EXHIBIT 13
                                                                      ----------
                                TABLE OF CONTENTS


                                                                          Page

Directors and Officers                                                       2

President's Message to Shareholders                                          3

Selected Consolidated Financial Data                                         4

Management's Discussion and Analysis                                         6

Report of Independent Certified Public Accountants                          19

Consolidated Statements of Financial Condition                              20

Consolidated Statements of Earnings                                         21

Consolidated Statements of Comprehensive Income                             22

Consolidated Statements of Changes in Shareholders' Equity                  23

Consolidated Statements of Cash Flows                                       24

Notes to Consolidated Financial Statements                                  26






                     BUSINESS OF LOGANSPORT FINANCIAL CORP.

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





                                MISSION STATEMENT


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


<PAGE>


                           Logansport Financial Corp.

                             DIRECTORS AND OFFICERS


     DIRECTORS

     Charles J. Evans (age 55) has served as Senior Vice President of Logansport
Savings Bank, FSB since January 2000.  Prior to that he served as Vice President
and Senior Loan Officer of Logansport Savings Bank, FSB since 1980.

     Brian J. Morrill (age 44) 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 61) 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.

     William  Tincher,  Jr. (age 62) 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 54) 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 68) served as President of Logansport Savings Bank,
FSB from 1971 until his retirement in April 2000.

     Dr.  Todd S.  Weinstein  (age  40) 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 56) 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                       DOTTYE ROBESON - Chief Financial Officer/
Vice President                                        Secretary/Treasurer

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

                                       SHEILA WILDERMUTH - Vice President

                                       MARK DEBARGE - Assistant Vice President

                                       KAY GAPSKI - Assistant Vice President


<PAGE>


TO OUR SHAREHOLDERS:

On behalf of our  employees  and Board of  Directors,  I take great  pleasure in
presenting  to you  the  2001  Annual  Report  to  Shareholders  for  Logansport
Financial Corp.

By any measure,  2001 was an exceptional year. The financial  services industry,
along with our country as a whole, was confronted with challenges and changes to
our businesses and personal lives that were unprecedented. During 2001 the stock
market tested and  confirmed the value of our Bank.  Although we were faced with
these  challenges and changes,  we never lost focus on our commitment to deliver
the maximum value to our shareholders, build careers for our employees and serve
our customers - that mission remained constant in 2001.

Logansport  Financial  Corp.  has a simple plan for its success that consists of
three goals:
     o    Maximize the return to our shareholders
     o    Enhance  our  products  and  provide  the  very  best  service  to our
          customers
     o    Develop our talents to provide greater opportunities for our employees

We intend to use the talents and abilities of our employees to create a positive
impact in our  community  and our current and future  markets.  The Bank and its
employees  are  committed  to  community  banking  and  continuing  our focus on
customer service.

Since  becoming  a  public  company  in 1995,  Logansport  Financial  Corp.  has
maintained a steady record of earnings growth and dividend payments. In the year
2001, we were again able to achieve  record  earnings with a 10.2% increase over
the year 2000.  Earnings  per  diluted  share were  $1.27,  representing  a 9.5%
increase  over 2000.  During  2001, a 10% stock  repurchase  was  announced  and
approximately  60% of the  repurchase  was  completed by the end of the year. By
January 31, 2002, the remaining  portion of the  repurchase had been  completed.
The results of our performance are detailed in the report pages that follow this
letter.  We are committed to  consistently  improving our financial  performance
even in the face of the many challenges that we know await us in the future.  We
remain  confident  we are doing the right  things and that our motto of "Leading
The  Way"  speaks  of our  commitment  to our  shareholders,  community  and our
employees.

We want to thank our valued  shareholders,  customers  and  employees  for their
support,  confidence,  loyalty  and  commitment  as we  pursue  our  mission  of
providing community banking.


Sincerely,


/s/ David G. Wihebrink

David G. Wihebrink
President



<PAGE>


                           Logansport Financial Corp.

