TABLE OF CONTENTS


                                                                            Page

Directors and Officers                                                         2

President's Message to Shareholders                                            3

Selected Consolidated Financial Data                                           4

Management's Discussion and Analysis                                           6

Report of Independent Certified Public Accountants                            20

Consolidated Statements of Financial Condition                                21

Consolidated Statements of Earnings                                           22

Consolidated Statements of Comprehensive Income                               23

Consolidated Statements of Changes in Shareholders' Equity                    24

Consolidated Statements of Cash Flows                                         25

Notes to Consolidated Financial Statements                                    27

Shareholder Information                                                       52






                     BUSINESS OF LOGANSPORT FINANCIAL CORP.

Logansport Financial Corp. ("Logansport Financial" or the "Company"), an Indiana
corporation,  became  a  unitary  savings  and  loan  holding  company  upon the
conversion of Logansport  Savings Bank,  FSB (the "Bank") from a federal  mutual
savings bank to a federal stock  savings bank in June 1995.  The Company and the
Bank conduct business from a single office in Logansport,  Cass County, Indiana.
During  2002,  the  Company  began to offer  banking  through  the  Internet  at
www.logansportsavings.com.  The Bank  historically  has been  among the top real
estate mortgage lenders in Cass County and is the oldest  financial  institution
headquartered  in Cass County.  The Bank offers a variety of retail  deposit and
lending  services.  The Company has no  business  activity  other than being the
holding company for the Bank. The Company is the sole shareholder of the Bank.





                                MISSION STATEMENT


"The Board of Directors,  management  and staff of  Logansport  Savings Bank are
dedicated to serving the needs of our  customers,  providing  them with the best
possible service in an efficient,  friendly,  caring atmosphere. As a vital part
of this  community,  Logansport  Savings Bank seeks to continue  partnering with
local business and individuals.  The customers,  employees, and shareholders are
an  integral  part of  Logansport  Savings  Bank and are best served if the Bank
remains an independent,  locally controlled and operated,  profitable  financial
institution."


<PAGE>



                                                          11
                           Logansport Financial Corp.

                             DIRECTORS AND OFFICERS


DIRECTORS

     James P. Bauer (age 58) is the Vice  President of Finance and  Treasurer of
Material Processing,  Inc., a holding company for Small Parts, Inc., ABC Metals,
Inc. and H.T.I.  (Logansport,  Indiana).  He serves on the Board of Directors of
the Logansport  Economic  Development  Foundation,  Inc. and the Logansport/Cass
County Industrial Park.

     Charles J. Evans (age 57) has served as Senior Vice President of Logansport
Savings Bank, FSB since January 2000.  Prior to that he served as Vice President
and Senior Loan Officer of Logansport Savings Bank, FSB since 1980.

     Brian J. Morrill (age 46) is the founder and President of Cass County Title
Company,  Inc.  The firm  provides  title  insurance  policies  and real  estate
searches for lenders,  realtors,  attorneys,  and the general  public.  Prior to
founding  Cass  County  Title  Company,  Morrill  served  for ten  years  as the
Executive  Director  of the Cass  County  Family  YMCA in  Logansport,  Indiana.
Morrill has served on several community boards and in 2000 served as Chairman of
the Logansport/Cass County Chamber of Commerce.

     Susanne S. Ridlen,  Ph.D.  (age 63) is a faculty member and Director of the
Project  Success  Program  for  under-prepared  students  at Indiana  University
Kokomo.  Dr.  Ridlen has taught at IUK since 1969.  She also serves on the Lilly
Scholarship Committee for the Cass County Community Foundation. In addition, she
serves on the Board of Directors for the President Benjamin Harrison Foundation,
Inc. of Indianapolis, Indiana.

     William  Tincher,  Jr. (age 64) has served as Plant  Manager for the Modine
Manufacturing  Company  ("Modine") since 1977.  Modine is located in Logansport,
Indiana, and manufactures automotive cooling systems.

     Dr.  Todd S.  Weinstein  (age  42) is a  member  of the  surgical  staff at
Logansport  Memorial  Hospital  and has been a  member  of  Logansport  Surgical
Associates since 1991. He serves on the Board of Trustees of Logansport Memorial
Hospital and the Board of Directors of the Cass County Family YMCA.

     David G. Wihebrink (age 56) has served as President of Logansport Financial
Corp. and Logansport Savings Bank since April 2000. Prior to that, he had served
as Vice President and Chief Financial  Officer of TM Morris  Manufacturing  Co.,
Inc. since 1988. Prior to his employment with Morris, Mr. Wihebrink was a member
of the accounting firm Smith,  Thompson & Wihebrink  (Logansport)  for 15 years.
Mr. Wihebrink also currently serves as a member of the Board of Directors of the
Neal Home  retirement home in Logansport,  Indiana;  as a member of the Board of
Directors  of the North  Central  Indiana  Workforce  Investment  Board and as a
member  of the Board of  Directors  of the  Logansport/Cass  County  Chamber  of
Commerce.

     Thomas G. Williams (age 70) served as President of Logansport Savings Bank,
FSB from 1971 until his retirement in April 2000.

LOGANSPORT FINANCIAL CORP.            LOGANSPORT SAVINGS BANK, FSB
Officers                              Officers

DAVID G. WIHEBRINK                    DAVID G. WIHEBRINK - President
President and Chief Executive Officer
                                      CHARLES J. EVANS - Senior Vice President
CHARLES J. EVANS
Vice President                        ALLEN SCHIEBER - Senior Vice President

DOTTYE ROBESON                        DOTTYE ROBESON - Chief Financial Officer/
Secretary/Treasurer                                    Secretary/Treasurer

                                      MICHAEL THOMPSON - Internal Audit/
                                                                Compliance
                                      JEFFREY JONES - Vice President
                                      SHEILA WILDERMUTH - Vice President
                                      KAY GAPSKI - Vice President
                                      JONI LAMBERT - Assistant Vice President
                                      SHARON LANTZ - Assistant Vice
                                      President


<PAGE>





TO OUR SHAREHOLDERS:


I am pleased to bring you the financial  results for Logansport  Financial Corp.
for the year  ended  December  31,  2003.  Our  earnings  for 2003  amounted  to
$1,486,000, which represented a modest 1.8% decrease from our record earnings in
2002. Our diluted earnings per share amounted to $1.68 in 2003 compared to $1.58
in 2002,  which  represented a 6.3%  increase.  Historically  low interest rates
continued  during 2003,  which  created  opportunities  for  borrowers to obtain
financing  or  refinance  at  very  attractive  interest  rate  levels.  To take
advantage of the refinance  boom, but to avoid the inherent  long-term  interest
rate risks, we began selling loans in the secondary  market and this resulted in
an additional  $118,000 of income. We retained the servicing on these sold loans
and at year-end that  portfolio  amounted to  approximately  $6.1  million.  The
continuing  compression  of our net interest  margin caused a decline in our net
interest  income;   however,  we  attempted  to  counter  the  effects  of  that
compression with a diligent effort to control expenses and to carefully  monitor
the quality of our loan portfolio.  In addition,  we were successful in managing
our investment  portfolio as demonstrated by sales that contributed  $286,000 to
our pre-tax earnings for the year.

Even though we saw our one-to-four  family  residential  mortgage loan portfolio
reduced by $10.5 million due to continued  refinancings and our sale of mortgage
loans  into  the  secondary  market,  our  commercial  and  nonresidential  loan
portfolios continued to grow with an increase of over $4.0 million.  Overall our
assets increased by $6.7 million,  representing a 4.5% increase,  while deposits
increased by $5.4 million, or 5.5% for the year. In a year when dividends became
more  important  due to the  reduction in tax rates,  we were once again able to
increase our annual dividend payments, to $.56 per share for 2003.

Although  the  economy is  recovering,  we realize the road ahead is not an easy
one.  We are faced  with many  economic  challenges  in our  community  and many
businesses and individuals continue to struggle. The Board, management team, and
employees  remain a  cohesive  group that is  focused  on  "Leading  The Way" in
community banking and creating value for our shareholders.

Sincerely,




David G. Wihebrink
President



<PAGE>
                           Logansport Financial Corp.

                 SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA


The following tables set forth certain information concerning Logansport
Financial's consolidated financial position, results of operations and other
data at the dates and for the years indicated.

<TABLE>
<CAPTION>
                                                                       At December 31,
Financial Condition Data:                      2003           2002            2001           2000           1999
                                                                       (In thousands)

<S>                                        <C>            <C>             <C>            <C>            <C>
Total assets                               $156,824       $150,099        $138,065       $132,612       $117,468
Loans receivable, net                       102,353        110,386         111,696        102,418         90,900
Mortgage-backed securities                   20,307         11,009           4,419          5,165          5,898
Cash and cash equivalents                    14,403         13,517           8,816          9,210          5,146
Investment securities                        12,242          8,060           5,788          8,322          8,539
Deposits                                    103,757         98,325          83,900         79,454         76,011
Borrowings                                   35,946         35,629          35,915         35,237         24,307
Shareholders' equity                         16,356         15,373          17,402         17,013         16,146

                                                                   Year ended December 31,
Summary of Operating Results:                  2003           2002            2001           2000           1999
                                                              (In thousands, except share data)

Interest income                              $8,602         $9,326          $9,831         $9,524         $7,599
Interest expense                              4,492          4,877           5,696          5,597          4,043
                                              -----          -----           -----          -----          -----

Net interest income                           4,110          4,449           4,135          3,927          3,556

Provision for losses on loans                   360            360             392            332            162
                                             ------         ------          ------         ------         ------

Net interest income after provision for
  losses on loans                             3,750          4,089           3,743          3,595          3,394

Other income                                    661            352             222            122            175
General, administrative and other expense     2,373          2,318           2,046          1,937          1,667
                                              -----          -----           -----          -----          -----

Earnings before income taxes                  2,038          2,123           1,919          1,780          1,902

Income taxes                                    552            609             521            511            678
                                             ------         ------          ------         ------         ------

Net earnings                                 $1,486         $1,514          $1,398         $1,269         $1,224
                                              =====          =====           =====          =====          =====

Basic earnings per share                      $1.72          $1.63          $1.29           $1.16          $1.03
                                               ====           ====           ====            ====           ====

Diluted earnings per share                    $1.68          $1.58          $1.27           $1.16          $1.02
                                               ====           ====           ====            ====           ====

Cash dividends per share                       $.56           $.52           $.48            $.44           $.44
                                                ===           ===            ===             ===            ===
</TABLE>




<PAGE>

<TABLE>
<CAPTION>


                                                Logansport Financial Corp.

                             SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (CONTINUED)


                                                            At or for the year ended December 31,
Supplemental Data:                             2003           2002            2001           2000           1999

<S>                      <C>                    <C>           <C>            <C>             <C>            <C>
Return on average assets (1)                    .96%          1.03%          1.03%           1.00%          1.14%
Return on average equity (2)                   9.24           9.30           7.82            7.76           7.33
Interest rate spread (3)                       2.43           2.76           2.55            2.57           2.86
Net yield on interest-earning assets (4)       2.81           3.21           3.23            3.27           3.54
General, administrative and other
  expense to average assets                    1.53           1.58           1.50            1.53           1.55
Net interest income to general,
  administrative and other expense           173.20         191.93         202.10          202.74         213.32
Equity-to-assets (5)                          10.43          10.24          12.60           12.83          13.75
Average interest-earning assets to
  average interest-bearing liabilities       112.53         113.04         115.21          115.39         117.20
Non-performing assets to total assets           .97            .99           1.41             .25            .57
Non-performing loans to total loans            1.45           1.34           1.72             .32            .72
Loan loss allowance to total loans             1.68           1.30           1.00             .73            .47
Loan loss allowance to non-performing
  loans                                      115.58          98.25          58.11          226.19          66.07
Dividend payout ratio                         32.56          31.90          37.21           37.93          42.72
Net charge-offs to average loans                .06            .03            .02            *              *

*  Less than .01%

</TABLE>





(1)  Net earnings divided by average total assets.

(2)  Net earnings divided by average total equity.

(3)  Interest rate spread is calculated by subtracting combined weighted-average
     interest rate cost from combined weighted-average interest rate earned.

(4)  Net interest income divided by average  interest-earning  assets.

(5)  Total equity divided by total assets.




<PAGE>



                           Logansport Financial Corp.

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


General

The  Company  was  formed as part of the  conversion  of the Bank from a federal
mutual  savings bank to a federal stock savings bank,  which was completed  June
13, 1995. The Company has no activity  other than being the holding  company for
the Bank.

The  principal  business of the Bank has  historically  consisted of  attracting
deposits  from the general  public and making loans secured by  residential  and
other real estate.  The Bank is  significantly  affected by prevailing  economic
conditions,  as well as government  policies and regulations  concerning,  among
other things,  monetary and fiscal affairs,  housing and financial institutions.
Deposit flows are  influenced by a number of factors,  including  interest rates
paid on competing investments,  account maturities and levels of personal income
and savings.  In addition,  deposit growth is affected by how customers perceive
the stability of the financial  services  industry amid various  current  events
such as  regulatory  changes,  failures  of  other  financial  institutions  and
financing of the deposit  insurance fund.  Lending  activities are influenced by
the demand for and supply of housing lenders, the availability and cost of funds
and various  other items.  Sources of funds for lending  activities  of the Bank
include  deposits,  borrowings,  payments  on loans  and  income  provided  from
operations.

The Bank's earnings are primarily dependent upon its net interest income,  which
is the  difference  between  interest  income  on  interest-earning  assets  and
interest expense on interest-bearing liabilities.  Interest income is a function
of the balances of loans and investments  outstanding  during a given period and
the yield earned on such loans and  investments.  Interest expense is a function
of the amount of deposits and borrowings  outstanding during the same period and
interest  rates paid on such deposits and  borrowings.  The Bank's  earnings are
also  affected by provisions  for losses on loans,  service  charges,  operating
expenses and income taxes.


Forward-Looking Statements

In the  following  pages,  management  presents  an  analysis  of the  Company's
financial  condition as of December 31, 2003,  and the results of operations for
the year ended December 31, 2003, as compared to prior  periods.  In addition to
this historical information,  the following discussion contains  forward-looking
statements that involve risks and  uncertainties.  Economic  circumstances,  the
Company's operations and the Company's actual results could differ significantly
from those discussed in the forward-looking statements. Some of the factors that
could cause or contribute  to such  differences  are  discussed  herein but also
include  changes  in the  economy  and  interest  rates in the nation and in the
Company's general market area.

Without limiting the foregoing,  some of the forward-looking  statements include
the following:

1.   Management's  establishment  of  an  allowance  for  loan  losses  and  its
     statements regarding the adequacy of such allowance for loan losses.

2.   Management's  opinion  as to  the  financial  statement  effect  of  recent
     accounting pronouncements.

3.   Management's  opinion as to the effect of changes in interest  rates on the
     Company's results of operations.


<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Critical Accounting Policies

Certain of the Company's  accounting  policies are important to the portrayal of
the  Company's  financial  condition,  since  they  require  management  to make
difficult,  complex or subjective judgments, some of which may relate to matters
that are  inherently  uncertain.  Estimates  associated  with these policies are
susceptible   to  material   changes  as  a  result  of  changes  in  facts  and
circumstances.  Facts  and  circumstances  that  could  affect  these  judgments
include,  but  without  limitation,  changes in interest  rates,  changes in the
performance  of the economy or changes in the financial  condition of borrowers.
Management  believes that its critical  accounting  policies include determining
the allowance  for loan losses and  determining  the carrying  value of mortgage
servicing  rights.  If management were to  underestimate  the allowance for loan
losses,  earnings  could be reduced  in the  future as a result of greater  than
expected net loan losses. Overestimations of the required allowance could result
in future  increases in income,  as loan loss recoveries  increase or provisions
for  losses on loans  decrease.  Mortgage  servicing  rights are  accounted  for
pursuant  to the  provisions  of SFAS No. 140,  "Accounting  for  Transfers  and
Servicing of Financial Assets and Extinguishment of Liabilities," which requires
that the  Company  recognize  rights to  service  mortgage  loans for  others as
separate assets. An institution that acquires mortgage  servicing rights through
either the purchase or  origination of mortgage loans and sells those loans with
servicing  rights  retained  must  allocate some of the cost of the loans to the
mortgage servicing rights.

Capitalized   mortgage   servicing  rights  are  required  to  be  assessed  for
impairment.  Impairment is measured based on fair value. The mortgage  servicing
rights recorded by the Company,  calculated in accordance with the provisions of
SFAS No.  140,  were  segregated  into pools for  valuation  purposes,  using as
pooling  criteria the loan term and coupon rate.  Once pooled,  each grouping of
loans was  evaluated on a  discounted  earnings  basis to determine  the present
value of future  earnings  that a purchaser  could  expect to realize  from each
portfolio.  Earnings were  projected  from a variety of sources  including  loan
servicing  fees,  interest  earned on float,  net  interest  earned on  escrows,
miscellaneous  income,  and costs to service  the loans.  The  present  value of
future  earnings is the "economic"  value of the pool,  i.e., the net realizable
present value to an acquiror of the acquired  servicing rights.  Fluctuations in
the fair value of mortgage  servicing  rights may affect net  earnings,  as this
asset is carried at the lower of amortized cost or fair value.


