TABLE OF CONTENTS

                                                                    Page

Directors and Officers                                                 2

President's Message to Shareholders                                    5

Selected Consolidated Financial Data                                   6

Management's Discussion and Analysis                                   8

Report of Independent Certified Public Accountants                    21

Consolidated Statements of Financial Condition                        22

Consolidated Statements of Earnings                                   23

Consolidated Statements of Comprehensive Income                       24

Consolidated Statements of Changes in Shareholders' Equity            25

Consolidated Statements of Cash Flows                                 26

Notes to Consolidated Financial Statements                            28






                     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.
The Bank is and 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>



                           Logansport Financial Corp.

                             DIRECTORS AND OFFICERS

    DIRECTORS

     Charles J. Evans (age 55) 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 43) 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  (age 61) has served as an  adjunct  faculty  member of
Indiana  University  Kokomo ("IUK") since 1969. Ms. Ridlen also currently serves
as a member of the Board of Directors of the Logansport Art  Association and the
Cass County Children's Home in Logansport, Indiana.

     William  Tincher,  Jr. (age 61) has served as Plant  Manager for the Modine
Manufacturing  Company  ("Modine") since 1977.  Modine is located in Logansport,
Indiana, and manufactures automotive cooling systems.

     David G. Wihebrink (age 53) 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 and as a member of The Board of
Directors of the North Central Indiana Workforce Investment Board.

     Thomas G. Williams (age 68) 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                 DOTTYE ROBESON - Chief Financial Officer/
Vice President                                             Secretary/Treasurer

DOTTYE ROBESON                   ALLEN SCHIEBER - Senior Vice President
Secretary/Treasurer
                                 JEFFREY JONES - Vice President

                                 SHEILA WILDERMUTH - Vice President

                                 MARK DEBARGE - Assistant Vice President

                                 KAY GAPSKI - Assistant Vice President


<PAGE>


TO OUR SHAREHOLDERS:

Calendar  year  2000  was an  exciting  year  for  Logansport  Savings  Bank and
Logansport  Financial Corp., its parent company.  In addition to celebrating the
Bank's 75th anniversary during the year 2000,  Logansport Savings Bank continued
its growth and  commitment of "Leading The Way,"  increasing  assets by over $15
million,  a 12.9% increase,  and reporting record  earnings.  Basic earnings per
share  increased to $1.16 from $1.03 the  previous  year,  representing  a 12.6%
increase.

The year 2000  continued  to be a year of  enormous  change  within the  banking
industry in general and in particular within community banks.  Banks continue to
struggle with their  ability to generate  core  deposits at reasonable  rates to
fund their growth and have been forced to  aggressively  look for other methods,
such as FHLB borrowings.  This is born out by the fact that at the close of 1999
banks held only 16% of total  financial  sector  assets,  down from 30% in 1990.
While bank profits  have grown over the past ten years,  the number of banks has
declined by 25%.  Many market  indices raise  concerns  regarding the ability of
community banks to continue to thrive.

We at Logansport  Savings Bank feel confident  that we have  established a solid
foundation  in the past 75 years that will allow the Bank to  continue  "Leading
The Way." We expect to continue to achieve consistent  earnings growth and above
average  growth in assets.  We intend to increase  our market share by enhancing
our existing products and services,  continued development of our commercial and
lease lending  capabilities,  and expansion of our mortgage and consumer lending
base. We realize that nothing in our business occurs  independent of the overall
economy and as we strive to continue our asset growth, we will remain focused on
credit  quality.  We will  continue  to provide a  combination  of  careful  and
consistent underwriting in order to ensure a low level of problem assets. We are
also confident that as interest rates continue to fluctuate,  we will be able to
manage our way through this fundamental banking risk.

We believe we are doing the right  things and  heading in the right  "Direction"
for the ongoing success of our Bank as a community bank.  Although the financial
markets have not recognized the accomplishments of community banks in the recent
past,  we feel the markets will  ultimately  recognize  their value.  The Board,
management  team,  and employees of Logansport  Financial  Corp.  and Logansport
Savings Bank are dedicated, as a team, to serving our customers,  our community,
and our stockholders.

Sincerely,



/s/ David G. Wihebrink
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 periods indicated.

<TABLE>
<CAPTION>

                                                                            At December 31,

Statement of Financial Condition Data:                2000           1999           1998            1997           1996
                                                                               (In thousands)

<S>                                               <C>            <C>             <C>             <C>            <C>
Total assets                                      $132,612       $117,468        $96,085         $86,115        $77,668
Loans receivable, net                              102,418         90,900         73,073          63,635         56,802
Mortgage-backed securities                           5,165          5,898          8,129           9,932          6,674
Cash and cash equivalents                            9,210          5,146          4,328           2,269          3,759
Investment securities                                8,322          8,539          5,033           5,750          7,629
Deposits                                            79,454         76,011         70,011          60,595         57,396
Borrowings                                          35,237         24,307          8,375           8,025          3,400
Shareholders' equity - net                          17,013         16,146         16,488          16,542         15,427

</TABLE>
<TABLE>
<CAPTION>

                                                                         Year ended December 31,

Summary of Operating Results:                         2000           1999           1998             1997          1996
                                                                       (In thousands, except share data)

<S>                                                 <C>            <C>            <C>             <C>            <C>
Interest income                                     $9,524         $7,599         $6,579          $6,101         $5,653
Interest expense                                     5,597          4,043          3,476           3,115          2,719
                                                     -----          -----          -----           -----          -----
Net interest income                                  3,927          3,556          3,103           2,986          2,934
Provision for losses on loans                          332            162             63              26             12
                                                    ------         ------        -------         -------        -------
Net interest income after provision for
  losses on loans                                    3,595          3,394          3,040           2,960          2,922
Other income                                           122            175            285             170             82
General, administrative and other expense            1,937          1,667          1,322           1,170          1,584
                                                     -----          -----          -----           -----          -----
Earnings before income taxes                         1,780          1,902          2,003           1,960          1,420
Income taxes                                           511            678            756             728            507
                                                    ------         ------         ------          ------         ------
Net earnings                                        $1,269         $1,224         $1,247          $1,232        $   913
                                                     =====          =====          =====           =====         ======

Basic earnings per share                            $1.16           $1.03          $1.00            $.98            $.69
                                                     ====            ====           ====             ===             ===

Diluted earnings per share                          $1.16           $1.02           $.97            $.95            $.69
                                                     ====            ====            ===             ===             ===

Cash dividends per share
  Regular                                            $.44            $.44           $.43            $.40            $.40
                                                      ===             ===            ===             ===             ===
  Special                                             N/A             N/A            N/A             N/A           $3.00 (1)
                                                      ===             ===            ===             ===            ====
</TABLE>

Footnotes on following page.


<PAGE>
<TABLE>
<CAPTION>

                           Logansport Financial Corp.

           SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (CONTINUED)

                                                                     At or for the year ended December 31,
Supplemental Data:                                    2000           1999           1998            1997           1996

<S>                                                  <C>             <C>            <C>            <C>             <C>
Return on assets (2)                                 1.00%           1.14%          1.37%          1.50%           1.18%
Return on equity (3)                                 7.76            7.33           7.44           7.69            4.76
Interest rate spread (4)                             2.57            2.86           2.70           2.94            2.80
Net yield on interest-earning assets (5)             3.27            3.54           3.61           3.86            3.99
General, administrative and other
  expense to average assets                          1.53            1.55           1.45           1.42            2.04
Net interest income to general,
  administrative and other expense                 202.74          213.32         234.72         255.21          185.23
Equity-to-assets (6)                                12.83           13.75          17.16          19.21           19.86
Average interest-earning assets to
  average interest-bearing liabilities             115.39          117.20         122.72         123.36          132.80
Non-performing assets to total assets                 .25             .57            .33            .62             .52
Non-performing loans to total loans                   .32             .72            .42            .67             .71
Loan loss allowance to total loans                    .73             .47            .38            .38             .41
Loan loss allowance to non-performing
  loans                                            226.19           66.07          90.48          56.84           58.12
Dividend payout ratio                               37.93           42.72          43.00          40.82           57.97(7)
Net charge-offs to average loans                     *               *               .03            .03            *
</TABLE>

*  Less than .01%

----------------------------

(1)  Special one-time cash distribution  which qualified as a non-taxable return
     of capital pursuant to an IRS Private Letter Ruling.
(2)  Net earnings divided by average total assets.
(3)  Net earnings divided by average total equity.
(4)  Interest rate spread is calculated by subtracting combined weighted-average
     interest rate cost from combined  weighted-average interest rate earned for
     the period indicated.
(5)  Net interest income divided by average interest-earning assets.
(6)  Total equity divided by total assets.
(7)  Excludes special one-time $3.00 per share cash distribution.

<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  savings  associations,  including  the  Bank,  has
historically consisted of attracting deposits from the general public and making
loans  secured  by  residential  and other real  estate.  The Bank and all other
savings   associations  are  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, 2000,  and the results of operations for
the year ended December 31, 2000, 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)

Changes in Financial Condition from December 31, 1999 to December 31, 2000

The Company's total assets were $132.6 million at December 31, 2000, an increase
of $15.1 million,  or 12.9%, over the $117.5 million total at December 31, 1999.
The increase in assets was funded through growth in deposits of $3.4 million and
increases in borrowings of $11.0  million.  The  percentage of  interest-earning
assets  to total  assets  was 95.4% and  94.0% at  December  31,  2000 and 1999,
respectively.

At December 31, 2000,  investment and  mortgage-backed  securities totaled $13.5
million, compared to $14.4 million at December 31, 1999, a decrease of $950,000,
or 6.6%. The primary  investments  added to the portfolio were Federal Home Loan
Bank ("FHLB")  callable fixed rate notes. At December 31, 2000, the Company held
$538,000  of  corporate  obligations,   which  consisted  of  debt  of  domestic
corporations rated AA or better by Moody's Investors Service, Inc.