                 SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA


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

<TABLE>
<CAPTION>
                                                                        At December 31,
Statement of Financial Condition Data:         2001           2000            1999           1998           1997
                                                                        (In thousands)
<S>                                        <C>            <C>             <C>             <C>            <C>
Total assets                               $138,065       $132,612        $117,468        $96,085        $86,115
Loans receivable, net                       111,696        102,418          90,900         73,073         63,635
Mortgage-backed securities                    4,419          5,165           5,898          8,129          9,932
Cash and cash equivalents                     8,816          9,210           5,146          4,328          2,269
Investment securities                         5,788          8,322           8,539          5,033          5,750
Deposits                                     83,900         79,454          76,011         70,011         60,595
Borrowings                                   35,915         35,237          24,307          8,375          8,025
Shareholders' equity - net                   17,402         17,013          16,146         16,488         16,542


                                                                    Year ended December 31,
Summary of Operating Results:                  2001           2000            1999           1998           1997
                                                               (In thousands, except share data)

Interest income                              $9,831         $9,524          $7,599         $6,579         $6,101
Interest expense                              5,696          5,597           4,043          3,476          3,115
                                              -----          -----           -----          -----          -----
Net interest income                           4,135          3,927           3,556          3,103          2,986
Provision for losses on loans                   392            332             162             63             26
                                             ------         ------          ------        -------        -------
Net interest income after provision for
  losses on loans                             3,743          3,595           3,394          3,040          2,960
Other income                                    222            122             175            285            170
General, administrative and other expense     2,046          1,937           1,667          1,322          1,170
                                              -----          -----           -----          -----          -----
Earnings before income taxes                  1,919          1,780           1,902          2,003          1,960
Income taxes                                    521            511             678            756            728
                                             ------         ------          ------         ------         ------
Net earnings                                 $1,398         $1,269          $1,224         $1,247         $1,232
                                              =====          =====           =====          =====          =====

Basic earnings per share                      $1.29          $1.16           $1.03          $1.00           $.98
                                               ====           ====            ====           ====            ===

Diluted earnings per share                    $1.27          $1.16           $1.02           $.97           $.95
                                               ====           ====            ====            ===            ===

Cash dividends per share                       $.48           $.44            $.44           $.43           $.40
                                                ===            ===             ===            ===            ===



Footnotes on following page.


<PAGE>


                           Logansport Financial Corp.

           SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (CONTINUED)


                                                            At or for the year ended December 31,
Supplemental Data:                             2001           2000            1999           1998           1997

Return on assets (1)                           1.03%          1.00%           1.14%          1.37%          1.50%
Return on equity (2)                           7.82           7.76            7.33           7.44           7.69
Interest rate spread (3)                       2.55           2.57            2.86           2.70           2.94
Net yield on interest-earning assets (4)       3.23           3.27            3.54           3.61           3.86
General, administrative and other
  expense to average assets                    1.50           1.53            1.55           1.45           1.42
Net interest income to general,
  administrative and other expense           202.10         202.74          213.32         234.72         255.21
Equity-to-assets (5)                          12.60          12.83           13.75          17.16          19.21
Average interest-earning assets to
  average interest-bearing liabilities       115.21         115.39          117.20         122.72         123.36
Non-performing assets to total assets          1.41            .25             .57            .33            .62
Non-performing loans to total loans            1.72            .32             .72            .42            .67
Loan loss allowance to total loans             1.00            .73             .47            .38            .38
Loan loss allowance to non-performing
  loans                                       58.11         226.19           66.07          90.48          56.84
Dividend payout ratio                         37.21          37.93           42.72          43.00          40.82
Net charge-offs to average loans                .02            *               *              .03            .03

</TABLE>

*  Less than .01%




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

(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, 2001,  and the results of operations for
the year ended December 31, 2001, 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, 2000 to December 31, 2001

The Company's total assets were $138.1 million at December 31, 2001, an increase
of $5.5 million,  or 4.1%,  over the $132.6  million total at December 31, 2000.
The increase in assets was funded  primarily  through growth in deposits of $4.4
million  and  an  increase  in  borrowings  of  $750,000.   The   percentage  of
interest-earning assets to total assets was 95.3% and 95.4% at December 31, 2001
and 2000, respectively.