Changes in Financial Condition from December 31, 2002 to December 31, 2003

The Company's total assets were $156.8 million at December 31, 2003, an increase
of $6.7 million,  or 4.5%,  over the $150.1  million total at December 31, 2002.
The increase in assets was funded  primarily  through growth in deposits of $5.4
million and a $1.0 million increase in shareholders'  equity.  The percentage of
interest-earning  assets to total assets was 96.1% at both December 31, 2003 and
2002.

At December 31, 2003,  investment and  mortgage-backed  securities totaled $32.5
million, an increase of $13.5 million, or 70.7%,  compared to December 31, 2002.
The increase was due to purchases of $40.7 million,  which were partially offset
by  maturities,  sales  and  repayments  totaling  $26.7  million.  The  primary
investments  added to the  portfolio  were Federal  Home Loan Bank  ("FHLB") and
Federal   National   Mortgage   Association   ("FNMA")   fixed-rate   notes  and
adjustable-rate GNMA mortgage-backed securities.

Loans receivable totaled $102.4 million at December 31, 2003, a decrease of $8.0
million,  or 7.3%, from December 31, 2002. The decrease in loans  receivable was
due  primarily to principal  repayments  of $57.8 million and loan sales of $6.2
million,  which  were  partially  offset by loan  disbursements  totaling  $56.7
million. The volume of loan disbursements in 2003 exceeded that of 2002 by $11.2
million, or 24.6%. The overall decrease in loans was due to an $11.5 million, or
17.7%,  decrease  in  loans  secured  by one- to  four-family  and  multi-family
residential real estate,  including  construction loans, and a $400,000 or 3.4%,
decrease in consumer loans, while loans secured by



<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Changes in  Financial  Condition  from  December  31, 2002 to December  31, 2003
(continued)

nonresidential  real estate and  commercial  loans and leases  increased by $4.0
million,  or 11.2%.  During 2003,  the Company  initiated a program to originate
certain mortgage loans for sale in the secondary market, retaining the servicing
on loans sold.  These sales  transactions  were  conducted with the Federal Home
Loan Bank of  Indianapolis.  Sales of loans during 2003  totaled  $6.2  million,
which resulted in realized gains on sale of $118,000.

During 1997, the Company invested $1.5 million in a limited  partnership,  which
constructs  and  manages   residential  real  estate   apartments  for  low  and
moderate-income residents. This investment reflects a 49.5% participation in the
partnership.  The affordable housing project generates tax credits for the Bank.
This  investment  initially  resulted  in an  increase  to total  assets of $1.5
million with a corresponding  increase in notes payable.  During the three years
ended  December  31,  2003,  the Bank  recorded  pretax  losses from the housing
project totaling $410,000, while realizing tax credits of $546,000.

Deposits  totaled  $103.8  million at  December  31,  2003,  an increase of $5.4
million,  or 5.5%, over December 31, 2002.  Non-interest  bearing deposits,  NOW
accounts,  passbook savings and money market savings  increased by $4.1 million,
or 10.0%,  while  certificates  of deposit  increased by $1.3 million,  or 2.2%.
Proceeds  from  deposit  growth  were  generally  used to fund the  purchase  of
investments and mortgage-backed securities. However, $2.0 million of the deposit
increase was  comprised of  short-term  local  governmental  deposits  which are
subject to bids every 60 to 90 days and, therefore,  may or may not be retained.
Additionally,  the Bank has  deposit  customers  who  periodically  place  large
deposits  for short time  periods.  Such  deposits  totaled  approximately  $8.5
million at December  31,  2003.  Approximately  $6.0 million of these funds were
withdrawn in January 2004. At December 31, 2003,  borrowings  consisted of $34.0
million in FHLB advances  compared to $33.8 million in FHLB advances at December
31, 2002, an increase of $200,000, or .6%.

Shareholders'  equity totaled $16.4 million at December 31, 2003, an increase of
$1.0 million, or 6.4%, over December 31, 2002. The increase was due primarily to
net earnings  for the year ended  December 31, 2003 of $1.5 million and proceeds
from the exercise of stock options of $378,000,  which were partially  offset by
dividends  totaling $485,000 and a decrease in unrealized gains on available for
sale securities of $417,000.


Comparison  of Results of Operations  for the Years Ended  December 31, 2003 and
2002

Net  earnings  totaled  $1.5  million for the year ended  December  31,  2003, a
decrease of $28,000,  or 1.8%,  compared to net earnings  reported for 2002. The
decrease in net earnings  resulted  primarily from a decrease of $339,000 in net
interest income and an increase of $55,000 in general,  administrative and other
expense,  which were partially offset by an increase of $309,000 in other income
and a decrease in the provision for income taxes of $57,000.

Interest Income

The Company's total interest income was $8.6 million for the year ended December
31, 2003, a decrease of $724,000, or 7.8%, compared to the $9.3 million recorded
during  2002.  The  Company's  $8.3  million,   or  5.9%,  increase  in  average
interest-earning  assets, from $140.5 million in 2002 to $148.8 million in 2003,
was more than  offset by an 85 basis  point  decrease  in the  average  yield on
interest-earning  assets,  to 5.83% in 2003 compared to 6.68% in 2002.  Interest
income on loans  decreased by $925,000,  or 11.1%,  due  primarily to a 55 basis
point  decrease in the average yield year to year, to 6.75% in 2003,  and a $4.4
million, or 3.8%, decrease in the average balance of loans outstanding. Interest
income on investment and mortgage-backed  securities and other  interest-bearing
deposits increased by $201,000,  or 19.9%, due primarily to a $12.6 million,  or
51.0%,  increase in the average balance outstanding,  which was partially offset
by a 72 basis point decline in the average yield, to 3.17% in 2003,  compared to
3.89% in 2002.


<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Comparison  of Results of Operations  for the Years Ended  December 31, 2003 and
2002 (continued)

Interest Expense

Interest  expense  totaled $4.5 million for the year ended  December 31, 2003, a
decrease of $385,000, or 7.9%, compared to 2002. This decrease was the result of
a decrease  in the  average  cost of  interest-bearing  liabilities  of 52 basis
points, from 3.92% in 2002 to 3.40% in 2003, partially offset by a $7.9 million,
or 6.4%,  increase in the average  balance  outstanding  year to year.  Interest
expense on deposits decreased by $405,000, or 13.7%, due primarily to a 68 basis
point  decline in the  average  cost of  deposits,  to 2.64% in 2003,  which was
partially offset by a $7.7 million,  or 8.6%, increase in the average balance of
deposits  outstanding year to year. Interest expense on borrowings  increased by
$20,000,  or 1.0%, due primarily to a 2 basis point increase in the average cost
of  borrowings  year to year and a $250,000  increase in the average  balance of
borrowings.  The decreases in the level of yields on interest-earning assets and
the cost of deposits  were due  primarily  to the  overall  decrease in interest
rates in the economy throughout 2002 and 2003.

Net Interest Income

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  decreased by $339,000,  or 7.6%,  to $4.1 million in 2003,
compared to $4.4  million in 2002.  The  interest  rate spread was 2.43% in 2003
compared   to   2.76%   in  2002,   and  the  net   yield  on   weighted-average
interest-earning assets declined to 2.81% in 2003 from 3.21% in 2002.

Provision for Losses on Loans

The Company  maintains  a general  allowance  for loan  losses that  reflects an
estimate of inherent  losses based upon the types and  categories of outstanding
loans, as well as problem loans and current economic conditions in the Company's
market area.  The Company's  provision for losses on loans was $360,000 for each
of the years ended December 31, 2003 and 2002. The 2003 provision was predicated
primarily upon the increase in the volume of commercial  loans and loans secured
by  nonresidential  real  estate,  an  analysis of  nonperforming  loans and the
current economic climate.  At December 31, 2003 and 2002, the allowance amounted
to $1.8 million and $1.5  million,  respectively,  for a ratio to total loans of
1.68% in 2003 and 1.30% in 2002.  Non-performing  loans  totaled $1.5 million at
both  December 31, 2003 and 2002.  The ratio of the allowance for loan losses to
non-performing  loans  increased  from 98.3% at  December  31, 2002 to 115.6% at
December 31,  2003.  Based on  management's  review of the loan  portfolio,  the
allowance for loan losses at December 31, 2003 is  considered  adequate to cover
potential  losses  inherent  in the loan  portfolio.  However,  there  can be no
assurance  that  additions  to the  allowance  will not be  necessary  in future
periods, which could adversely affect the Company's results of operations.

Other Income

The Company recorded other income totaling  $757,000 for the year ended December
31, 2003, excluding the loss on investment in real estate partnership,  compared
to $459,000 in 2002.  The $298,000,  or 64.9%,  increase was due primarily to an
increase  of  $185,000  in  gains  on sale  of  investment  and  mortgage-backed
securities  and a $118,000  gain on the sale of loans.  The $96,000  loss on the
investment in real estate partnership  recorded in 2003 had a positive after-tax
effect of  approximately  $127,000  when  considering  the tax  benefit  and the
available tax credits generated by the project.


<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Comparison  of Results of Operations  for the Years Ended  December 31, 2003 and
2002 (continued)

General, Administrative and Other Expense

General,  administrative  and other  expense  totaled  $2.4 million for the year
ended  December  31,  2003,  compared  to $2.3  million in 2002,  an increase of
$55,000, or 2.4%. Employee  compensation and benefits increased by $112,000,  or
8.6%, due primarily to an $86,000  increase in pension  expense and normal merit
increases. Occupancy and equipment expense decreased by $22,000, or 9.2%, mainly
due to a decrease in property taxes and other related occupancy expenses.  Other
operating expenses decreased by $33,000,  or 5.6%. The majority of this decrease
was related to costs associated with consulting and attorney fees.

Logansport  Financial Corp. is  investigating  the possibility of de-listing its
stock and de-registering  with the Securities and Exchange  Commission  ("SEC").
This  strategy  would  reduce  future  expenses  associated  with SEC  reporting
requirements,  as well as  NASDAQ  filing  fees,  but would  also  result in the
Company's common stock no longer being quoted on the NASDAQ Small Cap Market. In
order to de-register,  the Company must first have fewer than 300  shareholders.
The  Company's  shares  trade  infrequently  and  residents of Indiana hold many
shares.  Therefore,  it is  management's  belief that any negative impact on the
liquidity of the shares as a result of a de-registration and de-listing would be
minimal.

Income Tax Expense

Income tax expense  totaled  $552,000  for the year ended  December  31, 2003, a
decrease of $57,000,  or 9.4%, from 2002. Pretax income decreased by $85,000, or
4.0%, in 2003 compared to 2002, while approximately $182,000 of tax credits were
available in both 2003 and 2002.  The  effective  tax rates were 27.1% and 28.7%
for the years ended December 31, 2003 and 2002, respectively.


Comparison  of Results of Operations  for the Years Ended  December 31, 2002 and
2001

Net earnings totaled $1.5 million for the year ended December 31, 2002, a
$116,000, or 8.3%, increase over the net earnings reported for 2001. The
increase in net earnings resulted primarily from an increase of $314,000 in net
interest income, an increase of $130,000 in other income and a decrease of
$32,000 in the provision for losses on loans, which were partially offset by an
increase of $272,000 in general, administrative and other expense and an
increase in the provision for income taxes of $88,000.

Interest Income

The Company's total interest income was $9.3 million for the year ended December
31, 2002, a decrease of $505,000, or 5.1%, compared to $9.8 million during 2001.
The $10.7 million,  or 8.3%, increase in average  interest-earning  assets, from
$129.8  million in 2001 to $140.5  million in 2002, was more than offset by a 93
basis point decrease in the average yield on  interest-earning  assets, to 6.68%
in 2002  compared  to 7.61% in  2001.  Interest  income  on loans  decreased  by
$406,000,  or 4.7%,  due  primarily to a 70 basis point  decrease in the average
yield  year to year,  to 7.30% in 2002,  which  was  partially  offset by a $4.8
million, or 4.4%, increase in the average balance of loans outstanding. Interest
income on investment and mortgage-backed  securities and other  interest-bearing
deposits  decreased  by $99,000,  or 8.9%,  due  primarily  to a 152 basis point
decline in the average yield, to 3.89% in 2002,  which was partially offset by a
$5.9 million, or 31.5%, increase in the average balance outstanding.



<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Comparison  of Results of Operations  for the Years Ended  December 31, 2002 and
2001 (continued)

Interest Expense

Interest  expense  totaled $4.9 million for the year ended  December 31, 2002, a
decrease of $819,000,  or 14.4%,  compared to 2001. This decrease was the result
of a decrease in the average cost of  interest-bearing  liabilities of 114 basis
points, from 5.06% in 2001 to 3.92% in 2002,  partially offset by an increase in
the average  balance of $11.6 million,  or 10.3%.  Interest  expense on deposits
decreased by $715,000,  or 19.4%,  due primarily to a 137 basis point decline in
the average cost of deposits,  to 3.32% in 2002, which was partially offset by a
$10.9 million, or 13.9%, increase in the average balance of deposits outstanding
year to year. Interest expense on borrowings decreased by $104,000, or 5.2%, due
primarily to a 43 basis point decrease in the average cost of borrowings year to
year.  The decreases in the level of yields on  interest-earning  assets and the
cost of interest-bearing  liabilities were due primarily to the overall decrease
in interest rates in the economy throughout 2001 and 2002.

Net Interest Income

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  increased by $314,000,  or 7.6%,  to $4.4 million in 2002,
compared to $4.1  million in 2001.  The  interest  rate spread was 2.76% in 2002
compared   to   2.55%   in  2001,   and  the  net   yield  on   weighted-average
interest-earning assets declined to 3.21% in 2002 from 3.23% in 2001.

Provision for Losses on Loans

The Company  maintains  a general  allowance  for loan  losses that  reflects an
estimate of inherent  losses based upon the types and  categories of outstanding
loans, as well as problem loans and current economic conditions in the Company's
market  area.  The  Company's  provision  for losses on loans was  $360,000  and
$392,000, for the years ended December 31, 2002 and 2001, respectively. The 2002
provision was predicated primarily upon the increase in the volume of commercial
loans  and  loans  secured  by  nonresidential   real  estate,  an  analysis  of
nonperforming  loans and the current economic climate.  At December 31, 2002 and
2001, the allowance amounted to $1.5 million and $1.1 million, respectively, for
a ratio to total loans of 1.30% in 2002 and 1.00% in 2001.  Non-performing loans
were $1.5 million and $1.9 million at December 31, 2002 and 2001,  respectively.
The ratio of the allowance  for loan losses to  non-performing  loans  increased
from  58.1% at  December  31,  2001 to  98.3% at  December  31,  2002.  Based on
management's  review of the loan  portfolio,  the  allowance  for loan losses at
December 31, 2002 is considered  adequate to cover potential  losses inherent in
the loan portfolio.

Other Income

Other income totaled  $459,000 for the year ended  December 31, 2002,  excluding
the loss on the investment in real estate  partnership,  compared to $429,000 in
2001.  The $30,000,  or 7.0%,  increase was due  primarily to a $101,000 gain on
sale  of  investment  and  mortgage-backed  securities,  partially  offset  by a
decrease of  $17,000,  or 7.1%,  in service  charges on deposit  accounts  and a
$54,000,  or  28.3%,  decrease  in other  operating  income,  mainly  income  on
Bank-owned life insurance and a $14,000 decrease in insurance  commissions.  The
$107,000 loss on investment  in real estate  partnership  recorded in 2002 had a
positive  after-tax  effect of  approximately  $111,000 when considering the tax
benefit and the available tax credits generated by the project.



<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Comparison  of Results of Operations  for the Years Ended  December 31, 2002 and
2001 (continued)

General, Administrative and Other Expense

General,  administrative  and other  expense  totaled  $2.3 million for the year
ended  December  31,  2002,  compared  to $2.0  million in 2001,  an increase of
$272,000, or 13.3%. Employee compensation and benefits increased by $182,000, or
16.3%,  due  primarily  to a $40,000  increase  in  expense  related  to medical
insurance  and a $30,000  increase  in  pension  expense,  while  the  remaining
$112,000  increase was primarily  attributable  to additional  staffing,  normal
merit  increases and an increase in officer and employee  bonus expenses year to
year.  Occupancy and equipment expense increased by $10,000, or 4.3%, mainly due
to an increase in property  taxes and other  related  occupancy  expenses.  Data
processing fees increased by $7,000, or 3.8%, due primarily to increased account
volume and additional  commercial loan software maintenance costs. Various other
operating expenses increased by $73,000,  or 14.5%. The majority of the increase
was related to costs associated with new internet-banking  services,  consulting
and  attorney  fees,  costs  related  to being a  public  company  and  pro-rata
increases in costs related to the Company's overall growth year to year.

Income Tax Expense

Income tax expense  totaled  $609,000 for the year ended  December 31, 2002,  an
increase of $88,000,  or 16.9%,  over 2001. Pretax income increased by $204,000,
or 10.6%, in 2002 compared to 2001, while approximately  $182,000 of tax credits
were  available in both 2002 and 2001.  The  effective  tax rates were 28.7% and
27.1% for the years ended December 31, 2002 and 2001, respectively.





