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

Shareholder Information                                                       51






                     BUSINESS OF LOGANSPORT FINANCIAL CORP.

Logansport Financial Corp. ("Logansport Financial" or the "Company"), an Indiana
corporation,  became  a  unitary  savings  and  loan  holding  company  upon the
conversion of Logansport  Savings Bank,  FSB (the "Bank") from a federal  mutual
savings bank to a federal stock  savings bank in June 1995.  The Company and the
Bank conduct business from a single office in Logansport,  Cass County, Indiana.
During  2002,  the  Company  began to offer  full-service  banking  through  the
internet at  www.logansportsavings.com.  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 56) 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 45) is the founder and President of Cass County Title
Company,  Inc.  The firm  provides  title  insurance  policies  and real  estate
searches for lenders,  realtors,  attorneys,  and the general  public.  Prior to
founding  Cass  County  Title  Company,  Morrill  served  for ten  years  as the
Executive  Director  of the Cass  County  Family  YMCA in  Logansport,  Indiana.
Morrill has served on several community boards and in 2000 served as Chairman of
the Logansport/Cass County Chamber of Commerce.

     Susanne S. Ridlen,  Ph.D.  (age 62) is a faculty member and Director of the
Project  Success  Program  for  under-prepared  students  at Indiana  University
Kokomo.  Dr.  Ridlen has taught at IUK since 1969.  She also serves on the Lilly
Scholarship Committee for the Cass County Community Foundation. In addition, she
serves on the Board of Directors for the President Benjamin Harrison Foundation,
Inc.

     William  Tincher,  Jr. (age 63) 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 55) has served as President of Logansport Financial
Corp. and Logansport Savings Bank since April 2000. Prior to that, he had served
as Vice President and Chief Financial  Officer of TM Morris  Manufacturing  Co.,
Inc. since 1988. Prior to his employment with Morris, Mr. Wihebrink was a member
of the accounting firm Smith,  Thompson & Wihebrink  (Logansport)  for 15 years.
Mr. Wihebrink also currently serves as a member of the Board of Directors of the
Neal Home  retirement home in Logansport,  Indiana;  as a member of the Board of
Directors  of the North  Central  Indiana  Workforce  Investment  Board and as a
member  of the Board of  Directors  of the  Logansport/Cass  County  Chamber  of
Commerce.

     Thomas G. Williams (age 69) served as President of Logansport Savings Bank,
FSB from 1971 until his retirement in April 2000.

     Dr.  Todd S.  Weinstein  (age  41) is a  member  of the  surgical  staff at
Logansport  Memorial  Hospital  and has been a  member  of  Logansport  Surgical
Associates since 1991. He serves on the Board of Trustees of Logansport Memorial
Hospital and the Board of Directors of the Cass County Family YMCA.

     James P. Bauer (age 57) is the Vice  President of Finance and  Treasurer of
Material  Processing,  Inc.,  a holding  company for Small  Parts,  Inc. and ABC
Metals.  He  serves  on  the  Board  of  Directors  of the  Logansport  Economic
Development Foundation, Inc. and the United Way of Cass County, Inc.


LOGANSPORT FINANCIAL CORP.             LOGANSPORT SAVINGS BANK, FSB

Officers                               Officers

DAVID G. WIHEBRINK                     DAVID G. WIHEBRINK - President
President and Chief Executive Officer
                                       CHARLES J. EVANS - Senior Vice President
CHARLES J. EVANS
Vice President                         DOTTYE ROBESON - Chief Financial Officer/
                                                           Secretary/Treasurer
DOTTYE ROBESON
Secretary/Treasurer                    ALLEN SCHIEBER - Senior Vice President

                                       JEFFREY JONES - Vice President

                                       SHEILA WILDERMUTH - Vice President

                                       MARK DEBARGE - Assistant Vice President

                                       KAY GAPSKI - Assistant Vice President
<PAGE>


TO OUR SHAREHOLDERS:

In last year's letter we stated  "Logansport  Financial  Corp. had a simple plan
for  success   consisting  of  three  goals:   maximizing   the  return  to  our
shareholders, enhancing our products and providing the very best services to our
customers,  and developing our talents to provide greater  opportunities for our
employees."  I  am  pleased  to  report  that  despite  a  challenging  economic
environment  we have been able to accomplish a significant  portion of our plan.
Total assets of the Bank grew to an  unprecedented  total of $150.1 million,  an
8.7% increase;  net earnings totaled a record $1.5 million, an increase of 8.3%;
and basic earnings per share also  reflected a record $1.63,  representing a 26%
increase.  This across-the-board  record performance  represents the exceptional
efforts made by our employees and the successful  continuation  of our strategic
focus on enhanced profitability for our shareholders.

The  operating  environment  in 2002 was  characterized  by continued  declining
interest  rates and a weaker than  expected  economy.  The lower  interest  rate
climate and the competitive environment accelerated the unprecedented demand for
home mortgage  refinancing.  As a result,  our portfolio of one- to  four-family
residential  loans  decreased by $2.1  million,  however,  strong  growth in our
commercial  loan  portfolio of $3.9 million  almost  overcame the decline in our
portfolio  due to  refinancing.  As a result,  our balance sheet is in excellent
shape and our  capital  position is very strong as we head into what is expected
to be a year of economic  recovery.  We anticipate  that the year 2003 will hold
many challenges for us, our country,  our economy,  and the banking  industry in
general.  We feel the Bank is  positioned  to withstand  the low  interest  rate
environment  in the short run and to remain  vibrant in the  long-term  as rates
recover from their record low levels.

The board of directors,  management and employees of Logansport  Financial Corp.
believe that  community  banks are an integral part of their  communities.  They
have been, and will continue to be, the backbone of their communities....knowing
their  customers....their  customers knowing  them....helping their customers in
goods  times and bad.  We hope you find the  enclosed  reports  helpful  in your
analysis  and we are  grateful  for the trust you have placed in us. As our Bank
moves  forward into 2003,  we intend to continue  "Leading The Way" in community
banking.


Sincerely,




David G. Wihebrink
President
<PAGE>

<TABLE>
<CAPTION>
                           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.

                                                                       At December 31,
Statement of Financial Condition Data:         2002           2001            2000           1999           1998
                                                                       (In thousands)

<S>                                        <C>            <C>             <C>            <C>             <C>
Total assets                               $150,099       $138,065        $132,612       $117,468        $96,085
Loans receivable, net                       110,386        111,696         102,418         90,900         73,073
Mortgage-backed securities                   11,009          4,419           5,165          5,898          8,129
Cash and cash equivalents                    13,517          8,816           9,210          5,146          4,328
Investment securities                         8,060          5,788           8,322          8,539          5,033
Deposits                                     98,325         83,900          79,454         76,011         70,011
Borrowings                                   35,629         35,915          35,237         24,307          8,375
Shareholders' equity - net                   15,373         17,402          17,013         16,146         16,488

                                                                   Year ended December 31,
Summary of Operating Results:                  2002           2001            2000           1999           1998
                                                              (In thousands, except share data)

Interest income                              $9,326         $9,831          $9,524         $7,599         $6,579
Interest expense                              4,877          5,696           5,597          4,043          3,476
                                           --------       --------        --------       --------        -------
Net interest income                           4,449          4,135           3,927          3,556          3,103

Provision for losses on loans                   360            392             332            162             63
                                           --------       --------        --------       --------        -------
Net interest income after provision for
  losses on loans                             4,089          3,743           3,595          3,394          3,040

Other income                                    352            222             122            175            285
General, administrative and other expense     2,318          2,046           1,937          1,667          1,322
                                           --------       --------        --------       --------        -------
Earnings before income taxes                  2,123          1,919           1,780          1,902          2,003

Income taxes                                    609            521             511            678            756
                                           --------       --------        --------       --------        -------
Net earnings                                 $1,514         $1,398          $1,269         $1,224         $1,247
                                           ========       ========        ========       ========        =======
Basic earnings per share                      $1.63          $1.29           $1.16          $1.03          $1.00
                                           ========       ========        ========       ========        =======
Diluted earnings per share                    $1.58          $1.27           $1.16          $1.02           $.97
                                           ========       ========        ========       ========        =======
Cash dividends per share                       $.52           $.48            $.44           $.44           $.43
                                           ========       ========        ========       ========        =======
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                           Logansport Financial Corp.

           SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (CONTINUED)


                                                            At or for the year ended December 31,
Supplemental Data:                             2002           2001            2000           1999           1998

<S>              <C>                           <C>            <C>            <C>             <C>            <C>
Return on assets (1)                           1.03%          1.03%          1.00%           1.14%          1.37%
Return on equity (2)                           9.30           7.82           7.76            7.33           7.44
Interest rate spread (3)                       2.76           2.55           2.57            2.86           2.70
Net yield on interest-earning assets (4)       3.21           3.23           3.27            3.54           3.61
General, administrative and other
  expense to average assets                    1.58           1.50           1.53            1.55           1.45
Net interest income to general,
  administrative and other expense           191.93         202.10         202.74          213.32         234.72
Equity-to-assets (5)                          10.24          12.60          12.83           13.75          17.16
Average interest-earning assets to
  average interest-bearing liabilities       113.04         115.21         115.39          117.20         122.72
Non-performing assets to total assets           .99           1.41            .25             .57            .33
Non-performing loans to total loans            1.34           1.72            .32             .72            .42
Loan loss allowance to total loans             1.30           1.00            .73             .47            .38
Loan loss allowance to non-performing
  loans                                       98.25          58.11         226.19           66.07          90.48
Dividend payout ratio                         31.90          37.21          37.93           42.72          43.00
Net charge-offs to average loans                .03            .02           *               *               .03

*  Less than .01%
</TABLE>
--------------------------------------

(1)  Net earnings divided by average total assets.

(2)  Net earnings divided by average total equity.

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

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

(5)  Total equity divided by total assets.

<PAGE>


                           Logansport Financial Corp.

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


General

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

The  principal  business  of  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, 2002,  and the results of operations for
the year ended December 31, 2002, 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, 2001 to December 31, 2002

The Company's total assets were $150.1 million at December 31, 2002, an increase
of $12.0 million,  or 8.7%,  over the $138.1 million total at December 31, 2001.
The increase in assets was funded primarily  through growth in deposits of $14.4
million, partially offset by a $2.0 million decline in shareholders' equity. The
percentage  of  interest-earning  assets to total  assets was 96.1% and 95.3% at
December 31, 2002 and 2001, respectively.