Loans  receivable  totaled  $102.4  million at December 31, 2000, an increase of
$11.5 million,  or 12.7%,  over December 31, 1999. Most of the increase occurred
in the one- to four-family  mortgages and commercial  loans. One- to four-family
mortgage  loans  increased  by $4.4  million,  or 7.6%,  and  loans  secured  by
nonresidential  real estate and commercial  loans increased by $4.4 million,  or
27.6%.  The  increase in loans was funded  primarily by the increase in deposits
and advances.

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 2000 and 1999,
the Bank  recorded  pretax  losses  from the  housing  project of  $244,000  and
$121,000,  respectively. At December 31, 1998, the project was just beginning to
rent  apartments;  therefore,  there was no material income or loss allocated to
the Bank.

Deposits  totaled  $79.5  million at  December  31,  2000,  an  increase of $3.4
million,  or 4.5%, over December 31, 1999.  Non-interest  bearing deposits,  NOW
accounts,  passbook savings and money market savings  decreased by $1.9 million,
while  certificates of deposit increased by $5.3 million.  At December 31, 2000,
borrowings consisted of $34.0 million in FHLB advances compared to $23.0 million
in FHLB advances at December 31, 1999, an increase of $11.0  million,  or 47.8%.
The increase in deposits  and  borrowings  was used  primarily to fund growth in
loans during the year.

Shareholders'  equity totaled $17.0 million at December 31, 2000, an increase of
$867,000,  or 5.4%, over December 31, 1999.  Equity was increased by the effects
of amortization  of the Company's  Recognition and Retention Plan, a recovery of
unrealized  losses on available for sale securities of $403,000 and net earnings
for the year ended  December 31, 2000, of $1.3 million.  Equity was decreased by
payment of dividends  totaling  $477,000 and common stock  repurchases  totaling
$464,000.

Comparison  of Results of Operations  for the Years Ended  December 31, 2000 and
1999

Net  earnings  totaled  $1.3  million for the year ended  December  31,  2000, a
$45,000, or 3.7%, increase over the net earnings reported for 1999. The increase
in net earnings resulted  primarily from an increase of $371,000 in net interest
income and a decrease of $167,000 in the provision for income taxes,  which were
partially  offset by an  increase of  $170,000  in the  provision  for losses on
loans,  a decrease  of $53,000 in other  income and an  increase  of $270,000 in
general, administrative and other expense.


<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, 2000 and
1999 (continued)

Interest Income

The Company's total interest income was $9.5 million for the year ended December
31, 2000,  compared to $7.6 million during 1999, an increase of $1.9 million, or
25.3%.  The increase in average  interest-earning  assets from $101.4 million in
1999 to $121.5 million in 2000 helped  contribute to the increase.  In addition,
increasing  loan rates  contributed  to a 35 basis point increase in the average
yield on interest-earning assets, to 7.88% in 2000 compared to 7.53% in 1999.

Interest Expense

Interest  expense  increased  by $1.6  million,  or  38.4%,  for the year  ended
December 31, 2000, compared to 1999. This increase was the result of an increase
in the average  balance of  interest-bearing  liabilities of $18.8  million,  or
21.8%,  and an  increase in the average  cost of these  liabilities  of 64 basis
points,  from 4.67% during 1999 to 5.31% in 2000. Local competition  resulted in
pressure to maintain  competitive rates on deposits,  while use of FHLB advances
also increased the cost of interest-bearing liabilities.

Net Interest Income

Net interest  income  increased by $371,000,  or 10.4%,  to  approximately  $3.9
million  in  2000,  as  compared  to $3.6  million  in  1999.  The net  yield on
weighted-average interest-earning assets declined in 2000 to 3.27% from 3.54% in
1999.

Provision for Losses on Loans

The  Company's  provision  for losses on loans for the years ended  December 31,
2000 and 1999, was $332,000 and $162,000,  respectively.  A larger provision was
recorded  in  2000  due to the  increase  in the  volume  of  loans  secured  by
nonresidential and commercial real estate.  Management considered this provision
and the related  increase in the allowance for loan losses adequate based on the
degree  of  delinquencies  in the loan  portfolio  and the  Company's  loan loss
history.  There were no recoveries in 2000 and 1999, while  charge-offs  totaled
$12,000 and $7,000 during those respective years. The Company provides a general
allowance that reflects an estimate of inherent  losses based upon the types and
categories of outstanding  loans as well as problem loans.  At December 31, 2000
and 1999, the allowance amounted to $760,000 and $440,000,  respectively,  for a
ratio to total loans of .73% in 2000 and .47% in 1999.  Non-performing  loans at
these dates were $336,000 and $666,000, respectively. The ratio of allowance for
loan losses to non-performing loans increased from 66.1% at December 31, 1999 to
226.2% at December 31, 2000. Based on management's  review of the loan portfolio
during these years, the allowance for loan losses at December 31, 2000 and 1999,
is considered adequate to cover potential losses inherent in the loan portfolio.

Other Income

The Company's  other income for the year ended December 31, 2000,  excluding the
loss on equity  investments,  was  $366,000,  compared to $296,000 in 1999.  The
increase was due primarily to a $21,000,  or 15.1%,  increase in service charges
on deposit accounts and a $66,000, or 42.0%, increase in other operating income.
The $244,000 loss on equity investments recorded in 2000 had an after-tax effect
of approximately  $19,000 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, 2000 and
1999 (continued)

General, Administrative and Other Expense

General,  administrative  and other  expense  totaled  $1.9 million for the year
ended  December  31,  2000,  compared  to $1.7  million in 1999,  an increase of
$270,000, or 16.2%. Employee compensation and benefits increased by $203,000, or
21.9%, due primarily to additional personnel.  Data processing fees increased by
$16,000,  or 10.9%, due primarily to increased account volume and the additional
commercial loan software  maintenance  costs.  Various other operating  expenses
increased by $76,000,  or 13.7%,  which were partially  offset by a $25,000,  or
61.0%,  decrease in federal  deposit  insurance  premiums.  The  majority of the
increase was related to additional  operating  costs  associated  with increased
account volume, new services,  consulting fees and office supplies, all of which
were  primarily  related  to the new  building  and  additional  personnel.  The
decrease in federal deposit insurance premiums was due to a reduction in premium
rates year to year.

Income Tax Expense

Income tax expense for the years ended  December 31, 2000 and 1999, was $511,000
and $678,000,  respectively.  Pretax income  decreased by $122,000,  or 6.4%, in
2000 compared to 1999, and approximately  $142,000 of tax credits were available
in 2000, which resulted in a corresponding  decrease in income tax expense.  The
effective  tax rates were 28.7% and 35.6% for the years ended  December 31, 2000
and 1999, respectively.

Comparison  of Results of Operations  for the Years Ended  December 31, 1999 and
1998

Net  earnings  totaled  $1.2  million for the year ended  December  31,  1999, a
$23,000, or 1.8%, decrease from the net earnings reported for 1998. The decrease
in net earnings resulted  primarily from an increase of $99,000 in the provision
for losses on loans,  a decrease of $110,000 in other  income and an increase of
$345,000 in general,  administrative  and other  expense,  which were  partially
offset by an  increase  of  $453,000  in net  interest  income and a decrease of
$78,000 in the provision for income taxes.

Interest Income

The Company's total interest income was $7.6 million for the year ended December
31, 1999,  compared to $6.6 million during 1998, an increase of $1.0 million, or
15.5%.  The increase in average  interest-earning  assets from $86.7  million in
1998 to $101.4  million in 1999  helped  contribute  to the  increase.  However,
falling loan rates  contributed to a 9 basis point decrease in the average yield
on interest-earning assets, to 7.53% in 1999 compared to 7.62% in 1998.

Interest Expense

Interest  expense  increased by $567,000,  or 16.3%, for the year ended December
31, 1999,  compared to 1998.  This increase was the result of an increase in the
average  balance of  interest-bearing  liabilities of $15.8  million,  which was
partially  offset by a decrease in the average cost of these  liabilities  by 25
basis  points,  from  4.92%  during  1998 to 4.67% in  1999.  Local  competition
resulted in pressure to maintain  competitive  rates on  deposits,  while use of
FHLB advances lowered the cost of interest-bearing liabilities.

Net Interest Income

Net interest  income  increased by $453,000,  or 14.6%,  to  approximately  $3.6
million  in  1999,  as  compared  to $3.1  million  in  1998.  The net  yield on
weighted-average interest-earning assets declined in 1999 to 3.54% from 3.61% in
1998.


<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, 1999 and
1998 (continued)

Provision for Losses on Loans

The  Company's  provision  for losses on loans for the years ended  December 31,
1999 and 1998, was $162,000 and $63,000,  respectively.  A larger  provision was
recorded  in  1999  due to the  increase  in the  volume  of  loans  secured  by
nonresidential and commercial real estate.  Management considered this provision
and the related  increase in the allowance for loan losses adequate based on the
degree  of  delinquencies  in the loan  portfolio  and the  Company's  loan loss
history.  There were no recoveries in 1999 and 1998, while  charge-offs  totaled
$7,000  and  $23,000  in 1999 and 1998,  respectively.  The  Company  provides a
general  allowance  that reflects an estimate of inherent  losses based upon the
types and categories of outstanding  loans as well as problem loans. At December
31, 1999 and 1998, the allowance was $440,000 and $285,000,  respectively, for a
ratio to total loans of .47% in 1999 and .38% in 1998.  Non-performing  loans at
these dates were $666,000 and $315,000, respectively. The ratio of allowance for
loan losses to non-performing loans decreased from 90.5% at December 31, 1998 to
66.1% at December 31, 1999.

Other Income

The  Company's  other income for the year ended  December 31, 1999,  without the
loss on equity  investments,  was  $296,000,  compared to $285,000 in 1998.  The
$121,000 loss on equity investments  recorded in 1999 had an after-tax effect of
approximately  $40,000,  when  considering the tax benefit and the available tax
credits generated by the project.