<PAGE>
                  AVERAGE BALANCE, YIELD, RATE AND VOLUME DATA

The following table presents,  for the periods indicated,  the month-end average
balances  of  each  category  of  the  Company's   interest-earning  assets  and
interest-bearing  liabilities,  and the average yields earned and interest rates
paid on such balances.  Such yields and costs are determined by dividing  income
or expense by the average  balance of assets or liabilities,  respectively,  for
the periods presented.
<TABLE>
<CAPTION>

                                                                     Year ended December 31,
                                             2003                             2002                            2001
                                Average    Interest             Average     Interest             Average    Interest
                              outstanding   earned/  Yield/   outstanding    earned/ Yield/    outstanding   earned/   Yield/
                                balance      paid     rate      balance       paid    rate       balance      paid      rate
                                                                     (Dollars in thousands)
Interest-earning assets:
<S>                          <C>         <C>            <C>  <C>          <C>            <C>  <C>           <C>            <C>
  Interest-earning deposits  $  12,047   $   103        0.85%$    9,638   $   124        1.29%$    7,271    $   261        3.59%
  Mortgage- and other asset-
    backed securities (1)       16,204       611        3.77     7,927        394        4.97      4,791        297        6.20
  Other investment securities (1)8,987       466        5.19     7,100        441        6.21      6,694        457        6.83
  Loans receivable (2)         109,517     7,390        6.75   113,870      8,315        7.30    109,075      8,721        8.00
  Stock in FHLB of
        Indianapolis             2,037        99        4.86     1,991        120        6.02      1,973        147        7.45
                               --------- -------             ---------     ------              ---------     ------
     Total interest-earning
        assets                 148,792     8,669        5.83   140,526      9,394        6.68    129,804      9,883        7.61

Non-interest-earning assets      6,191                           5,947                             6,306
                             ---------                       ---------                         ---------

     Total assets             $154,983                        $146,473                          $136,110
                               =======                         =======                           =======

Interest-bearing liabilities:
  Savings accounts            $  4,703        44        0.94$    4,397         55        1.25 $    3,993        100        2.50
  NOW and money market accounts 30,466       302        0.99    28,429        492        1.73     23,023        718        3.12
  Certificates of deposit       61,820     2,211        3.58    56,503      2,415        4.27     51,405      2,859        5.56
  Borrowings                    35,234     1,935        5.49    34,984      1,915        5.47     34,245      2,019        5.90
                               -------     -----               -------      -----                -------      -----
     Total interest-bearing
        liabilities            132,223     4,492        3.40   124,313      4,877        3.92    112,666      5,696        5.06
                              --------   -------       -----                -----        ----                 -----        ----

Other liabilities                6,684                           5,879                             5,562
                             ---------                       ---------                         ---------

     Total liabilities         138,907                         130,192                           118,228

Shareholders' equity            16,076                          16,281                            17,882
                              --------                        --------                          --------

     Total liabilities and
       shareholders' equity   $154,983                        $146,473                          $136,110
                               =======                         =======                           =======

Net interest-earning assets  $  16,569                       $  16,213                         $  17,138
                              ========                        ========                          ========
Net interest income                       $4,177                           $4,517                            $4,187
                                           =====                            =====                             =====
Interest rate spread (3)                                2.43%                            2.76%                             2.55%
                                                    ========                         ========                          ========
Net yield on weighted-average
  interest-earning assets (4)                           2.81%                            3.21%                             3.23%
                                                    ========                         ========                          ========
Average interest-earning assets
  to average interest-bearing
  liabilities                                         112.53%                          113.04%                           115.21%
                                                      ======                            ======                           ======
Adjustment of interest income on
  tax-exempt securities to a
  tax-equivalent basis                    $   67                           $   68                            $   52
                                          ======                           ======                            ======
</TABLE>

---------------------------
(1)  Includes securities  available for sale at amortized cost prior to SFAS No.
     115 adjustments.
(2)  Comprised of total loans less undisbursed loans in process.
(3)  Interest rate spread is calculated by subtracting weighted-average interest
     rate  cost  from  weighted-average  interest  rate  yield  for  the  period
     indicated.
(4)  The net yield on weighted-average  interest-earning assets is calculated by
     dividing net interest income by  weighted-average  interest-earning  assets
     for the period indicated.


<PAGE>


                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Rate/Volume Table

The table below  describes  the extent to which  changes in  interest  rates and
changes in volume of interest-earning  assets and  interest-bearing  liabilities
have  affected  the  Company's  interest  income and expense  during the periods
indicated.  For each category of  interest-earning  assets and  interest-bearing
liabilities,  information is provided on changes  attributable to (i) changes in
volume  (change in volume  multiplied by prior year rate),  (ii) changes in rate
(change in rate multiplied by prior year volume) and (iii) total changes in rate
and  volume.  The  combined  effects of changes in both  volume and rate,  which
cannot be separately  identified,  have been  allocated  proportionately  to the
change due to volume and the change due to rate.

<TABLE>
<CAPTION>

                                                                            Year ended December 31,
                                                             2003 vs. 2002                          2002 vs. 2001
                                                          Increase                             Increase
                                                         (decrease) (decrease)
                                                           due to due to
                                                     Volume       Rate      Total          Volume       Rate      Total
                                                                                (In thousands)
Interest-earning assets:
<S>                                                  <C>        <C>        <C>              <C>      <C>          <C>
  Interest-earning deposits                          $   27     $  (48)    $  (21)          $  67    $  (204)     $(137)
  Mortgage-backed securities                            331       (114)       217             165        (68)        97
  Investment securities                                 105        (80)        25              27        (43)       (16)
  Loans receivable                                     (342)      (583)      (925)            372       (778)      (406)
  Stock in FHLB of Indianapolis                           3        (24)       (21)              1        (28)       (27)
                                                     ------      -----      -----           -----    -------      -----
     Total interest-earning assets                      124       (849)      (725)            632     (1,121)       489

Interest-bearing liabilities:
  Savings accounts                                        4        (15)       (11)              9        (54)       (45)
  NOW and money market accounts                          33       (223)      (190)            143       (369)      (226)
  Certificates of deposit                               214       (418)      (204)            264       (708)      (444)
  Borrowings                                             14          6         20              43       (147)      (104)
                                                      -----     ------      -----            ----     ------       ----
     Total interest-bearing liabilities                 265       (650)      (385)            459     (1,278)      (819)
                                                       ----       ----       ----             ---      -----       ----

Change in net interest income
  (fully taxable equivalent basis)                     (141)      (199)      (340)            173        157        330

Tax equivalent adjustment                                 1         -           1             (11)        (5)       (16)
                                                     ------        ---     ------            ----   --------      -----

Change in net interest income                         $(140)     $(199)     $(339)           $162    $   152      $ 314
                                                       ====       ====       ====             ===     ======       ====
</TABLE>




<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Rate/Volume Table (continued)

The  Company's  results of  operations  have been  determined  primarily  by net
interest income and, to a lesser extent,  fee income,  miscellaneous  income and
general and  administrative  expenses.  Net interest income is determined by the
interest rate spread  between the yields earned on  interest-earning  assets and
the rates paid on  interest-bearing  liabilities and by the relative  amounts of
interest-earning assets and interest-bearing liabilities.

The  following  table sets forth the  weighted-average  effective  interest rate
earned by the Company on its loan and investment portfolio, the weighted-average
effective  costs of the  Company's  deposits and  borrowings,  the interest rate
spread of the Company,  and the net yield on  weighted-average  interest-earning
assets as of and for the three years ended December 31, 2003.  Average  balances
are based on month-end average balances.
<TABLE>
<CAPTION>

                                                               At December 31,                 Year ended December 31,
                                                                   2003                  2003         2002         2001

Weighted-average interest rate earned on:
<S>                                                               <C>                   <C>           <C>          <C>
  Interest-earning deposits                                       0.50%                 0.85%         1.29%        3.59%
  Mortgage-backed securities                                      3.46                  3.77          4.97         6.20
  Investment securities                                           4.89                  5.19          6.21         6.83
  Loans receivable                                                6.66                  6.75          7.30         8.00
  Stock in FHLB of Indianapolis                                   5.02                  4.86          6.02         7.45
     Total interest-earning assets                                5.50                  5.83          6.68         7.61

Weighted-average interest rate cost of:
  Savings accounts                                                1.02                  0.94          1.25         2.50
  NOW and money market accounts                                   0.95                  0.99          1.73         3.12
  Certificates of deposit                                         3.52                  3.58          4.27         5.56
  Borrowings                                                      5.43                  5.49          5.47         5.90
     Total interest-bearing liabilities                           3.22                  3.40          3.92         5.06

Interest rate spread (1)                                          2.28                  2.43          2.76         2.55

Net yield on weighted-average
  interest-earning assets (2)                                       N/A                 2.81          3.21         3.23

</TABLE>


(1)  Interest rate spread is calculated by subtracting weighted-average interest
     rate  cost  from  weighted-average  interest  rate  earned  for the  period
     indicated.  Interest rate spread figures must be considered in light of the
     relationship   between   the   amounts  of   interest-earning   assets  and
     interest-bearing  liabilities.  Since the Company's interest-earning assets
     exceeded its interest-bearing liabilities for each of the three years shown
     above, a positive interest rate spread resulted in net interest income.

(2)  The net yield on weighted-average  interest-earning assets is calculated by
     dividing net interest income by  weighted-average  interest-earning  assets
     for the period indicated.  No net yield percentage is presented at December
     31, 2003,  because the  computation of net yield is applicable  only over a
     period rather than at a specific date.



<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Asset/Liability Management

The  Bank  is  subject   to   interest   rate  risk  to  the  degree   that  its
interest-bearing  liabilities,  primarily  deposits with short- and  medium-term
maturities,  mature or reprice  at  different  rates  than its  interest-earning
assets.   Management  of  the  Bank  believes  it  is  critical  to  manage  the
relationship  between  interest rates and the effect on the Bank's net portfolio
value ("NPV").  Generally, NPV is the discounted present value of the difference
between  incoming cash flows on  interest-earning  and other assets and outgoing
cash flows on interest-bearing liabilities.  Management of the Bank's assets and
liabilities  is  done  within  the  context  of  the   marketplace,   regulatory
limitations  and within  limits  established  by the Board of  Directors  on the
amount  of  change in NPV,  which is  acceptable  given  certain  interest  rate
changes.

The Office of Thrift Supervision  ("OTS") uses a net market value methodology to
measure the interest rate risk exposure of thrift institutions. As a part of its
efforts to monitor its interest rate risk,  the Bank utilizes the "net portfolio
value"  ("NPV")  methodology  to assess  its  exposure  to  interest  rate risk.
Generally,  NPV is the  discounted  present  value  of  the  difference  between
incoming cash flows on interest-earning and other assets and outgoing cash flows
on interest-bearing liabilities.  Presented below, as of September 30, 2003 (the
latest available date) and December 31, 2002 is an analysis performed by the OTS
of the Bank's interest rate risk as measured by changes in NPV for instantaneous
and sustained  parallel shifts in the yield curve, in 100 basis point increments
in accordance with OTS regulations. As illustrated in the tables, the Bank's NPV
is more sensitive to rising rates than declining rates. This occurs  principally
because,   as  rates  rise,   the  market  value  of  the  Bank's   investments,
adjustable-rate  mortgage loans (many of which have maximum per year adjustments
of 1%), fixed-rate loans and mortgage-backed  securities decline due to the rate
increases.   The  value  of  the  Bank's  deposits  and  borrowings   change  in
approximately the same proportion in rising or falling rate scenarios.
<TABLE>
<CAPTION>

                                                        September 30, 2003
Change in
interest rate                              Net Portfolio Value                              NPV as % of PV of Assets
(Basis Points)             $ Amount             $ Change            % Change                   NPV Ratio       Change
                                    (In thousands)

<S>   <C>                    <C>                <C>                    <C>                    <C>              <C>
     +300                    $15,299            $(1,086)               (7)%                   10.16%           (28 bp)
     +200                     16,162               (223)               (1)                    10.57             13 bp
     +100                     16,571                186                 1                     10.68             24 bp
      -                       16,385                 -                  -                     10.44              -
     -100                     15,517               (868)               (5)                     9.80            (64 bp)


                                                        December 31, 2002
Change in
interest rate                              Net Portfolio Value                              NPV as % of PV of Assets
(Basis Points)             $ Amount             $ Change            % Change                   NPV Ratio       Change
                                    (In thousands)

     +300                    $15,152              $(840)               (5)%                   10.09%           (15 bp)
     +200                     15,921                (71)                0                     10.44             20 bp
     +100                     16,332                340                 2                     10.57             33 bp
      -                       15,992                 -                 -                      10.24              -
     -100                     15,036               (956)               (6)                     9.55            (69 bp)

</TABLE>

<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Asset and Liability Management (continued)

As with any method of measuring  interest rate risk,  certain  shortcomings  are
inherent  in the  method of  analysis  presented  in the  foregoing  table.  For
example,  although certain assets and liabilities may have similar maturities or
periods of repricing,  they may react in different  degrees to changes in market
interest  rates.  Also,  the  interest  rates on  certain  types of  assets  and
liabilities may fluctuate in advance of changes in market interest rates,  while
interest  rates  on  other  types  may  lag  behind  changes  in  market  rates.
Additionally,  certain assets, such as adjustable-rate loans, have features that
restrict  changes in interest  rates on a short-term  basis and over the life of
the assets.  Further, in the event of a change in interest rates, expected rates
of  prepayment  on loans and early  withdrawal  from  certificates  could likely
deviate significantly from those assumed in calculating the table.


Liquidity and Capital Resources

The Company's  primary  sources of funds are deposits and  borrowings,  proceeds
from  principal  and  interest  payments on loans,  and proceeds  from  maturing
securities.   While  maturities  and  scheduled  amortization  of  loans  are  a
relatively  predictable source of funds,  deposit flows and mortgage prepayments
are generally  influenced by general  interest  rates,  economic  conditions and
competition.

The primary  investing  activity of the Company is the  origination of loans and
the purchase of investment securities. During the years ended December 31, 2003,
2002 and 2001,  the  Company  originated  mortgage  loans and  commercial  loans
totaling  $51.1  million,  $40.3 million and $54.3  million,  respectively.  The
Company  originated  consumer  loans  of $5.7  million,  $5.3  million  and $6.8
million,  in 2003,  2002 and 2001,  respectively.  The Company  purchased  loans
totaling  $1.8  million in 2003,  $171,000 in 2002 and  $499,000  in 2001.  Loan
repayments totaled $57.8 million, $46.7 million and $51.4 million for 2003, 2002
and 2001, respectively.

During the years ended December 31, 2003,  2002 and 2001, the Company  purchased
investment and mortgage-backed securities in the amounts of $40.7 million, $17.8
million and $1.6 million,  respectively.  Sales or maturities of such securities
held by the Company and  repayments  on  mortgage-backed  or other  asset-backed
securities  totaled $26.7 million,  $9.4 million and $5.1 million for 2003, 2002
and 2001, respectively.

Deposits grew by $5.4 million from  December 31, 2002 to December 31, 2003,  and
by $14.4 million from December 31, 2001 to December 31, 2002.

Cash and cash  equivalents  increased by $886,000 over December 31, 2002 to 2003
and $4.7 million over December 31, 2001 to December 31, 2002.




<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Liquidity and Capital Resources (continued)

The following table sets forth information  regarding the Company's  obligations
and commitments to make future payments under contract as of December 31, 2003.
<TABLE>
<CAPTION>

                                                                        Payments due by period
                                                            Less                                      More
                                                            than           1-3          3-5           than
                                                           1 year         years        years        5 years       Total
                                                                                  (In thousands)

Contractual obligations:
  Advances from the Federal Home Loan
<S>                                                       <C>           <C>          <C>           <C>          <C>
    Bank and other borrowings                             $  3,900      $  6,450     $  2,806      $22,790      $35,946
  Certificates of deposit                                   29,261        17,754       10,861           -        57,876

Amount of commitments expiration per period Commitments to originate loans:
    One- to four-family residential loans                      850            -            -            -           850
    Home equity/commercial lines of credit                   9,487            -            -            -         9,487
    Home equity/commercial lines of credit                   9,487            -            -            -         9,487
    Letters of credit                                        2,670            -            -            -         2,670
                                                           -------       -------      -------      -------    ---------

         Total contractual obligations                     $48,819       $24,204      $13,667      $22,790     $109,480
                                                            ======        ======       ======       ======      =======
</TABLE>


The Company anticipates that it will have sufficient funds available to meet its
current loan commitments. Based upon historical deposit flow data, the Company's
competitive  pricing  in its  market  and  management's  experience,  management
believes that a  significant  portion of maturing  certificates  of deposit will
remain with the Company.

Liquidity  management  is both a daily and  long-term  function of the Company's
management  strategy.  In the event that the Company should require funds beyond
its ability to generate them internally,  additional funds are available through
the use of FHLB advances, and also may be available through sales of securities,
although no sales of securities are planned.  At December 31, 2003 and 2002, the
Company  had  outstanding  FHLB  advances of $34.0  million  and $33.8  million,
respectively.

Pursuant  to OTS  capital  regulations,  the  Bank  must  currently  meet a 1.5%
tangible  capital   requirement,   a  4.0%  leverage  ratio  (or  core  capital)
requirement,  and a total risk-based  capital to  risk-weighted  assets ratio of
8.0%. At December 31, 2003, the Bank's tangible capital and leverage ratios were
both 10.9%, and its risk-based capital to risk-weighted  assets ratio was 19.4%.
Therefore,  at December 31, 2003, the Bank's capital significantly  exceeded all
of the capital  requirements  currently in effect.  The following table provides
the minimum regulatory capital  requirements and the Bank's capital ratios as of
December 31, 2003.



