<PAGE>




                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549

                   Quarterly Report Under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

                         For Quarter Ended June 30, 1999
             .......................................................

                         Commission File Number 2-95114
                .................................................

                          LOGAN COUNTY BANCSHARES, INC.
 ...............................................................................
             (Exact Name of Registrant as Specified in Its Charter)

                                  WEST VIRGINIA
 ...............................................................................
         (State or other jurisdiction of incorporation or organization)

                                   55-0660015
 ...............................................................................
                      (IRS Employer Identification Number)

                    P. O. BOX 597, LOGAN, WEST VIRGINIA 25601
 ...............................................................................
               (Address of Principal Executive Offices) (Zip Code)

                                 (304) 752-1166
 ...............................................................................
               (Registrant's telephone number including area code)


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  period 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
                                      ----      -----


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

       Indicate the number of shares outstanding, of each of the issuer's
       classes of common stock, as of the latest practicable date. 716,991



<PAGE>


                      LOGAN COUNTY BANCSHARES, INC.

PART I - FINANCIAL INFORMATION

   ITEM I.  FINANCIAL STATEMENTS:

            Consolidated  Statement  of  Condition  As of June 30, 1999 and
                 1998 and December 31, 1998.

            Consolidated  Statement  of Income For the Three  Month  Period
                 Ended June 30, 1999 and 1998.

            Consolidated Statement of Income For the Six Month Period Ended
                 June 30, 1999 and 1998.

            Consolidated  Statement  of Changes in Stockholders'
                 Equity for the Six  Month Period Ended June
                 30, 1999 and 1998.

            Consolidated  Statement  of Cash Flows for the Six Month Period
                 Ended June 30, 1999 and 1998.

            Notes to Consolidated Financial Statements

   ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS.

PART II - OTHER INFORMATION

SIGNATURES



<PAGE>


                 LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
                       Consolidated Statement of Condition
                  June 30, 1999 and 1998 and December 31, 1998
                                 (In Thousands)

<TABLE>
<CAPTION>

                                     ASSETS
                                     ------
                                                                    June  30,                       December 31,
                                                    1999                      1998                      1998
                                                    ----                      ----                      ----
<S>                                                <C>                        <C>                       <C>
CASH AND DUE FROM BANKS                          $  5,183                   $  5,090                  $  5,727

INVESTMENT SECURITIES:
     AVAILABLE FOR SALE                            31,080                     18,342                    25,299
     HELD TO MATURITY                                 497                      2,495                     2,496

FEDERAL FUNDS SOLD                                    810                     12,280                     7,520

LOANS:
      TOTAL LOANS                                 104,050                     89,318                    95,103

      RESERVE FOR LOAN LOSSES                         720                        716                       701
                                                 --------                   --------                  --------
      NET LOANS                                   103,330                     88,602                    94,402

BANK PREMISES AND EQUIPMENT                         2,687                      2,115                     2,085

ACCRUED INTEREST AND OTHER ASSETS                   2,054                      1,441                     1,749
                                                 --------                   --------                  --------
                                                 $145,641                   $130,365                  $139,278
                                                 --------                   --------                  --------
                                                 --------                   --------                  --------

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------
DEPOSITS:
     DEMAND DEPOSITS:
         NON-INTEREST                            $ 20,146                   $ 14,085                  $ 18,292
         INTEREST BEARING                          20,889                     19,345                    20,644
     SAVINGS DEPOSITS                              31,851                     30,806                    29,817
     TIME DEPOSITS                                 57,968                     51,710                    55,667
                                                 --------                   --------                  --------
           TOTAL DEPOSITS                         130,854                    115,946                   124,420

ACCRUED AND OTHER LIABILITIES                         651                        656                       680

INCOME TAXES PAYABLE:
     CURRENT                                           84                         61                        28
     DEFERRED                                        (219)                        68                        91
                                                 --------                   --------                  --------
          TOTAL LIABILITIES                       131,370                    116,731                   125,219