At December 31, 2001,  investment and  mortgage-backed  securities totaled $10.2
million,  compared to $13.5  million at December  31,  2000,  a decrease of $3.3
million,  or 24.3%. The decrease was due to maturities and principal  repayments
totaling $5.1 million, which were partially offset by purchases of $1.6 million.
The primary  investments  added to the  portfolio  were  Federal  Home Loan Bank
("FHLB") and FNMA fixed rate notes and mortgage-backed  securities.  At December
31, 2001, the Company held $731,000 of corporate obligations, which consisted of
debt of domestic  corporations  rated AA or better by Moody's Investors Service,
Inc.

Loans  receivable  totaled  $111.7  million at December 31, 2001, an increase of
$9.3 million,  or 9.1%, over December 31, 2000. The increase in loans receivable
was due  primarily to loan  disbursements  totaling  $61.1  million,  which were
partially  offset by principal  repayments of $51.4  million.  Loan  origination
volume during 2001 exceeded that of 2000 by $9.4 million, or 18.2%. The increase
occurred in loans secured by  nonresidential  real estate,  commercial loans and
loans secured by one- to four-family  residential real estate.  Loans secured by
nonresidential  real estate and  commercial  loans and leases  increased by $9.4
million,  or 41.6%,  and one- to four-family  mortgage  loans  increased by $1.6
million,  or 2.5%. The increase in loans was funded primarily by the increase in
deposits and advances and the use of excess cash.

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,  2001,  the Bank  recorded  pretax  losses from the housing
project  of  totaling  $572,000,  while  realizing  cumulative  tax  credits  of
$364,000.

Deposits  totaled  $83.9  million at  December  31,  2001,  an  increase of $4.4
million,  or 5.6%, over December 31, 2000.  Non-interest  bearing deposits,  NOW
accounts,  passbook savings and money market savings  increased by $3.6 million,
or 12.6%, while  certificates of deposit increased by $847,000.  At December 31,
2001,  borrowings  consisted of $34.8 million in FHLB advances compared to $34.0
million in FHLB advances at December 31, 2000, an increase of $750,000, or 2.2%.
The increase in deposits  and  borrowings  was used  primarily to fund growth in
loans during the year.

Shareholders'  equity totaled $17.4 million at December 31, 2001, an increase of
$389,000, or 2.3%, over December 31, 2000. The increase was due primarily to net
earnings for the year ended  December 31, 2001, of $1.4 million,  an increase in
unrealized  gains on available for sale securities of $180,000 and proceeds from
the  exercise  of stock  options of  $163,000,  which were  partially  offset by
dividends totaling $516,000 and common stock repurchases totaling $921,000.

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.



<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 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 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.

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
current  period  provision  was  predicated  primarily  upon the increase in the
volume of loans secured by  nonresidential  and  commercial  real estate and the
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. Based on management's review of
the loan portfolio during these years, the allowance for loan losses at December
31, 2001 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, 2001 and
2000 (continued)

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 $70,000,  or 16.2%.  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.


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

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

Interest Income

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




<PAGE>


                           Logansport Financial Corp.

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


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

Interest Expense

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

Net Interest Income

Net interest  income  increased by $371,000,  or 10.4%, to $3.9 million in 2000,
compared to $3.6 million in 1999.  The interest  rate spread was 2.57% for 2000,
compared to 2.86% for 1999. The net yield on  weighted-average  interest-earning
assets declined in 2000 to 3.27%, from 3.54% in 1999.