<PAGE>



                           Logansport Financial Corp.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Liquidity and Capital Resources (continued)
<TABLE>
<CAPTION>

                                             OTS Requirement                         The Bank's Capital Level
                                        % of                                % of                                 Amount
                                       Assets           Amount            Assets (1)         Amount           of excess
                                                                   (Dollars in thousands)

<S>                                      <C>            <C>              <C>                <C>                 <C>
Tangible capital                         1.5%           $2,350           10.9%              $17,044             $14,694
Core capital (2)                         4.0             6,266           10.9                17,044              10,778
Risk-based capital                       8.0             7,526           19.4                18,225              10,699
</TABLE>



(1)  Tangible and core capital levels are shown as a percentage of total assets;
     risk-based  capital  levels  are  shown as a  percentage  of  risk-weighted
     assets.

(2)  OTS  regulations  require at least 3% of total adjusted  assets for savings
     associations  that received the highest  supervisory  rating for safety and
     soundness, and 4% for all other savings associations.

(3)  The Bank's  risk-based  capital includes $1.5 million of general  valuation
     allowances.

As of December 31, 2003, management is not aware of any current  recommendations
by regulatory authorities which, if they were to be implemented,  would have, or
are  reasonably  likely  to  have,  a  material  adverse  effect  on the  Bank's
liquidity, capital resources or results of operations.

Off-Balance Sheet Arrangements

As of the date of this Annual Report,  the Company does not have any off-balance
sheets  arrangements  that have or are  reasonably  likely to have a current  or
future  effect  on  the  Company's  financial  condition,  change  in  financial
condition,  revenues or  expenses,  results of  operations,  liquidity,  capital
expenditures  or capital  resources  that are  material to  investors.  The term
"off-balance sheet arrangement" generally means any transaction,  agreement,  or
other contractual arrangement to which an entity unconsolidated with the Company
is a party  under  which the  Company  has (i) any  obligation  arising  under a
guarantee  contract,  derivative  instrument  or  variable  interest;  or (ii) a
retained or contingent  interest in assets transferred to such entity or similar
arrangement  that serves as credit,  liquidity  or market risk  support for such
assets.



<PAGE>



               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Board of Directors
Logansport Financial Corp.

We have audited the accompanying consolidated statements of financial condition
of Logansport Financial Corp. as of December 31, 2003 and 2002, and the related
consolidated statements of earnings, shareholders' equity, comprehensive income
and cash flows for each of the years in the three year period ended December 31,
2003. These consolidated financial statements are the responsibility of the
Corporation's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  consolidated  financial  position  of  Logansport
Financial Corp. as of December 31, 2003 and 2002, and the  consolidated  results
of its operations,  comprehensive income and cash flows for each of the years in
the three year period ended  December 31, 2003,  in conformity  with  accounting
principles generally accepted in the United States of America.




Cincinnati, Ohio
January 30, 2004


<PAGE>

                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                           December 31, 2003 and 2002
                        (In thousands, except share data)
<TABLE>
<CAPTION>


         ASSETS                                                                                     2003             2002

<S>                                                                                          <C>              <C>
Cash and due from banks                                                                      $       707      $       778
Interest-bearing deposits in other financial institutions                                         13,696           12,739
                                                                                                --------         --------
         Cash and cash equivalents                                                                14,403           13,517

Investment securities designated as available for sale - at market                                12,242            8,060
Mortgage-backed securities designated as available for sale - at market                           20,307           11,009
Loans receivable - net                                                                           102,353          110,386
Office premises and equipment - at depreciated cost                                                1,694            1,767
Federal Home Loan Bank stock - at cost                                                             2,080            2,003
Investment in real estate limited partnership                                                        950            1,026
Accrued interest receivable on loans                                                                 409              410
Accrued interest receivable on mortgage-backed securities                                             70               49
Accrued interest receivable on investments and interest-bearing deposits                             166              107
Prepaid expenses and other assets                                                                    164               80
Cash surrender value of life insurance                                                             1,343            1,317
Deferred income tax asset                                                                            619              364
Prepaid income taxes                                                                                  24                4
                                                                                             -----------     ------------

         Total assets                                                                           $156,824         $150,099
                                                                                                 =======          =======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                        $103,757        $  98,325
Advances from the Federal Home Loan Bank                                                          34,027           33,836
Notes payable                                                                                      1,919            1,793
Accrued interest and other liabilities                                                               765              772
                                                                                              ----------       ----------
         Total liabilities                                                                       140,468          134,726

Commitments                                                                                           -                -

Shareholders' equity
  Preferred stock - no par value, 2,000,000 shares authorized; none issued                            -                -
  Common stock - no par value, 5,000,000 shares authorized; 877,444
    and 848,958 shares at aggregate value issued and outstanding at
    December 31, 2003 and 2002, respectively                                                       1,824            1,446
  Retained earnings - restricted                                                                  14,445           13,444
  Less shares acquired by stock benefit plan                                                         (23)             (44)
  Accumulated comprehensive income, unrealized gains on securities
    designated as available for sale, net of related tax effects                                     110              527
                                                                                              ----------       ----------
         Total shareholders' equity                                                               16,356           15,373
                                                                                                --------         --------

         Total liabilities and shareholders' equity                                             $156,824         $150,099
                                                                                                 =======          =======


The accompanying notes are an integral part of these statements.

</TABLE>



<PAGE>
                           LOGANSPORT FINANCIAL CORP.

                       CONSOLIDATED STATEMENTS OF EARNINGS

              For the years ended December 31, 2003, 2002 and 2001
                        (In thousands, except share data)
<TABLE>
<CAPTION>


                                                                                           2003         2002         2001

Interest income
<S>                                                                                      <C>          <C>          <C>
  Loans                                                                                  $7,390       $8,315       $8,721
  Investment securities                                                                     399          373          405
  Mortgage-backed securities                                                                611          394          297
  Interest-bearing deposits and other                                                       202          244          408
                                                                                         ------       ------       ------
         Total interest income                                                            8,602        9,326        9,831

Interest expense
  Deposits                                                                                2,557        2,962        3,677
  Borrowings                                                                              1,935        1,915        2,019
                                                                                          -----        -----        -----
         Total interest expense                                                           4,492        4,877        5,696
                                                                                          -----        -----        -----

         Net interest income                                                              4,110        4,449        4,135

Provision for losses on loans                                                               360          360          392
                                                                                         ------       ------       ------

         Net interest income after provision for losses on loans                          3,750        4,089        3,743

Other income
  Service charges on deposit accounts                                                       218          221          238
  Gain on sale of investment and mortgage-backed securities                                 286          101           -
  Gain on sale of loans                                                                     118           -            -
  Loss on investment in real estate partnership                                             (96)        (107)        (207)
  Other operating                                                                           135          137          191
                                                                                         ------       ------       ------
         Total other income                                                                 661          352          222

General, administrative and other expense
  Employee compensation and benefits                                                      1,409        1,297        1,115
  Occupancy and equipment                                                                   218          240          230
  Data processing                                                                           188          190          183
  Other operating                                                                           558          591          518
                                                                                         ------       ------       ------
         Total general, administrative and other expense                                  2,373        2,318        2,046
                                                                                          -----        -----        -----

         Earnings before income taxes                                                     2,038        2,123        1,919

Income taxes
  Current                                                                                   592          661          662
  Deferred                                                                                  (40)         (52)        (141)
                                                                                        -------      -------       ------
         Total income taxes                                                                 552          609          521
                                                                                         ------       ------       ------

         NET EARNINGS                                                                    $1,486       $1,514       $1,398
                                                                                          =====        =====        =====

         EARNINGS PER SHARE
           Basic                                                                          $1.72        $1.63        $1.29
                                                                                           ====         ====         ====

           Diluted                                                                        $1.68        $1.58        $1.27
                                                                                           ====         ====         ====


The accompanying notes are an integral part of these statements.


</TABLE>



<PAGE>

<TABLE>
<CAPTION>


                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

              For the years ended December 31, 2003, 2002 and 2001
                                 (In thousands)

                                                                                           2003         2002         2001

<S>                                                                                      <C>          <C>          <C>
Net earnings                                                                             $1,486       $1,514       $1,398

Other comprehensive income (loss), net of tax:
  Unrealized holding gains (losses) on securities during the year,
    net of taxes (benefits) of $(117), $175 and $93 for the years
    ended December 31, 2003, 2002 and 2001, respectively                                   (228)         339          180
  Reclassification adjustment for realized gains included
    in earnings, net of taxes of $97 and $34 for the years
    ended December 31, 2003 and 2002, respectively                                         (189)         (67)          -
                                                                                         ------      -------        -----

Comprehensive income                                                                     $1,069       $1,786       $1,578
                                                                                          =====        =====        =====

Accumulated comprehensive income                                                        $   110      $   527      $   255
                                                                                         ======       ======       ======



The accompanying notes are an integral part of these statements.


</TABLE>



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

              For the years ended December 31, 2003, 2002 and 2001
                        (In thousands, except share data)
<TABLE>
<CAPTION>

                                                                                                   Unrealized
                                                                                     Shares      gains (losses)
                                                                                    acquired      on securities
                                                                                    by stock      designated as
                                                            Common      Retained     benefit        available
                                                             stock      earnings      plan          for sale        Total

<S>                <C>                                      <C>          <C>         <C>             <C>          <C>
Balance at January 1, 2001                                  $5,515       $11,526     $(103)          $  75        $17,013

Net earnings for the year ended December 31, 2001               -          1,398        -               -           1,398
Purchase of shares                                            (921)           -         -               -            (921)
Issuance of shares under stock option plan                     208            -         -               -             208
Unrealized gains on securities designated as
  available for sale, net of related tax effects                -             -         -              180            180
Amortization expense of stock benefit plan                      -             -         40              -              40
Cash dividends of $.48 per share                                -           (516)       -               -            (516)
                                                             -----      --------       ---              --       --------

Balance at December 31, 2001                                 4,802        12,408       (63)            255         17,402

Net earnings for the year ended December 31, 2002               -          1,514        -               -           1,514
Purchase of shares                                          (3,725)           -         -               -          (3,725)
Issuance of shares under stock option plan                     369            -         -               -             369
Unrealized gains on securities designated as
  available for sale, net of related tax effects                -             -         -              272            272
Amortization expense of stock benefit plan                      -             -         19              -              19
Cash dividends of $.52 per share                                -           (478)       -               -            (478)
                                                             -----      --------       ---             ---       --------

Balance at December 31, 2002                                 1,446        13,444       (44)            527         15,373

Net earnings for the year ended December 31, 2003               -          1,486        -               -           1,486
Issuance of shares under stock option plan                     378            -         -               -             378
Unrealized losses (net of realized gains) on securities
  designated as available for sale, net of related tax effects  -             -         -             (417)          (417)
Amortization expense of stock benefit plan                      -             -         21              -              21
Cash dividends of $.56 per share                                -           (485)       -               -            (485)
                                                             -----      --------       ---              --       --------

Balance at December 31, 2003                                $1,824       $14,445    $  (23)           $110        $16,356
                                                             =====        ======     =====             ===         ======



The accompanying notes are an integral part of these statements.


</TABLE>



<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              For the years ended December 31, 2003, 2002 and 2001
                                 (In thousands)

                                                                                           2003         2002         2001
Cash flows from operating activities:
<S>                                                                                    <C>          <C>          <C>
  Net earnings for the year                                                            $  1,486     $  1,514     $  1,398
  Adjustments to reconcile net earnings to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                                                           112          108           99
    Amortization of premiums on investments and mortgage-backed securities                   79           41           31
    Amortization expense of stock benefit plan                                               21           19           40
    Federal Home Loan Bank stock dividends                                                  (77)          -            -
    Loans originated for sale in the secondary market                                    (6,192)          -            -
    Proceeds from the sale of loans in the secondary market                               6,257           -            -
    Gain on sale of loans                                                                   (65)          -            -
    Gain on sale of investment and mortgage-backed securities                              (286)        (101)          -
    Provision for losses on loans                                                           360          360          392
    Gain on sale of real estate acquired through foreclosure                                 (3)          -            -
    Loss on investment in real estate partnership                                            96          107          207
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                                    1           35          103
      Accrued interest receivable on mortgage-backed securities                             (21)         (21)          13
      Accrued interest receivable on investments                                            (59)         (15)          15
      Prepaid expenses and other assets                                                     (84)           8          (24)
      Accrued interest and other liabilities                                                 (7)         (47)         (87)
      Federal income taxes
        Current                                                                             (20)         (33)          27
        Deferred                                                                            (40)         (52)        (141)
                                                                                      ---------    ---------     --------
         Net cash provided by operating activities                                        1,558        1,923        2,073

Cash flows provided by (used in) investing activities:
  Proceeds from sale of investment securities designated as available for sale            2,519          269           -
  Purchase of investment securities designated as available for sale                    (10,872)      (4,711)      (1,053)
  Proceeds from maturities of investment securities designated as available
    for sale                                                                              4,075        2,385        3,775
  Purchase of mortgage-backed securities designated as available for sale               (29,781)     (13,061)        (514)
  Proceeds from sale of mortgage-backed securities designated as
    available for sale                                                                   14,819        5,036           -
  Principal repayments on mortgage-backed securities designated as
    available for sale                                                                    5,335        1,692        1,313
  Purchase of loans                                                                      (1,771)        (171)        (499)
  Proceeds from sales of loan participations                                              2,000           -           416
  Loan disbursements                                                                    (50,555)     (45,554)     (61,082)
  Principal repayments on loans                                                          57,846       46,675       51,430
  Investment in real estate partnership                                                     (94)         (96)        (104)
  Purchases of office premises and equipment                                                (39)         (72)         (59)
  Proceeds from sale of real estate acquired through foreclosure                            156           65           -
  Purchase of Federal Home Loan Bank stock                                                   -           (30)          -
  Increase in cash surrender value of life insurance policy                                 (26)         (26)         (57)
                                                                                      ---------    ---------    ---------
         Net cash used in investing activities                                           (6,388)      (7,599)      (6,434)
                                                                                        -------      -------      -------

         Net cash used in operating and investing activities
           (subtotal carried forward)                                                    (4,830)      (5,676)      (4,361)
                                                                                        -------      -------      -------
</TABLE>



<PAGE>
<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

              For the years ended December 31, 2003, 2002 and 2001
                                 (In thousands)


                                                                                           2003         2002         2001
         Net cash used in operating and investing activities
<S>                                                                                    <C>          <C>          <C>
           (subtotal brought forward)                                                  $ (4,830)    $ (5,676)    $ (4,361)

Cash flows provided by (used in) financing activities:
  Net increase in deposit accounts                                                        5,432       14,425        4,446
  Proceeds from Federal Home Loan Bank advances                                           4,445        9,950       12,750
  Repayment of Federal Home Loan Bank advances                                           (4,254)     (10,864)     (12,000)
  Proceeds from notes payable                                                               200          700           -
  Proceeds from the exercise of stock options                                               378          369          208
  Dividends on common stock                                                                (485)        (478)        (516)
  Purchase of shares                                                                         -        (3,725)        (921)
                                                                                        -------      -------     --------
         Net cash provided by financing activities                                        5,716       10,377        3,967
                                                                                        -------       ------      -------

Net increase (decrease) in cash and cash equivalents                                        886        4,701         (394)

Cash and cash equivalents at beginning of year                                           13,517        8,816        9,210
                                                                                         ------      -------      -------

Cash and cash equivalents at end of year                                                $14,403      $13,517     $  8,816
                                                                                         ======       ======      =======


Supplemental disclosure of cash flow information: Cash paid during the year for:
    Income taxes                                                                      $     540    $     617    $     590
                                                                                       ========     ========     ========

    Interest on deposits and borrowings                                                $  4,511     $  4,887     $  5,719
                                                                                        =======      =======      =======

Supplemental disclosure of noncash investing and financing activities:
   Recognition of mortgage servicing rights in accordance
     with SFAS No. 140                                                               $       53     $     -      $     -
                                                                                      =========      =======      =======

  Transfers from loans to real estate acquired
    through foreclosure                                                               $     153     $     -    $       65
                                                                                       ========      =======    =========

  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                              $    (228)   $     339    $     180
                                                                                       =========    ========     ========

</TABLE>
The accompanying notes are an integral part of these statements.


<PAGE>

                           LOGANSPORT FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES

     Logansport  Financial  Corp.  (the  "Corporation")  is a  savings  and loan
     holding  company  whose  activities  are  primarily  limited to holding the
     common stock of Logansport  Savings Bank,  FSB (the  "Savings  Bank").  The
     Savings Bank conducts a general banking business in  north-central  Indiana
     that consists of attracting  deposits from the general  public and applying
     those  funds to the  origination  of loans for  residential,  consumer  and
     nonresidential  purposes. The Savings Bank's profitability is significantly
     dependent  on its net  interest  income,  which is the  difference  between
     interest  income  generated from  interest-earning  assets (i.e.  loans and
     investments) and the interest expense paid on interest-bearing  liabilities
     (i.e.  customer  deposits  and  borrowed  funds).  Net  interest  income is
     affected   by  the   relative   amount  of   interest-earning   assets  and
     interest-bearing  liabilities  and the  interest  received or paid on these
     balances.  The level of interest rates paid or received by the Savings Bank
     can be significantly  influenced by a number of environmental factors, such
     as governmental monetary policy, that are outside of management's control.