General, Administrative and Other Expense

General, administrative and other expense totaled $1.7 million in 1999, compared
to  $1.3  million  in  1998,  an  increase  of  $345,000,   or  26.1%.  Employee
compensation  and benefits  increased by $182,000,  or 24.5%,  due  primarily to
additional  personnel.  Data processing fees increased by $37,000, or 33.6%, due
primarily  to  increased  account  volume  and the  additional  commercial  loan
software  maintenance costs.  Other operating expenses increased by $50,000,  or
14.7%.  The majority of the increase was related to additional  operating  costs
associated  with increased  account  volume,  new services,  consulting fees and
office  supplies,  all of which were  primarily  related to the new building and
additional personnel.

Income Tax Expense

Income tax expense for the years ended  December 31, 1999 and 1998, was $678,000
and  $756,000,  respectively.  Pretax  income  decreased  only  slightly in 1999
compared to 1998,  but  approximately  $40,000 of tax credits were  available in
1999.  This  resulted in a  corresponding  decrease in income tax  expense.  The
effective  tax rates were 35.6% and 37.7% for the years ended  December 31, 1999
and 1998, respectively.

                                       13

<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,

                                                   2000                            1999                          1998
                                     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         $  5,656    $   301      5.32%   $  4,571  $  205       4.48%  $  4,699  $    232       4.93%
  Mortgage- and other asset-
    backed securities (1)              5,697        383      6.72       7,032     421       5.99      9,327       522       5.60
  Other investment securities (1)     10,283        721      7.01       6,820     453       6.64      4,337       277       6.39
  Loans receivable (2)                98,320      8,041      8.18      82,091   6,484       7.90     67,793     5,535       8.16
  Stock in FHLB of Indianapolis        1,571        130      8.27         864      69       8.00      549          44       8.01
                                    --------    -------              --------  ------              --------  --------
     Total interest-earning assets   121,527      9,576      7.88     101,378   7,632       7.53     86,705     6,610       7.62

Non-interest-earning assets            5,442                            6,446                         4,562
                                    --------                         --------                      --------

     Total assets                   $126,969                         $107,824                      $ 91,267
                                    ========                         ========                      ========

Interest-bearing liabilities:
  Savings accounts                  $  3,417        103      3.01    $  3,260      98       3.01   $  3,258        98       3.01
  NOW and money market accounts       23,814        886      3.72      25,735     930       3.61     23,185       930       4.01
  Certificates of deposit             50,507      2,918      5.78      43,059   2,291       5.32     37,581     2,069       5.51
  Borrowings                          27,577      1,690      6.13      14,446     724       5.01      6,628       379       5.72
                                    --------    -------              --------  ------              --------  --------
     Total interest-bearing
        liabilities                  105,315      5,597      5.31      86,500   4,043       4.67     70,652     3,476       4.92
                                                -------     -----              ------       ----             --------     -------

Other liabilities                      5,304                            4,629                         3,862
                                    --------                         --------                      --------

     Total liabilities               110,619                           91,129                        74,514

Shareholders' equity                  16,350                           16,695                        16,753
                                    --------                         --------                      --------

     Total liabilities and

       shareholders' equity         $126,969                         $107,824                      $ 91,267
                                    ========                         ========                      ========

Net interest-earning assets         $ 16,212                         $ 14,878                      $ 16,053
                                    ========                         ========                      ========
Net interest income                             $ 3,979                        $3,589                        $  3,134
                                                =======                        ======                        ========
Interest rate spread (3)                                     2.57%                          2.86%                           2.70%
                                                           =======                        =======                         =======
Net yield on weighted-average
  interest-earning assets (4)                                3.27%                          3.54%                           3.61%
                                                           =======                        =======                         =======
Average interest-earning assets
  to average interest-bearing liabilities                  115.39%                        117.20%                         122.72%
                                                           =======                        =======                         =======
Adjustment of interest on tax-exempt
  securities to a tax-equivalent basis          $    52                        $   33                        $     31
                                                =======                        ======                        ========
</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,
                                                             2000 vs. 1999                          1999 vs. 1998
                                                          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                        $     54      $  41   $     95        $     (6)    $  (21)   $   (27)
  Mortgage-backed securities                            (86)        49        (37)           (135)        34       (101)
  Investment securities                                 242         26        268             165         11        176
  Loans receivable                                    1,320        237      1,557           1,131       (182)       949
  Stock in FHLB of Indianapolis                          58          3         61              25         -          25
                                                    -------      -----    -------         -------       ----    -------
     Total interest-earning assets                    1,588        356      1,944           1,180       (158)     1,022

Interest-bearing liabilities:
  Savings accounts                                        5         -           5              -          -          -
  NOW and money market accounts                         (71)        27        (44)             97        (97)        -
  Certificates of deposit                               419        208        627             292        (70)       222
  Borrowings                                            776        190        966             397        (52)       345
                                                     ------        ---     ------           -----      -----        ---
     Total interest-bearing liabilities               1,129        425      1,554             786       (219)       567
                                                      -----        ---      -----           -----       ----        ---

Change in net interest income
  (fully taxable equivalent basis)                      459        (69)       390             394         61        455

Tax equivalent adjustment                               (18)        (1)       (19)             (2)        -          (2)
                                                    -------      -----    -------         -------       ----    -------

Change in net interest income                       $   441      $ (70)   $   371         $   392     $   61     $  453
                                                     ======       ====     ======          ======      =====      =====
</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 for the periods and as of the date shown.  Average  balances are based on
month-end average balances.

<TABLE>
<CAPTION>

                                                             At December 31,                  Year Ended December 31,
                                                                   2000                  2000         1999         1998

Weighted-average interest rate earned on:
<S>                                                               <C>                   <C>           <C>          <C>
  Interest-earning deposits                                       5.91%                 5.32%         4.48%        4.93%
  Mortgage-backed securities                                      7.06                  6.72          5.99         5.60
  Investment securities                                           6.74                  7.01          6.64         6.39
  Loans receivable                                                8.39                  8.18          7.90         8.16
  Stock in FHLB of Indianapolis                                   8.31                  8.27          8.00         8.01
     Total interest-earning assets                                8.06                  7.88          7.53         7.62

Weighted-average interest rate cost of:
  Savings accounts                                                3.49                  3.01          3.01         3.01
  NOW and money market accounts                                   3.62                  3.72          3.61         4.01
  Certificates of deposit                                         6.17                  5.78          5.32         5.51
  Borrowings                                                      6.11                  6.13          5.01         5.72
     Total interest-bearing liabilities                           5.56                  5.31          4.67         4.92

Interest rate spread (1)                                          2.50                  2.57          2.86         2.70

Net yield on weighted average
  interest-earning assets (2)                                      N/A                  3.27          3.54         3.61

</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, 2000,  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, like other savings  associations,  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") issued a regulation,  effective January
1, 1994, which uses a net market value  methodology to measure the interest rate
risk exposure of thrift  institutions.  Under OTS regulations,  an institution's
"normal"  level of  interest  rate  risk in the  event of an  assumed  change in
interest rates is a decrease in the institution's NPV in an amount not exceeding
2% of the  present  value of its  assets.  Thrift  institutions  with  over $300
million in assets or less than a 12%  risk-based  capital  ratio are required to
file OTS Schedule  CMR.  Data from  Schedule CMR is used by the OTS to calculate
changes in NPV (and the related "normal" level of interest rate risk) based upon
certain interest rate changes (discussed below).  Institutions which do not meet
either of the filing requirements are not required to file OTS Schedule CMR, but
may do so  voluntarily.  The  Bank  does  not  currently  meet  either  of these
requirements,  but it does voluntarily file Schedule CMR. Presented below, as of
September  30,  2000 (the latest  available  date) and  December  31, 1999 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,  up and down 300 basis  points  and in
accordance with OTS regulations.  As illustrated in the table, 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 declines 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, 2000

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                   $10,832        $(6,679)           (38)%                     8.92%        (461bp)
      +200                    13,281         (4,230)           (24)                     10.68         (285 bp)
      +100                    15,549         (1,962)           (11)                     12.24         (129 bp)
        -                     17,511             -               -                      13.53            -
      -100                    18,915          1,404              8                      14.41           88 bp
      -200                    19,781          2,270             13                      14.92          139 bp
      -300                    20,856          3,345             19                      15.55          202 bp

</TABLE>



<PAGE>



                           Logansport Financial Corp.

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

Asset and Liability Management (continued)

<TABLE>
<CAPTION>

                                                      December 31, 1999

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                   $11,061        $(5,372)           (33)%                    10.08%        (391 bp)
      +200                    13,080         (3,353)           (20)                     11.63         (236 bp)
      +100                    14,924         (1,509)            (9)                     12.96         (103 bp)
        -                     16,433             -               -                      13.99            -
      -100                    17,344            911              6                      14.54           55 bp
      -200                    17,694          1,261              8                      14.67           68 bp
      -300                    18,067          1,634             10                      14.82           83 bp

</TABLE>

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 which
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, proceeds from principal and
interest  payments  of loans,  and  proceeds  from  maturing  securities.  While
maturities  and  scheduled  amortization  of loans are a  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 mortgage
loans and the purchase of investment securities. During the years ended December
31, 2000,  1999 and 1998, the Company  originated  mortgage loans and commercial
loans  in the  amounts  of $43.2  million,  $36.6  million  and  $16.3  million,
respectively.  The  Company  originated  consumer  loans of $8.5  million,  $7.8
million and $10.5  million,  respectively.  The Company  purchased  loans in the
amount of $981,000  in 1999 and  $350,000 in 1998.  No loans were  purchased  in
2000. Loan repayments,  excluding commercial paper, totaled $39.8 million, $27.4
million and $17.6 million for 2000, 1999 and 1998, respectively.


<PAGE>



                           Logansport Financial Corp.

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

Liquidity and Capital Resources (continued)

During the years ended December 31, 2000,  1999 and 1998, the Company  purchased
investment  securities  in the amounts of $4.1  million,  $4.9  million and $6.1
million,  respectively.  Sales  or  maturities  of such  securities  held by the
Company and payments on mortgage-backed  or other  asset-backed  securities were
$5.6  million,   $2.8  million  and  $8.6  million  for  2000,  1999  and  1998,
respectively.