STOCKHOLDERS' EQUITY:
     COMMON STOCK - $ 1.67 PAR VALUE;
          AUTHORIZED & ISSUED, 780,000 SHARES,
           IN 1999 AND 1998; OUTSTANDING 716,991
          IN 1999 AND 1998                          1,300                      1,300                     1,300
     SURPLUS                                        2,408                      2,408                     2,408
     RETAINED EARNINGS                             11,423                     10,786                    11,211
     TREASURY STOCK                                  (860)                      (860)                     (860)
                                                 --------                   --------                  --------
           TOTAL STOCKHOLDERS' EQUITY              14,271                     13,634                    14,059
                                                 --------                   --------                  --------
                                                 $145,641                   $130,365                  $139,278
                                                 --------                   --------                  --------
                                                 --------                   --------                  --------
</TABLE>

          SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



<PAGE>


                    LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
                        Consolidated Statement of Income
            For the Three Month Periods Ended June 30, 1999 and 1998
                                 (In Thousands)

<TABLE>
<CAPTION>

                                                               1999                 1998
                                                               ----                 ----
<S>                                                               <C>                 <C>
INTEREST INCOME:
           INTEREST ON LOANS                                      $2,105              $1,933
           INTEREST ON INVESTMENTS                                   475                 309
           INTEREST ON FEDERAL FUNDS SOLD                             86                 220
                                                                  ------              ------
                                                                   2,666               2,462

INTEREST EXPENSE:
           INTEREST ON DEPOSITS                                    1,072               1,049
                                                                  ------              ------
                    NET INTEREST INCOME                            1,594               1,413

PROVISION FOR LOAN LOSSES                                              0                  22
                                                                  ------              ------
                    NET INTEREST INCOME AFTER
                     PROVISION FOR LOAN LOSSES                     1,594               1,391

OTHER INCOME:
           SERVICE FEES                                              161                 229
           OTHER OPERATING INCOME                                      7                  31
                                                                  ------              ------
                    TOTAL OTHER INCOME                               168                 260

OTHER EXPENSES:
           SALARIES AND BENEFITS                                     493                 445
           EXPENSE OF BANK PREMISES AND
            EQUIPMENT                                                 80                  98
           OTHER OPERATING EXPENSES                                  339                 317
                                                                  ------              ------
                    TOTAL OTHER EXPENSES                             912                 860

INCOME BEFORE INCOME TAXES                                           850                 791

INCOME TAXES                                                         305                 290
                                                                  ------              ------
           NET INCOME                                             $  545              $  501
                                                                  ------              ------
                                                                  ------              ------

PER SHARE OF COMMON STOCK NET INCOME                              $ 0.76              $ 0.70
                                                                  ------              ------
                                                                  ------              ------

</TABLE>


    SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



<PAGE>


                 LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
                        Consolidated Statement of Income
             For the Six Month Periods Ended June 30, 1999 and 1998
                                 (In Thousands)

<TABLE>
<CAPTION>

                                                               1999                 1998
                                                               ----                 ----
<S>                                                               <C>                 <C>
INTEREST INCOME:
           INTEREST ON LOANS                                      $4,131              $3,794
           INTEREST ON INVESTMENTS                                   912                 609
           INTEREST ON FEDERAL FUNDS SOLD                            191                 385
                                                                  ------              ------
                                                                   5,234               4,788

INTEREST EXPENSE:
           INTEREST ON DEPOSITS                                    2,135               2,045
                                                                  ------              ------
                    NET INTEREST INCOME                            3,099               2,743

PROVISION FOR LOAN LOSSES                                             23                  45
                                                                  ------              ------
                    NET INTEREST INCOME AFTER
                     PROVISION FOR LOAN LOSSES                     3,076               2,698

OTHER INCOME:
           SERVICE FEES                                              297                 527
           OTHER OPERATING INCOME                                     46                  53
                                                                  ------              ------
                    TOTAL OTHER INCOME                               343                 580

OTHER EXPENSES:
           SALARIES AND BENEFITS                                     979                 887
           EXPENSE OF BANK PREMISES AND
            EQUIPMENT                                                203                 195
           OTHER OPERATING EXPENSES                                  624                 597
                                                                  ------              ------
                    TOTAL OTHER EXPENSES                           1,806               1,679