     The financial  information presented herein has been prepared in accordance
     with  accounting  principles  generally  accepted  in the United  States of
     America ("U.S. GAAP") and general accounting practices within the financial
     services  industry.  In  preparing  consolidated  financial  statements  in
     accordance  with U.S.  GAAP,  management is required to make  estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     the  disclosure of  contingent  assets and  liabilities  at the date of the
     consolidated  financial  statements  and revenues  and expenses  during the
     reporting period. Actual results could differ from such estimates.

     The  following  is a summary of the  Corporation's  significant  accounting
     policies  which have been  consistently  applied in the  preparation of the
     accompanying consolidated financial statements.

     1. Principles of Consolidation

     The  consolidated   financial   statements  include  the  accounts  of  the
     Corporation  and  its   subsidiary,   the  Savings  Bank.  All  significant
     intercompany balances and transactions have been eliminated.

     2. Investment and Mortgage-backed Securities

     The Corporation accounts for investments and mortgage-backed  securities in
     accordance with Statement of Financial  Accounting  Standards  ("SFAS") No.
     115  "Accounting  for Certain  Investments in Debt and Equity  Securities."
     SFAS No. 115 requires that investments be categorized as  held-to-maturity,
     trading, or available for sale.  Securities  classified as held to maturity
     are carried at cost only if the  Corporation  has the  positive  intent and
     ability to hold these  securities  to maturity.  Securities  designated  as
     available  for sale are  carried at fair value  with  resulting  unrealized
     gains or losses recorded to shareholders'  equity. At December 31, 2003 and
     2002, the  Corporation  had  designated all investment and  mortgage-backed
     securities as available for sale.

     Realized gains and losses on sales of securities  are recognized  using the
     specific identification method.



<PAGE>
                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     3. Loans Receivable

     Loans held in portfolio  are stated at the  principal  amount  outstanding,
     adjusted for the allowance for loan losses.  Interest is accrued as earned,
     unless the collectibility of the loan is in doubt.  Uncollectible  interest
     on loans that are contractually past due is charged off, or an allowance is
     established  based on management's  periodic  evaluation.  The allowance is
     established by a charge to interest income equal to all interest previously
     accrued, and income is subsequently recognized only to the extent that cash
     payments are received  until,  in  management's  judgment,  the  borrower's
     ability to make periodic  interest and  principal  payments has returned to
     normal,  in which  case the loan is  returned  to  accrual  status.  If the
     ultimate  collectibility  of the loan is in doubt, in whole or in part, all
     payments received on nonaccrual loans are applied to reduce principal until
     such doubt is eliminated.

     During  2003,  the Savings Bank  initiated a program to originate  and sell
     certain loans in the secondary market, to the Federal Home Loan Bank. Loans
     sold during 2003 totaled $6.2 million,  which resulted in realized gains of
     $118,000.

     Loans held for sale are carried at the lower of cost or market,  determined
     in the aggregate.  In computing cost,  deferred loan  origination  fees are
     deducted from the principal  balances of the related loans. At December 31,
     2003 and 2002,  the Savings Bank had not  identified  any loans as held for
     sale.

     The Savings Bank  accounts for mortgage  servicing  rights  pursuant to the
     provisions  of SFAS No. 140,  "Accounting  for  Transfers  and Servicing of
     Financial Assets and  Extinguishments of Liabilities,"  which requires that
     the Savings Bank recognize as separate  assets,  rights to service mortgage
     loans for others, regardless of how those servicing rights are acquired. An
     institution  that acquires  mortgage  servicing  rights  through either the
     purchase  or  origination  of  mortgage  loans and sells  those  loans with
     servicing  rights  retained  must allocate some of the cost of the loans to
     mortgage servicing rights.

     SFAS No.  140  requires  that  capitalized  mortgage  servicing  rights  be
     assessed for  impairment.  Impairment is measured based on fair value.  The
     mortgage  servicing  rights  recorded by the Savings  Bank,  calculated  in
     accordance  with the provisions of SFAS No. 140, were segregated into pools
     for valuation purposes,  using as pooling criteria the loan term and coupon
     rate.  Once pooled,  each  grouping of loans was  evaluated on a discounted
     earnings  basis to determine  the present  value of future  earnings that a
     purchaser  could  expect to  realize  from each  portfolio.  Earnings  were
     projected  from a  variety  of  sources,  including  loan  servicing  fees,
     interest  earned on float,  net interest  earned on escrows,  miscellaneous
     income,  and  costs to  service  the  loans.  The  present  value of future
     earnings is the  "economic"  value for the pool,  i.e.,  the net realizable
     present value to an acquirer of the acquired servicing.

     The Savings Bank recorded amortization related to mortgage servicing rights
     totaling  approximately  $1,000 for the year ended  December 31,  2003.  At
     December 31, 2003,  the fair value and carrying value of the Savings Bank's
     mortgage servicing rights totaled approximately $52,000.



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     4. Loan Origination Fees

     The Savings Bank accounts for loan origination fees in accordance with SFAS
     No.  91,  "Accounting  for  Nonrefundable  Fees and Costs  Associated  with
     Originating  or  Acquiring  Loans  and  Initial  Direct  Costs of  Leases."
     Pursuant to the provisions of SFAS No. 91,  origination  fees received from
     loans, net of certain direct  origination costs, are deferred and amortized
     to interest income using the interest method,  giving effect to actual loan
     prepayments.  Additionally,  SFAS No. 91 generally limits the definition of
     loan  origination  costs to the direct costs  attributable to originating a
     loan,  i.e.  principally  actual  personnel  costs.  Fees received for loan
     commitments that are expected to be drawn upon, based on the Savings Bank's
     experience  with similar  commitments,  are deferred and amortized over the
     life of the  loan  using  the  level-yield  method.  Fees  for  other  loan
     commitments are deferred and amortized over the loan commitment period on a
     straight-line basis.

     5. Allowance for Loan Losses

     It is the  Savings  Bank's  policy  to  provide  valuation  allowances  for
     estimated  losses  on loans  based on past loss  experience,  trends in the
     level of delinquent and problem loans,  adverse  situations that may affect
     the  borrower's  ability to repay,  the estimated  value of any  underlying
     collateral  and current  economic  conditions in the primary  lending area.
     When the collection of a loan becomes doubtful, or otherwise troubled,  the
     Savings Bank records a loan loss provision equal to the difference  between
     the fair value of the property  securing  the loan and the loan's  carrying
     value.  Major loans and major  lending areas are reviewed  periodically  to
     determine  potential  problems at an early  date.  The  allowance  for loan
     losses is  increased by charges to earnings  and  decreased by  charge-offs
     (net of recoveries).

     The Savings Bank accounts for impaired  loans in  accordance  with SFAS No.
     114,  "Accounting  by  Creditors  for  Impairment  of a Loan." SFAS No. 114
     requires  that impaired  loans be measured  based upon the present value of
     expected future cash flows discounted at the loan's effective interest rate
     or, as an alternative,  at the loan's observable market price or fair value
     of the  collateral.  The Savings Bank's  current  procedures for evaluating
     impaired  loans result in carrying  such loans at the lower of cost or fair
     value.

     A loan is defined  under SFAS No. 114 as  impaired  when,  based on current
     information  and events,  it is probable  that a creditor will be unable to
     collect all  amounts due  according  to the  contractual  terms of the loan
     agreement.  In applying  the  provisions  of SFAS No. 114, the Savings Bank
     considers  its  investment  in one- to  four-family  residential  loans and
     consumer  installment  loans to be homogeneous and therefore  excluded from
     separate  identification for evaluation of impairment.  With respect to the
     Savings Bank's  investment in nonresidential  and multi-family  residential
     real estate loans and  commercial  loans,  and its evaluation of impairment
     thereof,  such loans are generally  collateral  dependent and, as a result,
     are carried as a practical expedient at the lower of cost or fair value.

     Collateral  dependent  loans which are more than ninety days delinquent are
     considered  to  constitute  more than a minimum  delay in repayment and are
     evaluated for impairment under SFAS No. 114 at that time.


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


     5. Allowance for Loan Losses (continued)

     The Savings Bank's impaired loan information is as follows at December 31:
<TABLE>
<CAPTION>

                                                            2003                2002
                                                                (In thousands)

<S>                                                         <C>                 <C>
    Impaired loans with related allowance                   $658                $763
    Impaired loans with no related allowance                   -                  -
                                                           -----                  --

         Total impaired loans                               $658                $763
                                                             ===                 ===
</TABLE>
<TABLE>
<CAPTION>


                                                      2003         2002         2001
                                                              (In thousands)

    Allowance on impaired loans
<S>                                                   <C>          <C>       <C>
      Beginning balance                               $352         $341      $   228
      Provision                                         -            11          113
      Transfer to general loan loss allowance          (28)          -            -
                                                      ----           --        -----
      Ending balance                                  $324         $352      $   341
                                                       ===          ===       ======

    Average balance of impaired loans                 $710         $871       $1,419
    Interest income recognized on impaired loans      $ -          $ -      $     37
</TABLE>

     The allowance for impaired  loans is included in the Savings Bank's overall
     allowance  for credit  losses.  The  provision  necessary to increase  this
     allowance is included in the Savings Bank's overall provision for losses on
     loans.

     6. Real Estate Acquired Through Foreclosure

     Real estate  acquired  through  foreclosure  is carried at the lower of the
     loan's unpaid principal balance (cost) or fair value less estimated selling
     expenses  at the date of  acquisition.  Real  estate  loss  provisions  are
     recorded to operations if the properties' fair value subsequently  declines
     below the value  determined at the recording date. In determining the lower
     of cost or fair value at  acquisition,  costs relating to  development  and
     improvement  of property are  capitalized.  Costs  relating to holding real
     estate  acquired  through  foreclosure,  net of rental income,  are charged
     against earnings as incurred.

     7. Office Premises and Equipment

     Office premises and equipment are carried at cost and include  expenditures
     which extend the useful lives of existing assets. Maintenance,  repairs and
     minor  renewals  are  expensed  as  incurred.   For  financial   reporting,
     depreciation  and  amortization  are  provided  on  the  straight-line  and
     accelerated  methods over the useful  lives of the assets,  estimated to be
     thirty to forty  years for  buildings,  five to twenty  years for  building
     improvements  and five to fifteen  years for furniture  and  equipment.  An
     accelerated method is used for tax reporting purposes.


<PAGE>
                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     8. Investment in Real Estate Limited Partnership

     During 1997, the Corporation invested $1.5 million in a real estate limited
     partnership for the purpose of constructing  and managing  residential real
     estate  apartments for low and moderate  income  residents.  The investment
     reflects a 49.5%  participation  in the partnership and is accounted for by
     the  Savings  Bank using the  equity  method.  The  Savings  Bank  realized
     after-tax losses from the investment of approximately $55,000,  $62,000 and
     $119,000  during  the  years  ended  December  31,  2003,  2002  and  2001,
     respectively,  as well as  federal  income  tax  credits  of  approximately
     $182,000 for each of the years ended December 31, 2003, 2002 and 2001. This
     affordable  housing  project is expected  to  generate  tax credits for the
     Savings Bank in future years. Of the Savings Bank's total letters of credit
     of $2.7  million at December 31,  2003,  $1.5  million  relate to financial
     guarantees of this limited partnership.  Each of these letters of credit is
     fully  collateralized  by  the  partnership's  investment  in  real  estate
     properties.

     9. Income Taxes

     The  Corporation  accounts  for  income  taxes  pursuant  to SFAS No.  109,
     "Accounting  for Income Taxes." In accordance with SFAS No. 109, a deferred
     tax  liability  or deferred  tax asset is computed by applying  the current
     statutory  tax rates to net  taxable or  deductible  temporary  differences
     between the tax basis of an asset or liability  and its reported  amount in
     the  consolidated  financial  statements that will result in net taxable or
     deductible amounts in future periods. Deferred tax assets are recorded only
     to the extent that the amount of net  deductible  temporary  differences or
     carryforward  attributes may be utilized  against current period  earnings,
     carried  back  against  prior  years'  earnings,   offset  against  taxable
     temporary  differences  reversing  in future  periods,  or  utilized to the
     extent of  management's  estimate  of future  taxable  income.  A valuation
     allowance  is provided for deferred tax assets to the extent that the value
     of net deductible temporary differences and carryforward attributes exceeds
     management's estimates of taxes payable on future taxable income.  Deferred
     tax  liabilities  are  provided  on  the  total  amount  of  net  temporary
     differences taxable in the future.

     Deferral of income taxes results  primarily  from the different  methods of
     accounting  for  certain  benefit  plans,   the  real  estate   partnership
     investment,  general loan loss  allowances  and  percentage of earnings bad
     debt deductions.  Additional temporary differences result from depreciation
     computed using accelerated methods for tax purposes.

     10. Benefit Plans

     Employees of the Savings Bank participate in a defined benefit pension plan
     (the  "Plan")  to  which  contributions  are made  for the  benefit  of the
     employees. Contributions are determined to cover the normal cost of pension
     benefits,  the one-year  cost of the  pre-retirement  death and  disability
     benefits and the amortization of any unfunded accrued liabilities.

     The Plan  sponsor has advised the Savings  Bank that the pension plan meets
     the  criteria of a  multi-employer  pension plan as defined in SFAS No. 87,
     "Employers'  Accounting for Pensions." In accordance  with SFAS No. 87, net
     pension cost is recognized for any required  contribution for the period. A
     liability is recognized for any contributions due and unpaid. Contributions
     totaling  approximately  $116,000  and  $31,000  were  required to fund the
     pension  liability  during  the years  ended  December  31,  2003 and 2002,
     respectively.  No  contributions  were  necessary  during  the  year  ended
     December 31, 2001.  The provision  for pension  expense was computed by the
     Plan's  actuaries by utilizing  the  projected  unit credit cost method and
     assuming a 7.5% return on Plan assets.


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     10. Benefit Plans (continued)

     The Savings Bank has purchased life insurance  policies on certain officers
     and directors.  The insurance  policies had an  approximate  cash surrender
     value of $1.3 million at December  31, 2003 and 2002.  The Savings Bank has
     approved  compensation  arrangements  that provide  retirement  benefits to
     certain  officers  and  deferral  of  fees  for  directors  covered  by the
     policies.  The benefit  arrangement  for one  individual  requires that the
     individual  provide  consulting  services  to the  Savings  Bank during the
     five-year period following  retirement.  The benefits to be paid, excluding
     amounts  attributable  to  consulting,  are being  accrued from the date of
     approval of the arrangements to the date that full eligibility is attained.
     Expense related to the above-described  plans totaled $70,000,  $69,000 and
     $63,000 for the years ended December 31, 2003, 2002 and 2001, respectively.

     The Savings Bank adopted the  Logansport  Savings Bank,  FSB Employee Stock
     Ownership Plan and Trust Agreement ("ESOP") in 1995, for eligible employees
     of the  Savings  Bank.  The ESOP will be funded by  discretionary  employer
     contributions  made in  cash,  which  will be  invested  in  shares  of the
     Corporation's  common stock. No contributions  were made to the ESOP during
     the years ended December 31, 2003, 2002 or 2001.

     In April 1996,  the  Corporation's  shareholders  approved  the  Logansport
     Savings Bank, FSB Recognition  and Retention Plan and Trust ("RRP"),  which
     provided for the  acquisition  of up to 52,900 shares of the  Corporation's
     common stock for awards to management.  Shares awarded to management  under
     the RRP  generally  vest at a rate  of 20% at the end of each  full  twelve
     months of service with the Savings Bank after the date of the award. During
     1996, the Savings Bank contributed  $615,000 to the RRP for the purchase of
     46,675 shares of the  Corporation's  common stock awarded to management and
     recorded the amount as unearned compensation. During 1998, the Savings Bank
     contributed  $93,000  for the  purchase  of the 6,225  remaining  allowable
     shares.  Amortization  expense under the RRP totaled  $21,000,  $19,000 and
     $40,000 for the years ended December 31, 2003, 2002 and 2001, respectively.

     In April 1999,  the Savings Bank  implemented  a  contributory  401(k) plan
     covering all employees  who have attained the age of 21 and have  completed
     one  year of  service.  Contributions  to the plan  are  voluntary  and are
     subject to matching by the Savings Bank. The Savings Bank's expense related
     to the plan  totaled  approximately  $26,000,  $23,000  and $19,000 for the
     years ended December 31, 2003, 2002 and 2001, respectively.

     11. Earnings Per Share

     Basic earnings per common share is computed based upon the weighted-average
     number of common shares  outstanding  during the year. Diluted earnings per
     common  share is  computed  including  the  dilutive  effect of  additional
     potential common shares issuable under stock option.  The computations were
     as follows for the years ended December 31:
<TABLE>
<CAPTION>

                                                                                  2003              2002             2001

<S>                                                                            <C>               <C>            <C>
    Weighted-average common shares outstanding (basic)                         864,026           929,488        1,084,377

    Dilutive effect of assumed exercise of stock options                        21,486            28,647           19,946
                                                                              --------          --------      -----------

    Weighted-average common shares outstanding (diluted)                       885,512           958,135        1,104,323
                                                                               =======           =======        =========
</TABLE>


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     11. Earnings Per Share (continued)

     Options to purchase  2,500 shares of common  stock with a  weighted-average
     exercise  price of $13.75 were  outstanding  at December 31, 2001, but were
     excluded  from the  computation  of  diluted  earnings  per  share for 2001
     because their exercise prices were greater than the average market price of
     the common shares.

