,710 278,998 Debentures and capital securities 30,519 30,512 30,506 30,499 30,528 ----------- ----------- ----------- ----------- ----------- Total liabilities 1,833,922 1,791,805 1,752,087 1,734,270 1,619,978 Shareholders' equity: Common stock 42,216 42,006 41,752 41,757 39,177 Treasury shares (34,172) (33,498) (32,406) (30,666) (20,590) Net unrealized holding gains 3,225 5,029 7,108 6,778 5,996 Retained earnings 124,479 122,917 120,819 117,385 109,595 ----------- ----------- ----------- ----------- ----------- Total shareholders' equity 135,748 136,454 137,273 135,254 134,178 ----------- ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $ 1,969,670 $ 1,928,259 $ 1,889,360 $ 1,869,524 $ 1,754,156 =========== =========== =========== =========== ===========


108 Main Avenue S.W., Warren, Ohio		44482-1311

(Address of principal executive offices)		(Zip Code)

~~Dec.~~Registrant’s ~~2003~~telephone ~~Sept.~~number, ~~2003~~including ~~June~~area ~~2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- EARNINGS~~code: ~~Net interest income $ 14,181 $ 13,817 $ 13,790 $ 14,083 $ 13,946 Provision for loan losses 1,486 1,096 2,855 2,173 2,350 Non~~330-~~interest income 5,581 3,491 10,700 8,592 7,314 Security gains (losses) 967 3,566 0 51 (67) Trading account losses 0 0 0 0 0 Non~~841-interest expense 13,998 13,076 14,016 13,673 12,469 Federal income taxes 1,096 1,795 2,181 1,871 1,577 ---------- ---------- ---------- ---------- ---------- NET INCOME $ 4,149 $ 4,907 $ 5,438 $ 5,009 $ 4,797 ========== ========== ========== ========== ========== KEY RATIOS: (%) Return on average assets (ROA) 0.79 0.98 1.14 1.07 1.05 Return on average shareholders' equity (ROE) 12.42 14.56 15.62 14.81 13.98 Net interest margin 3.00 3.06 3.19 3.33 3.38 Net overhead 1.72 2.05 0.74 1.16 1.20 Efficiency ratio 69.12 73.49 56.10 58.98 57.270123

~~Dec.~~Item ~~2003 Sept~~5. ~~2003~~Other June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- Net income $ 4,149 $ 4,907 $ 5,438 $ 8,661 $ 3,428 Adjustments to GAAP to reflect Non-GAAP Operating Basis: Add non-recurring costs: Sale of banking centers 0 0 0 (5,619) 0 Merger costs 0 0 0 0 10 Banking center reconfiguration 0 0 0 0 2,096 ---------- ---------- ---------- ---------- ---------- Total adjustments 0 0 0 (5,619) 2,106 Federal income taxes (benefit) 0 0 0 (1,967) 737 ---------- ---------- ---------- ---------- ---------- Adjusted net income $ 4,149 $ 4,907 $ 5,438 $ 5,009 $ 4,797 ========== ========== ========== ========== ==========Events

~~Dec.~~On ~~2003 Sept. 2003 June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- Gross income from servicing $ 947 $ 1~~May 26,~~052~~ ~~$ 986 $ 903 $ 764 Amortization of MSRs (790) (2~~2004,~~723)~~ ~~(2,101)~~the ~~(1,549)~~Company ~~(2,322)~~issued ~~(Excess~~the ~~amortization)~~following /press net servicing income 157 (1,671) (1,115) (646) (1,558) Change in valuation allowance MSRs 381 3,530 (1,522) (989) (707) Net derivative gain (loss) - non hedging (834) (6,759) 3,035 1,805 (425) ---------- ---------- ---------- ---------- ---------- Income (loss) from Mortgage Servicing (296) (4,900) 398 170 (2,690) Gain on sale of mortgage loans 737 3,743 6,152 4,188 5,348 Net mortgage banking revenue (loss) $ 441 $ (1,157) $ 6,550 $ 4,358 $ 2,658 ========== ========== ========== ========== ==========release:

~~Dec.~~SECOND ~~2003~~BANCORP ~~Sept.~~ANNOUNCES SECOND ~~2003~~QUARTER June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- EARNINGS: Net interest income $ 55,871 $ 41,690 $ 27,873 $ 14,083 $ 56,460 Provision for loan losses 7,610 6,124 5,028 2,173 6,159 Non-interest income 28,364 22,783 19,292 8,592 22,853 Security gains (losses) 4,584 3,617 51 51 592 Trading account losses 0 0 0 0 (20) Non-interest expense 54,763 40,765 27,689 13,673 47,266 Federal income taxes 6,943 5,847 4,052 1,871 7,011 ---------- ---------- ---------- ---------- ---------- NET INCOME $ 19,503 $ 15,354 $ 10,447 $ 5,009 $ 19,449 ========== ========== ========== ========== ========== KEY RATIOS: (%) Return on average assets (ROA) 0.99 1.06 1.11 1.07 1.11 Return on average shareholders' equity (ROE) 14.37 15.00 15.22 14.81 14.49 Net interest margin 3.14 3.19 3.26 3.33 3.56 Net overhead 1.43 1.33 0.95 1.16 1.49 Efficiency ratio 63.52 61.80 57.49 58.98 58.07DIVIDEND