INCOME BEFORE INCOME TAXES                                         1,613               1,599

INCOME TAXES                                                         577                 587
                                                                  ------              ------
           NET INCOME                                             $1,036              $1,012
                                                                  ------              ------
                                                                  ------              ------

PER SHARE OF COMMON STOCK NET INCOME                              $ 1.44              $ 1.41
                                                                  ------              ------
                                                                  ------              ------

</TABLE>


    SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



<PAGE>


                 LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
            Consolidated Statement in Changes in Stockholders' Equity
             For the Six Month Periods Ended June 30, 1999 and 1998
                                 (In Thousands)

<TABLE>
<CAPTION>

                                                                                  Net Unrealized
                                                                                    (losses) on
                                            Common                    Retained    Available-for-     Treasury
                                             Stock      Surplus       Earnings    Sale Securities       Stock     Total
                                          --------      -------       --------     -------------     --------     -----
<S>                                        <C>          <C>           <C>                    <C>        <C>          <C>
BALANCE - DECEMBER 31
            1998                           $1,300       $2,408        $11,171                $40        ($860)       $14,059

DIVIDENDS DECLARED ON
           COMMON STOCK                                                  (414)                                          (414)

CHANGE IN NET UNREALIZED
           HOLDING GAINS (LOSSES)
           ON AVAILABLE FOR-SALE
           SECURITIES                                                                       (410)                       (410)

NET INCOME FOR THE SIX MONTHS
           ENDED JUNE 30, 1999                                          1,036                                          1,036
                                           ------       ------        -------                ---        -----        -------
                                           $1,300       $2,408        $11,793              ($370)       ($860)       $14,271
                                           ------       ------        -------                ---        -----        -------
                                           ------       ------        -------                ---        -----        -------


BALANCE - DECEMBER 31
            1997                           $1,300       $2,408        $10,126                 $9        ($860)       $12,983

DIVIDENDS DECLARED ON
           COMMON STOCK @ $0.79                                          (378)                                          (378)

CHANGE IN NET UNREALIZED
           HOLDING GAINS (LOSSES)
           ON AVAILABLE FOR-SALE
           SECURITIES                                                                         17                          17

NET INCOME FOR THE SIX MONTHS
           ENDED JUNE 30, 1998                  0            0          1,012                  0            0          1,012
                                           ------       ------        -------                ---        -----        -------
                                           $1,300       $2,408        $10,760                $26        ($860)       $13,634
                                           ------       ------        -------                ---        -----        -------
                                           ------       ------        -------                ---        -----        -------

</TABLE>


  SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



<PAGE>


                 LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
             FOR THE SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998

<TABLE>
<CAPTION>

                                                                 1999                 1998
                                                                 ----                 ----
<S>                                                               <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   NET INCOME                                                     $  1,036            $ 1,012
   ADJUSTMENT TO RECONCILE NET
     INCOME TO NET CASH PROVIDED
     BY OPERATING ACTIVITIES:
       DEPRECIATION                                                     82                 78
       SECURITY AMORTIZATION AND
                 ACCREATION                                             (2)                 5
       MARKET VALUE AMORTIZATION                                        (2)                (2)
       PROVISION FOR LOAN LOSSES                                        23                 45
       (GAIN) LOSS ON SALE OF INVESTMENT
         SECURITIES                                                      0                  0
       (INCREASE) DECREASE IN OTHER ASSETS                            (305)               (71)
       INCREASE (DECREASE) IN OTHER
                 LIABILITIES                                            (4)                 4
                                                                  --------            -------
   NET CASH PROVIDED BY OPERATING ACTIVITIES                           828              1,071