Provision for Losses on Loans

The Company  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 economic  conditions in the Company's  market
area. The Company's  provision for losses on loans was $332,000 and $162,000 for
the years ended December 31, 2000 and 1999 respectively.  A larger provision was
recorded  in  2000  due to the  increase  in the  volume  of  loans  secured  by
nonresidential  and commercial  real estate.  At December 31, 2000 and 1999, the
allowance amounted to $760,000 and $440,000,  respectively, for a ratio to total
loans of .73% in 2000 and .47% in 1999. Non-performing loans at these dates were
$336,000 and $666,000,  respectively.  The ratio of allowance for loan losses to
non-performing  loans  increased  from 66.1% at  December  31, 1999 to 226.2% at
December 31, 2000.  Based on  management's  review of the loan portfolio  during
these years,  the allowance for loan losses at December 31, 2000 was  considered
adequate to cover potential losses inherent in the loan portfolio.

Other Income

The Company's  other income for the year ended December 31, 2000,  excluding the
loss on equity  investments,  was  $366,000,  compared to  $296,000 in 1999,  an
increase of $70,000,  or 23.6%. The increase was due primarily to a $21,000,  or
15.1%,  increase in service charges on deposit accounts and a $66,000, or 42.0%,
increase in other  operating  income.  The $244,000  loss on equity  investments
recorded in 2000 had an  after-tax  loss effect of  approximately  $19,000  when
considering  the tax benefit and the  available  tax  credits  generated  by the
project.

General, Administrative and Other Expense

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


<PAGE>



                           Logansport Financial Corp.

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


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

Income Tax Expense

Income tax expense  totaled  $511,000 and $678,000 for the years ended  December
31, 2000 and 1999, respectively, a decrease of $167,000, or 24.6%. Pretax income
decreased by $122,000,  or 6.4%,  in 2000  compared to 1999,  and  approximately
$142,000  of  tax  credits  were   available  in  2000,   which  resulted  in  a
corresponding decrease in income tax expense. The effective tax rates were 28.7%
and 35.6% for the years ended December 31, 2000 and 1999, respectively.


<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,
                                                    2001                                2000                          1999
                                       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          $    7,271    $   261        3.59%  $    5,656   $   301      5.32%  $   4,571  $   205   4.48%
  Mortgage- and other asset-
    backed securities(1)                  4,791        297        6.20        5,697       383      6.72       7,032      421   5.99
  Other investment securities(1)          6,694        457        6.83       10,283       721      7.01       6,820      453   6.64
  Loans receivable(2)                   109,075      8,721        8.00       98,320     8,041      8.18      82,091    6,484   7.90
  Stock in FHLB of Indianapolis           1,973        147        7.45        1,571       130      8.27         864       69   7.99
                                      ---------     ------                ---------    ------             ---------  -------
      Total interest-earning assets     129,804      9,883        7.61      121,527     9,576      7.88     101,378    7,632   7.53

Non-interest-earning assets               6,306                               5,442                           6,446
                                      ---------                           ---------                        --------

      Total assets                     $136,110                            $126,969                        $107,824
                                        =======                             =======                         =======

Interest-bearing liabilities:
  Savings accounts                   $    3,993        100        2.50   $    3,417       103      3.01  $    3,260       98   3.01
  NOW and money market accounts          23,023        718        3.12       23,814       886      3.72      25,735      930   3.61
  Certificates of deposit                51,405      2,859        5.56       50,507     2,918      5.78      43,059    2,291   5.32
  Borrowings                             34,245      2,019        5.90       27,577     1,690      6.13      14,446      724   5.01
                                       --------      -----                 --------     -----                ------   ------
      Total interest-bearing
        liabilities                     112,666      5,696        5.06      105,315     5,597      5.31      86,500    4,043   4.67
                                                     -----      ------                  -----    ------                ----- ------

Other liabilities                         5,562                               5,304                           4,629
                                      ---------                           ---------                        --------

     Total liabilities                  118,228                             110,619                          91,129

Shareholders' equity                     17,882                              16,350                          16,695
                                       --------                            --------                         -------

      Total liabilities and
        shareholders' equity           $136,110                            $126,969                        $107,824
                                        =======                             =======                         =======