At December 31, 2002,  investment and  mortgage-backed  securities totaled $19.1
million,  compared to $10.2  million at December 31,  2001,  an increase of $8.9
million,  or 86.8%.  The increase was due to purchases of $17.8  million,  which
were partially offset by maturities, sales and repayments totaling $9.4 million.
The primary  investments  added to the  portfolio  were  Federal  Home Loan Bank
("FHLB") and Federal National Mortgage Association ("FNMA") fixed rate notes and
mortgage-backed securities. At December 31, 2002, in addition to U.S. Government
agency  bonds and  mortgage-backed  securities,  the  Company  held  $983,000 of
corporate debt obligations rated Investment Grade or better by Moody's Investors
Service,  Inc. and $500,000 of FNMA  preferred  stock  yielding 3.98% as well as
FHLMC common stock.

Loans receivable totaled $110.4 million at December 31, 2002, a decrease of $1.3
million,  or 1.2%, from December 31, 2001. The decrease in loans  receivable was
due primarily to principal  repayments of $46.7  million,  which were  partially
offset by loan  disbursements  totaling $45.6 million.  Loan origination  volume
during 2002 declined from the record volume levels of 2001 by $15.5  million,  a
25.4% decrease.  The overall  decrease in loans was comprised of a $2.1 million,
or 3.4%,  decrease  in loans  secured by one- to  four-family  residential  real
estate and a $1.9 million,  or 14.2%,  decrease in consumer loans. Loans secured
by  nonresidential  real estate,  commercial  loans and leases increased by $3.9
million, or 12.2%.

During 1997, the Company invested $1.5 million in a limited  partnership,  which
constructs  and  manages   residential  real  estate   apartments  for  low  and
moderate-income residents. This investment reflects a 49.5% participation in the
partnership.  The affordable housing project generates tax credits for the Bank.
This  investment  initially  resulted  in an  increase  to total  assets of $1.5
million with a corresponding  increase in notes payable.  During the three years
ended  December  31,  2002,  the Bank  recorded  pretax  losses from the housing
project of totaling $558,000, while realizing tax credits of $506,000.

Deposits  totaled  $98.3  million at  December  31,  2002,  an increase of $14.4
million, or 17.2%, over December 31, 2001.  Non-interest  bearing deposits,  NOW
accounts,  passbook savings and money market savings  increased by $9.4 million,
or 29.3%, while  certificates of deposit increased by $5.0 million,  or 9.6%. At
December  31,  2002,  borrowings  consisted  of $33.8  million in FHLB  advances
compared to $34.8  million in FHLB  advances at December 31, 2001, a decrease of
$914,000,  or 2.6%. Proceeds from deposit growth were generally used to fund the
purchase  of  investments  and  mortgage-backed   securities  and  a  10%  stock
repurchase program.  However, $1.7 million of the deposit increase was comprised
of short-term local governmental  deposits which are subject to bids every 60 to
90 days and, therefore, may or may not be retained.  Additionally,  the Bank has
deposit customers who periodically  place large deposits for short time periods.
Such deposits  totaled  approximately  $4.0 million at December 31, 2002.  These
funds were withdrawn in January 2003.

Shareholders'  equity  totaled $15.4 million at December 31, 2002, a decrease of
$2.0 million,  or 11.7%,  from December 31, 2001. The decrease was due primarily
to  dividends  totaling  $478,000  and common stock  repurchases  totaling  $3.7
million, which were offset by net earnings for the year ended December 31, 2002,
of $1.5  million,  an  increase  in  unrealized  gains  on  available  for  sale
securities  of $272,000  and  proceeds  from the  exercise  of stock  options of
$369,000.

<PAGE>

                           Logansport Financial Corp.

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

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

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

Interest Income

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

Interest Expense

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

Net Interest Income

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

Provision for Losses on Loans

The Company  maintains  a general  allowance  for loan  losses that  reflects an
estimate of inherent  losses based upon the types and  categories of outstanding
loans, as well as problem loans and current economic conditions in the Company's
market  area.  The  Company's  provision  for losses on loans was  $360,000  and
$392,000, for the years ended December 31, 2002 and 2001, respectively. The 2002
provision  was  predicated  primarily  upon the  increase in the volume of loans
secured  by   nonresidential   and  commercial  real  estate,   an  analysis  of
nonperforming  loans and the current economic climate.  At December 31, 2002 and
2001, the allowance amounted to $1.5 million and $1.1 million, respectively, for
a ratio to total loans of 1.30% in 2002 and 1.00% in 2001.  Non-performing loans
at December 31, 2002 and 2001 were $1.5 million and $1.9 million,  respectively.
The ratio of the allowance  for loan losses to  non-performing  loans  increased
from  58.1% at  December  31,  2001 to  98.3% at  December  31,  2002.  Based on
management's  review of the loan  portfolio,  the  allowance  for loan losses at
December 31, 2002 is considered  adequate to cover potential  losses inherent in
the loan  portfolio.  However,  there can be no assurance  that additions to the
allowance will not be necessary in future periods,  which could adversely affect
the Company's results of operations.

<PAGE>
                           Logansport Financial Corp.

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

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

Other Income

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

General, Administrative and Other Expense

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

Income Tax Expense

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

Comparison  of Results of Operations  for the Years Ended  December 31, 2001 and
2000

Net  earnings  totaled  $1.4  million for the year ended  December  31,  2001, a
$129,000,  or 10.2%,  increase  over the net  earnings  reported  for 2000.  The
increase in net earnings resulted  primarily from an increase of $208,000 in net
interest  income  and an  increase  of  $100,000  in other  income,  which  were
partially offset by an increase of $60,000 in the provision for losses on loans,
an increase of $109,000  in  general,  administrative  and other  expense and an
increase in the provision for income taxes of $10,000.

Interest Income

The Company's total interest income was $9.8 million for the year ended December
31, 2001,  compared to $9.5 million  during  2000,  an increase of $307,000,  or
3.2%. The $8.3 million,  or 6.8%, increase in average  interest-earning  assets,
from $121.5 million in 2000 to $129.8 million in 2001, was partially offset by a
27 basis point  decrease in the average  yield on  interest-earning  assets,  to
7.61% in 2001 compared to 7.88% in 2000.  Interest  income on loans increased by
$680,000,  or 8.5%, due primarily to a $10.8 million, or 10.9%,  increase in the
average balance of loans outstanding,  which was partially offset by an 18 basis
point  decrease in the average  yield year to year,  to 8.00% in 2001.  Interest
income on investment and mortgage-backed  securities and other  interest-bearing
deposits  decreased by $373,000,  or 25.2%, due primarily to a $2.5 million,  or
10.7%,  decrease in the average balance outstanding and a 96 basis point decline
in the average yield, to 5.66% in 2001.


<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, 2001 and
2000 (continued)

Interest Expense

Interest  expense  totaled $5.7 million for the year ended December 31, 2001, an
increase of $99,000,  or 1.8%, compared to 2000. This increase was the result of
an increase  in the  average  balance of  interest-bearing  liabilities  of $7.4
million,  or 7.0%, offset by a decrease in the average cost of these liabilities
of 25 basis  points,  from 5.31% in 2000 to 5.06% in 2001.  Interest  expense on
deposits  decreased  by  $230,000,  or 5.9%,  due  primarily to a 34 basis point
decline in the average cost of deposits,  to 4.69% in 2001,  which was partially
offset by a  $683,000,  or .9%,  increase  in the  average  balance of  deposits
outstanding year to year. Interest expense on borrowings  increased by $329,000,
or 19.5%,  due  primarily to a $6.7 million,  or 24.2%,  increase in the average
balance outstanding,  which was partially offset by a 23 basis point decrease in
the average  cost of  borrowings  year to year.  The  decreases  in the level of
yields on interest-earning  assets and the cost of interest-bearing  liabilities
were due  primarily  to the overall  decrease  in interest  rates in the economy
during 2001.

Net Interest Income

Net interest  income  increased by $208,000,  or 5.3%,  to $4.1 million in 2001,
compared to $3.9  million in 2000.  The  interest  rate spread was 2.55% in 2001
compared   to   2.57%   in  2000,   and  the  net   yield  on   weighted-average
interest-earning assets declined to 3.23% in 2001 from 3.27% in 2000.

Provision for Losses on Loans

The Company  maintains  a general  allowance  for loan  losses that  reflects an
estimate of inherent  losses based upon the types and  categories of outstanding
loans, as well as problem loans and current economic conditions in the Company's
market  area.  The  Company's  provision  for losses on loans was  $392,000  and
$332,000, for the years ended December 31, 2001 and 2000, respectively. The 2001
provision  was  predicated  primarily  upon the  increase in the volume of loans
secured  by  nonresidential  and  commercial  real  estate  and an  increase  in
nonperforming  loans year to year. At December 31, 2001 and 2000,  the allowance
amounted to $1.1 million and $760,000,  respectively, for a ratio to total loans
of 1.00% in 2001 and .73% in 2000. Non-performing loans at December 31, 2001 and
2000 were $1.9 million and  $336,000,  respectively.  The ratio of the allowance
for loan losses to  non-performing  loans  decreased from 226.2% at December 31,
2000 to 58.1% at December 31, 2001.

Other Income

The Company's  other income for the year ended December 31, 2001,  excluding the
loss on equity  investments,  was  $429,000,  compared to $366,000 in 2000.  The
increase was due primarily to a $78,000,  or 48.8%,  increase in service charges
on deposit accounts.  The $207,000 loss on equity  investments  recorded in 2001
had a positive  after-tax effect of  approximately  $45,000 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  $2.0 million for the year
ended  December  31,  2001,  compared  to $1.9  million in 2000,  an increase of
$109,000,  or 5.6%. Employee  compensation and benefits decreased by $14,000, or
1.2%, due primarily to a $96,000 reduction in expense related to the stock-based
RRP plan,  which expired in April 2001.  This  decrease was partially  offset by
normal merit  increases and an increase in officer and employee  bonus  expenses
year to year.  Occupancy and equipment expense  increased by $34,000,  or 17.3%,
mainly because of an increase in property taxes and an increase in  depreciation
of new equipment  required for the new building.  Data processing fees increased
by $20,000,  or 12.3%, due primarily to increased  account volume and additional
commercial loan software  maintenance  costs.  Various other operating  expenses
increased  by $69,000,  or 15.4%.  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.