CASH FLOWS FROM INVESTING ACTIVITIES:
   PROCEEDS FROM SALE OF SECURITIES
     AVAILABLE FOR SALE                                              6,500              5,700
   PROCEEDS FROM MATURITIES OF SECURITIES AVAILABLE FOR SALE         2,000                  0
   PROCEEDS FROM MATURITIES OF SECURITIES HELD TO MATURITY           2,000              1,500
   PURCHASE OF SECURITIES AVAILABLE
     FOR SALE                                                      (14,956)            (8,049)
   PURCHASE OF SECURITIES HELD TO MATURITY                               0                  0
   NET (INCREASE) DECREASE IN
     FEDERAL FUNDS SOLD                                              6,710             (3,370)
   NET (INCREASE) DECREASE IN LOANS                                 (8,951)            (4,422)
   PROCEEDS FROM SALE OF ASSETS                                          0                  0
   PURCHASE OF BANK PREMISES AND EQUIPMENT                            (682)               (68)
                                                                  --------            -------
   NET CASH PROVIDED BY INVESTING ACTIVITIES                        (7,379)            (8,709)

CASH FLOWS FROM FINANCING ACTIVITIES:
   NET INCREASE (DECREASE) IN
     DEMAND DEPOSITS                                                 2,099              2,221
   NET INCREASE (DECREASE) IN
     SAVINGS DEPOSITS                                                2,034              1,519
   NET INCREASE (DECREASE) IN
     TIME DEPOSITS                                                   2,301              4,099
   DIVIDENDS PAID                                                     (414)              (378)
                                                                  --------            -------
   NET CASH PROVIDED BY FINANCING ACTIVITIES                         6,020              7,461

NET INCREASE (DECREASE) IN CASH AND
   CASH EQUIVALENTS                                                   (544)              (177)

CASH AND CASH EQUIVALENT AT
   BEGINNING OF PERIOD                                               5,727              5,267

CASH AND CASH EQUIVALENT AT
   END OF PERIOD                                                 $   5,183            $ 5,090
                                                                  --------            -------
                                                                  --------            -------

</TABLE>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



<PAGE>


                                  June 30, 1999

                 LOGAN COUNTY BANCSHARES, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements




  1.  Financial Statements:
          The foregoing statements are unaudited; however, in the opinion of the
      Management, all adjustments (comprising of only normal recurring accruals)
      necessary for a fair  presentation  of the financial  statements have been
      included.

  2. Basis of Consolidation:
          The Consolidated  Statement of Condition and Consolidated Statement of
      Income of Logan County Bancshares, Inc. include the activity of Logan Bank
      and Trust Company, a wholly owned subsidiary.

  3.      All financial  information  presented gives retroactive  effect to the
      issuance on June 16, 1999, of a three-for-two stock split in the form of a
      stock  dividend  of three  shares of common  stock for each two  shares of
      common stock outstanding.

  4.  Year 2000 Assessment

          Management  has  initiated a  Company-wide  program to assess its data
      processing,  information  systems and customer  service programs to ensure
      the Company's  operating  capabilities  in the year 2000.  Currently,  the
      Company's  subsidiary  Bank,  L B & T, uses EDS,  a regional  provider  of
      financial  institution  data  processing,  as  it's  primary  provider  of
      computer services and data processing. EDS has certified it's hardware and
      software  are Year  2000,  and  beyond,  compliant.

          As required by Regulatory guidelines,  the company has contracted with
      EDS to perform Y2K testing.  This  testing  will include Data  Processing,
      ATM's, Debit Cards,  Financial and Communications  Systems.  The estimated
      cost for this  testing is  approximately  $55,000.  The  Company  has also
      contracted  to have  their  computer  hardware  evaluated  for  Year  2000
      compliance and estimates  additional  computer hardware and software costs
      to be approximately $105,000. These cost will be capitalized and amortized
      over  five  years.  It is the  opinion  of  management  that  the  cost of
      converting these systems and the annual  amortization,  thereof,  will not
      materially impact the results of operation or its financial position.

          We anticipate having all testing completed by June, 1999 and upgrading
      completed by August,  1999.  There are many factors  involved in upgrading
      these  systems,  such  as:  conversion  of  data,  employee  training  and
      implementation.  There can be no  assurances  this process will not have a
      material effect on the company's operations.

          While management believes its planning efforts are adequate to address
      its  Year  2000  concerns,  there is no  guarantee  the  systems  of other
      companies on which the Company's systems and operations rely will function
      properly and not have an adverse  effect on the  Company's  operations  or
      financial position.



<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


     The following is a discussion and analysis  focused on significant  changes
in the financial condition and results of operations of Logan County Bancshares,
Inc.