Net interest-earning assets           $  17,138                           $  16,212                       $  14,878
                                       ========                            ========                        ========
Net interest income                                 $4,187                             $3,979                         $3,589
                                                     =====                              =====                         ======
Interest rate spread (3)                                          2.55%                            2.57%                       2.86%
                                                                ======                           ======                        ====

Net yield on weighted-average
  interest-earning assets (4)                                     3.23%                            3.27%                       3.54%
                                                                ======                           ======                        ====
Average interest-earning assets
  to average interest-bearing liabilities                       115.21%                          115.39%                     117.20%
                                                                ======                           ======                      ======
Adjustment of interest on tax-exempt
  securities to a tax-equivalent basis            $     52                           $     52                         $   33
                                                   =======                            =======                          =====

</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,
                                                             2001 vs. 2000                         2000 vs. 1999
                                                          Increase                              Increase
                                                         (decrease)                            (decrease)
                                                           due to                                due to
                                                     Volume       Rate      Total          Volume       Rate      Total
                                                                               (In thousands)
<S>                                                 <C>        <C>          <C>          <C>           <C>     <C>
Interest-earning assets:
  Interest-earning deposits                         $   298    $  (338)     $ (40)       $     54      $  42   $     96
  Mortgage-backed securities                            (52)       (34)       (86)            (86)        48        (38)
  Investment securities                                (260)        (4)      (264)            242         26        268
  Loans receivable                                      864       (184)       680           1,320        237      1,557
  Stock in FHLB of Indianapolis                          28        (11)        17              58          3         61
                                                    -------    -------       ----         -------      -----    -------
     Total interest-earning assets                      878       (571)       307           1,588        356      1,944

Interest-bearing liabilities:
  Savings accounts                                      831       (834)        (3)              5         -           5
  NOW and money market accounts                         (31)      (137)      (168)            (71)        27        (44)
  Certificates of deposit                                54       (113)       (59)            419        208        627
  Borrowings                                            390        (61)       329             776        190        966
                                                     ------    -------        ---          ------        ---     ------
     Total interest-bearing liabilities               1,244     (1,145)        99           1,129        425      1,554
                                                      -----      -----       ----           -----        ---      -----

Change in net interest income
  (fully taxable equivalent basis)                     (367)       575        208             459        (69)       390

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

Change in net interest income                       $  (367)   $   575       $208         $   441      $ (70)   $   371
                                                     ======     ======        ===          ======       ====     ======

</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,
                                                                  2001                  2001          2000         1999
<S>                                                               <C>                   <C>           <C>          <C>
Weighted-average interest rate earned on:
  Interest-earning deposits                                       1.35%                 3.59%         5.32%        4.48%
  Mortgage-backed securities                                      5.92                  6.20          6.72         5.99
  Investment securities                                           6.60                  6.83          7.01         6.64
  Loans receivable                                                7.59                  8.00          8.18         7.90
  Stock in FHLB of Indianapolis                                   6.80                  7.45          8.27         7.99
     Total interest-earning assets                                7.12                  7.61          7.88         7.53

Weighted-average interest rate cost of:
  Savings accounts                                                2.43                  2.50          3.01         3.01
  NOW and money market accounts                                   2.15                  3.12          3.72         3.61
  Certificates of deposit                                         4.91                  5.56          5.78         5.32
  Borrowings                                                      5.39                  5.90          6.13         5.01
     Total interest-bearing liabilities                           4.37                  5.06          5.31         4.67

Interest rate spread (1)                                          2.75                  2.55          2.57         2.86

Net yield on weighted-average
  interest-earning assets (2)                                      N/A                  3.23          3.27         3.54

</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, 2001,  because the  computation of net yield is applicable  only over a
     period rather than at a specific date.



<PAGE>


                           Logansport Financial Corp.