Income Tax Expense

Income tax expense  totaled  $521,000 and $511,000 for the years ended  December
31, 2001 and 2000,  respectively.  Pretax income increased by $139,000, or 7.8%,
in 2001  compared to 2000,  while  approximately  $182,000  of tax credits  were
available  in 2001,  compared to $142,000 in tax credits  recorded in 2000.  The
effective  tax rates were 27.1% and 28.7% for the years ended  December 31, 2001
and 2000, respectively.

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

The following  table  presents for the periods  indicated the month-end  average
balances  of  each  category  of  the  Company's   interest-earning  assets  and
interest-bearing  liabilities,  and the average yields earned and interest rates
paid on such balances.  Such yields and costs are determined by dividing  income
or expense by the average  balance of assets or liabilities,  respectively,  for
the periods presented.
<TABLE>
<CAPTION>
                                                                     Year ended December 31,
                                             2002                              2001                             2000
                                 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     $  9,638    $  124    1.29%      $  7,271     $  261     3.59%     $  5,656     $  301      5.32%
  Mortgage- and other asset-
    backed securities (1)          7,927       394    4.97          4,791        297     6.20         5,697        383      6.72
  Other investment
    securities (1)                 7,100       441    6.21          6,694        457     6.83        10,283        721      7.01
  Loans receivable (2)           113,870     8,315    7.30        109,075      8,721     8.00        98,320      8,041      8.18
  Stock in FHLB of
    Indianapolis                   1,991       120    6.02          1,973        147     7.45         1,571        130      8.27
                                --------    ------               --------     ------               --------     ------
     Total interest-earning
         assets                  140,526     9,394    6.68        129,804      9,883     7.61       121,527      9,576      7.88

Non-interest-earning assets        5,947                            6,306                             5,442
                                --------                         --------                          --------
     Total assets               $146,473                         $136,110                          $126,969
                                ========                         ========                          ========
Interest-bearing liabilities:
  Savings accounts              $  4,397        55    1.25$         3,993        100     2.50      $  3,417        103      3.01
  NOW and money market accounts   28,429       492    1.73         23,023        718     3.12        23,814        886      3.72
  Certificates of deposit         56,503     2,415    4.27         51,405      2,859     5.56        50,507      2,918      5.78
  Borrowings                      34,984     1,915    5.47         34,245      2,019     5.90        27,577      1,690      6.13
                                --------    ------               --------     ------               --------     ------
     Total interest-bearing
        liabilities              124,313     4,877    3.92        112,666      5,696     5.06       105,315      5,597      5.31
                                            ------    ----                    ------     ----                   ------      ----

Other liabilities                  5,879                            5,562                             5,304
                                --------                         --------                          --------
     Total liabilities           130,192                          118,228                           110,619

Shareholders' equity              16,281                           17,882                            16,350
                                --------                         --------                          --------
     Total liabilities and
       shareholders' equity     $146,473                         $136,110                          $126,969
                                ========                         ========                          ========

Net interest-earning assets     $ 16,213                         $ 17,138                         $  16,212
                                ========                         ========                          ========
Net interest income                         $4,517                            $4,187                            $3,979
                                           =======                            ======                            ======
Interest rate spread (3)                              2.76%                              2.55%                              2.57%
                                                      ====                               ====                               ====
Net yield on weighted-average
  interest-earning assets (4)                         3.21%                              3.23%                              3.27%
                                                      ====                               ====                               ====
Average interest-earning
  assets to average
  interest-bearing liabilities                      113.04%                            115.21%                            115.39%
                                                    =======                            =======                            =======
Adjustment of interest
  on tax-exempt securities
  to a tax-equivalent basis                 $   68                            $  52                             $   52
                                            ======                            =====                             ======

</TABLE>
___________________________

(1)  Includes securities  available for sale at amortized cost prior to SFAS No.
     115 adjustments.

(2)  Comprised of total loans less undisbursed loans in process.

(3)  Interest rate spread is calculated by subtracting weighted-average interest
     rate  cost  from  weighted-average  interest  rate  yield  for  the  period
     indicated.

(4)  The net yield on weighted-average  interest-earning assets is calculated by
     dividing net interest income by  weighted-average  interest-earning  assets
     for the period indicated.
<PAGE>

                           Logansport Financial Corp.

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

Rate/Volume Table

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

                                                                            Year ended December 31,
                                                             2002 vs. 2001                          2001 vs. 2000
                                                          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                           $  67    $  (204)     $(137)        $   298    $  (338)     $ (40)
  Mortgage-backed securities                            165        (68)        97             (52)       (34)       (86)
  Investment securities                                  27        (43)       (16)           (260)        (4)      (264)
  Loans receivable                                      372       (778)      (406)            864       (184)       680
  Stock in FHLB of Indianapolis                           1        (28)       (27)             28        (11)        17
                                                      -----    -------      -----         -------    -------      -----
     Total interest-earning assets                      632     (1,121)       489             878       (571)       307

Interest-bearing liabilities:
  Savings accounts                                        9        (54)       (45)            831       (834)        (3)
  NOW and money market accounts                         143       (369)      (226)            (31)      (137)      (168)
  Certificates of deposit                               264       (708)      (444)             54       (113)       (59)
  Borrowings                                             43       (147)      (104)            390        (61)       329
                                                      -----    -------      -----         -------    -------      -----
     Total interest-bearing liabilities                 459     (1,278)      (819)          1,244     (1,145)        99
                                                      -----    -------      -----         -------    -------      -----

Change in net interest income
  (fully taxable equivalent basis)                      173        157        330            (367)       575        208

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

Change in net interest income                         $ 162    $   152      $ 314         $  (367)   $   575      $ 208
                                                      =====    =======      =====         =======    =======      ======
</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,
                                                                   2002                  2002         2001         2000

Weighted-average interest rate earned on:
<S>                                                               <C>                   <C>           <C>          <C>
  Interest-earning deposits                                       0.98%                 1.29%         3.59%        5.32%
  Mortgage-backed securities                                      4.88                  4.97          6.20         6.72
  Investment securities                                           6.07                  6.21          6.83         7.01
  Loans receivable                                                7.09                  7.30          8.00         8.18
  Stock in FHLB of Indianapolis                                   5.80                  6.02          7.45         8.27
     Total interest-earning assets                                6.31                  6.68          7.61         7.88

Weighted-average interest rate cost of:
  Savings accounts                                                1.08                  1.25          2.50         3.01
  NOW and money market accounts                                   1.01                  1.73          3.12         3.72
  Certificates of deposit                                         4.03                  4.27          5.56         5.78
  Borrowings                                                      5.49                  5.47          5.90         6.13
     Total interest-bearing liabilities                           3.52                  3.92          5.06         5.31

Interest rate spread (1)                                          2.79                  2.76          2.55         2.57

Net yield on weighted-average
  interest-earning assets (2)                                       N/A                 3.21          3.23         3.27

</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, 2002,  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") uses a net market value methodology to
measure the interest rate risk exposure of thrift institutions. As a part of its
efforts to monitor its interest rate risk,  the Bank utilizes the "net portfolio
value"  ("NPV")  methodology  to assess  its  exposure  to  interest  rate risk.
Generally,  NPV is the  discounted  present  value  of  the  difference  between
incoming cash flows on interest-earning and other assets and outgoing cash flows
on interest-bearing liabilities.  Presented below, as of September 30, 2002 (the
latest available date) and December 31, 2001 is an analysis performed by the OTS
of the Bank's interest rate risk as measured by changes in NPV for instantaneous
and sustained  parallel shifts in the yield curve, in 100 basis point increments
in accordance with OTS regulations. As illustrated in the tables, the Bank's NPV
is more sensitive to rising rates than declining rates. This occurs  principally
because,   as  rates  rise,   the  market  value  of  the  Bank's   investments,
adjustable-rate  mortgage loans (many of which have maximum per year adjustments
of 1%), fixed-rate loans and mortgage-backed  securities decline due to the rate
increases.   The  value  of  the  Bank's  deposits  and  borrowings   change  in
approximately the same proportion in rising or falling rate scenarios.

<TABLE>
<CAPTION>

                                                         September 30, 2002
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                    $14,561            $(1,945)              (12)%                    9.67%           (82 bp)
     +200                     15,687               (819)               (5)                    10.25            (24 bp)
     +100                     16,430                (76)               -                      10.57              8 bp
      -                       16,506                 -                 -                      10.49              -
     -100                     15,852               (654)               (4)                     9.97            (51 bp)


                                                          December 30, 2001
Change in
interest rate                              Net Portfolio Value                              NPV as % of PV of Assets
(Basis Points)             $ Amount             $ Change            % Change                   NPV Ratio       Change
                                  (In thousands)

     +300                    $14,781            $(3,942)              (21)%                   10.86%          (219 bp)
     +200                     16,290             (2,433)              (13)                    11.76           (130 bp)
     +100                     17,638             (1,085)               (6)                    12.51            (55 bp)
      -                       18,723                 -                  -                     13.06              -
     -100                     18,990                267                 1                     13.07              2 bp

</TABLE>

<PAGE>

                           Logansport Financial Corp.

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


Asset and Liability Management (continued)

As with any method of measuring  interest rate risk,  certain  shortcomings  are
inherent  in the  method of  analysis  presented  in the  foregoing  table.  For
example,  although certain assets and liabilities may have similar maturities or
periods of repricing,  they may react in different  degrees to changes in market
interest  rates.  Also,  the  interest  rates on  certain  types of  assets  and
liabilities may fluctuate in advance of changes in market interest rates,  while
interest  rates  on  other  types  may  lag  behind  changes  in  market  rates.
Additionally, certain assets, such as adjustable-rate loans, have features 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 and  borrowings,  proceeds
from  principal  and  interest  payments on loans,  and proceeds  from  maturing
securities.   While  maturities  and  scheduled  amortization  of  loans  are  a
relatively  predictable source of funds,  deposit flows and mortgage prepayments
are generally  influenced by general  interest  rates,  economic  conditions and
competition.