EARNINGS SUMMARY

     The Company  reported net  income of $1,036,000.  for the  six months
ended June 30, 1999 compared to  $1,012,000. for the six months ended June
30, 1998, representing a 2.37%  increase.  This increase was primarily the
result of  the increase in net  interest income of $378,000.,  decrease in
other  income of  $163,000.  and  increase in  all  operating expenses  of
$127,000.

     Earnings per common share were $1.44 for the six months ended June 30, 1999
compared with $1.41 for the same period of 1998.

     Logan  County  Bancshares'  annualized  return on assets  (ROA) for the six
month period  ended June 30, 1999 was 1.42%  compared to 1.55% for the six month
period ended June 30, 1998.  Annualized return on shareholders' equity (ROE) was
14.52% and 14.84% at June 30, 1999 and 1998, respectively.

NET INTEREST INCOME

     The most significant  component of Logan County Bancshares' net earnings is
net interest  income,  which  represents the excess of interest income earned on
earning assets over the interest expense paid for sources of funds. Net interest
income is affected by changes in volume  resulting from growth and alteration of
the balance sheet  composition,  as well as by  fluctuations  in market interest
rates and maturities of sources and uses of funds.

     Interest income amounted to $5,234,000. at June 30, 1999, an increase
of  $446,000.  from  June  30,  1998.   Interest  expense  also  increased
$90,000., resulting in  an overall increase of $356,000. or  12.98% in net
interest income between June 30, 1999 and June 30, 1998.

PROVISION FOR LOAN LOSSES AND ASSET QUALITY

     The provision for loan losses represents  charges to earnings  necessary to
maintain an adequate  allowance for potential  future loan losses.  Management's
determination  of the appropriate  level of the allowance is based on an ongoing
analysis of credit quality and loss potential in the loan portfolio, actual loan
loss experience  relative to the size and characteristics of the loan portfolio,
change in the composition and risk characteristics of the loan portfolio and the
anticipated influence of national and local economic conditions. The adequacy of
the allowance for loan losses is reviewed  quarterly and adjustments are made as
considered necessary.

     For the six month period ended June 30, 1999 and 1998,  the  provision  for
loan losses was $23,000., and $45,000. respectively.

     The  reserve  for loan losses was  $720,000.  at June 30, 1999  compared to
$716,000.  at June 30, 1998. Expressed as a percentage of loans (net of unearned
income),  the reserve for loan losses was .69% at June 30, 1999 and .81% at June
30, 1998.



<PAGE>


A summary of the Company's past due loans and  nonperforming  assets is provided
in the following table.

               SUMMARY OF PAST DUE LOANS AND NONPERFORMING ASSETS
                            (in thousands of dollars)

<TABLE>
<CAPTION>

                                                         June 30,
                                                 ------------------------
                                                  1999              1998
                                                 ------            ------
<S>                                              <C>               <C>
Loans past due 90 or more days
   still accruing interest                       $3,465            $2,200
                                                 ------            ------
Nonperforming assets:
   Nonaccruing loans                                489               578
   Other real estate owned                          244               170
                                                 ------            ------
                                                   $733              $748
                                                 ------            ------
                                                 ------            ------
</TABLE>

NONINTEREST INCOME

     Noninterest  income includes  revenues from all sources other than interest
income.  For the six  month  period  ended  June 30,  1999,  noninterest  income
totalled  $343,000.,  representing  a decrease of $237,000.  from the  $580,000.
recorded  during the same period of 1998.  This  decrease was  primarily  due to
decreases in service fees income of $230,000.

NONINTEREST EXPENSE

     Noninterest  expense  comprises  overhead  costs  which are not  related to
interest expense or to losses from loans or securities. As of June 30, 1999, the
Company's  noninterest expense totalled $1,806,000.,  increasing $127,000.  over
the $1,679,000.  of noninterest  expense for the six months ended June 30, 1998.
Expressed as a percentage of assets, annualized noninterest expense was 2.48% at
June 30, 1999, compared to 2.57% at June 30, 1998.