     The  Corporation  had no  anti-dilutive  securities at December 31, 2003 or
     2002.

     12. Stock Option Plans

     Stockholders of the Corporation  have approved two stock option plans.  The
     1996 Plan provided for the issuance of 132,250 shares of common stock at an
     exercise price equal to the fair value at the date of grant.  The 1999 Plan
     provided for the issuance of 115,000  shares of common stock at an exercise
     price equal to the fair value at the date of grant.

     The Corporation accounts for its stock option plans in accordance with SFAS
     No. 123,  "Accounting for Stock-Based  Compensation," which contains a fair
     value-based method for valuing  stock-based  compensation that entities may
     use, which measures  compensation  cost at the grant date based on the fair
     value of the  award.  Compensation  is then  recognized  over  the  service
     period,  which is usually the vesting period.  Alternatively,  SFAS No. 123
     permits  entities  to  continue  to account  for stock  options and similar
     equity  instruments  under Accounting  Principles Board ("APB") Opinion No.
     25,  "Accounting for Stock Issued to Employees."  Entities that continue to
     account for stock options using APB Opinion No. 25 are required to make pro
     forma  disclosures  of net earnings and earnings per share,  as if the fair
     value-based method of accounting defined in SFAS No. 123 had been applied.

     The Corporation  applies APB Opinion No. 25 and related  Interpretations in
     accounting for its stock option plans.  Accordingly,  no compensation  cost
     has  been  recognized  for  the  plans.  Had  compensation   cost  for  the
     Corporation's stock option plans been determined based on the fair value at
     the grant dates for awards under the plans  consistent  with the accounting
     method  utilized in SFAS No. 123, there would have been no material  effect
     on the Corporation's net earnings and earnings per share.

     A summary  of the  status of the  Corporation's  stock  option  plans as of
     December 31, 2003,  2002 and 2001,  and changes  during the years ending on
     those dates is presented below:
<TABLE>
<CAPTION>

                                                             2003                    2002                    2001
                                                                Weighted-               Weighted-               Weighted-
                                                                  average                 average                 average
                                                                 exercise                exercise                exercise
                                                        Shares      price       Shares      price       Shares      price

<S>                                                     <C>       <C>          <C>        <C>          <C>         <C>
    Outstanding at beginning of year                    79,136     $10.63      106,796     $10.61      125,915     $10.59
    Granted                                                 -           -           -           -           -           -
    Exercised                                          (28,486)     10.76      (27,660)     10.53      (15,463)     10.53
    Forfeited                                               -           -           -           -       (3,656)     10.53
                                                       -------     ------      -------     ------      -------     ------

    Outstanding at end of year                          50,650     $10.56       79,136     $10.63      106,796     $10.61
                                                       =======     ======      =======     ======      =======     ======

    Options exercisable at year-end                     50,650     $10.56       78,636     $10.61      105,796     $10.58
                                                       =======     ======      =======     ======      =======     ======
</TABLE>


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     12. Stock Option Plans (continued)

     The following  information  applies to options  outstanding at December 31,
     2003:

     Number outstanding                                          50,650
     Range of exercise prices                           $10.53 - $13.75
     Weighted-average exercise price                             $10.56
     Weighted-average remaining contractual life              2.3 years

     13. Cash and Cash Equivalents

     For purposes of reporting cash flows,  cash and cash  equivalents  includes
     cash and due from banks and  interest-bearing  deposits in other  financial
     institutions with original maturities of less than 90 days.

     14. Fair Value of Financial Instruments

     SFAS No.  107,  "Disclosures  about Fair Value of  Financial  Instruments,"
     requires disclosure of fair value of financial instruments, both assets and
     liabilities,  whether or not  recognized in the  consolidated  statement of
     financial  condition,  for which it is  practicable to estimate that value.
     For financial  instruments  where quoted  market prices are not  available,
     fair values are based on estimates  using present value and other valuation
     methods.

     The methods used are greatly affected by the assumptions applied, including
     the discount rate and estimates of future cash flows.  Therefore,  the fair
     values  presented  may not  represent  amounts that could be realized in an
     exchange for certain financial instruments.

     The  following  methods and  assumptions  were used by the  Corporation  in
     estimating its fair value disclosures for financial instruments at December
     31, 2003 and 2002:

          Cash and cash  equivalents:  The  carrying  amounts  presented  in the
          consolidated  statements  of  financial  condition  for  cash and cash
          equivalents are deemed to approximate fair value.

          Investment  and   mortgage-backed   securities:   For  investment  and
          mortgage-backed  securities,  fair value is deemed to equal the quoted
          market price.

          Loans  receivable:   The  loan  portfolio  has  been  segregated  into
          categories with similar  characteristics,  such as one- to four-family
          residential,  multi-family  residential,  nonresidential  real estate,
          commercial and consumer. These loan categories were further delineated
          into  fixed-rate and  adjustable-rate  loans.  The fair values for the
          resultant  loan  categories  were  computed via  discounted  cash flow
          analysis,  using current interest rates offered for loans with similar
          terms to borrowers of similar credit quality.

          Federal  Home Loan Bank stock:  The carrying  amount  presented in the
          consolidated   statements   of   financial   condition  is  deemed  to
          approximate fair value.


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     14. Fair Value of Financial Instruments (continued)

          Deposits: The fair value of NOW accounts,  passbook and club accounts,
          and money market  deposits is deemed to approximate the amount payable
          on demand at December  31, 2003 and 2002.  Fair values for  fixed-rate
          certificates  of deposit have been estimated  using a discounted  cash
          flow  calculation  using the  interest  rates  currently  offered  for
          deposits of similar remaining maturities.

          Federal Home Loan Bank  advances:  The fair value of Federal Home Loan
          Bank advances has been estimated using  discounted cash flow analysis,
          based on the interest rates currently  offered for advances of similar
          remaining maturities.

          Notes  Payable:   The  fair  value  of  notes  payable  is  deemed  to
          approximate the carrying value.

          Commitments to extend credit: For fixed-rate and adjustable-rate  loan
          commitments,  the fair value estimate considers the difference between
          current levels of interest rates and committed  rates. At December 31,
          2003 and 2002,  the  difference  between  the fair value and  notional
          amount of loan commitments was not material.

     Based on the foregoing methods and assumptions, the carrying value and fair
     value of the Corporation's financial instruments are as follows at December
     31:
<TABLE>
<CAPTION>

                                                                               2003                          2002
                                                                   Carrying           Fair        Carrying          Fair
                                                                      value          value           value         value
                                                                                        (In thousands)
    Financial assets
<S>                                                               <C>            <C>             <C>            <C>
      Cash and cash equivalents                                   $  14,403      $  14,403       $  13,517      $  13,517
      Investment securities                                          12,242         12,242           8,060          8,060
      Mortgage-backed securities                                     20,307         20,307          11,009         11,009
      Loans receivable                                              102,353        102,874         110,386        111,830
      Federal Home Loan Bank stock                                    2,080          2,080           2,003          2,003
                                                                  ---------      ---------       ---------      ---------

                                                                   $151,385       $151,906        $144,975       $146,419
                                                                    =======        =======         =======        =======

    Financial liabilities
      Deposits                                                     $103,757       $105,333       $  98,325      $  99,510
      Advances from the Federal Home Loan Bank                       34,027         34,219          33,836         34,084
      Notes payable                                                   1,919          1,919           1,793          1,793
                                                                  ---------      ---------       ---------      ---------

                                                                   $139,703       $141,471        $133,954       $135,387
                                                                    =======        =======         =======        =======
</TABLE>

     15. Advertising

     Advertising costs are expensed when incurred. The Corporation's advertising
     expense totaled  $64,000,  $68,000 and $56,000 for the years ended December
     31, 2003, 2002 and 2001, respectively.



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     16. Reclassifications

     Certain  prior year amounts have been  reclassified  to conform to the 2003
     consolidated financial statement presentation.

     17. Effects of Recent Accounting Pronouncements

     In June 2002, the Financial  Accounting Standards Board (the "FASB") issued
     Statement of Financial  Accounting  Standards ("SFAS") No. 146, "Accounting
     for  Costs  Associated  with Exit or  Disposal  Activities."  SFAS No.  146
     provides  financial  accounting and reporting guidance for costs associated
     with exit or disposal activities,  including one-time termination benefits,
     contract  termination  costs other than for a capital  lease,  and costs to
     consolidate facilities or relocate employees. SFAS No. 146 is effective for
     exit or disposal activities  initiated after December 31, 2002.  Management
     adopted  SFAS No.  146  effective  January 1, 2003,  as  required,  without
     material  effect on the  Corporation's  financial  condition  or results of
     operations.

     In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
     Compensation  - Transition  and  Disclosure."  SFAS No. 148 amends SFAS No.
     123,  "Accounting for  Stock-Based  Compensation,"  to provide  alternative
     methods of transition for a voluntary change to the fair value based method
     of accounting for stock-based employee compensation.  In addition, SFAS No.
     148 amends the disclosure requirements of SFAS No. 123 to require prominent
     disclosures  in both  annual and  interim  financial  statements  about the
     method of accounting for stock-based  employee  compensation and the effect
     of the method  used on  reported  results.  SFAS No. 148 is  effective  for
     fiscal  years  beginning  after  December 15,  2002.  The  expanded  annual
     disclosure  requirements  and the  transition  provisions are effective for
     fiscal years ending after  December 15, 2002.  Management  adopted SFAS No.
     148 effective January 1, 2003, as required,  without material effect on the
     Corporation's financial position or results of operations.

     In November  2002, the FASB issued FASB  Interpretation  No. 45 ("FIN 45"),
     "Guarantor's   Accounting  and  Disclosure   Requirements  for  Guarantees,
     Including Indirect Guarantees of Indebtedness of Others." FIN 45 requires a
     guarantor   entity,  at  the  inception  of  a  guarantee  covered  by  the
     measurement provisions of the interpretation, to record a liability for the
     fair value of the  obligation  undertaken  in issuing  the  guarantee.  The
     Corporation  has financial  letters of credit which require the Corporation
     to make payment if the  customer's  financial  condition  deteriorates,  as
     defined in the  agreements.  FIN 45 requires the  Corporation  to record an
     initial  liability,  generally equal to the fees received for these letters
     of credit when guaranteeing  obligations.  FIN 45 applies  prospectively to
     letters of credit the Corporation issues or modifies subsequent to December
     31, 2002. Management adopted FIN 45 effective January 1, 2003, as required,
     without material effect on the Corporation's  financial position or results
     of operations.

     In January  2003,  the FASB issued FASB  Interpretation  No. 46 ("FIN 46"),
     "Consolidation of Variable  Interest  Entities." FIN 46 requires a variable
     interest  entity to be consolidated by a company if that company is subject
     to a  majority  of the risk of loss  from the  variable  interest  entity's
     activities  or  entitled  to receive a majority  of the  entity's  residual
     returns, or both. FIN 46 also requires  disclosures about variable interest
     entities that a company is not required to consolidate, but in which it has
     a significant variable interest.  The consolidation  requirements of FIN 46
     apply  immediately to variable  interest entities created after January 31,
     2003. The consolidation



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


     17. Effects of Recent Accounting Pronouncements (continued)

     requirements apply to existing entities in the first fiscal year or interim
     period   beginning   after  June  15,  2003.   Certain  of  the  disclosure
     requirements  apply in all  financial  statements  issued after January 31,
     2003,  regardless  of when the variable  interest  entity was  established.
     Management  adopted FIN 46 effective  July 1, 2003,  as  required,  without
     material  effect on the  Corporation's  financial  position  or  results of
     operations.

     In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
     Derivative  Instruments and Hedging  Activities,"  which clarifies  certain
     implementation  issues  raised by  constituents  and amends  SFAS No.  133,
     "Accounting for Derivative  Instruments and Hedging Activities," to include
     the  conclusions  reached by the FASB on certain FASB Staff  Implementation
     Issues that,  while  inconsistent  with Statement 133's  conclusions,  were
     considered by the Board to be preferable;  amends SFAS No. 133's discussion
     of financial guarantee contracts and the application of the shortcut method
     to an  interest-rate  swap agreement  that includes an embedded  option and
     amends other pronouncements.

     The guidance in Statement 149 is effective  for new contracts  entered into
     or modified  after June 30, 2003 and for hedging  relationships  designated
     after that date. Management adopted SFAS No. 149 effective July 1, 2003, as
     required,  without material effect on the Corporation's  financial position
     or results of operations.

     In May  2003,  the  FASB  issued  SFAS No.  150,  "Accounting  for  Certain
     Financial Instruments with Characteristics of both Liabilities and Equity,"
     which changes the  classification in the statement of financial position of
     certain  common  financial  instruments  from  either  equity or  mezzanine
     presentation  to  liabilities  and  requires  an issuer of those  financial
     statements  to recognize  changes in fair value or  redemption  amount,  as
     applicable,  in  earnings.  SFAS No.  150  requires  an issuer to  classify
     certain  financial   instruments  as  liabilities,   including  mandatorily
     redeemable preferred and common stocks.

     SFAS  No.  150 is  effective  for  financial  instruments  entered  into or
     modified  after May 31, 2003 and, with one  exception,  is effective at the
     beginning of the first interim period  beginning  after June 15, 2003 (July
     1, 2003 as to the Corporation). The effect of adopting SFAS No. 150 must be
     recognized  as a  cumulative  effect  of an  accounting  change  as of  the
     beginning of the period of adoption.  Restatement  of prior  periods is not
     permitted.  Management  adopted  SFAS No. 150  effective  July 1, 2003,  as
     required,  without material effect on the Corporation's  financial position
     or results of operations.



<PAGE>

                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE B - INVESTMENT AND MORTGAGE-BACKED SECURITIES

     The amortized cost, gross  unrealized  gains,  gross unrealized  losses and
     estimated fair value of investment  securities  designated as available for
     sale at December 31, 2003 and 2002, are as follows:
<TABLE>
<CAPTION>

                                                                                            2003
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)

<S>                                                              <C>               <C>               <C>         <C>
    U.S. Government agency obligations                           $  8,867          $  40             $  95       $  8,812
    State and municipal obligations                                 3,074            141                 3          3,212
    FHLMC stock                                                         4            214                -             218
                                                               ----------            ---                --       --------

         Total investment securities                              $11,945           $395             $  98        $12,242
                                                                   ======            ===              ====         ======


                                                                                            2002
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)

    U.S. Government agency obligations                             $3,051          $  71            $    2         $3,120
    State and municipal obligations                                 3,028            204                -           3,232
    Corporate debt obligations                                        907             76                -             983
    Preferred stock                                                   500              3                -             503
    FHLMC stock                                                         4            218                -             222
                                                                 --------            ---                --         ------

         Total investment securities                               $7,490           $572            $    2         $8,060
                                                                    =====            ===             =====          =====
</TABLE>

     The  amortized  cost and estimated  fair value of investment  securities by
term to maturity at December 31 are shown below.
<TABLE>
<CAPTION>

                                                                     2003                                2002
                                                                           Estimated                            Estimated
                                                         Amortized              fair           Amortized             fair
                                                              cost             value                cost            value
                                                                                   (In thousands)

<S>                                                       <C>               <C>                  <C>              <C>
    Due in one year or less                               $  3,057          $  3,080             $   575          $   582
    Due after one year through three years                     102               110               2,068            2,149
    Due after three years through five years                 3,039             3,030                 657              688
    Due after five years through ten years                   4,538             4,530               2,382            2,545
    Due after ten years                                      1,205             1,274               1,304            1,371
                                                           -------           -------               -----            -----
                                                            11,941            12,024               6,986            7,335

    Preferred stock                                             -                 -                  500              503
    FHLMC stock                                                  4               218                   4              222
                                                        ----------          --------            --------           ------

                                                           $11,945           $12,242              $7,490           $8,060
                                                            ======            ======               =====            =====
</TABLE>



<PAGE>


                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE B - INVESTMENT AND MORTGAGE-BACKED SECURITIES (continued)

     Proceeds from sales of investment  securities available for sale during the
     year ended  December 31, 2003,  totaled  $2.5  million,  resulting in gross
     realized  gains of $165,000.  Proceeds from sales of investment  securities
     available  for sale  during  the year  ended  December  31,  2002,  totaled
     $269,000, resulting in gross realized gains of $17,000.