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


Asset/Liability Management

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

The Office of Thrift Supervision ("OTS") issued a regulation,  effective January
1, 1994, which uses a net market value  methodology to measure the interest rate
risk exposure of thrift  institutions.  Under OTS regulations,  an institution's
"normal"  level of  interest  rate  risk in the  event of an  assumed  change in
interest rates is a decrease in the institution's NPV in an amount not exceeding
2% of the  present  value of its  assets.  Thrift  institutions  with  over $300
million in assets or less than a 12%  risk-based  capital  ratio are required to
file OTS Schedule  CMR.  Data from  Schedule CMR is used by the OTS to calculate
changes in NPV (and the related "normal" level of interest rate risk) based upon
certain interest rate changes (discussed below).  Institutions which do not meet
either of the filing requirements are not required to file OTS Schedule CMR, but
may do so  voluntarily.  The  Bank  does  not  currently  meet  either  of these
requirements,  but it does voluntarily file Schedule CMR. Presented below, as of
September  30,  2001 (the latest  available  date) and  December  31, 2000 is an
analysis  performed by the OTS of the Bank's  interest  rate risk as measured by
changes in NPV for  instantaneous  and  sustained  parallel  shifts in the yield
curve,  in 100  basis  point  increments,  up and down 300 basis  points  and in
accordance with OTS regulations.  As illustrated in the table, the Bank's NPV is
more sensitive to rising rates than  declining  rates.  This occurs  principally
because,   as  rates  rise,   the  market  value  of  the  Bank's   investments,
adjustable-rate  mortgage loans (many of which have maximum per year adjustments
of 1%), fixed-rate loans and mortgage-backed  securities 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, 2001
 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>
  +300             $13,376            $(4,215)           (24)%             10.00%       (241 bp)
  +200              15,087             (2,504)           (14)              11.05        (136 bp)
  +100              16,546             (1,045)            (6)              11.89         (52 bp)
   -                17,591                 -              -                12.41           -
  -100              17,774                183              1               12.36          (5 bp)
  -200              17,504                (87)            -                12.02         (39 bp)
  -300                  -                  -              -                 -              -

</TABLE>



<PAGE>


                           Logansport Financial Corp.

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


Asset and Liability Management (continued)
<TABLE>
<CAPTION>
                                               December 30, 2000
 Change in
interest rate                     Net Portfolio Value                NPV as % of PV of Assets
(Basis Points)      $ Amount          $ Change         % Change       NPV Ratio         Change
                         (In thousands)
<S>                 <C>                <C>                <C>            <C>            <C>
   +300             $12,013            $(5,986)           (33)%          9.49%          (395 bp)
   +200              14,618             (3,381)           (19)          11.27           (217 bp)
   +100              16,476             (1,523)            (8)          12.49            (95 bp)
    -                17,999                 -               -           13.44              -
   -100              19,081              1,082              6           14.09             65 bp
   -200              20,210              2,211             12           14.75            131 bp
   -300              21,696              3,697             21           15.61            217 bp
</TABLE>

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


Liquidity and Capital Resources

The Company's  primary  sources of funds are deposits 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, 2001,  2000 and 1999, the Company  originated  mortgage loans and commercial
loans  in the  amounts  of $54.3  million,  $43.2  million  and  $36.6  million,
respectively.  The  Company  originated  consumer  loans of $6.8  million,  $8.5
million and $7.8  million,  in 2001,  2000 and 1999,  respectively.  The Company
purchased loans in the amount of $499,000 in 2001 and $981,000 in 1999. No loans
were purchased in 2000. Loan repayments totaled $51.4 million, $39.8 million and
$27.4 million for 2001, 2000 and 1999, respectively.

During the years ended December 31, 2001,  2000 and 1999, the Company  purchased
investment  securities  in the amounts of $1.6  million,  $4.1  million and $4.9
million,  respectively.  Sales  or  maturities  of such  securities  held by the
Company and payments on mortgage-backed or other asset-backed securities totaled
$5.1  million,   $5.6  million  and  $2.8  million  for  2001,  2000  and  1999,
respectively.