     Salaries  and  employee  benefits  are  Logan  County  Bancshares'  largest
noninterest cost, representing approximately 54% of total noninterest expense at
June 30, 1999 and 1998.  Salaries and employee benefits increased  $92,000.,  or
10.37% at June 30, 1999  compared to June 30, 1998.  This  increase is primarily
due to increased personnel.

INCOME TAXES

     Logan County  Bancshares'  federal  income tax  expense,  for the six month
period ended June 30, 1999,  reflected a $10,000.  decrease when compared to the
same  period of 1998.  Income tax expense  equalled  35.78% and 36.71% of income
before taxes at June 30, 1999 and 1998,  respectively.  For financial  reporting
purposes, income tax expense does not equal the statutory income tax rate of 43%
when applied to pretax income,  primarily because of tax-exempt  interest income
included in income before income taxes.



<PAGE>


Balance Sheet Data:

     Total  assets grew by  $6,363,000.  between year end and June 30, 1999 to a
balance of  $145,641,000.  The major component of this growth was an increase in
Investment  Securities of  $3,782,000.,  and loan  increases of  8,928,000.  The
primary  source  of  funds  for this  growth  was an  increase  in  deposits  of
$6,434,000., a decrease in Federal Funds Sold of $6,710,000.,  and net income of
$1,036,000.

Liquidity:

     Managing Logan's liquidity requirements primarily involves meeting the loan
demand,  deposit  withdrawal  and the cash flow  requirements.  Logan's  primary
sources  of liquid  assets are  federal  funds  sold and  investment  securities
maturing  in less than one year.  These items can be  converted  into funds in a
short period of time. At June 30, 1999, Federal Funds Sold amounted to $810,000.
and  securities  maturing  within one year  amounted  to  $1,982,000.  These are
compared to the balances at June 30, 1998 of $12,280,000.  in Federal Funds Sold
and maturing Investment Securities of $3,046,000. due within one year.

     Traditionally,  banks  have  been  able  to  manage  liquidity  based  on a
relatively  stable group of core  deposits.  The  deposits,  demand and consumer
deposits under  $l00,000.  are  considered  the most stable and least  expensive
source of funds.  During  1999 and 1998,  banks  continue  to be faced with more
volatile,  interest  sensitive  funds  and  have  had  to  match  their  funding
requirements by using assets and liability management techniques.

Capital Resources:

     Logan's capital position is based on its stockholders' equity and the
primary source of  such equity has been retained  earnings.  Since Logan's
formation, it has accumulated Retained  Earnings of $11,423,000. and has a
total  Stockholders'  Equity of  $14,271,000.  as  of  June 30,  1999;  as
compared  to $10,786,000.  of  Retained Earnings  and total  Stockholders'
equity of $13,634,000. at June 30, 1998.

     The equity  capital  was 9.80% and 10.45% of total  assets at June 30, 1999
and 1998  respectively.  Logan County Bancshares  exceeds all regulatory capital
guide  lines and has not been  advised by any  regulatory  agency of any minimum
capital requirement.

Effects of Inflation:

     The impact of inflation on a financial  institution  differs  significantly
from that  exerted  on an  industrial  concern,  primarily  because a  financial
institution's  assets and liabilities consist almost entirely of monetary items.
The low  proportion of the Bank's net fixed assets to total assets  reduces both
the  potential of inflated  earnings  resulting  from  understated  depreciation
charges and the potential significant  understatement of asset values.  However,
inflation does have a considerable indirect impact on banks, including increased
loan demand,  as it becomes  necessary  for  producers  and consumers to acquire
additional  funds to maintain the same levels of consumption,  inventories,  and
new  investments.  Inflation also  frequently  results in higher  interest rates
which can affect  both yields on earning  assets and rates paid on deposits  and
other interest-bearing liabilities.


<PAGE>



PART II. - OTHER INFORMATION

           NONE.
           ----


                               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.

                                   LOGAN COUNTY BANCSHARES, INC.
                                   ---------------------------------------------

                                              (Registrant)




Date ____________________________  _____________________________________________
                                   Harvey Oakley, President
                                   (Signature)




Date ____________________________  _____________________________________
                                   Eddie D. Canterbury, Exec. Vice Pres.
                                   (Signature)