The primary  investing  activity of the Company is the  origination  of mortgage
loans and the purchase of investment securities. During the years ended December
31, 2002,  2001 and 2000, the Company  originated  mortgage loans and commercial
loans  in the  amounts  of $40.3  million,  $54.3  million  and  $43.2  million,
respectively.  The  Company  originated  consumer  loans of $5.3  million,  $6.8
million and $8.5  million,  in 2002,  2001 and 2000,  respectively.  The Company
purchased loans in the amount of $171,000 in 2002 and $499,000 in 2001. No loans
were purchased in 2000. Loan repayments totaled $46.7 million, $51.4 million and
$39.8 million for 2002, 2001 and 2000, respectively.

During the years ended December 31, 2002,  2001 and 2000, the Company  purchased
investment and mortgage-backed  securities in the amounts of $17.8 million, $1.6
million and $4.1 million,  respectively.  Sales or maturities of such securities
held by the  Company  and  payments  on  mortgage-backed  or other  asset-backed
securities  totaled $9.4 million,  $5.1 million and $5.6 million for 2002,  2001
and 2000, respectively.

Deposits grew by $14.4 million from December 31, 2001 to December 31, 2002,  and
by $4.4 million from December 31, 2000 to December 31, 2001.

Cash and cash  equivalents  increased by $4.7 million over  December 31, 2001 to
December 31, 2002,  and decreased by $394,000 from December 31, 2000 to December
31, 2001.

The Company had outstanding loan  commitments,  including  undisbursed  loans in
process and standby letters of credit, totaling $13.2 million and $13.9 million,
at December 31, 2002 and 2001, respectively. In addition, the Company had a $5.0
million  commitment to purchase GNMA  adjustable rate securities at December 31,
2002. 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, 2002 and 2001 totaled $27.8 million
and $31.6 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.

<PAGE>

                           Logansport Financial Corp.

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

Liquidity and Capital Resources (continued)

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, 2002 and 2001, the
Company  had  outstanding  FHLB  advances of $33.8  million  and $34.8  million,
respectively.

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, 2002, the Bank's tangible capital and leverage ratios were
both  10.34%,  and its  risk-based  capital to  risk-weighted  assets  ratio was
17.40%.  Therefore,  at December  31,  2002,  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, 2002.

<TABLE>
<CAPTION>
                                             OTS Requirement                         The Bank's Capital Level
                                        % of                                % of                                 Amount
                                       Assets           Amount            Assets (1)         Amount           of excess
                                                                   (Dollars in thousands)
<S>                                      <C>            <C>              <C>                <C>                 <C>
Tangible capital                         1.5%           $2,244           10.34%             $15,466             $13,222
Core capital (2)                         4.0             5,984           10.34               15,466               9,482
Risk-based capital                       8.0             7,664           17.40               16,664 (3)           9,000
</TABLE>



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

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

(3)  The Bank's  risk-based  capital includes $1.2 million of general  valuation
     allowances.

As of December 31, 2002, 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.


Effects of Recent Accounting Pronouncements

In August 2001,  the Financial  Accounting  Standards  Board (the "FASB") issued
Statement of Financial  Accounting  Standards ("SFAS") No. 144,  "Accounting for
the Impairment or Disposal of Long-Lived  Assets." SFAS No. 144 carries over the
recognition and measurement  provisions in SFAS No. 121. Accordingly,  an entity
must recognize an impairment loss if the carrying value of a long-lived asset or
asset group (a) is not  recoverable  and (b) exceeds its fair value.  Similar to
SFAS No.  121,  SFAS No. 144  requires an entity to test an asset or asset group
for impairment  whenever  events or changes in  circumstances  indicate that its
carrying amount may not be  recoverable.  SFAS No. 144 differs from SFAS No. 121
in  that  it  provides   guidance  on  estimating  future  cash  flows  to  test
recoverability.  An entity may use  either a  probability-weighted  approach  or
best-estimate   approach  in   developing   estimates  of  cash  flows  to  test
recoverability.  SFAS No. 144 is effective for financial  statements  issued for
fiscal years  beginning after December 15, 2001 and interim periods within those
fiscal years. Management adopted SFAS No. 144 effective January 1, 2002, without
material effect on the Company's financial condition 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 (continued)

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal  Activities." SFAS No. 146 provides  financial  accounting
and reporting  guidance for costs  associated with exit or disposal  activities,
including one-time termination  benefits,  contract termination costs other than
for a capital lease, and costs to consolidate  facilities or relocate employees.
SFAS No.  146 is  effective  for exit or  disposal  activities  initiated  after
December 31, 2002. SFAS No. 146 is not expected to have a material effect on the
Company's financial condition or results of operations.

In October 2002, the FASB issued SFAS No. 147, "Accounting for Certain Financial
Institutions:  An  Amendment  of  FASB  Statements  No.  72  and  144  and  FASB
Interpretation No. 9," which removes acquisitions of financial institutions from
the scope of SFAS No. 72,  "Accounting  for Certain  Acquisitions of Banking and
Thrift  Institutions,"  except  for  transactions  between  mutual  enterprises.
Accordingly,  the excess of the fair value of liabilities  assumed over the fair
value of tangible  and  intangible  assets  acquired  in a business  combination
should be recognized  and accounted for as goodwill in accordance  with SFAS No.
141,  "Business  Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets."

SFAS No. 147 also requires that the acquisition of a  less-than-whole  financial
institution, such as a branch, be accounted for as a business combination if the
transferred  assets  and  activities  constitute  a  business.   Otherwise,  the
acquisition should be accounted for as the acquisition of net assets.

SFAS No.  147  also  amends  the  scope of SFAS  No.  144,  "Accounting  for the
Impairment  or Disposal of  Long-Lived  Assets," to include  long-term  customer
relationship  assets of financial  institutions  (including mutual  enterprises)
such as  depositor-  and  borrower-relationship  intangible  assets  and  credit
cardholder intangible assets.

The provisions of SFAS No. 147 related to  unidentifiable  intangible assets and
the  acquisition of a  less-than-whole  financial  institution are effective for
acquisitions  for which the date of  acquisition is on or after October 1, 2002.
The provisions related to impairment of long-term customer  relationship  assets
are effective October 1, 2002.  Transition  provisions for previously recognized
unidentifiable  intangible assets are effective on October 1, 2002, with earlier
application permitted.

SFAS  No.  147 is not  expected  to  have a  material  effect  on the  Company's
financial condition or results of operations.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation  - Transition  and  Disclosure."  SFAS No. 148 amends SFAS No. 123,
"Accounting for Stock-Based  Compensation,"  to provide  alternative  methods of
transition  for a voluntary  change to the fair value based method of accounting
for  stock-based  employee  compensation.  In addition,  SFAS No. 148 amends the
disclosure requirements of SFAS No. 123 to require prominent disclosures in both
annual and interim financial  statements about the method of accounting used for
stock-based employee  compensation and the effect of the method used on reported
results. SFAS No. 148 is effective for fiscal years beginning after December 15,
2002. The expanded annual disclosure  requirements and the transition provisions
are  effective  for fiscal  years ending  after  December 15, 2002.  The interim
disclosure  provisions are effective for financial reports containing  financial
statements for interim  periods  beginning after December 15, 2002. SFAS No. 148
is not expected to have a material effect on the Company's  financial  condition
or results of operations.

<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, 2002 and 2001, 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,
2002. 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, 2002 and 2001, 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, 2002,  in conformity  with  accounting
principles generally accepted in the United States of America.




Cincinnati, Ohio
January 24, 2003


<PAGE>

<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                           December 31, 2002 and 2001
                        (In thousands, except share data)


         ASSETS                                                                                     2002             2001

<S>                                                                                          <C>               <C>
Cash and due from banks                                                                      $       778       $    1,081
Interest-bearing deposits in other financial institutions                                         12,739            7,735
                                                                                             -----------       ----------
         Cash and cash equivalents                                                                13,517            8,816

Investment securities designated as available for sale - at market                                 8,060            5,788
Mortgage-backed securities designated as available for sale - at market                           11,009            4,419
Loans receivable - net                                                                           110,386          111,696
Office premises and equipment - at depreciated cost                                                1,767            1,803
Real estate acquired through foreclosure                                                              -                65
Federal Home Loan Bank stock - at cost                                                             2,003            1,973
Investment in real estate partnership                                                              1,026            1,109
Accrued interest receivable on loans                                                                 410              445
Accrued interest receivable on mortgage-backed securities                                             49               28
Accrued interest receivable on investments and interest-bearing deposits                             107               92
Prepaid expenses and other assets                                                                     80               88
Cash surrender value of life insurance                                                             1,317            1,291
Deferred income tax asset                                                                            364              452
Prepaid income taxes                                                                                   4               -
                                                                                             -----------       ----------

         Total assets                                                                           $150,099         $138,065
                                                                                             ===========       ==========
         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                       $  98,325        $  83,900
Advances from the Federal Home Loan Bank                                                          33,836           34,750
Notes payable                                                                                      1,793            1,165
Accrued interest and other liabilities                                                               772              819
Accrued income taxes                                                                                  -                29
                                                                                             -----------       ----------
         Total liabilities                                                                       134,726          120,663

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; 848,958
    and 1,034,545 shares at aggregate value issued and outstanding at
    December 31, 2002 and 2001, respectively                                                       1,446            4,802
  Retained earnings - restricted                                                                  13,444           12,408
  Less shares acquired by stock benefit plan                                                         (44)             (63)
  Accumulated comprehensive income, unrealized gains on securities
    designated as available for sale, net of related tax effects                                     527              255
                                                                                             -----------       ----------
         Total shareholders' equity                                                               15,373           17,402
                                                                                             -----------       ----------

         Total liabilities and shareholders' equity                                             $150,099         $138,065
                                                                                             ===========       ==========
</TABLE>

The accompanying notes are an integral part of these statements.


<PAGE>
<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.