Deposits grew by $4.4 million from  December 31, 2000 to December 31, 2001,  and
by $3.4 million from December 31, 1999 to December 31, 2000.



<PAGE>


                           Logansport Financial Corp.

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


Liquidity and Capital Resources (continued)

Cash and cash  equivalents  decreased  by  $394,000  from  December  31, 2000 to
December 31,  2001,  and  increased  by $4.1  million from  December 31, 1999 to
December 31, 2000.

The Company had outstanding loan  commitments,  including  undisbursed  loans in
process and standby letters of credit, totaling $13.9 million and $12.8 million,
at December 31, 2001 and 2000,  respectively.  The Company  anticipates  that it
will have  sufficient  funds  available  to meet its current  loan  commitments.
Certificates  of deposit  that are  scheduled to mature in one year or less from
December  31,  2001  and  2000  totaled   $31.6   million  and  $39.3   million,
respectively. Based upon historical deposit flow data, the Company's competitive
pricing in its market and management's  experience,  management  believes that a
significant portion of such deposits will remain with the Company.

Liquidity  management  is both a daily and  long-term  function of the Company's
management  strategy.  In the event that the Company should require funds beyond
its ability to generate them internally,  additional funds are available through
the use of FHLB advances, and also may be available through sales of securities,
although no sales of securities are planned.  At December 31, 2001 and 2000, the
Company  had  outstanding  FHLB  advances of $34.8  million  and $34.0  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, 2001, the Bank's tangible capital and leverage ratios were
both 11.7%, and its risk-based capital to risk-weighted  assets ratio was 16.9%.
Therefore,  at December 31, 2001, 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, 2001.
<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%           $2,066           11.7%              $16,109             $14,043
Core capital (2)         4.0             5,508           11.7                16,109              10,601
Risk-based capital       8.0             8,166           16.9                17,241 (3)           9,075
</TABLE>

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

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

(2)  During  1999,  the OTS  adopted  a core  capital  requirement  for  savings
     associations  comparable to that recently adopted by the Comptroller of the
     Currency for national  banks.  The new  regulation  requires at least 3% of
     total adjusted  assets for savings  associations  that received the highest
     supervisory  rating for safety and soundness,  and 4% for all other savings
     associations.

(3)  The Bank's  risk-based  capital includes $1.1 million of general  valuation
     allowances.


<PAGE>


                           Logansport Financial Corp.

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


Liquidity and Capital Resources (continued)

As of December 31, 2001, 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 June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial  Accounting  Standards  ("SFAS") No. 141  "Business  Combinations,"
which requires that all business  combinations  initiated after June 30, 2001 be
accounted  for using the purchase  method.  The  pooling-of-interests  method of
accounting is prohibited except for combinations initiated before June 30, 2001.
The  remaining  provisions  of SFAS No. 141  relating to  business  combinations
accounted for by the purchase  method,  including  identification  of intangible
assets,  accounting for negative goodwill,  financial statement presentation and
disclosure,  are  effective  for  combinations  completed  after June 30,  2001.
Management  adopted SFAS No. 141 effective  July 1, 2001,  as required,  without
material effect on the Company's financial position or results of operations.

In June 2001,  the FASB issued SFAS No. 142  "Goodwill and  Intangible  Assets,"
which prescribes  accounting for all purchased  goodwill and intangible  assets.
Pursuant to SFAS No. 142, acquired goodwill is not amortized,  but is tested for
impairment  at the  reporting  unit level  annually and  whenever an  impairment
indicator arises.

SFAS No. 142 is effective for fiscal years  beginning  after  December 15, 2001,
and is not  expected  to  have a  material  effect  on the  Company's  financial
position 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, 2001 and 2000, 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,
2001. 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, 2001 and 2000, 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, 2001,  in conformity  with  accounting
principles generally accepted in the United States of America.