Deposits grew by $3.4 million from  December 31, 1999 to December 31, 2000,  and
by $6.0 million from December 31, 1998 to December 31, 1999.

Cash and cash  equivalents  increased by $4.1 from December 31, 1999 to December
31, 2000, and by $818,000 from December 31, 1998 to December 31, 1999.

The Company had outstanding loan  commitments,  including  undisbursed  loans in
process and standby letters of credit, totaling $12.8 million and $11.5 million,
at December 31, 2000 and 1999,  respectively.  The Company  anticipates  that it
will have  sufficient  funds  available  to meet its current  loan  commitments.
Certificates  of deposit  that are  scheduled to mature in one year or less from
December  31,  2000  and  1999  totaled   $39.4   million  and  $19.8   million,
respectively. 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 such deposits 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, 2000 and 1999, the
Company  had  outstanding  FHLB  advances of $34.0  million  and $23.0  million,
respectively.

For each  calendar  month,  the Bank is required  to  maintain an average  daily
balance of liquid assets (cash,  certain time  deposits,  bankers'  acceptances,
specified United States Government, state or federal agency obligations,  shares
of certain  mutual funds and certain  corporate  debt  securities and commercial
paper)  equal to an  amount  not less  than a  specified  percentage  of its net
withdrawable  deposit  accounts  plus  short-term  borrowings.   This  liquidity
requirement may be changed from time to time by the OTS to any amount within the
range of 4% to 10% depending  upon economic  conditions and the savings flows of
member  institutions.  The current OTS required level of liquid assets that must
be held  by a  savings  association  is  equal  to 4% of the  association's  net
withdrawable  accounts plus short-term  borrowings  based upon the average daily
balance of such liquid assets for each quarter of the association's fiscal year.
The OTS may impose  monetary  penalties upon savings  associations  that fail to
comply with those liquidity requirements.  As of December 31, 2000, the Bank had
liquid assets of $17.9 million, and a regulatory liquidity ratio of 22.2%.


<PAGE>



                           Logansport Financial Corp.

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

Liquidity and Capital Resources (continued)

Pursuant to OTS capital regulations,  savings associations 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, 2000,  the Bank's  tangible  capital ratio was 12.5%,  its
leverage ratio 12.5%, and its risk-based  capital to risk-weighted  assets ratio
20.7%.  Therefore,  at  December  31,  2000,  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, 2000.

<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%           $1,988             12.5%          $16,587      $14,599
Core capital (2)                         4.0             5,300             12.5            16,587       11,287
Risk-based capital                       8.0             6,692             20.7            17,347(3)    10,655

</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)  During  1999,  the OTS  adopted  a core  capital  requirement  for  savings
     associations  comparable to that recently adopted by the Comptroller of the
     Currency for national  banks.  The new  regulation  requires 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  $760,000  of  general  valuation
allowances.

As of December 31, 2000, 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.


<PAGE>



                           Logansport Financial Corp.

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

Effects of Recent Accounting Pronouncements

In June 1998,  the  Financial  Accounting  Standards  Board (the "FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 133,  "Accounting for
Derivative  Instruments  and Hedging  Activities,"  which  requires  entities to
recognize  all  derivatives  in their  financial  statements as either assets or
liabilities  measured at fair value.  SFAS No. 133 also specifies new methods of
accounting for hedging transactions,  prescribes the items and transactions that
may be hedged,  and specifies  detailed  criteria to be met to qualify for hedge
accounting.

The definition of a derivative  financial instrument is complex, but in general,
it is an instrument  with one or more  underlyings,  such as an interest rate or
foreign exchange rate, that is applied to a notional  amount,  such as an amount
of currency,  to determine the settlement  amount(s).  It generally  requires no
significant initial investment and can be settled net or by delivery of an asset
that is  readily  convertible  to cash.  SFAS No.  133  applies  to  derivatives
embedded in other contracts, unless the underlying of the embedded derivative is
clearly and closely related to the host contract.

SFAS No.  133,  as amended  by SFAS No.  137,  is  effective  for  fiscal  years
beginning  after June 15, 2000. On adoption,  entities are permitted to transfer
held-to-maturity  debt securities to the  available-for-sale or trading category
without  calling into  question  their intent to hold other debt  securities  to
maturity in the future.  Management  adopted SFAS No. 133  effective  January 1,
2001, as required,  without material impact on the Company's  financial position
or results of operations.

In September  2000, the FASB issued SFAS No. 140,  "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities," which revises
the  standards  for  accounting  for  securitizations  and  other  transfers  of
financial  assets and collateral and requires certain  disclosures,  but carries
over most of the  provisions of SFAS No. 125 without  reconsideration.  SFAS No.
140  is  effective  for   transfers  and  servicing  of  financial   assets  and
extinguishments of liabilities  occurring after March 31, 2001. The Statement is
effective for recognition and reclassification of collateral and for disclosures
relating to  securitization  transactions and collateral for fiscal years ending
after December 15, 2000.  SFAS No. 140 is not expected to have a material effect
on the Company's financial position or results of operations.

The  foregoing  discussion  of the effects of recent  accounting  pronouncements
contains  forward-looking  statements  that  involve  risks  and  uncertainties.
Changes in economic  circumstances  or interest rates could cause the effects of
the accounting pronouncement to differ from management's foregoing assessment.


<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, 2000 and 1999, 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,
2000. 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, 2000 and 1999, 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, 2000,  in conformity  with  accounting
principles generally accepted in the United States of America.



\s\Grant Thornton LLP

Cincinnati, Ohio
February 16, 2001


<PAGE>

                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                  December 31,
                        (In thousands, except share data)

<TABLE>
<CAPTION>

         ASSETS                                                                                     2000           1999

<S>                                                                                          <C>             <C>
Cash and due from banks                                                                      $       576     $    1,336
Interest-bearing deposits in other financial institutions                                          8,634          3,810
                                                                                               ---------      ---------
         Cash and cash equivalents                                                                 9,210          5,146

Investment securities designated as available for sale - at market                                 8,322          8,539
Mortgage-backed securities designated as available for sale - at market                            5,165          5,898
Loans receivable - net                                                                           102,418         90,900
Office premises and equipment - at depreciated cost                                                1,843          1,902
Federal Home Loan Bank stock - at cost                                                             1,973          1,273
Investment in real estate partnership                                                              1,284          1,485
Accrued interest receivable on loans                                                                 548            416
Accrued interest receivable on mortgage-backed securities                                             41             47
Accrued interest receivable on investments and interest-bearing deposits                             107            115
Prepaid expenses and other assets                                                                     64             45
Cash surrender value of life insurance                                                             1,234          1,184
Deferred income tax asset                                                                            403            472
Prepaid income taxes                                                                                  -              46
                                                                                               ---------    -----------

         Total assets                                                                           $132,612       $117,468
                                                                                                 =======        =======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                       $  79,454      $  76,011
Advances from the Federal Home Loan Bank                                                          34,000         23,000
Notes payable                                                                                      1,237          1,307
Accrued interest and other liabilities                                                               906          1,004
Accrued income taxes                                                                                   2             -
                                                                                            ------------      ---------
         Total liabilities                                                                       115,599        101,322

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; 1,083,510
    and 1,130,510 shares at aggregate value issued and outstanding at
    December 31, 2000 and 1999, respectively                                                       5,515          5,979
  Retained earnings - restricted                                                                  11,526         10,734
  Less shares acquired by stock benefit plan                                                        (103)          (239)
  Accumulated comprehensive income (loss), unrealized gains (losses)
    on securities designated as available for sale, net of related tax effects                        75           (328)
                                                                                             -----------      ---------
         Total shareholders' equity                                                               17,013         16,146
                                                                                                --------       --------

         Total liabilities and shareholders' equity                                             $132,612       $117,468
                                                                                                 =======        =======

</TABLE>


The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                       CONSOLIDATED STATEMENTS OF EARNINGS

                         For the year ended December 31,
                        (In thousands, except share data)


<TABLE>
<CAPTION>

                                                                                         2000         1999         1998

Interest income

<S>                                                                                    <C>          <C>          <C>
  Loans                                                                                $8,041       $6,484       $5,538
  Investment securities                                                                   667          420          243
  Mortgage-backed securities                                                              383          421          522
  Interest-bearing deposits and other                                                     433          274          276
                                                                                       ------       ------       ------
         Total interest income                                                          9,524        7,599        6,579

Interest expense

  Deposits                                                                              3,907        3,319        3,097
  Borrowings                                                                            1,690          724          379
                                                                                        -----       ------       ------
         Total interest expense                                                         5,597        4,043        3,476
                                                                                        -----        -----        -----

         Net interest income                                                            3,927        3,556        3,103

Provision for losses on loans                                                             332          162           63
                                                                                       ------       ------      -------

         Net interest income after provision for losses on loans                        3,595        3,394        3,040

Other income

  Service charges on deposit accounts                                                     160          139          106
  Gain (loss) on sale of investment and mortgage-backed securities                        (17)          -             4
  Gain on sale of real estate acquired through foreclosure                                 -            -             6
  Loss on investment in real estate partnership                                          (244)        (121)          -
  Other operating                                                                         223          157          169
                                                                                       ------       ------       ------
         Total other income                                                               122          175          285

General, administrative and other expense
  Employee compensation and benefits                                                    1,129          926          744
  Occupancy and equipment                                                                 196          163           90
  Federal deposit insurance premiums                                                       16           41           38
  Data processing                                                                         163          147          110
  Other operating                                                                         433          390          340
                                                                                       ------       ------       ------
         Total general, administrative and other expense                                1,937        1,667        1,322
                                                                                        -----        -----        -----

         Earnings before income taxes                                                   1,780        1,902        2,003

Income taxes

  Current                                                                                 649          706          789
  Deferred                                                                               (138)         (28)         (33)
                                                                                       ------      -------      -------
         Total income taxes                                                               511          678          756
                                                                                       ------       ------       ------

         NET EARNINGS                                                                  $1,269       $1,224       $1,247
                                                                                        =====        =====        =====

         EARNINGS PER SHARE
           Basic                                                                       $1.16         $1.03        $1.00
                                                                                        ====          ====         ====

           Diluted                                                                     $1.16         $1.02         $.97
                                                                                        ====          ====          ===
</TABLE>


The accompanying notes are an integral part of these statements.