                       CONSOLIDATED STATEMENTS OF EARNINGS

              For the years ended December 31, 2002, 2001 and 2000
                        (In thousands, except share data)


                                                                                           2002         2001         2000

Interest income
<S>                                                                                      <C>          <C>          <C>
  Loans                                                                                  $8,315       $8,721       $8,041
  Investment securities                                                                     373          405          667
  Mortgage-backed securities                                                                394          297          383
  Interest-bearing deposits and other                                                       244          408          433
                                                                                         ------       ------       ------
         Total interest income                                                            9,326        9,831        9,524

Interest expense
  Deposits                                                                                2,962        3,677        3,907
  Borrowings                                                                              1,915        2,019        1,690
                                                                                         ------       ------       ------
         Total interest expense                                                           4,877        5,696        5,597
                                                                                         ------       ------       ------

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

Provision for losses on loans                                                               360          392          332
                                                                                         ------       ------       ------
         Net interest income after provision for losses on loans                          4,089        3,743        3,595

Other income
  Service charges on deposit accounts                                                       221          238          160
  Gain (loss) on sale of investment and mortgage-backed securities                          101           -           (17)
  Loss on investment in real estate partnership                                            (107)        (207)        (244)
  Other operating                                                                           137          191          223
                                                                                         ------       ------       ------
         Total other income                                                                 352          222          122

General, administrative and other expense
  Employee compensation and benefits                                                      1,297        1,115        1,129
  Occupancy and equipment                                                                   240          230          196
  Data processing                                                                           190          183          163
  Other operating                                                                           591          518          449
                                                                                         ------       ------       ------
         Total general, administrative and other expense                                  2,318        2,046        1,937
                                                                                         ------       ------       ------
         Earnings before income taxes                                                     2,123        1,919        1,780

Income taxes
  Current                                                                                   661          662          649
  Deferred                                                                                  (52)        (141)        (138)
                                                                                         ------       ------       ------
         Total income taxes                                                                 609          521          511
                                                                                         ------       ------       ------

         NET EARNINGS                                                                    $1,514       $1,398       $1,269
                                                                                         ======       ======       ======
         EARNINGS PER SHARE
           Basic                                                                          $1.63        $1.29        $1.16
                                                                                         ======       ======       ======

           Diluted                                                                        $1.58        $1.27        $1.16
                                                                                         ======       ======       ======
</TABLE>


The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

              For the years ended December 31, 2002, 2001 and 2000
                                 (In thousands)

                                                                                           2002         2001         2000

<S>                                                                                      <C>          <C>          <C>
Net earnings                                                                             $1,514       $1,398       $1,269

Other comprehensive income, net of tax:
  Unrealized holding gains on securities during the
    year, net of taxes of $175, $93 and $202 for the years
    ended December 31, 2002, 2001 and 2000, respectively                                    339          180          392
  Reclassification adjustment for realized (gains) losses included
    in earnings, net of taxes (benefits) of $34 and $(6) for the years
    ended December 31, 2002 and 2000, respectively                                          (67)          -            11
                                                                                         ------       ------       ------

Comprehensive income                                                                     $1,670       $1,578       $1,672
                                                                                         ======       ======       ======
Accumulated comprehensive income                                                        $   527      $   255     $     75
                                                                                         ======       ======       ======
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

              For the years ended December 31, 2002, 2001 and 2000
                        (In thousands, except share data)

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

<S>                <C>                                      <C>          <C>         <C>               <C>        <C>
Balance at January 1, 2000                                  $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

Net earnings for the year ended
  December 31, 2001                                             -          1,398        -                 -         1,398
Purchase of shares                                            (921)           -         -                 -          (921)
Issuance of shares under stock option plan                     208            -         -                 -           208
Unrealized gains on securities designated
  as available for sale, net of related tax effects             -             -         -                180          180
Amortization expense of stock benefit plan                      -             -         40                -            40
Cash dividends of $.48 per share                                -           (516)       -                 -          (516)
                                                            ------       -------    -------           ------      -------
Balance at December 31, 2001                                 4,802        12,408       (63)              255       17,402

Net earnings for the year ended
  December 31, 2002                                             -          1,514        -                 -         1,514
Purchase of shares                                          (3,725)           -         -                 -        (3,725)
Issuance of shares under stock option plan                     369            -         -                 -           369
Unrealized gains on securities designated
  as available for sale, net of related tax effects             -             -         -                272          272
Amortization expense of stock benefit plan                      -             -         19                -            19
Cash dividends of $.52 per share                                -           (478)       -                 -          (478)
                                                            ------       -------    -------           ------      -------
Balance at December 31, 2002                                $1,446       $13,444    $  (44)            $ 527      $15,373
                                                            ======       =======    =======            =====      ========
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              For the years ended December 31, 2002, 2001 and 2000
                                 (In thousands)

                                                                                           2002         2001         2000
Cash flows from operating activities:
<S>                                                                                    <C>          <C>          <C>
  Net earnings for the year                                                            $  1,514     $  1,398     $  1,269
  Adjustments to reconcile net earnings to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                                                           108           99          110
    Amortization of premiums on investments and mortgage-backed securities                   41           31           26
    Amortization expense of stock benefit plan                                               19           40          136
    (Gain) loss on sale of investment and mortgage-backed securities                       (101)          -            17
    Provision for losses on loans                                                           360          392          332
    Loss on investment in real estate partnership                                           107          207          244
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                                   35          103         (132)
      Accrued interest receivable on mortgage-backed securities                             (21)          13            6
      Accrued interest receivable on investments                                            (15)          15            8
      Prepaid expenses and other assets                                                       8          (24)         (19)
      Accrued interest and other liabilities                                                (47)         (87)         (98)
      Federal income taxes
        Current                                                                             (33)          27           48
        Deferred                                                                            (52)        (141)        (138)
                                                                                         ------       ------       ------
         Net cash provided by operating activities                                        1,923        2,073        1,809

Cash flows provided by (used in) investing activities:
  Proceeds from sale of investment securities designated as available for sale              269           -         3,965
  Purchase of investment securities designated as available for sale                     (4,711)      (1,053)      (4,082)
  Maturities of investment securities designated as available for sale                    2,385        3,775          800
  Purchase of mortgage-backed securities designated as available for sale               (13,061)        (514)          -
  Proceeds from sale of mortgage-backed securities designated as
    available for sale                                                                    5,036           -            -
  Principal repayments on mortgage-backed securities designated as
    available for sale                                                                    1,692        1,313          834
  Purchase of loans                                                                        (171)        (499)          -
  Sales of loan participations                                                               -           416           -
  Loan disbursements                                                                    (45,554)     (61,082)     (51,693)
  Principal repayments on loans                                                          46,675       51,430       39,843
  Investment in real estate partnership                                                     (96)        (104)        (113)
  Purchases of office premises and equipment                                                (72)         (59)         (51)
  Proceeds from sale of real estate acquired through foreclosure                             65           -            -
  Purchase of Federal Home Loan Bank stock                                                  (30)          -          (700)
  Increase in cash surrender value of life insurance policy                                 (26)         (57)         (50)
                                                                                         ------       ------       ------
         Net cash used in investing activities                                           (7,599)      (6,434)     (11,247)
                                                                                         ------       ------       ------

         Net cash used in operating and investing activities
           (subtotal carried forward)                                                    (5,676)      (4,361)      (9,438)
                                                                                         ------       ------       ------
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                           LOGANSPORT FINANCIAL CORP.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

              For the years ended December 31, 2002, 2001 and 2000
                                 (In thousands)


                                                                                           2002         2001         2000
         Net cash used in operating and investing activities
           (subtotal brought forward)                                                  $ (5,676)    $ (4,361)    $ (9,438)

Cash flows provided by (used in) financing activities:
<S>                                                                                      <C>           <C>          <C>
  Net increase in deposit accounts                                                       14,425        4,446        3,443
  Proceeds from Federal Home Loan Bank advances                                           9,950       12,750       33,000
  Repayment of Federal Home Loan Bank advances                                          (10,864)     (12,000)     (22,000)
  Proceeds from notes payable                                                               700           -            -
  Proceeds from the exercise of stock options                                               369          208           -
  Dividends on common stock                                                                (478)        (516)        (477)
  Purchase of shares                                                                     (3,725)        (921)        (464)
                                                                                         ------       ------       ------
         Net cash provided by financing activities                                       10,377        3,967       13,502
                                                                                         ------       ------       ------
Net increase (decrease) in cash and cash equivalents                                      4,701         (394)       4,064

Cash and cash equivalents at beginning of year                                            8,816        9,210        5,146
                                                                                         ------       ------       ------
Cash and cash equivalents at end of year                                                $13,517     $  8,816     $  9,210
                                                                                         ======       ======       ======

Supplemental disclosure of cash flow information:
  Cash paid during the year for:
    Income taxes                                                                       $    617    $     590    $     629
                                                                                         ======       ======       ======
    Interest on deposits and borrowings                                                $  4,887     $  5,719     $  5,449
                                                                                         ======       ======       ======
Supplemental disclosure of noncash investing and financing activities:
  Transfers from loans to real estate acquired
    through foreclosure                                                                $     -    $       65     $     -
                                                                                         ======       ======       ======
  Unrealized gains on securities designated as available
    for sale, net of related tax effects                                               $    272    $     180    $     403
                                                                                         ======       ======       ======
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>


                           LOGANSPORT FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        December 31, 2002, 2001 and 2000


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, 2002 and 2001,
the Corporation had designated all investment and mortgage-backed  securities as
available for sale.

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

                           LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

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  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, 2002, 2001 and 2000

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.

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

                                                          2002                2001
                                                              (In thousands)

<S>                                                       <C>               <C>
    Impaired loans with related allowance                 $763              $1,460
    Impaired loans with no related allowance                -                   -
                                                          ----              ------
         Total impaired loans                             $763              $1,460
                                                          ====              ======


                                                    2002         2001         2000
                                                          (In thousands)

    Allowance on impaired loans
      Beginning balance                             $341      $   228         $ 48
      Provision                                       11          113          180
                                                    ----      -------        -----
      Ending balance                                $352      $   341         $228
                                                    ====      =======         =====
    Average balance of impaired loans               $871      $ 1,419         $632
    Interest income recognized on impaired loans    $ 69      $    37         $ 59
</TABLE>

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

6. Real Estate Acquired Through Foreclosure

Real estate acquired  through  foreclosure is carried at the lower of the loan's
unpaid principal balance (cost) or fair value less estimated selling expenses at
the date of  acquisition.  Real  estate  loss  provisions  are  recorded  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.
<PAGE>


                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

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.