     The amortized cost, gross  unrealized  gains,  gross unrealized  losses and
     estimated  fair values of  mortgage-backed  securities at December 31, 2003
     and 2002 are presented below.
<TABLE>
<CAPTION>

                                                                                          2003
                                                                                 Gross             Gross        Estimated
                                                            Amortized       unrealized        unrealized             fair
                                                                 cost            gains            losses            value
                                                                                     (In thousands)

    Federal Home Loan Mortgage
<S>                                                         <C>                 <C>               <C>           <C>
      Corporation participation certificates                $     588           $    7            $    5        $     590
    Government National Mortgage
      Association participation certificates                   15,702               24               164           15,562
    Federal National Mortgage
      Association participation certificates                    3,960               41                30            3,971
    Small Business Administration
      participation certificates                                  187               -                  3              184
                                                             --------               --             -----         --------

         Total mortgage-backed securities                     $20,437            $  72              $202          $20,307
                                                               ======             ====               ===           ======

                                                                                          2002
                                                                                 Gross             Gross        Estimated
                                                            Amortized       unrealized        unrealized             fair
                                                                 cost            gains            losses            value
                                                                                     (In thousands)

    Federal Home Loan Mortgage
      Corporation participation certificates                $     548            $  30              $ -         $     578
    Government National Mortgage
      Association participation certificates                    6,919              148                -             7,067
    Federal National Mortgage
      Association participation certificates                    2,357               51                -             2,408
    Federal Housing Authority participation
      certificates                                                641                5                -               646
    Small Business Administration
      participation certificates                                  314               -                  4              310
                                                             --------               --            ------         --------

         Total mortgage-backed securities                     $10,779             $234           $     4          $11,009
                                                               ======              ===            ======           ======

</TABLE>


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE B - INVESTMENT AND MORTGAGE-BACKED SECURITIES (continued)

     The amortized cost and estimated fair value of  mortgage-backed  securities
     at December 31, 2003 and 2002, by contractual terms to maturity,  are shown
     below. Expected maturities will differ from contractual  maturities because
     borrowers may generally prepay obligations without prepayment penalties.
<TABLE>
<CAPTION>

                                                                       2003                              2002
                                                                             Estimated                          Estimated
                                                            Amortized             fair         Amortized             fair
                                                                 cost            value              cost            value
                                                                                   (In thousands)

<S>                                                          <C>              <C>               <C>              <C>
      Due within one year                                    $  3,857         $  3,840          $  1,962         $  2,000
      Due after one year to three years                         4,806            4,772             1,748            1,790
      Due after three years to five years                       2,990            2,968             1,035            1,060
      Due after five years to ten years                         4,070            4,042             1,754            1,793
      Due after ten years                                       4,714            4,685             4,280            4,366
                                                              -------          -------           -------          -------

         Total mortgage-backed securities                     $20,437          $20,307           $10,779          $11,009
                                                               ======           ======            ======           ======
</TABLE>

     Proceeds from sales of mortgage-backed securities available for sale during
     the year ended December 31, 2003, totaled $14.8 million, resulting in gross
     realized  gains  of  $121,000.   Proceeds  from  sales  of  mortgage-backed
     securities  available  for sale during the year ended  December  31,  2002,
     totaled $5.0 million, resulting in gross realized gains of $84,000.

     The table below  indicates the length of time  individual  securities  have
     been in a continuous unrealized loss position at December 31, 2003:
<TABLE>
<CAPTION>


                                 Less than 12 months              12 months or longer                     Total
    Description of            Number of  Fair  Unrealized    Number of   Fair  Unrealized     Number of   Fair   Unrealized
      securities            investments  value   losses    investments   value   losses     investments   value    losses
                                                                (Dollars in thousands)

    U.S. Government
<S>                               <C>            <C>                     <C>       <C>           <C>  <C>           <C>
      agency obligations          13 $  4,281    $  95           -       $-        $-            13   $  4,281      $  95
    State and municipal
      obligations                  2      237        3           -        -         -             2        237          3
    Mortgage-backed
      securities                   9   16,986      200           2       151         2           11     17,137        202
                                 ---   ------      ---           -       ---     -----           --     ------        ---

    Total temporarily
      impaired securities         24  $21,504     $298           2      $151    $    2           26    $21,655       $300
                                  ==   ======      ===           =       ===     =====           ==     ======        ===
</TABLE>

     Management  has the intent and  ability  to hold these  securities  for the
     foreseeable future and the decline in the fair value is primarily due to an
     increase in market interest rates.  The fair values are expected to recover
     as securities approach maturity dates.



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE C - LOANS RECEIVABLE

     The composition of the loan portfolio at December 31 is as follows:

                                                         2003              2002
                                                             (In thousands)
    Residential real estate
      One- to four-family residential               $  51,208         $  61,717
      Multi-family residential                          1,094             1,606
      Construction                                        870             1,317
    Nonresidential real estate and land                22,910            20,557
    Commercial                                         12,931            10,924
    Commercial leases                                   4,000             4,352
    Consumer and other                                 11,291            11,694
                                                     --------          --------
                                                      104,304           112,167

    Less:
      Undisbursed portion of loans in process             200               323
      Allowance for loan losses                         1,751             1,458
                                                    ---------         ---------

                                                     $102,353          $110,386
                                                      =======           =======

     The Savings Bank's  lending  efforts have  historically  focused on one- to
     four-family  residential and  multi-family  residential  real estate loans,
     which  comprised  approximately  $53.0  million,  or 52%, of the total loan
     portfolio  at December 31, 2003,  and $64.3  million,  or 58%, of the total
     loan portfolio at December 31, 2002.  Approximately 75% of these loans have
     been underwritten on the basis of no more than an 80% loan-to-value  ratio,
     which has historically  provided the Savings Bank with adequate  collateral
     coverage in the event of  default.  The  remaining  25% of these loans have
     been underwritten with original  loan-to-value  ratios of greater than 80%.
     The Savings Bank, as with any lending  institution,  is subject to the risk
     that real estate values could  deteriorate  in its primary  lending area of
     north-central  Indiana,   thereby  impairing  collateral  values.  However,
     management is of the belief that real estate  values in the Savings  Bank's
     primary lending area are presently stable.

     The Savings Bank has sold whole loans and participating  interests in loans
     in the secondary market,  retaining servicing on the loans sold. Loans sold
     and serviced for others totaled  approximately $6.1 million at December 31,
     2003.  The Savings  Bank had no loans  serviced  for others at December 31,
     2002.

     In the normal  course of  business,  the Savings Bank has made loans to its
     directors, officers and their related business interests. In the opinion of
     management,  such loans are consistent with sound lending practices and are
     within  applicable  regulatory  lending  limitations.  Loans to  directors,
     officers and their related interests totaled approximately $2.0 million and
     $1.7 million at December 31, 2003 and 2002, respectively.



<PAGE>
                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE D - ALLOWANCE FOR LOAN LOSSES

     The activity in the allowance  for loan losses for the year ended  December
     31 is as follows:

                                            2003         2002         2001
                                                    (In thousands)

    Beginning balance                     $1,458       $1,132      $   760
    Provision for losses on loans            360          360          392
    Charge-offs of loans - net               (67)         (34)         (20)
                                         -------      -------      -------

    Ending balance                        $1,751       $1,458       $1,132
                                           =====        =====        =====

     At December 31, 2003, the Savings Bank's allowance for loan losses included
     a specific allowance of $200,000, related to impaired and nonaccrual loans,
     and a general loan loss allowance of $1.6 million, which is includible as a
     component of regulatory risk-based capital.

     At December  31,  2003,  2002 and 2001,  the Savings Bank had loans of $1.5
     million, $1.5 million and $1.9 million, respectively, which had been placed
     on nonaccrual  status due to concerns as to  borrowers'  ability to pay. At
     December 31, 2003 and 2002, nonaccrual loans include certain loans that had
     been identified as impaired under SFAS No. 114.  Interest income that would
     have been recognized had nonaccrual loans performed pursuant to contractual
     terms totaled  approximately  $115,000,  $126,000 and $41,000 for the years
     ended December 31, 2003, 2002 and 2001, respectively.


NOTE E - OFFICE PREMISES AND EQUIPMENT

    Office premises and equipment is comprised of the following at December 31:

                                                           2003           2002
                                                             (In thousands)

    Land                                                $   203        $   203
    Buildings and improvements                            1,766          1,766
    Furniture and equipment                                 523            500
                                                         ------         ------
                                                          2,492          2,469
    Less accumulated depreciation and amortization         (798)          (702)
                                                         ------         ------

                                                         $1,694         $1,767




<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE F - DEPOSITS
<TABLE>
<CAPTION>

    Deposits consist of the following major classifications at December 31:

    Deposit type and weighted-average
    interest rate                                                                                2003              2002
                                                                                                      (In thousands)
    NOW accounts
<S>   <C>    <C>                                                                            <C>                 <C>
      2003 - 0.77%                                                                          $  17,021
      2002 - 0.80%                                                                                              $15,625
    Passbook and club accounts
      2003 - 1.02%                                                                              4,635
      2002 - 1.10%                                                                                                4,281
    Money market deposit accounts
      2003 - 1.11%                                                                             20,187
      2002 - 1.23%                                                                                               18,766
    Non-interest bearing accounts                                                               4,038             3,049
                                                                                              -------           -------

        Total demand, transaction and passbook deposits                                        45,881            41,721

    Certificates of deposit
     Original maturities of:
        Less than 12 months
          2003 - 1.11%                                                                          5,866
          2002 - 1.78%                                                                                            6,566
        12 months to 18 months
          2003 - 1.78%                                                                          8,662
          2002 - 3.40%                                                                                           14,605
        24 months to 30 months
          2003 - 4.26%                                                                         19,762
          2002 - 4.58%                                                                                           20,674
        More than 30 months
          2003 - 4.48%                                                                         15,555
          2002 - 5.05%                                                                                            7,810
      Individual retirement accounts
        2003 - 3.51%                                                                            8,031
        2002 - 4.76%                                                                                              6,949
                                                                                        -------------           -------

      Total certificates of deposit                                                            57,876            56,604
                                                                                             --------            ------

      Total deposits                                                                         $103,757           $98,325
                                                                                              =======            ======
</TABLE>

    At December 31, 2003 and 2002, the Savings Bank had certificate of deposit
    accounts with balances greater than $100,000 totaling $9.9 million and $9.0
    million, respectively.



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001

<TABLE>
<CAPTION>


NOTE F - DEPOSITS (continued)

     Interest  expense on deposits for the year ended  December 31 is summarized
     as follows:

                                                                                      2003            2002           2001
                                                                                                (In thousands)

<S>                                                                               <C>             <C>             <C>
    Passbook accounts                                                             $     44        $     55        $   100
    NOW and money market deposit accounts                                              303             492            718
    Certificates of deposit                                                          2,210           2,415          2,859
                                                                                     -----           -----          -----

                                                                                    $2,557          $2,962         $3,677
                                                                                     =====           =====          =====
</TABLE>

     Maturities  of  outstanding  certificates  of  deposit at  December  31 are
     summarized as follows:
<TABLE>
<CAPTION>

                                                                                                    2003             2002
                                                                                                       (In thousands)

<S>                                                                                              <C>              <C>
    Less than one year                                                                           $29,261          $27,803
    One year to three years                                                                       17,754           22,211
    Over three years                                                                              10,861            6,590
                                                                                                  ------          -------

                                                                                                 $57,876          $56,604
                                                                                                  ======           ======
</TABLE>


NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK

     Advances  from the Federal Home Loan Bank,  collateralized  at December 31,
     2003 by a blanket  pledge of  residential  mortgage  loans  totaling  $47.2
     million  and  pledges of  certain  securities  totaling  $7.0  million  are
     summarized as follows:
<TABLE>
<CAPTION>

                                                 Maturing year                                         December 31,
    Interest rate range                       ending December 31,                                2003                2002
                                                                                                  (Dollars in thousands)

<S> <C>                                              <C>                                     <C>                 <C>
    3.02%                                            2003                                    $     -             $  1,000
    5.94%                                            2004                                       3,000               3,000
    5.10% - 6.75%                                    2005                                       4,200               4,200
    1.89% - 5.30%                                    2006                                       2,250               1,500
    2.36% - 5.72%                                    2007                                       2,581               2,536
    2.71%                                            2008                                         225                  -
    3.57% - 5.32%                                    2009                                       1,471               1,600
    3.30% - 5.99%                                    2010                                      17,300              17,000
    4.75%                                            2011                                       2,000               2,000
    4.90%                                            2012                                       1,000               1,000
                                                                                              -------             -------

                                                                                              $34,027             $33,836
                                                                                               ======              ======

    Weighted-average interest rate                                                               5.47%               5.53%
                                                                                                 ====                ====

</TABLE>

<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK (continued)

     Advances totaling  approximately $26.0 million are subject to interest rate
     increases at the  discretion  of the Federal Home Loan Bank.  Such advances
     can be repaid by the Savings Bank upon the  enactment of such interest rate
     adjustments.


NOTE H - NOTES PAYABLE

     At December 31, 2003 and 2002, notes payable included  borrowings  totaling
     $1.0  million and $1.1  million,  respectively,  which were  secured by the
     Savings Bank's investment in a real estate limited partnership. The average
     interest rate on the borrowing was 1.66% and 1.88% at December 31, 2003 and
     2002, respectively. The borrowings will mature in 2009.

     During  2002,  the  Corporation  established  a line of credit with another
     financial   institution  to  partially  finance  share   repurchases.   The
     Corporation  can borrow up to $1.5  million  on the line of  credit,  which
     matures  October 3, 2004. The  Corporation  had an  outstanding  balance of
     $900,000 and $700,000 at December 31, 2003 and 2002, respectively. Interest
     is payable  quarterly at national prime less .50%,  which amounted to 3.50%
     and 3.75% at December 31, 2003 and 2002,  respectively.  The line of credit
     is secured by a pledge of the Corporation's  investment in the stock of the
     Savings Bank.


NOTE I - INCOME TAXES

     The  provision for income taxes differs from that computed at the statutory
     corporate tax rate for the year ended December 31 as follows:

<TABLE>
<CAPTION>
                                                                                      2003            2002           2001
                                                                                                 (In thousands)

<S>                                                                                   <C>             <C>            <C>
    Federal income taxes computed at the statutory rate                               $693            $722           $652
    Increase (decrease) in taxes resulting from:
      Tax exempt interest                                                              (54)            (46)           (42)
      Increase in cash surrender value of life insurance                                (9)             (9)           (19)
      Real estate partnership tax credits                                             (182)           (182)          (182)
      State income tax provision                                                       107             124            113
      Other                                                                             (3)             -              (1)
                                                                                     -----              --          -----

    Income tax provision per consolidated financial statements                        $552            $609           $521
                                                                                       ===             ===            ===

</TABLE>



<PAGE>
<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE I - INCOME TAXES (continued)

    The composition of the Corporation's net deferred tax asset at December 31
is as follows:

    Taxes (payable) refundable on temporary                                                         2003             2002
    differences at statutory rate:                                                                     (In thousands)

    Deferred tax assets:
<S>                                                                                             <C>                 <C>
      Other than temporary declines in investment securities                                    $     23            $  23
      Retirement expense                                                                             260              235
      General loan loss allowance                                                                    659              535
      Benefit plan expense                                                                            77               85
      Deferred loan fees                                                                              30               40
                                                                                                 -------             ----
         Total deferred tax assets                                                                 1,049              918

    Deferred tax liabilities:
      State income taxes                                                                             (60)             (57)
      Percentage of earnings bad debt deduction                                                       -               (12)
      Unrealized gains on securities designated as available for sale                                (57)            (273)
      Loss on investment in real estate partnership                                                 (199)            (163)
      Book versus tax depreciation                                                                   (53)             (49)
      Mortgage servicing rights                                                                      (22)              -
      FHLB stock dividends                                                                           (39)              -
                                                                                                 -------               --
         Total deferred tax liabilities                                                             (430)            (554)
                                                                                                  ------              ---

         Net deferred tax asset                                                                  $   619             $364
                                                                                                  ======              ===
</TABLE>

     Prior to 1997,  the Savings  Bank was allowed a special bad debt  deduction
     based on a  percentage  of earnings,  generally  limited to 8% of otherwise
     taxable  income,  or the  amount  of  qualifying  and  nonqualifying  loans
     outstanding and subject to certain limitations based on aggregate loans and
     savings  account  balances  at the  end of the  year.  This  percentage  of
     earnings bad debt deduction had accumulated to  approximately  $1.7 million
     as of December 31, 2003. If the amounts that  qualified as  deductions  for
     federal  income  taxes  are later  used for  purposes  other  than bad debt
     losses, including distributions in liquidation,  such distributions will be
     subject to federal  income taxes at the then current  corporate  income tax
     rate.  The amount of  unrecognized  deferred tax liability  relating to the
     cumulative  bad debt  deduction is  approximately  $580,000 at December 31,
     2003.

     The Savings Bank was required to recapture as taxable income  approximately
     $220,000,  representing  its  post-1987  percentage  of  earnings  bad debt
     deductions.  The Savings Bank had provided  deferred  taxes for this amount
     and was  permitted  by such  legislation  to  recapture  such income over a
     six-year period,  which commenced in 1998. At December 31, 2003, the amount
     was fully recaptured and, as a result, deferred taxes relating to this item
     were eliminated.


NOTE J - COMMITMENTS

     The Savings Bank is a party to financial instruments with off-balance-sheet
     risk in the normal  course of business to meet the  financing  needs of its
     customers,   including  commitments  to  extend  credit.  Such  commitments
     involve,  to varying degrees,  elements of credit and interest-rate risk in
     excess of the amount recognized in the consolidated  statement of financial
     condition.  The contract or notional amounts of the commitments reflect the
     extent of the Savings Bank's involvement in such financial instruments.