<PAGE>



                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                         For the year ended December 31,
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                                         2000         1999         1998

<S>                                                                                    <C>          <C>          <C>
Net earnings                                                                           $1,269       $1,224       $1,247

Other comprehensive income (loss), net of tax:
  Unrealized holding gains (losses) on securities
    during the period, net of tax (benefit) of $202, $(249)
    and $50 for the years ended December 31, 2000, 1999
    and 1998, respectively                                                                392         (483)          98
  Reclassification adjustment for realized (gains) losses
    included in earnings, net of tax (benefit) of $(6) and $1
    for the years ended December 31, 2000 and 1998, respectively                           11           -            (3)
                                                                                      -------        -----     --------

Comprehensive income                                                                   $1,672      $   741       $1,342
                                                                                        =====       ======        =====

Accumulated comprehensive income (loss)                                              $     75      $  (328)     $   155
                                                                                      =======       ======       ======
</TABLE>

The accompanying notes are an integral part of these statements.


<PAGE>



                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

              For the years ended December 31, 2000, 1999 and 1998
                        (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>
Balance at January 1, 1998                              $7,566        $9,316       $(400)            $  60      $16,542

Net earnings for the year ended December 31, 1998           -          1,247          -                 -         1,247
Purchase of shares for stock benefit plan                   -             -          (93)               -           (93)
Purchase of shares                                        (945)           -           -                 -          (945)
Issuance of shares under stock option plan                   9            -           -                 -             9
Unrealized gains on securities designated
  as available for sale, net of related tax effects         -             -           -                 95           95
Amortization expense of stock benefit plan                  40            -          125                -           165
Cash dividends of $.43 per share                            -           (532)         -                 -          (532)
                                                         -----      --------         ---               ---     --------

Balance at December 31, 1998                             6,670        10,031        (368)              155       16,488

Net earnings for the year ended December 31, 1999           -          1,224          -                 -         1,224
Purchase of shares                                        (696)           -           -                 -          (696)
Issuance of shares under stock option plan                   5            -           -                 -             5
Unrealized losses on securities designated
  as available for sale, net of related tax effects         -             -           -               (483)        (483)
Amortization expense of stock benefit plan                  -             -          129                -           129
Cash dividends of $.44 per share                            -           (521)         -                 -          (521)
                                                         -----      --------         ---               ---     ---------

Balance at December 31, 1999                             5,979        10,734        (239)             (328)      16,146

Net earnings for the year ended December 31, 2000           -          1,269          -                 -         1,269
Purchase of shares                                        (464)           -           -                 -          (464)
Unrealized gains on securities designated
  as available for sale, net of related tax effects         -             -           -                403          403
Amortization expense of stock benefit plan                  -             -          136                -           136
Cash dividends of $.44 per share                            -           (477)         -                 -          (477)
                                                         -----      --------         ---               ---     --------

Balance at December 31, 2000                            $5,515       $11,526       $(103)            $  75      $17,013
                                                         =====        ======        ====              ====       ======

</TABLE>


The accompanying notes are an integral part of these statements.


<PAGE>



                           Logansport Financial Corp.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                         For the year ended December 31,
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                                         2000         1999         1998
Cash flows from operating activities:

<S>                                                                                  <C>          <C>          <C>
  Net earnings for the year                                                          $  1,269     $  1,224     $  1,247
  Adjustments to reconcile net earnings to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                                                         110           81           39
    Amortization of premiums on investments and mortgage-backed securities                 26           95          200
    Amortization expense of stock benefit plan                                            136          129          165
    (Gain) loss on sale of investment and mortgage-backed securities                       17           -            (4)
    Provision for losses on loans                                                         332          162           63
    Gain on sale of real estate acquired through foreclosure                               -            -            (6)
    Loss on investment in real estate partnership                                         244          121           -
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                               (132)         (79)         (38)
      Accrued interest receivable on mortgage-backed securities                             6           19           17
      Accrued interest receivable on investments                                            8          (53)          59
      Prepaid expenses and other assets                                                   (19)          (9)          (3)
      Accrued interest and other liabilities                                              (98)        (207)         350
      Federal income taxes
        Current                                                                            48          (17)        (121)
        Deferred                                                                         (138)         (28)         (33)
                                                                                     --------    ---------    ---------
         Net cash provided by operating activities                                      1,809        1,438        1,935

Cash flows provided by (used in) investing activities:

  Decrease in certificates of deposit in other financial institutions                      -            -           100
  Proceeds from sale of investment securities designated as available for sale          3,965           -           806
  Purchase of investment securities designated as available for sale                   (4,082)      (4,925)      (3,057)
  Maturities of investment securities designated as available for sale                    800          875        3,104
  Proceeds from sale of mortgage-backed securities designated as
    available for sale                                                                     -            -         1,174
  Purchase of mortgage-backed securities designated as available for sale                  -            -        (3,039)
  Principal repayments on mortgage-backed securities designated as
    available for sale                                                                    834        1,948        3,472
  Purchase of loans                                                                        -          (981)        (350)
  Loan disbursements                                                                  (51,693)     (44,410)     (26,775)
  Principal repayments on loans                                                        39,843       27,402       17,585
  Investment in real estate partnership                                                  (113)        (108)        (176)
  Purchases of and additions to office premises and equipment                             (51)        (455)      (1,102)
  Purchase of Federal Home Loan Bank stock                                               (700)        (705)         (74)
  Proceeds from sale of real estate acquired through foreclosure                           -            -           151
  Increase in cash surrender value of life insurance policy                               (50)         (49)         (50)
                                                                                    ---------    ---------    ---------
         Net cash used in investing activities                                        (11,247)     (21,408)      (8,231)
                                                                                       ------       ------      -------

         Net cash used in operating and investing activities
           (subtotal carried forward)                                                  (9,438)     (19,970)      (6,296)
                                                                                      -------       ------      -------
</TABLE>



<PAGE>



                           Logansport Financial Corp.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                         For the year ended December 31,
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                                         2000         1999         1998
         Net cash used in operating and investing activities
<S>                                                                                  <C>          <C>           <C>
           (subtotal brought forward)                                                $ (9,438)    $(19,970)     $(6,296)

Cash provided by (used in) financing activities:

  Net increase in deposit accounts                                                      3,443        6,000        9,416
  Proceeds from Federal Home Loan Bank advances                                        33,000       31,000        8,000
  Repayment of Federal Home Loan Bank advances                                        (22,000)     (15,000)      (7,500)
  Proceeds from the exercise of stock options                                              -             5            9
  Purchase of shares for stock benefit plan                                                -            -           (93)
  Dividends on common stock                                                              (477)        (521)        (532)
  Purchase of shares                                                                     (464)        (696)        (945)
                                                                                     --------    ---------      -------
         Net cash provided by financing activities                                     13,502       20,788        8,355
                                                                                       ------      -------       ------

Net increase in cash and cash equivalents                                               4,064          818        2,059

Cash and cash equivalents at beginning of year                                          5,146        4,328        2,269
                                                                                      -------     --------       ------

Cash and cash equivalents at end of year                                             $  9,210    $   5,146      $ 4,328
                                                                                      =======     ========       ======


Supplemental disclosure of cash flow information: Cash paid during the year for:

    Income taxes                                                                    $     629   $      724     $    689
                                                                                     ========    =========      =======

    Interest on deposits and borrowings                                              $  5,449    $   4,054      $ 3,465
                                                                                      =======     ========       ======

Supplemental disclosure of noncash investing and financing activities:
  Foreclosed mortgage loans transferred to real estate acquired
    through foreclosure                                                              $     -     $      -     $      40
                                                                                      =======     ========     ========

  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                            $     403   $     (483)   $      95
                                                                                     ========    =========     ========
</TABLE>




The accompanying notes are an integral part of these statements.


<PAGE>



                           Logansport Financial Corp.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        December 31, 2000, 1999 and 1998

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 which 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.  Trading  securities and securities  available
    for sale are carried at fair value with resulting unrealized gains or losses
    recorded to operations or shareholders'  equity,  respectively.  At December
    31, 2000, the Corporation's  shareholders'  equity accounts  reflected a net
    unrealized gain on available for sale securities of $75,000. At December 31,
    1999,  the  Corporation's  shareholders'  equity  accounts  reflected  a net
    unrealized loss on available for sale securities of $328,000.

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


<PAGE>



                           Logansport Financial Corp.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        December 31, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

    3.  Loans Receivable

    Loans  receivable 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.

    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 and  anticipated  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.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

    5.  Allowance for Loan Losses (continued)

    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 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.

    At  December   31,  2000,   the  Savings  Bank  had  seven  loans   totaling
    approximately $1.4 million that were impaired as defined under SFAS No. 114.
    At December 31, 1999, the Savings Bank had two loans totaling  approximately
    $485,000 that were impaired as defined under SFAS No. 114.

    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 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,  five to fifteen  years for  furniture  and equipment and five
    years for  automobiles.  An  accelerated  method  is used for tax  reporting
    purposes.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

    8.  Investment in Real Estate Partnership

    During  1997,  the  Corporation  invested  $1.5  million  in a  real  estate
    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  $140,000 and $70,000
    during the years ended December 31, 2000 and 1999, respectively,  as well as
    federal income tax credits of approximately $142,000 and $40,000 in 2000 and
    1999, respectively.  This affordable housing project is expected to generate
    tax credits for the Savings Bank in future years.