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  $62,000,  $119,000 and $140,000  during the years
ended December 31, 2002, 2001 and 2000, respectively,  as well as federal income
tax credits of approximately  $182,000,  $182,000 and $142,000 in 2002, 2001 and
2000, 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 benefit plans,  the real estate  partnership  investment,
general loan loss  allowances  and  percentage of earnings bad debt  deductions.
Additional  temporary   differences  result  from  depreciation  computed  using
accelerated methods for tax purposes.

10. Benefit Plans

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


                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

10.  Benefit Plans (continued)

The Plan  sponsor has advised the Savings  Bank that the pension  plan meets the
criteria of a multi-employer pension plan as defined in SFAS No. 87, "Employers'
Accounting  for  Pensions." In accordance  with SFAS No. 87, net pension cost is
recognized  for  any  required  contribution  for the  period.  A  liability  is
recognized  for  any  contributions  due  and  unpaid.   Contributions  totaling
approximately  $31,000 were  required to fund the pension  liability  during the
year ended December 31, 2002. No  contributions  were necessary during the years
ended December 31, 2001 and 2000. The provision for pension expense was computed
by the Plan's  actuaries by utilizing the projected  unit credit cost method and
assuming a 7.5% return on Plan assets.

The Savings Bank has purchased life insurance  policies on certain  officers and
directors.  The insurance  policies had an approximate  cash surrender  value of
$1.3 million, $1.3 million and $1.2 million at December 31, 2002, 2001 and 2000,
respectively.  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  $69,000,  $63,000  and
$108,000 for the years ended December 31, 2002, 2001 and 2000, 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, 2002, 2001 or 2000.

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 $19,000, $40,000 and $136,000 for the years ended December 31, 2002,
2001 and 2000, respectively.

In April 1999, the Savings Bank implemented a contributory  401(k) plan covering
all  employees  who have  attained the age of 21 and have  completed one year of
service.  Contributions to the plan are voluntary and are subject to matching by
the  Savings  Bank.  The  Savings  Bank's  expense  related to the plan  totaled
approximately  $23,000,  $19,000 and $14,000  for the years ended  December  31,
2002, 2001 and 2000, respectively.

<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

11. Earnings Per Share

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

                                               2002         2001         2000

    Weighted-average common shares
      outstanding (basic)                   929,488    1,084,377    1,090,800

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

    Weighted-average common shares
      outstanding (diluted)                 958,135    1,104,323    1,090,800
                                            =======    =========    =========

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

Options to  purchase  125,915  shares of common  stock  with a  weighted-average
exercise  price of $10.59,  were  outstanding  at December  31,  2000,  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.
The Corporation had no anti-dilutive securities at December 31, 2002.

12. Stock Option Plans

During 1996,  the Board of Directors  adopted a Stock Option Plan that  provided
for the issuance of 132,250 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  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.
<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

12.  Stock Option Plans (continued)

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

A summary of the status of the  Corporation's  stock option plans as of December
31, 2002,  2001 and 2000,  and changes during the years ending on those dates is
presented below:

<TABLE>
<CAPTION>

                                                             2002                    2001                    2000
                                                                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                   106,796    $10.61       125,915    $10.59       125,915     $10.59
    Granted                                                 -          -             -         -           -            -
    Exercised                                          (27,660)    10.53       (15,463)    10.53           -            -
    Forfeited                                               -           -       (3,656)    10.53           -            -
                                                       -------    -------      -------    ------       -------     -----
    Outstanding at end of year                          79,136    $10.63       106,796    $10.61       125,915     $10.59
                                                       =======    ======       =======    ======       =======     ======
    Options exercisable at year-end                     78,636    $10.61       105,796    $10.58        98,547     $10.56
                                                       =======    ======       =======    ======       =======     ======
</TABLE>

The following information applies to options outstanding at December 31, 2002:

    Number outstanding                                                    79,136
    Range of exercise prices                                     $10.53 - $13.75
    Weighted-average exercise price                                       $10.63
    Weighted-average remaining contractual life                       3.37 years

13. Cash and Cash Equivalents

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

14. Fair Value of Financial Instruments

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

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

14.  Fair Value of Financial Instruments (continued)

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, 2002 and
2001:

     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.

     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, 2002 and 2001.  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, 2002
     and 2001, the difference between the fair value and notional amount of loan
     commitments was not material.

<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

14.  Fair Value of Financial Instruments (continued)

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>

                                                                               2002                          2001
                                                                   Carrying           Fair        Carrying           Fair
                                                                      value          value           value          value
                                                                                        (In thousands)
    Financial assets
<S>                                                               <C>            <C>            <C>             <C>
      Cash and cash equivalents                                   $  13,517      $  13,517      $    8,816      $   8,816
      Investment securities                                           8,060          8,060           5,788          5,788
      Mortgage-backed securities                                     11,009         11,009           4,419          4,419
      Loans receivable                                              110,386        111,830         111,696        112,990
      Federal Home Loan Bank stock                                    2,003          2,003           1,973          1,973
                                                                  ---------      ---------      ----------      ---------
                                                                  $ 144,975      $ 146,419      $  132,692      $ 133,986
                                                                  =========      =========      ==========      =========
    Financial liabilities
      Deposits                                                    $  98,325      $  99,510       $  83,900      $  85,098
      Advances from the Federal Home Loan Bank                       33,836         34,084          34,750         34,777
      Notes payable                                                   1,793          1,793           1,165          1,165
                                                                  ---------      ---------      ----------      ---------
                                                                   $133,954       $135,387        $119,815       $121,040
                                                                  =========      =========      ==========      =========
</TABLE>

15. Advertising

Advertising  costs are expensed when  incurred.  The  Corporation's  advertising
expense  totaled  $68,000,  $56,000 and $41,000 for the years ended December 31,
2002, 2001 and 2000, respectively.

16. Reclassifications

Certain  prior  year  amounts  have been  reclassified  to  conform  to the 2002
consolidated financial statement presentation.

<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


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, 2002 and 2001, are as follows:


<TABLE>
<CAPTION>
                                                                                            2002
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)

<S>                                                                <C>             <C>              <C>            <C>
    U.S. Government agency obligations                             $3,051          $  71            $    2         $3,120
    State and municipal obligations                                 3,028            204                -           3,232
    Corporate debt obligations                                        907             76                -             983
    Preferred stock                                                   500              3                -             503
    FHLMC stock                                                         4            218                -             222
                                                                   ------           ----            ------         ------
         Total investment securities                               $7,490           $572            $    2         $8,060
                                                                   ======           ====            ======         ======

                                                                                            2001
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)

    U.S. Government agency obligations                             $1,900          $  13            $    5         $1,908
    State and municipal obligations                                 2,789            113                 1          2,901
    Corporate debt obligations                                        710             22                 1            731
    FHLMC stock                                                         4            244                -             248
                                                                   ------           ----            ------         ------
         Total investment securities                               $5,403           $392            $    7         $5,788
                                                                   ======           ====            ======         ======
</TABLE>

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


<TABLE>
<CAPTION>

                                                                     2002                                2001
                                                                           Estimated                            Estimated
                                                         Amortized              fair           Amortized             fair
                                                              cost             value                cost            value
                                                                                    (In thousands)

<S>                                                         <C>               <C>                <C>               <C>
    Due in one year or less                                 $  575            $  582             $    25           $   25
    Due after one year through three years                   2,068             2,149               1,004            1,035
    Due after three years through five years                   657               688                 937              959
    Due after five years through ten years                   2,382             2,545               2,379            2,436
    Due after ten years                                      1,304             1,371               1,054            1,085
                                                            ------            ------              ------           ------
                                                             6,986             7,335               5,399            5,540
    Preferred stock                                            500               503                  -                -
    FHLMC stock                                                  4               222                   4              248
                                                            ------            ------              ------           ------
                                                            $7,490            $8,060              $5,403           $5,788
                                                            ======            ======              ======           ======
</TABLE>


<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


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


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

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.

The  amortized  cost,  gross  unrealized  gains,  gross  unrealized  losses  and
estimated  fair values of  mortgage-backed  securities  at December 31, 2002 and
2001 are presented below.

<TABLE>
<CAPTION>
                                                                                          2002
                                                                                 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                  $   548             $ 30             $  -          $    578
    Government National Mortgage
      Association participation certificates                    6,919              148                -             7,067
    Federal National Mortgage
      Association participation certificates                    2,357               51                -             2,408
    Federal Housing Authority participation
      certificates                                                641                5                -               646
    Small Business Administration
      participation certificates                                  314               -                 4              310
                                                              -------             ----             -----         -------
         Total mortgage-backed securities                     $10,779             $234             $  4          $11,009
                                                              =======             ====             =====         ========


                                                                                          2001
                                                                                 Gross             Gross        Estimated
                                                            Amortized       unrealized        unrealized             fair
                                                                 cost            gains            losses            value
                                                                                     (In thousands)

    Federal Home Loan Mortgage
      Corporation participation certificates                  $   675             $  7             $  -          $   682
    Government National Mortgage
      Association participation certificates                    1,489                3                13           1,479
    Federal National Mortgage
      Association participation certificates                    1,210               14                 1           1,223
    Federal Housing Authority participation
      certificates                                                653                -                 2             651
    Small Business Administration
      participation certificates                                  391                -                 7             384
                                                              -------             ----             -----         -------
         Total mortgage-backed securities                      $4,418             $ 24             $  23         $ 4,419
                                                              =======             ====             =====         ========
</TABLE>
<PAGE>
                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


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


The amortized  cost and estimated  fair value of  mortgage-backed  securities at
December 31, 2002 and 2001, 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>

                                                                       2002                              2001
                                                                             Estimated                          Estimated
                                                            Amortized             fair         Amortized             fair
                                                                 cost            value              cost            value
                                                                                   (In thousands)

<S>                                                           <C>              <C>                 <C>           <C>
      Due within one year                                     $ 1,962          $ 2,000             $  805        $   805
      Due after one year to three years                         1,748            1,790                989            991
      Due after three years to five years                       1,035            1,060                531            531
      Due after five years to ten years                         1,754            1,793                786            785
      Due after ten years                                       4,280            4,366              1,307          1,307
                                                              -------          -------             ------        -------
         Total mortgage-backed securities                     $10,779          $11,009             $4,418        $ 4,419
                                                              =======          ========            ======        =======
</TABLE>