<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE J - COMMITMENTS (continued)

     The Savings Bank's  exposure to credit loss in the event of  nonperformance
     by the other party to the financial  instrument  for  commitments to extend
     credit  is  represented  by  the  contractual   notional  amount  of  those
     instruments.  The  Savings  Bank uses the same  credit  policies  in making
     commitments   and   conditional   obligations   as   those   utilized   for
     on-balance-sheet instruments.

     At December  31,  2003,  the Savings Bank had  outstanding  commitments  of
     approximately  $650,000 to originate  residential one- to four-family loans
     and $393,000 to sell  one-to-four  family loans.  The Savings Bank also had
     outstanding   commitments  of  approximately   $1.4  million  to  originate
     non-residential  real  estate  loans  and  approximately  $1.3  million  to
     originate commercial loans at December 31, 2003. Additionally,  the Savings
     Bank had unused  lines of credit  under home  equity  loans and  commercial
     loans of  approximately  $1.2 million and $8.3  million,  respectively,  at
     December 31, 2003. Finally,  the Savings Bank had commitments under standby
     letters of credit  totaling  $2.7  million at December  31,  2003.  Standby
     letters of credit are conditional commitments issued by the Savings Bank to
     guarantee the performance of a customer to a third party. In the opinion of
     management,  all loan  commitments  equaled or  exceeded  prevalent  market
     interest rates as of December 31, 2003, and will be funded from normal cash
     flow from operations.

     The Corporation adopted FASB Interpretation No. 45, "Guarantor's Accounting
     and Disclosure  Requirements for Guarantees,  Including Indirect Guarantees
     of  Indebtedness of Others" ("FIN 45"), on January 1, 2003. FIN 45 requires
     a  guarantor  entity,  at  the  inception  of a  guarantee  covered  by the
     measurement provisions of the Interpretation, to record a liability for the
     fair value of the  obligation  undertaken  in issuing  the  guarantee.  The
     Corporation issues financial and performance  letters of credit.  Financial
     letters of credit require the Corporation to make payment if the customer's
     financial condition deteriorates, as defined in the agreements. Performance
     letters of credit require the  Corporation to make payments if the customer
     fails  to  perform  certain  non-financial  contractual  obligations.   The
     approximate  terms of these  letters of credit are seven years to ten years
     for financial  letters of credit and one year to five years for performance
     letters of credit. Prior to the adoption of FIN 45, the Corporation did not
     record  a  liability,   other  than  for  deferred  fees   received,   when
     guaranteeing  obligations  unless it became  probable that the  Corporation
     would have to perform under the guarantee. The Corporation defines the fair
     value of these letters of credit as the fees received from the customer.

     The  maximum  potential  undiscounted  amount of future  payments  of these
     letters  of  credit  as of  December  31,  2003 is $2.7  million,  of which
     approximately  $716,000,  $506,000,  $623,000 and  $835,000  expires in the
     years ended  December  31, 2004,  2005,  2007 and 2008,  respectively.  The
     Corporation  obtains  collateral,  such as real  estate  or  liens on their
     customers'  assets,  for these letters of credit.  The Corporation  expects
     that the estimated  proceeds  obtained on liquidation  of collateral  would
     cover  approximately  100 percent of the maximum potential amount of future
     payments under a guarantee.



<PAGE>



                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE K - REGULATORY CAPITAL

     The Savings Bank is subject to minimum capital requirements  promulgated by
     the Office of Thrift Supervision  ("OTS").  Failure to meet minimum capital
     requirements  can  initiate  certain  mandatory - and  possibly  additional
     discretionary  - actions by regulators  that, if  undertaken,  could have a
     direct material effect on the  Corporation's  financial  statements.  Under
     capital  adequacy  guidelines  and  the  regulatory  framework  for  prompt
     corrective  action,  the Savings Bank must meet specific capital guidelines
     that  involve   quantitative   measures  of  the  Savings   Bank's  assets,
     liabilities,  and  certain  off-balance-sheet  items  as  calculated  under
     regulatory  accounting  practices.  The Savings Bank's capital  amounts and
     classifications are also subject to qualitative judgments by the regulators
     about components,  risk weightings, and other factors. Such minimum capital
     standards   generally   require  the  maintenance  of  regulatory   capital
     sufficient  to meet  each of  three  tests,  hereinafter  described  as the
     tangible  capital  requirement,   the  core  capital  requirement  and  the
     risk-based capital  requirement.  The tangible capital requirement provides
     for minimum  tangible  capital  (defined as  shareholders'  equity less all
     intangible assets) equal to 1.5% of adjusted total assets. The core capital
     requirement  provides  for minimum  core  capital  (tangible  capital  plus
     certain  forms of  supervisory  goodwill  and other  qualifying  intangible
     assets) generally equal to 4.0% of adjusted total assets,  except for those
     associations with the highest  examination  rating and acceptable levels of
     risk.  The  risk-based  capital  requirement  currently  provides  for  the
     maintenance of core capital plus general loan loss allowances equal to 8.0%
     of risk-weighted  assets. In computing  risk-weighted  assets,  the Savings
     Bank  multiplies  the value of each  asset on its  statement  of  financial
     condition by a defined  risk-weighting  factor,  e.g.,  one- to four-family
     residential loans carry a risk-weighted factor of 50%.

     During 2003,  the OTS notified the Savings Bank that it was  categorized as
     "well-capitalized"  under the  regulatory  framework for prompt  corrective
     action.  To be  categorized  as  "well-capitalized",  the Savings Bank must
     maintain minimum capital ratios as set forth in the following table.

     As of December 31, 2003 and 2002, management believes that the Savings Bank
     met all capital adequacy requirements to which it was subject.
<TABLE>
<CAPTION>

    2003:                                                                                                 To be "well-
                                                                                                      capitalized" under
                                                                             For capital               prompt corrective
                                                      Actual                adequacy purposes          action provisions
                                                 Amount     Ratio           Amount    Ratio             Amount     Ratio
                                                                        (Dollars in thousands)

<S>                                             <C>         <C>             <C>         <C>             <C>            <C>
    Tangible capital                            $17,044     10.9%         ->$2,350    ->1.5%          ->$7,833     ->  5.0%

    Core capital                                $17,044     10.9%         ->$6,266    ->4.0%          ->$9,399     ->  6.0%

    Risk-based capital                          $18,225     19.4%         ->$7,526    ->8.0%          ->$9,408     ->10.0%


    2002:                                                                                                 To be "well-
                                                                                                      capitalized" under
                                                                             For capital               prompt corrective
                                                      Actual                adequacy purposes          action provisions
                                                 Amount     Ratio           Amount    Ratio             Amount     Ratio
                                                                        (Dollars in thousands)

    Tangible capital                            $15,466     10.3%         ->$2,244    ->1.5%          ->$7,480     ->  5.0%

    Core capital                                $15,466     10.3%         ->$5,984    ->4.0%          ->$8,975     ->  6.0%

    Risk-based capital                          $16,664     17.4%         ->$7,664    ->8.0%          ->$9,580     ->10.0%

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE K - REGULATORY CAPITAL (continued)

     The Savings Bank's management  believes that, under the current  regulatory
     capital  regulations,  the Savings  Bank will  continue to meet its minimum
     capital requirements in the foreseeable future.  However, events beyond the
     control of the Savings Bank, such as increased interest rates or a downturn
     in the economy in its primary market area,  could  adversely  affect future
     earnings and,  consequently,  the ability to meet future minimum regulatory
     capital requirements.

     The Savings Bank is subject to regulations imposed by the OTS regarding the
     amount of capital distributions payable to the Corporation.  Generally, the
     Savings Bank's payment of dividends is limited, without prior OTS approval,
     to net  earnings  for the  current  calendar  year  plus the two  preceding
     calendar years,  less capital  distributions  paid over the comparable time
     period.  Insured  institutions are required to file an application with the
     OTS for capital  distributions in excess of this  limitation.  During 2001,
     the  Savings  Bank  received  OTS  approval  to make up to $2.0  million in
     capital distributions to the Corporation. Of this amount, dividend payments
     of $950,000 and $1,050,000 were paid in 2002 and 2001, respectively. During
     2002, the Savings Bank received OTS approval to make up to $2.25 million in
     capital  distributions to the  Corporation,  all of which was paid in 2002.
     The Savings  Bank did not request OTS  approval for payment of dividends or
     capital distributions to the Corporation in 2003 and no dividends were paid
     during the year ended December 31, 2003.


NOTE L - CONDENSED FINANCIAL STATEMENTS OF LOGANSPORT FINANCIAL CORP.

     The  following  condensed  financial  statements  summarize  the  financial
     position of  Logansport  Financial  Corp. as of December 31, 2003 and 2002,
     and the  results  of its  operations  and cash  flows for the  years  ended
     December 31, 2003, 2002 and 2001.

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.
                        STATEMENTS OF FINANCIAL CONDITION
                           December 31, 2003 and 2002
                                 (In thousands)
    ASSETS                                                   2003              2002

<S>                                                     <C>              <C>
    Cash and cash equivalents                           $     111        $       77
    Investment in subsidiary                               17,159            15,994
    Prepaid expenses and other                                122               123
                                                         --------          --------

          Total assets                                    $17,392           $16,194
                                                           ======            ======

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Notes payable                                       $     900         $     700
    Accrued expenses and other liabilities                    136               121
                                                         --------          --------
          Total liabilities                                 1,036               821

    Shareholders' equity
      Common stock                                          1,824             1,446
      Retained earnings                                    14,445            13,444
      Shares acquired by stock benefit plan                   (23)              (44)
      Unrealized gains on securities designated
        as available for sale, net                            110               527
                                                         --------          --------
          Total shareholders' equity                       16,356            15,373
                                                           ------            ------

          Total liabilities and shareholders' equity      $17,392           $16,194
                                                           ======            ======
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE L - CONDENSED FINANCIAL STATEMENTS OF LOGANSPORT FINANCIAL CORP. (continued)

                           LOGANSPORT FINANCIAL CORP.
                             STATEMENTS OF EARNINGS
                  Years ended December 31, 2003, 2002 and 2001
                                 (In thousands)

                                                                                      2003            2002           2001
    Revenue
<S>                                                                                 <C>             <C>          <C>
      Interest income                                                               $   -           $   -        $     14
      Equity in earnings of subsidiary                                               1,562           1,589          1,436
                                                                                     -----           -----          -----
         Total revenue                                                               1,562           1,589          1,450

    General and administrative expenses                                                126             115             77
                                                                                    ------          ------        -------

         Earnings before income tax credits                                          1,436           1,474          1,373

    Income tax credits                                                                 (50)            (40)           (25)
                                                                                   -------         -------        -------

         NET EARNINGS                                                               $1,486          $1,514         $1,398
                                                                                     =====           =====          =====

</TABLE>
<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.
                            STATEMENTS OF CASH FLOWS
                  Years ended December 31, 2003, 2002 and 2001
                                 (In thousands)

                                                                                      2003            2002           2001
    Cash flows provided by (used in) operating activities:
<S>                                                                                 <C>             <C>            <C>
      Net earnings for the year                                                     $1,486          $1,514         $1,398
      Adjustments to reconcile net earnings to net cash
      provided by (used in) operating activities:
        Excess distributions from (undistributed earnings of)
          consolidated subsidiary                                                   (1,562)          1,610            (86)
        Increase (decrease) in cash due to changes in:
          Accrued expenses and other liabilities                                        16              (5)             5
          Other                                                                          1             (29)           (70)
                                                                                  --------         -------        -------
         Net cash provided by (used in) operating activities                           (59)          3,090          1,247


    Cash flows provided by (used in) financing activities:
      Proceeds from notes payable                                                      200             700             -
      Proceeds from exercise of stock options                                          378             369            208
      Dividends on common stock                                                       (485)           (478)          (516)
      Purchase of shares                                                                -           (3,725)          (921)
                                                                                     -----           -----         ------
         Net cash provided by (used in) financing activities                            93          (3,134)        (1,229)
                                                                                   -------           -----          -----

    Net increase (decrease) in cash and cash equivalents                                34             (44)            18

    Cash and cash equivalents at beginning of year                                      77             121            103
                                                                                   -------          ------         ------

    Cash and cash equivalents at end of year                                       $   111        $     77        $   121
                                                                                    ======         =======         ======

</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2003, 2002 and 2001


NOTE M - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

    The following table summarizes the Corporation's quarterly results for the
    years ended December 31, 2003 and 2002. Certain amounts, as previously
    reported, may have been reclassified to conform to the 2003 presentation.

                                                                                 Three Months Ended
                                                              March 31,     June 30,    September 30,      December 31,
    2003:                                                               (In thousands, except per share data)

<S>                                                              <C>          <C>              <C>               <C>
    Total interest income                                        $2,195       $2,172           $2,148            $2,087
    Total interest expense                                        1,117        1,136            1,140             1,099
                                                                  -----        -----            -----             -----

    Net interest income                                           1,078        1,036            1,008               988

    Provision for losses on loans                                    90           90               90                90
    Other income                                                    141          272               86               162
    General, administrative and other expense                       620          590              572               591
                                                                 ------       ------           ------            ------

    Earnings before income taxes                                    509          628              432               469

    Income taxes                                                    145          191              112               104
                                                                 ------       ------           ------            ------

    Net earnings                                                $   364      $   437          $   320           $   365
                                                                 ======       ======           ======            ======

    Earnings per share:
      Basic                                                        $.43         $.51             $.36              $.42
                                                                    ===          ===              ===               ===

      Diluted                                                      $.41         $.50             $.36              $.41
                                                                    ===          ===              ===               ===

                                                                                 Three Months Ended
                                                              March 31,     June 30,    September 30,      December 31,
    2002:                                                               (In thousands, except per share data)

    Total interest income                                        $2,302       $2,346           $2,352            $2,326
    Total interest expense                                        1,247        1,219            1,215             1,196
                                                                  -----        -----            -----             -----

    Net interest income                                           1,055        1,127            1,137             1,130

    Provision for losses on loans                                    90           90               90                90
    Other income                                                     51           82               58               161
    General, administrative and other expense                       575          603              579               561
                                                                 ------       ------           ------            ------

    Earnings before income taxes                                    441          516              526               640

    Income taxes                                                    121          145              151               192
                                                                 ------       ------           ------            ------

    Net earnings                                                $   320      $   371          $   375           $   448
                                                                 ======       ======           ======            ======

    Earnings per share:
      Basic                                                        $.32         $.39             $.41              $.51
                                                                    ===          ===              ===               ===

      Diluted                                                      $.31         $.38             $.39              $.50
                                                                    ===          ===              ===               ===
</TABLE>



<PAGE>


                   MARKET PRICE OF LOGANSPORT FINANCIAL CORP.
                COMMON SHARES AND RELATED SECURITY HOLDER MATTERS

     The common  stock of the Company is traded on the National  Association  of
     Securities Dealers Automated  Quotation System ("Nasdaq") Small Cap Market,
     under  the  symbol  "LOGN."  As  of  February  11,  2004,  there  were  809
     shareholders  of record of the  Company's  common  stock.  The table  below
     presents  the  high and low  trade  prices  for the  common  shares  of the
     Company,  together with dividends  declared per share,  for each quarter of
     the years ended  December  31, 2003 and 2002.  Such price  information  was
     obtained from Nasdaq.

                                                       Per share
Year ending December 31,       High          Low       dividends

2003
Quarter ending:
  December 31, 2003            $22.45      $18.85       $0.14
  September 30, 2003            20.50       17.53        0.14
  June 30, 2003                 18.52       17.00        0.14
  March 31, 2003                18.00       15.78        0.14

2002
Quarter ending:
  December 31, 2002            $17.13      $14.40       $0.14
  September 30, 2002            17.85       16.90        0.13
  June 30, 2002                 18.15       17.01        0.13
  March 31, 2002                17.59       15.00        0.12


     TRANSFER  AGENT  AND  REGISTRAR.  Registrar  and  Transfer  Company  is the
     Company's  stock  transfer  agent and registrar and maintains the Company's
     shareholder  records.  Shareholders  requiring a change of name, address or
     ownership of stock, as well as information about shareholder records,  lost
     or stolen certificates,  dividend checks, or dividend direct deposit should
     contact:

                         Registrar and Transfer Company
                                10 Commerce Drive
                           Cranford, New Jersey 07016
                                 (800) 368-5948
                               http://www.rtco.com

GENERAL COUNSEL.                                INDEPENDENT AUDITORS.

Barnes & Thornburg                              Grant Thornton LLP
11 South Meridian Street                        625 Eden Park Drive, Suite 900
Indianapolis, Indiana 46204                     Cincinnati, Ohio 45202

SHAREHOLDER  & GENERAL  INQUIRIES.  The  Company is  required  to file an Annual
Report on Form 10-K for its year ended December 31, 2003 with the Securities and
Exchange Commission. Copies of this annual report may be obtained on our website
or without charge upon written request to:

                       Dottye Robeson, Secretary/Treasurer
                           Logansport Financial Corp.
                           723 East Broadway, Box 569
                            Logansport, Indiana 46947
                          (574) 722-3855 extension 313
                            www.logansportsavings.com

OFFICE LOCATION.

723 East Broadway
Logansport, Indiana 46947
(574) 722-3855 Fax - (574) 722-3857
Email - dottyer@logansportsavings.com