    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  retirement  plans,  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 are covered by the Pentegra Group,  previously
    the Financial Institutions  Retirement Fund (the "Fund"), which is a defined
    benefit pension 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 Fund 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.  Due to a
    continuation of the Fund's overfunded  status, no contributions were made to
    the pension plan during the years ended  December  31, 2000,  1999 and 1998.
    The  provision  for  pension  expense was  computed by the Fund's  actuaries
    utilizing the  projected  unit credit cost method and assuming a 7.5% return
    on Fund assets.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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 $1.2 million at both  December 31, 2000 and 1999.  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  $112,000,  $81,000 and $85,000
    for the years ended December 31, 2000, 1999 and 1998, 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, 2000, 1999 or 1998.

    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 $136,000,  $129,000 and
    $125,000 for the years ended December 31, 2000, 1999 and 1998, respectively.

    In April  1999,  the  Corporation  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 employer.  The Savings Bank's expense related to the plan
    totaled  approximately  $14,000 and $11,000 for the years ended December 31,
    2000 and 1999, respectively.

    11.  Earnings Per Share

    Basic earnings per share is computed based upon the weighted-average  shares
    outstanding  during the year.  Weighted-average  common  shares  outstanding
    totaled 1,090,800,  1,194,070 and 1,243,972 for the years ended December 31,
    2000, 1999 and 1998,  respectively.  Diluted  earnings per share is computed
    taking into  consideration  common shares outstanding and dilutive potential
    common  shares  to be issued  under the  Corporation's  stock  option  plan.
    Weighted-average  common shares deemed outstanding for purposes of computing
    diluted  earnings per share totaled  1,090,800,  1,203,324 and 1,287,851 for
    the years ended December 31, 2000, 1999 and 1998, respectively.  Incremental
    shares related to the assumed exercise of stock options


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

    11.  Earnings Per Share (continued)

    included in the calculation of diluted  earnings per share totaled 9,254 and
    43,879 for the years ended December 31, 1999 and 1998, respectively. Options
    to  purchase  125,915,  116,661  and  82,536  shares of common  stock with a
    respective  weighted-average  exercise  price of $10.59,  $10.60 and $10.63,
    were outstanding at December 31, 2000, 1999 and 1998, respectively, but were
    excluded from the  computation  of diluted  earnings per share because their
    exercise  prices were  greater  than the average  market price of the common
    shares.

    12.  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.

    13.  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, 2000 and 1999:

                  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 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, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

13.      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, 2000 and 1999.
                  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, 2000 and 1999, 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>

                                                                             2000                          1999
                                                                 Carrying           Fair        Carrying           Fair
                                                                    value          value           value          value
                                                                                      (In thousands)
    Financial assets
<S>                                                            <C>            <C>             <C>            <C>
      Cash and cash equivalents                                $    9,210     $    9,210      $    5,146     $    5,146
      Investment securities                                         8,322          8,322           8,539          8,539
      Mortgage-backed securities                                    5,165          5,165           5,898          5,898
      Loans receivable                                            102,418        102,674          90,900         89,169
      Federal Home Loan Bank stock                                  1,973          1,973           1,273          1,273
                                                                ---------      ---------       ---------      ---------

                                                                 $127,088       $127,344        $111,756       $110,025
                                                                  =======        =======         =======        =======

    Financial liabilities

      Deposits                                                  $  79,454      $  79,547       $  76,011      $  76,047
      Advances from the Federal Home Loan Bank                     34,000         33,943          23,000         22,870
      Notes payable                                                 1,237          1,237           1,307          1,307
                                                                ---------      ---------       ---------      ---------

                                                                 $114,691       $114,727        $100,318       $100,224
                                                                  =======        =======         =======        =======
</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

    14.  Advertising

    Advertising costs are expensed when incurred. The Corporation's  advertising
    expense  totaled  $41,000,  $37,000 and $36,000 for the years ended December
    31, 2000, 1999 and 1998, respectively.

    15.  Reclassifications

    Certain  prior year  amounts have been  reclassified  to conform to the 2000
consolidated financial statement presentation.

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, 2000 and 1999, are as follows:

<TABLE>
<CAPTION>

                                                                                         2000

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

<S>                                                            <C>            <C>                   <C>          <C>
    U.S. Government agency obligations                         $4,746         $    1                $122         $4,625
    State and municipal obligations                             2,800             99                  -           2,899
    FHLMC stock                                                     4            255                  -             259
    Corporate debt obligations                                    560             -                   21            539
                                                               ------            ---                ----         ------

         Total investment securities                           $8,110           $355                $143         $8,322
                                                                =====            ===                 ===          =====


                                                                                         1999

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

    U.S. Government agency obligations                         $6,295            $-                 $394         $5,901
    State and municipal obligations                             1,931             20                  12          1,939
    FHLMC stock                                                     4            172                  -             176
    Corporate debt obligations                                    560             -                   37            523
                                                               ------            ---                ----         ------

         Total investment securities                           $8,790           $192                $443         $8,539
                                                                =====            ===                 ===          =====

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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

    The amortized cost and estimated fair value of investment securities by term
to maturity at December 31, 2000, are shown below.

<TABLE>
<CAPTION>

                                                                                                              Estimated
                                                                                        Amortized                  fair
                                                                                             cost                 value
                                                                                                    (In thousands)

<S>                                                                                       <C>                   <C>
    Due in one year or less                                                               $   125               $   125
    Due after one year through three years                                                    550                   547
    Due after three years through five years                                                1,114                 1,147
    Due after five years through ten years                                                  3,829                 3,763
    Due after ten years                                                                     2,488                 2,481
                                                                                            -----                 -----
                                                                                            8,106                 8,063
    FHLMC stock                                                                                 4                   259
                                                                                         --------                ------

                                                                                           $8,110                $8,322
                                                                                            =====                 =====
</TABLE>

    Proceeds  from sales and calls of investment  securities  available for sale
    during the year ended December 31, 2000, totaled $4.8 million,  resulting in
    gross realized gains of $17,000 and gross realized losses of $34,000.

    Proceeds from  maturities and calls of investment  securities  available for
    sale during the year ended December 31, 1999, totaled $875,000, resulting in
    no realized gains or losses.

    Proceeds  from sales and calls of investment  securities  available for sale
    during the year ended December 31, 1998, totaled $3.9 million,  resulting in
    gross realized gains of $96,000 and gross realized losses of $92,000.

    The amortized cost, gross  unrealized  gains,  gross  unrealized  losses and
    estimated fair values of mortgage-backed securities at December 31, 2000 and
    1999 are presented below.

<TABLE>
<CAPTION>

                                                                                         2000

                                                                               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               $   766               $-            $    6           $   760
    Government National Mortgage
      Association participation certificates                 2,134                -                61             2,073
    Federal National Mortgage
      Association participation certificates                   915                -                19               896
    Federal Housing Authority participation
      certificates                                             851                 5                6               850
    Small Business Administration
      participation certificates                               598                -                12               586
                                                            ------             -----             ----            ------

         Total mortgage-backed securities                   $5,264            $    5             $104            $5,165
                                                             =====             =====              ===             =====
</TABLE>


<PAGE>

                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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

<TABLE>
<CAPTION>

                                                                                         1999
                                                                               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                $  822               $-             $  52           $   770
    Government National Mortgage
      Association participation certificates                 2,602                -               125             2,477
    Federal National Mortgage
      Association participation certificates                 1,144                -                29             1,115
    Federal Housing Authority participation
      certificates                                             863                -                25               838
    Small Business Administration
      participation certificates                               714                -                16               698
                                                            ------                --             ----            ------

         Total mortgage-backed securities                   $6,145               $-              $247            $5,898
                                                             =====                ==              ===             =====

</TABLE>


The amortized  cost and estimated  fair value of  mortgage-backed  securities at
December 31, 2000 and 1999, 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>

                                                                     2000                              1999
                                                                           Estimated                          Estimated
                                                         Amortized              fair        Amortized              fair
                                                              cost             value             cost             value
                                                                                    (In thousands)

<S>                                                        <C>               <C>              <C>               <C>
      Due within one year                                  $   691           $   677          $   863           $   834
      Due after one year to three years                      1,082             1,062            1,174             1,132
      Due after three years to five years                      721               707              781               751
      Due after five years to ten years                      1,159             1,133            1,291             1,236
      Due after ten years                                    1,611             1,586            2,036             1,945
                                                             -----             -----            -----             -----

         Total mortgage-backed securities                   $5,264            $5,165           $6,145            $5,898
                                                             =====             =====            =====             =====
</TABLE>

Proceeds from sales of mortgage-backed securities during the year ended December
31, 1998, totaled $1.2 million,  resulting in gross realized gains of $3,000 and
gross realized losses of $3,000.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE C - LOANS RECEIVABLE

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

<TABLE>
<CAPTION>

                                                                                         2000             1999
                                                                                            (In thousands)
    Residential real estate
<S>                                                                                 <C>                <C>
      One- to four-family residential                                               $  62,277          $57,889
      Multi-family residential                                                          2,050            2,111
      Construction                                                                      2,814            2,575
    Nonresidential real estate and land                                                13,230           11,825
    Commercial                                                                          7,088            4,102
    Commercial leases                                                                   2,228            1,609
    Consumer and other                                                                 14,575           12,914
                                                                                     --------           ------
                                                                                      104,262           93,025

    Less:
      Undisbursed portion of loans in process                                           1,084            1,685
      Allowance for loan losses                                                           760              440
                                                                                   ----------          -------

                                                                                     $102,418          $90,900
                                                                                      =======           ======
</TABLE>

    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  $66.1  million,  or 64%,  of the total loan
    portfolio  at December  31, 2000,  and $61.2  million,  or 67%, of the total
    portfolio at December 31, 1999. Generally, such 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.  Nevertheless,  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.

    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 officers and
    directors totaled  approximately  $1.0 million at both December 31, 2000 and
    1999.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE D - ALLOWANCE FOR LOAN LOSSES

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

<TABLE>
<CAPTION>

                                                                                2000         1999         1998
                                                                                         (In thousands)

<S>                                                                             <C>          <C>          <C>
    Beginning balance                                                           $440         $285         $245
    Provision for losses on loans                                                332          162           63
    Charge-offs of loans - net                                                   (12)          (7)         (23)
                                                                                ----        -----         ----

    Ending balance                                                              $760         $440         $285
                                                                                 ===          ===          ===
</TABLE>

    At December  31,  2000,  the Savings  Bank's  allowance  for loan losses was
    comprised entirely of a general loan loss allowance,  which is includible as
    a component of regulatory risk-based capital.