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


NOTE C - LOANS RECEIVABLE

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

                                                        2002              2001
                                                            (In thousands)
    Residential real estate
      One- to four-family residential               $ 61,717          $ 63,863
      Multi-family residential                         1,606             1,816
      Construction                                     1,317             2,278
    Nonresidential real estate and land               20,557            18,435
    Commercial                                        10,924             9,586
    Commercial leases                                  4,352             3,914
    Consumer and other                                11,694            13,635
                                                    --------          --------
                                                     112,167           113,527

    Less:
      Undisbursed portion of loans in process            323               699
      Allowance for loan losses                        1,458             1,132
                                                    --------          --------
                                                    $110,386          $111,696
                                                    ========          ========

<PAGE>


                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


NOTE C - LOANS RECEIVABLE (continued)

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  $64.3 million,  or 58%, of the total loan portfolio at
December 31, 2002,  and $67.3  million,  or 60%, of the total loan  portfolio at
December 31, 2001.  Approximately  78% of these loans have been  underwritten on
the basis of no more than an 80%  loan-to-value  ratio,  which has  historically
provided  the Savings  Bank with  adequate  collateral  coverage in the event of
default.  The remaining 22% of these loans have been  underwritten with original
loan-to-value  ratios of greater than 80%. The Savings Bank, as with any lending
institution, is subject to the risk that real estate values could deteriorate in
its primary lending area of north-central Indiana,  thereby impairing collateral
values.  However,  management  is of the belief that real  estate  values in the
Savings Bank's primary lending area are presently stable.

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  $1.7 million and $1.1 million at December 31,
2002 and 2001, respectively.


NOTE D - ALLOWANCE FOR LOAN LOSSES

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

                                          2002         2001         2000
                                                  (In thousands)

    Beginning balance                   $1,132       $  760         $440
    Provision for losses on loans          360          392          332
    Charge-offs of loans - net             (34)         (20)         (12)
                                        ------       ------         ----
    Ending balance                      $1,458       $1,132         $760
                                        ======       ======         ====


At December 31, 2002,  the Savings Bank's  allowance for loan losses  included a
specific allowance of $200,000,  related to impaired and nonaccrual loans, and a
general loan loss allowance of $1.3 million,  which is includible as a component
of regulatory risk-based capital.

At December 31, 2002, 2001 and 2000, the Savings Bank had loans of $1.5 million,
$1.9 million and  $336,000,  respectively,  which had been placed on  nonaccrual
status due to concerns as to borrowers' ability to pay. At December 31, 2002 and
2001,  nonaccrual  loans  include  certain  loans  that had been  identified  as
impaired under SFAS No. 114. Interest income that would have been recognized had
nonaccrual loans performed  pursuant to contractual terms totaled  approximately
$126,000,  $41,000 and $12,000 for the years ended  December 31, 2002,  2001 and
2000, respectively.


NOTE E - OFFICE PREMISES AND EQUIPMENT

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

                                                        2002           2001
                                                          (In thousands)

    Land                                              $  203         $  203
    Buildings and improvements                         1,766          1,766
    Furniture and equipment                              500            435
                                                      ------         ------
                                                       2,469          2,404
    Less accumulated depreciation and amortization      (702)          (601)
                                                      ------         ------
                                                      $1,767         $1,803
                                                      ======         ======

<PAGE>
                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE F - DEPOSITS

    Deposits consist of the following major classifications at December 31:

    Deposit type and weighted-average
    interest rate                                      2002              2001
                                                            (In thousands)
    NOW accounts
      December 31, 2002 - 0.80%                     $15,625
      December 31, 2001 - 1.58%                                       $ 7,019
    Passbook and club accounts
      December 31, 2002 - 1.10%                       4,281
      December 31, 2001 - 2.47%                                         4,136
    Money market deposit accounts
      December 31, 2002 - 1.23%                      18,766
      December 31, 2001 - 2.48%                                        17,759
    Non-interest bearing accounts                     3,049             3,343
                                                    -------           -------
        Total demand, transaction
                and passbook deposits                41,721            32,257

    Certificates of deposit
     Original maturities of:
        Less than 12 months
          December 31, 2002 - 1.78%                   6,566
          December 31, 2001 - 3.08%                                     4,633
        12 months to 18 months
          December 31, 2002 - 3.40%                  14,605
          December 31, 2001 - 4.80%                                    20,955
        24 months to 30 months
          December 31, 2002 - 4.58%                  20,674
          December 31, 2001 - 5.32%                                    16,654
        More than 30 months
          December 31, 2002 - 5.05%                   7,810
          December 31, 2001 - 5.63%                                     3,370
      Individual retirement accounts
        December 31, 2002 - 4.76%                     6,949
        December 31, 2001 - 5.16%                                       6,031
                                                    -------           -------
      Total certificates of deposit                  56,604            51,643
                                                    -------           -------
      Total deposits                                $98,325           $83,900
                                                    =======           =======

At December  31,  2002 and 2001,  the Savings  Bank had  certificate  of deposit
accounts  with  balances  greater than  $100,000  totaling $9.0 million and $6.5
million, respectively.

Interest  expense on deposits for the year ended  December 31 is  summarized  as
follows:
<TABLE>
<CAPTION>
                                                        2002            2001           2000
                                                                  (In thousands)

<S>                                                   <C>             <C>            <C>
    Passbook accounts                                 $   55          $  100         $  103
    NOW and money market deposit accounts                492             718            886
    Certificates of deposit                            2,415           2,859          2,918
                                                      ------          ------         ------
                                                      $2,962          $3,677         $3,907
                                                      ======          ======         ======
</TABLE>

Maturities of outstanding  certificates of deposit at December 31 are summarized
as follows:

                                                       2002             2001
                                                          (In thousands)

    Less than one year                              $27,803          $31,551
    One year to three years                          22,211           19,026
    Over three years                                  6,590            1,066
                                                    -------          -------
                                                    $56,604          $51,643
                                                    =======          =======

<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK

Advances from the Federal Home Loan Bank, collateralized at December 31, 2002 by
a blanket  pledge of  residential  mortgage  loans  totaling  $57.9  million and
pledges of certain securities totaling $17.8 million are summarized as follows:

<TABLE>
<CAPTION>

                                               Maturing year                        December 31,
    Interest rate                           ending December 31,               2002                2001
                                                                               (Dollars in thousands)

<S> <C>     <C>                                    <C>                     <C>                   <C>
    2.76% - 4.06%                                  2002                    $     -               6,000
    3.02%                                          2003                      1,000                  -
    5.94%                                          2004                      3,000               3,000
    5.10% - 6.75%                                  2005                      4,200               4,200
    5.04% - 5.30%                                  2006                      1,500               1,500
    4.38% - 5.72%                                  2007                      2,536               1,050
    3.57% - 5.32%                                  2009                      1,600                  -
    5.60% - 5.99%                                  2010                     17,000              17,000
    4.75%                                          2011                      2,000               2,000
    4.90%                                          2012                      1,000                  -
                                                                           -------             -------
                                                                           $33,836             $34,750
                                                                           =======             =======
    Weighted-average interest rate                                            5.53%               5.39%
                                                                           =======             =======
</TABLE>


Advances  totaling  approximately  $26.0 million became subject to interest rate
increases at the discretion of the FHLB beginning in 2002.  Such advances can be
repaid by the Savings Bank upon the enactment of such interest rate adjustments.


NOTE H - NOTES PAYABLE

At December 31, 2002 and 2001, notes payable included  borrowings  totaling $1.1
million and $1.2 million, respectively,  that were secured by the Savings Bank's
investment in a real estate partnership.  The interest rate on the variable-rate
borrowing was 1.88% and 1.92% at December 31, 2002 and 2001,  respectively.  The
borrowings will mature in 2009.

During the year ended December 31, 2002, the Corporation  borrowed $700,000 on a
line of credit with another  financial  institution  to partially  finance share
repurchases.  The  Corporation  can  borrow  up to $1.5  million  on the line of
credit,  which is payable at October 2, 2003. Interest is payable quarterly at a
rate of 3.75%, which represents national prime less .50%.
<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


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>

                                                                                         2002         2001         2000
                                                                                                 (In thousands)

<S>                                                                                      <C>          <C>          <C>
    Federal income taxes computed at the statutory rate                                  $722         $652         $605
    Increase (decrease) in taxes resulting from:
      Tax exempt interest                                                                 (46)         (42)         (37)
      Increase in cash surrender value of life insurance                                   (9)         (19)         (17)
      Real estate partnership tax credits                                                (182)        (182)        (142)
      State income tax provision                                                          124          113          103
      Other                                                                                -            (1)          (1)
                                                                                         ----         ----         ----
    Income tax provision per consolidated financial statements                           $609         $521         $511
                                                                                         ====         ====         ====
</TABLE>

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

    Taxes (payable) refundable on temporary                                      2002           2001
    differences at statutory rate:                                                 (In thousands)

    Deferred tax assets:
<S>                                                                             <C>            <C>
      Other than temporary declines in investment securities                    $  23          $  23
      Retirement expense                                                          235            231
      General loan loss allowance                                                 535            481
      Benefit plan expense                                                         85             69
      Other                                                                        40             33
                                                                                -----          -----
         Total deferred tax assets                                                918            837

    Deferred tax liabilities:
      State income taxes                                                          (57)           (56)
      Percentage of earnings bad debt deduction                                   (12)           (24)
      Unrealized gains on securities designated as available for sale            (273)          (131)
      Loss on investment in real estate partnership                              (163)          (136)
      Book versus tax depreciation                                                (49)           (38)
                                                                                -----          -----
         Total deferred tax liabilities                                          (554)          (385)
                                                                                -----          -----
         Net deferred tax asset                                                 $ 364          $ 452
                                                                                =====          =====
</TABLE>

Prior to 1997, the Savings Bank was allowed a special bad debt  deduction  based
on a  percentage  of  earnings,  generally  limited to 8% of  otherwise  taxable
income,  or the amount of qualifying and  nonqualifying  loans  outstanding  and
subject to certain  limitations  based on  aggregate  loans and savings  account
balances at the end of the year.  This percentage of earnings bad debt deduction
had  accumulated to  approximately  $1.7 million as of December 31, 2002. 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, 2002.