~~Dec. 2003 Sept. 2003 June 2003 March 2003 Dec. 2002 --------- ---------- --------- ---------- --------- Net income $ 23~~Warren,~~155~~ ~~$ 19~~Ohio,~~006~~ ~~$ 14~~May 26,~~099~~ $2004—SECOND ~~8,661~~BANCORP $INCORPORATED ~~18,000 Adjustments to GAAP to reflect Non-GAAP Operating Basis: Add non-recurring costs: ---------- ---------- ---------- ---------- ---------- Sale of banking centers~~ (~~5,619)~~Nasdaq (5“SECD”,~~619~~ “SECDP”) ~~(5,619)~~announced ~~(5,619)~~that 0its ~~Merger~~Board ~~costs~~of 0Directors 0has 0declared 0a ~~134~~nineteen ~~Banking center reconfiguration 0 0 0 0 2,096 Total adjustments~~ cent (~~5,619~~$.19) ~~(5,619)~~per ~~(5,619)~~common ~~(5,619)~~share ~~2,230~~dividend ~~Federal~~payable ~~income taxes (benefit) (1~~July 6,~~967)~~ ~~(1,967)~~2004 ~~(1,967)~~to ~~(1,967)~~Second ~~781~~Bancorp shareholders ~~----------~~of ~~----------~~record ~~----------~~on ~~---------- ---------- Adjusted net income $ 19~~June 29,~~503~~ $2004. ~~15,354~~That $dividend ~~10,447~~is $unchanged ~~5,009~~from $the previous ~~19,449 ========== ========== ========== ========== ==========~~quarter.

~~Dec.~~The ~~2003~~dividend, ~~Sept.~~payable ~~2003~~after ~~June~~Second ~~2003~~Bancorp’s ~~March~~scheduled ~~2003 Dec. 2002 --------- ---------- --------- ---------- --------- Gross income from servicing $ 3,888 $ 2,941 $~~ July 1,~~889~~ $2004 ~~903~~merger $with and ~~2,691~~into ~~Amortization~~Sky ofFinancial ~~MSRs (7~~Group,~~163)~~ (6Inc.,~~373)~~ ~~(3,650)~~is ~~(1,549)~~being ~~(4,335)~~paid ~~----------~~under ~~----------~~“Dividend ~~----------~~Coordination” language ~~----------~~contained ~~---------- (Excess amortization) / net servicing income (3,275) (3,432) (1,761) (646) (1,644) Change~~ in ~~valuation~~the ~~allowance MSRs 1~~January 8,~~400~~ ~~1,019~~2004 ~~(2,511)~~Agreement ~~(989)~~and ~~(2,984)~~Plan ~~Net~~of ~~derivative~~Merger ~~gain~~between the ~~(loss)~~companies. -That ~~non~~language ~~hedging~~protects ~~(2,753)~~Second ~~(1,919)~~Bancorp ~~4,840~~shareholders ~~1,805~~from ~~567 ---------- ---------- ---------- ---------- ---------- Income (~~the loss) ~~from~~of ~~mortgage~~a ~~servicing~~quarterly ~~(4,628)~~dividend ~~(4,332)~~in ~~568~~conjunction ~~170~~with ~~(4,061)~~completion ~~Gain on sale~~ of ~~mortgage~~the loans 14,822 14,083 10,340 4,188 10,470 ---------- ---------- ---------- ---------- ---------- Net mortgage banking revenue $ 10,194 $ 9,751 $ 10,908 $ 4,358 $ 6,409 ========== ========== ========== ========== ==========merger.

Second Bancorp is a $2.1 billion financial holding company providing a full range of commercial and consumer banking, wealth management, insurance and investment products and services to communities in a nine county area of Northeastern Ohio through subsidiaries Second National Bank and Stouffer-Herzog Insurance Agency, Inc.

Additional information about Second Bancorp can be found on the Web at www.secondbancorp.com.

CONTACT: Christopher Stanitz, Executive Vice President and Secretary, at 330.841.0234 (phone), 330.841.0489 (fax), or cstanitz@secondnationalbank.com.

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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 hereunto duly authorized.


		Second Bancorp Incorporated
Date: May 26, 2004		/s/ David L. Kellerman David L. Kellerman Chief Financial Officer and Treasurer

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