    At December 31, 2000, 1999 and 1998, the Savings Bank had loans of $336,000,
    $666,000 and  $315,000,  respectively,  which had been placed on  nonaccrual
    status due to concerns as to borrowers' ability to pay. Interest income that
    would have been  recognized  had  nonaccrual  loans  performed  pursuant  to
    contractual terms totaled approximately $12,000, $36,000 and $26,000 for the
    years ended December 31, 2000, 1999 and 1998, respectively.

NOTE E - OFFICE PREMISES AND EQUIPMENT

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

<TABLE>
<CAPTION>

                                                                                           2000           1999
                                                                                              (In thousands)

<S>                                                                                     <C>            <C>
    Land                                                                                $   203        $   203
    Buildings and improvements                                                            1,742          1,742
    Furniture and equipment                                                                 473            510
                                                                                         ------         ------
                                                                                          2,418          2,455
    Less accumulated depreciation and amortization                                         (575)          (553)
                                                                                         ------         ------

                                                                                         $1,843         $1,902
                                                                                         =======        =======
</TABLE>


<PAGE>




                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998
<TABLE>
<CAPTION>

NOTE F - DEPOSITS

    Deposits consist of the following major classifications at December 31:

    Deposit type and weighted-average
    interest rate                                                                        2000             1999
                                                                                             (In thousands)
    NOW accounts
<S>                                                                                 <C>               <C>
      December 31, 2000 - 2.63%                                                      $  6,080
      December 31, 1999 - 2.29%                                                                       $  5,677
    Passbook and club accounts
      December 31, 2000 - 3.57%                                                         3,478
      December 31, 1999 - 3.02%                                                                          2,869
    Money market deposit accounts
      December 31, 2000 - 4.29%                                                        15,823
      December 31, 1999 - 4.35%                                                                         19,287
    Non-interest bearing accounts                                                       3,277            2,681
                                                                                      -------          -------

        Total demand, transaction and passbook deposits                                28,658           30,514

    Certificates of deposit
     Original maturities of:

        Less than 12 months

          December 31, 2000 - 6.84%                                                     8,607
          December 31, 1999 - 5.41%                                                                      3,760
        12 months to 18 months
          December 31, 2000 - 6.40%                                                    21,093
          December 31, 1999 - 5.42%                                                                     13,301
        24 months to 30 months
          December 31, 2000 - 5.56%                                                    12,680
          December 31, 1999 - 5.38%                                                                     19,912
        More than 30 months

          December 31, 2000 - 5.72%                                                     3,226
          December 31, 1999 - 5.71%                                                                      3,395
      Individual retirement accounts

        December 31, 2000 - 5.90%                                                       5,190
        December 31, 1999 - 5.44%                                                                        5,129
                                                                                  -----------          -------

      Total certificates of deposit                                                    50,796           45,497
                                                                                       ------           ------

      Total deposits                                                                  $79,454          $76,011
                                                                                       ======           ======

</TABLE>

    At December 31, 2000 and 1999,  the Savings Bank had  certificate of deposit
    accounts with balances greater than $100,000  totaling $6.1 million and $4.1
    million, respectively.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE F - DEPOSITS (continued)

    Interest expense on deposits for the year ended December 31 is summarized as
follows:
<TABLE>
<CAPTION>

                                                                                    2000            1999           1998
                                                                                              (In thousands)

<S>                                                                              <C>             <C>            <C>
    Passbook and money market deposit accounts                                   $   856         $   903        $   923
    NOW accounts                                                                     133             125            105
    Certificates of deposit                                                        2,918           2,291          2,069
                                                                                   -----           -----          -----

                                                                                  $3,907          $3,319         $3,097
                                                                                   =====           =====          =====
</TABLE>

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

                                                                                                 2000              1999
                                                                                                     (In thousands)

<S>                                                                                           <C>               <C>
    Less than one year                                                                        $39,335           $19,777
    One year to three years                                                                    10,411            22,304
    Over three years                                                                            1,050             3,416
                                                                                              -------           -------

                                                                                              $50,796           $45,497
                                                                                               ======            ======
</TABLE>


NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK

    Advances  from the Federal  Home Loan Bank,  collateralized  at December 31,
    2000 by a blanket  pledge  of  residential  mortgage  loans  totaling  $59.9
    million, and the Savings Bank's investment in certain U.S. Government agency
    securities  and  mortgage-backed   securities  totaling  $9.8  million,  are
    summarized as follows:

<TABLE>
<CAPTION>

                                                 Maturing year                                         December 31,
    Interest rate                           ending December 31,                                2000                1999
                                                                                                (Dollars in thousands)

<S>                                                   <C>                                  <C>                  <C>
    4.87% - 6.22%                                     2000                                 $     -              $12,000
    6.46% - 6.71%                                     2001                                   10,000                  -
    5.94%                                             2004                                    3,000               8,000
    5.55% - 6.75%                                     2005                                    4,000                  -
    4.53%                                             2009                                       -                3,000
    5.60% - 5.99%                                     2010                                   17,000                  -
                                                                                             ------             -------

                                                                                            $34,000             $23,000
                                                                                             ======              ======

    Weighted-average interest rate                                                            6.11%               5.70%
                                                                                              ====                ====
</TABLE>



<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE H - NOTES PAYABLE

    At December 31, 2000 and 1999, notes payable consists of borrowings  secured
    by the Savings  Bank's  investment in a real estate  partnership  which will
    mature in 2009.  The interest rate on the variable rate  borrowing was 3.61%
    and 3.76% at December 31, 2000 and 1999, respectively.

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>

                                                                            2000            1999          1998
                                                                                      (In thousands)

<S>                                                                         <C>             <C>           <C>
    Federal income taxes computed at the statutory rate                     $605            $647          $681
    Increase (decrease) in taxes resulting from:
      Tax exempt interest                                                    (37)            (22)          (23)
      Increase in cash surrender value of life insurance                     (17)            (17)          (17)
      Real estate partnership tax credits                                   (142)            (40)           -
      State income tax provision                                             103             111           116
      Other                                                                   (1)             (1)           (1)
                                                                           -----           -----         -----

    Income tax provision per consolidated
      financial statements                                                  $511            $678          $756
                                                                             ===             ===           ===

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE I - INCOME TAXES (continued)

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

<TABLE>
<CAPTION>

    Taxes (payable) refundable on temporary                                                2000           1999
    differences at statutory rate:                                                            (In thousands)

    Deferred tax assets:
<S>                                                                                       <C>            <C>
      Other than temporary declines in investment securities                              $  23          $  23
      Retirement expense                                                                    216            183
      General loan loss allowance                                                           323            187
      Stock benefit plan expense                                                             57             53
      Unrealized losses on securities designated as
           available for sale                                                                -             170
      Other                                                                                  14             17
                                                                                           ----           ----
         Total deferred tax assets                                                          633            633

    Deferred tax liabilities:
      State income taxes                                                                    (35)           (27)
      Percentage of earnings bad debt deduction                                             (37)           (49)
      Unrealized gains on securities designated as available for sale                       (38)            -
      Loss on investment in real estate partnership                                         (95)           (41)
      Book versus tax depreciation                                                          (25)           (19)
      Other                                                                                  -             (25)
                                                                                             --          -----
         Total deferred tax liabilities                                                    (230)          (161)
                                                                                            ---            ---

         Net deferred tax asset                                                            $403           $472
                                                                                            ===            ===
</TABLE>

    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, 2000. 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 $500,000 at December 31, 2000.

    The Savings Bank is required to recapture  as taxable  income  approximately
    $220,000,  representing  its  post-1987  percentage  of  earnings  bad  debt
    deductions. The Savings Bank has provided deferred taxes for this amount and
    is permitted by such  legislation  to recapture  such income over a six year
    period, which commenced in 1998.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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.

    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,  2000,  the Savings  Bank had  outstanding  commitments  of
    approximately  $135,000 to originate  residential  one-to-four family loans.
    The Savings Bank also had  outstanding  commitments  of  approximately  $1.9
    million to originate  non-residential  real estate  loans and  approximately
    $330,000  to  originate  other   commercial  loans  at  December  31,  2000.
    Additionally,  the Savings Bank had unused lines of credit under home equity
    loans and  commercial  loans of  approximately  $652,000 and $6.0 million at
    December 31, 2000, respectively.  Finally, the Savings Bank had a commitment
    under a standby letter of credit totaling $2.7 million at December 31, 2000.
    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,  2000,  and will be funded from
    normal cash flow from operations.

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.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE K - REGULATORY CAPITAL (continued)

    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 the calendar  year,  the Savings  Bank was notified by its  regulator
    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, 2000 and 1999,  management believes that the Savings Bank
    met all capital adequacy requirements to which it was subject.

<TABLE>
<CAPTION>

    2000:                                                                                        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                    $16,587    12.5%         =>$1,988    =>1.5%          =>$6,625     =>  5.0%

    Core capital                        $16,587    12.5%         =>$5,300    =>4.0%          =>$7,950     =>  6.0%

    Risk-based capital                  $17,347    20.7%         =>$6,692    =>8.0%          =>$8,365     =>10.0%


</TABLE>

<TABLE>
<CAPTION>

    1999:                                                                                        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                    $15,152    12.9%         =>$1,761    =>1.5%          =>$5,869     =>  5.0%

    Core capital                        $15,152    12.9%         =>$4,695    =>4.0%          =>$7,042     =>  6.0%

    Risk-based capital                  $15,592    21.7%         =>$5,747    =>8.0%          =>$7,184     =>10.0%

</TABLE>

    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 the primary  market area,  could  adversely  affect future
    earnings and,  consequently,  the ability to meet future minimum  regulatory
    capital requirements.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE K - REGULATORY CAPITAL (continued)

    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 October
    1999,  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 $700,000 and $1.0 million  were paid in 2000 and 1999,  respectively.  At
    December 31, 2000, $300,000 was available to be paid in future years.