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, 2002, 2001 and 2000


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,  2002,  the  Savings  Bank  had  outstanding   commitments  of
approximately  $310,000 to originate  residential one- to four-family loans. The
Savings  Bank also had  outstanding  commitments  of  approximately  $40,000  to
originate  non-residential  real estate loans and approximately  $1.1 million to
originate other commercial loans at December 31, 2002. Additionally, the Savings
Bank had unused lines of credit under home equity loans and commercial  loans of
approximately  $997,000 and $7.9  million,  respectively,  at December 31, 2002.
Finally,  the  Savings  Bank had  commitments  under  standby  letters of credit
totaling  $2.7  million at  December  31,  2002.  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, 2002, and will be funded from normal cash flow from operations.

At December 31, 2002,  the Savings Bank had  additional  commitments to purchase
$5.0  million  in  GNMA   adjustable-rate   mortgage-backed   securities.   Such
investments were to be purchased in January 2003 from the Bank's available cash.

NOTE K - REGULATORY CAPITAL

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

<PAGE>

                          LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


NOTE K - REGULATORY CAPITAL (continued)

During 2002, the Savings Bank was notified by the OTS 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, 2002 and 2001,  management believes that the Savings Bank met
all capital adequacy requirements to which it was subject.
<TABLE>
<CAPTION>

    2002:                                                                                                 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                            $15,466     10.3%         >=$2,244    >=1.5%          >=$7,480     >=  5.0%

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

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


<TABLE>
<CAPTION>

    2001:                                                                                                 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                            $16,109     11.7%         >=$2,066    >=1.5%         >=$ 6,885     >=  5.0%

    Core capital                                $16,109     11.7%         >=$5,508    >=4.0%         >=$ 8,262     >=  6.0%

    Risk-based capital                          $17,241     16.9%         >=$8,166    >=8.0%         >=$10,207     >= 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.

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 $300,000 and $700,000
were paid in 2001 and 2000, respectively. During 2001, the Savings Bank received
OTS  approval  to  make up to  $2.0  million  in  capital  distributions  to the
Corporation.  Of this amount,  dividend payments of $950,000 and $1,050,000 were
paid in 2002 and 2001, respectively.  During 2002, the Savings Bank received OTS
approval  to  make  up  to  $2.25  million  in  capital   distributions  to  the
Corporation, all of which was paid in 2002.

<PAGE>

                         LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE L - CONDENSED FINANCIAL STATEMENTS OF LOGANSPORT FINANCIAL CORP.

The following condensed financial statements summarize the financial position of
Logansport  Financial Corp. as of December 31, 2002 and 2001, and the results of
its operations  and cash flows for the years ended  December 31, 2002,  2001 and
2000.


<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.
                        STATEMENTS OF FINANCIAL CONDITION
                           December 31, 2002 and 2001
                                 (In thousands)

    ASSETS                                                          2002              2001

<S>                                                            <C>                <C>
    Cash and cash equivalents                                  $      77          $    121
    Investment in subsidiary                                      15,994            16,363
    Dividend receivable from subsidiary                               -                950
    Prepaid expenses and other                                       123                94
                                                               ---------          --------
          Total assets                                         $  16,194          $ 17,528
                                                               =========          ========
    LIABILITIES AND SHAREHOLDERS' EQUITY

    Notes payable                                              $     700          $     -
    Accrued expenses and other liabilities                           121               126
                                                               ---------          --------
          Total liabilities                                          821               126

    Shareholders' equity
      Common stock                                                 1,446             4,802
      Retained earnings                                           13,444            12,408
      Shares acquired by stock benefit plan                          (44)              (63)
      Unrealized gains on securities designated
        as available for sale, net                                   527               255
                                                               ---------          --------
          Total shareholders' equity                              15,373            17,402
                                                               ---------          --------
          Total liabilities and shareholders' equity            $ 16,194          $ 17,528
                                                               =========          ========
</TABLE>

<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.
                             STATEMENTS OF EARNINGS
                  Years ended December 31, 2002, 2001 and 2000
                                 (In thousands)

                                                      2002            2001           2000
    Revenue
<S>                                                 <C>            <C>             <C>
      Interest income                               $   -          $    14         $    6
      Equity in earnings of subsidiary               1,589           1,436          1,300
                                                    ------         -------         ------
         Total revenue                               1,589           1,450          1,306

    General and administrative expenses                115              77             57
                                                    ------         -------         ------
         Earnings before income tax credits          1,474           1,373          1,249

    Income tax credits                                 (40)            (25)           (20)
                                                    ------         -------         ------
         NET EARNINGS                               $1,514          $1,398         $1,269
                                                    ======         =======         ======
</TABLE>

<PAGE>


                         LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000

NOTE  L  -  CONDENSED  FINANCIAL   STATEMENTS  OF  LOGANSPORT   FINANCIAL  CORP.
(continued)
<TABLE>
<CAPTION>

                           LOGANSPORT FINANCIAL CORP.
                            STATEMENTS OF CASH FLOWS
                  Years ended December 31, 2002, 2001 and 2000
                                 (In thousands)

                                                                                      2000            2001           2000
    Cash flows provided by (used in) operating activities:
<S>                                                                                 <C>             <C>            <C>
      Net earnings for the year                                                     $1,514          $1,398         $1,269
      Adjustments to reconcile net earnings to net cash
      provided by (used in) operating activities:
        Excess distributions from (undistributed earnings of)
          consolidated subsidiary                                                    1,611             (86)          (598)
        Increase (decrease) in cash due to changes in:
          Accrued expenses and other liabilities                                        (5)              5            (70)
          Other                                                                        (29)            (70)            69
                                                                                    ------          -------        ------
         Net cash provided by operating activities                                   3,091           1,247            670


    Cash flows provided by (used in) financing activities:
      Proceeds from notes payable                                                      700              -              -
      Proceeds from exercise of stock options                                          368             208             -
      Dividends on common stock                                                       (478)           (516)          (477)
      Purchase of shares                                                            (3,725)           (921)          (464)
                                                                                    ------          -------        ------
         Net cash used in financing activities                                      (3,135)         (1,229)          (941)
                                                                                    ------          -------        ------

    Net increase (decrease) in cash and cash equivalents                               (44)             18           (271)

    Cash and cash equivalents at beginning of year                                     121             103            374
                                                                                    ------          -------        ------
    Cash and cash equivalents at end of year                                       $    77         $   121        $   103
                                                                                   =======         ========       =======
</TABLE>
<PAGE>


                         LOGANSPORT FINANCIAL CORP.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2002, 2001 and 2000


NOTE M - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table summarizes the Corporation's quarterly results for the years
ended December 31, 2002 and 2001. Certain amounts, as previously  reported,  may
have been reclassified to conform to the 2002 presentation.


<TABLE>
<CAPTION>

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

<S>                                                              <C>          <C>              <C>               <C>
    Total interest income                                        $2,302       $2,346           $2,352            $2,326
    Total interest expense                                        1,247        1,219            1,215             1,196
                                                                 ------       ------           ------            ------
    Net interest income                                           1,055        1,127            1,137             1,130

    Provision for losses on loans                                    90           90               90                90
    Other income                                                     51           82               58               161
    General, administrative and other expense                       575          603              579               561
                                                                 ------       ------           ------            ------
    Earnings before income taxes                                    441          516              526               640

    Income taxes                                                    121          145              151               192
                                                                 ------       ------           ------            ------
    Net earnings                                                 $  320       $  371           $  375            $  448
                                                                 ======       ======           ======            ======
    Earnings per share:
      Basic                                                      $  .32       $  .39           $  .41            $  .51
                                                                 ======       ======           ======            ======
      Diluted                                                    $  .31       $  .38           $  .39            $  .50
                                                                 ======       ======           ======            ======


</TABLE>
<TABLE>
<CAPTION>


                                                                                 Three Months Ended
                                                              March 31,     June 30,    September 30,      December 31,
    2001:                                                            (In thousands, except per share data)

<S>                                                              <C>          <C>              <C>               <C>
    Total interest income                                        $2,501       $2,498           $2,462            $2,370
    Total interest expense                                        1,529        1,470            1,376             1,321
                                                                 ------       ------           ------            ------
    Net interest income                                             972        1,028            1,086             1,049

    Provision for losses on loans                                    86           85               86               135
    Other income                                                     52           45               47                78
    General, administrative and other expense                       535          513              476               522
                                                                 ------       ------           ------            ------
    Earnings before income taxes                                    403          475              571               470

    Income taxes                                                    102          129              167               123
                                                                 ------       ------           ------            ------
    Net earnings                                                 $  301       $  346           $  404            $  347
                                                                 ======       ======           ======            ======
    Earnings per share:
      Basic                                                      $  .28       $  .32           $  .37            $  .32
                                                                 ======       ======           ======            ======
      Diluted                                                    $  .27       $  .32           $  .36            $  .32
                                                                 ======       ======           ======            ======

</TABLE>
<PAGE>

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

The  common  stock of the  Company  is traded  on the  National  Association  of
Securities Dealers Automated Quotation System ("Nasdaq") Small Cap Market, under
the symbol "LOGN." As of February 7, 2003, there were 799 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, 2002 and 2001. Such
price information was obtained from Nasdaq.

                                                                  Per Share
Year Ending December 31,           High           Low             dividends

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

2001
Quarter ending:
  December 31, 2001                $15.25       $13.00             $0.12
  September 30, 2001                14.05        12.77              0.12
  June 30, 2001                     13.34        11.44              0.12
  March 31, 2001                    12.25        11.25              0.12


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 Services
                                Mail Drop 10AT66
                            38 Fountain Square Plaza
                             Cincinnati, Ohio 45202
                         (800) 837-2755 or 513-579-5320
                          http://investordirect.53.com

GENERAL COUNSEL.                                INDEPENDENT AUDITORS.

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

SHAREHOLDER  & GENERAL  INQUIRIES.  The  Company is  required  to file an Annual
Report on Form 10-K for its year ended December 31, 2002 with the Securities and
Exchange Commission. Copies of this annual report may be obtained without charge
upon written request to or on our website:

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

OFFICE LOCATION.

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