NOTE L - STOCK OPTION PLANS

    During  1996,  the  Board of  Directors  adopted  a Stock  Option  Plan that
    provided for the  issuance of 132,250  authorized,  but  unissued  shares of
    common stock at the fair value at the date of grant.  During 1999, the Board
    of  Directors  adopted a second  Stock  Option  Plan that  provided  for the
    issuance of 115,000  authorized,  but unissued shares of common stock at 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.


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE L - STOCK OPTION PLANS (continued)


    A  summary  of the  status of the  Corporation's  stock  option  plans as of
    December 31,  2000,  1999 and 1998,  and changes  during the years ending on
    those dates is presented below:

<TABLE>
<CAPTION>

                                                2000                        1999                         1998
                                                      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       125,915      $10.59        126,415       $10.59         124,795      $10.53
    Granted                                     -            -            -              -           2,500       13.75
    Exercised                                   -            -          (500)        10.53            (880)      10.53
    Forfeited                                   -            -            -              -             -            -
                                         ---------      ------      ---------      -------        --------      ------

    Outstanding at end of year             125,915      $10.59        125,915       $10.59         126,415      $10.59
                                           =======       =====        =======        =====         =======       =====

    Options exercisable at year-end         98,547      $10.56         72,179       $10.55          46,311      $10.53
                                            ======       =====         ======        =====          ======       =====
    Weighted-average fair value of
      options granted during the year                     N/A                        N/A                         $2.77
                                                          ===                        ===                          ====

</TABLE>

<TABLE>
<CAPTION>

    The following  information  applies to options  outstanding  at December 31,
2000:

<S>                                                                                                             <C>
    Number outstanding                                                                                          125,915
    Range of exercise prices                                                                            $10.53 - $13.75
    Weighted-average exercise price                                                                              $10.59
    Weighted-average remaining contractual life                                                              5.33 years

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE M - CONDENSED FINANCIAL STATEMENTS OF LOGANSPORT FINANCIAL CORP.

    The  following  condensed  financial   statements  summarize  the  financial
    position of Logansport Financial Corp. as of December 31, 2000 and 1999, and
    the results of its  operations  and cash flows for the years ended  December
    31, 2000, 1999 and 1998.

<TABLE>
<CAPTION>

                           Logansport Financial Corp.
                        STATEMENTS OF FINANCIAL CONDITION
                                  December 31,
                                 (In thousands)

    ASSETS                                                                               2000             1999

<S>                                                                                 <C>              <C>
    Cash and cash equivalents                                                       $     103        $     374
    Investment in subsidiary                                                           16,662           14,824
    Dividend receivable from subsidiary                                                   300            1,001
    Prepaid expenses and other                                                             69               75
                                                                                    ---------        ---------

          Total assets                                                                $17,134          $16,274
                                                                                       ======           ======

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Accrued expenses and other liabilities                                            $   121        $     128

    Shareholders' equity

      Common stock                                                                      5,515            5,979
      Retained earnings                                                                11,526           10,734
      Shares acquired by stock benefit plan                                              (103)            (239)
      Unrealized gains (losses) on securities designated
        as available for sale, net                                                         75             (328)
                                                                                    ---------         --------
          Total shareholders' equity                                                   17,013           16,146
                                                                                       ------           ------

          Total liabilities and shareholders' equity                                  $17,134          $16,274
                                                                                       ======           ======

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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

<TABLE>
<CAPTION>

                           Logansport Financial Corp.
                             STATEMENTS OF EARNINGS
                             Year ended December 31,
                                 (In thousands)

                                                                                    2000            1999           1998
    Revenue
<S>                                                                            <C>               <C>           <C>
      Interest income                                                          $       6         $    12       $     13
      Equity in earnings of subsidiary                                             1,300           1,260          1,279
                                                                                   -----           -----          -----
         Total revenue                                                             1,306           1,272          1,292

    General and administrative expenses                                               57              72             66
                                                                                 -------         -------        -------

         Earnings before income tax credits                                        1,249           1,200          1,226

    Income tax credits                                                               (20)            (24)           (21)
                                                                                 -------          ------        -------

         NET EARNINGS                                                             $1,269          $1,224         $1,247
                                                                                   =====           =====          =====
</TABLE>



<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

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

<TABLE>
<CAPTION>

                           Logansport Financial Corp.
                            STATEMENTS OF CASH FLOWS
                             Year ended December 31,
                                 (In thousands)

                                                                                    2000            1999           1998
    Cash flows provided by (used in) operating activities:
<S>                                                                               <C>             <C>            <C>
      Net earnings for the year                                                   $1,269          $1,224         $1,247
      Adjustments to reconcile net earnings to net cash
      provided by (used in) operating activities:
        Excess distributions from (undistributed earnings of)
          consolidated subsidiary                                                   (598)            239            221
        Increase (decrease) in cash due to changes in:
          Accrued expenses and other liabilities                                     (70)            ( 6)            40
          Other                                                                       69             (23)           (48)
                                                                                 -------         -------        -------
         Net cash provided by operating activities                                   670           1,434          1,460


    Cash flows provided by (used in) financing activities:

      Proceeds from exercise of stock options                                         -                5              9
      Dividends on common stock                                                     (477)           (521)          (532)
      Purchase of shares                                                            (464)           (696)          (945)
                                                                                  ------          ------         ------
         Net cash used in financing activities                                      (941)         (1,212)        (1,468)
                                                                                  ------           -----          -----

    Net increase (decrease) in cash and cash equivalents                            (271)            222             (8)

    Cash and cash equivalents at beginning of year                                   374             152            160
                                                                                  ------          ------         ------

    Cash and cash equivalents at end of year                                     $   103         $   374        $   152
                                                                                  ======          ======         ======

</TABLE>


<PAGE>



                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2000, 1999 and 1998

NOTE N - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

    The following table summarizes the  Corporation's  quarterly results for the
    years ended  December  31, 2000 and 1999.  Certain  amounts,  as  previously
    reported, have been reclassified to conform to the 2000 presentation.

<TABLE>
<CAPTION>
                                                                        Three Months Ended
                                                     March 31,     June 30,     September 30,     December 31,
    2000:                                                   (In thousands, except per share data)

<S>                                                     <C>          <C>               <C>              <C>
    Total interest income                               $2,209       $2,343            $2,453           $2,519
    Total interest expense                               1,243        1,368             1,430            1,556
                                                         -----        -----             -----            -----

    Net interest income                                    966          975             1,023              963

    Provision for losses on loans                           71           70                71              120
    Other income (loss)                                     50           49                (8)              31
    General, administrative and other expense              487          495               490              465
                                                        ------       ------            ------           ------

    Earnings before income taxes                           458          459               454              409

    Income taxes                                           151          136               124              100
                                                        ------       ------            ------           ------

    Net earnings                                       $   307      $   323           $   330          $   309
                                                        ======       ======            ======           ======

    Earnings per share:
      Basic                                               $.28         $.29              $.30             $.29
                                                           ===          ===               ===              ===

      Diluted                                             $.28         $.29              $.30             $.29
                                                           ===          ===               ===              ===

                                                                        Three Months Ended
                                                     March 31,     June 30,     September 30,     December 31,
    1999:                                                   (In thousands, except per share data)

    Total interest income                               $1,730       $1,821            $1,945           $2,103
    Total interest expense                                 875          950             1,060            1,158
                                                        ------       ------             -----            -----

    Net interest income                                    855          871               885              945

    Provision for losses on loans                           41           40                41               40
    Other income                                            66           12                44               53
    General, administrative and other expense              426          420               397              424
                                                        ------       ------            ------           ------

    Earnings before income taxes                           454          423               491              534

    Income taxes                                           172          152               173              181
                                                        ------       ------            ------           ------

    Net earnings                                       $   282      $   271           $   318          $   353
                                                        ======       ======            ======           ======

    Earnings per share:
      Basic                                               $.24         $.22              $.27             $.30
                                                           ===          ===               ===              ===

      Diluted                                             $.23         $.22              $.27             $.30
                                                           ===          ===               ===              ===
</TABLE>


                     MARKET PRICE OF LOGANSPORT FINANCIAL'S
                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 8, 2001, there were 800 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, 2000 and 1999. Such
price information was obtained from Nasdaq.

<TABLE>
<CAPTION>


                                                                                                     Per Share
Year Ending December 31,                                       High                Low               dividends

2000

<S>                  <C> <C>                                  <C>                 <C>                   <C>
Quarter ending March 31, 2000                                 $10.313             $9.063                $0.11
Quarter ending June 30, 2000                                    9.875              7.625                 0.11
Quarter ending September 30, 2000                              11.875              9.813                 0.11
Quarter ending December 31, 2000                               11.813             10.875                 0.11

1999

Quarter ending March 31, 1999                                 $14.000            $12.000                $0.11
Quarter ending June 30, 1999                                   12.500             11.130                 0.11
Quarter ending September 30, 1999                              11.560              9.630                 0.11
Quarter ending December 31, 1999                               10.500              9.030                 0.11

</TABLE>


TRANSFER AGENT AND REGISTRAR.  The Fifth Third Bank of Cincinnati,  Ohio ("Fifth
Third")  is the  Company's  stock  transfer  agent and  registrar.  Fifth  Third
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:

                                Fifth Third Bank
                           Corporate Trust Operations
                                Mail Drop 10AT66
                               38 Fountain Square
                             Cincinnati, Ohio 45263
                         (800) 837-2755 or 513-579-5320

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, 2000 with the Securities and
Exchange Commission. Copies of this annual report may be obtained without charge
upon written request to:

                       Dottye Robeson, Secretary/Treasurer
                           Logansport Financial Corp.
                           723 East Broadway, Box 569
                            Logansport, Indiana 46947
                          (219) 722-3855 extension 313

OFFICE LOCATION.

723 East Broadway
Logansport, Indiana  46947
(219) 722-3855
Fax - (219) 722-3857
Email - dottyer@logansportsavings.com