/s/ Grant Thornton LLP

Cincinnati, Ohio
February 19, 2002


<PAGE>


                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                  December 31,
                        (In thousands, except share data)

<TABLE>
<CAPTION>
         ASSETS                                                                     2001             2000

<S>                                                                           <C>             <C>
Cash and due from banks                                                       $    1,081      $       576
Interest-bearing deposits in other financial institutions                          7,735            8,634
                                                                               ---------        ---------
         Cash and cash equivalents                                                 8,816            9,210

Investment securities designated as available for sale - at market                 5,788            8,322
Mortgage-backed securities designated as available for sale - at market            4,419            5,165
Loans receivable - net                                                           111,696          102,418
Office premises and equipment - at depreciated cost                                1,803            1,843
Real estate acquired through foreclosure                                              65               -
Federal Home Loan Bank stock - at cost                                             1,973            1,973
Investment in real estate partnership                                              1,109            1,284
Accrued interest receivable on loans                                                 445              548
Accrued interest receivable on mortgage-backed securities                             28               41
Accrued interest receivable on investments and interest-bearing deposits              92              107
Prepaid expenses and other assets                                                     88               64
Cash surrender value of life insurance                                             1,291            1,234
Deferred income tax asset                                                            452              403
                                                                              ----------       ----------

         Total assets                                                           $138,065         $132,612
                                                                                 =======          =======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                       $  83,900        $  79,454
Advances from the Federal Home Loan Bank                                          34,750           34,000
Notes payable                                                                      1,165            1,237
Accrued interest and other liabilities                                               819              906
Accrued income taxes                                                                  29                2
                                                                             -----------     ------------
         Total liabilities                                                       120,663          115,599

Commitments                                                                           -                -

Shareholders' equity
  Preferred stock - no par value, 2,000,000 shares authorized; none issued            -                -
  Common stock - no par value, 5,000,000 shares authorized; 1,034,545
    and 1,083,510 shares at aggregate value issued and outstanding at
    December 31, 2001 and 2000, respectively                                       4,802            5,515
  Retained earnings - restricted                                                  12,408           11,526
  Less shares acquired by stock benefit plan                                         (63)            (103)
  Accumulated comprehensive income, unrealized gains on securities
    designated as available for sale, net of related tax effects                     255               75
                                                                              ----------      -----------
         Total shareholders' equity                                               17,402           17,013
                                                                                --------         --------

         Total liabilities and shareholders' equity                             $138,065         $132,612
                                                                                 =======          =======

</TABLE>


The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                       CONSOLIDATED STATEMENTS OF EARNINGS

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

<TABLE>
<CAPTION>
                                                                            2001         2000         1999

<S>                                                                       <C>          <C>          <C>
Interest income
  Loans                                                                   $8,721       $8,041       $6,484
  Investment securities                                                      405          667          420
  Mortgage-backed securities                                                 297          383          421
  Interest-bearing deposits and other                                        408          433          274
                                                                          ------       ------       ------
         Total interest income                                             9,831        9,524        7,599

Interest expense
  Deposits                                                                 3,677        3,907        3,319
  Borrowings                                                               2,019        1,690          724
                                                                           -----        -----       ------
         Total interest expense                                            5,696        5,597        4,043
                                                                           -----        -----        -----

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

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

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

Other income
  Service charges on deposit accounts                                        238          160          139
  Loss on sale of investment and mortgage-backed securities                   -           (17)          -
  Loss on investment in real estate partnership                             (207)        (244)        (121)
  Other operating                                                            191          223          157
                                                                          ------       ------       ------
         Total other income                                                  222          122          175

General, administrative and other expense
  Employee compensation and benefits                                       1,115        1,129          926
  Occupancy and equipment                                                    230          196          163
  Federal deposit insurance premiums                                          15           16           41
  Data processing                                                            183          163          147
  Other operating                                                            503          433          390
                                                                          ------       ------       ------
         Total general, administrative and other expense                   2,046        1,937        1,667
                                                                           -----        -----        -----

         Earnings before income taxes                                      1,919        1,780        1,902

Income taxes
  Current                                                                    662          649          706
  Deferred                                                                  (141)        (138)         (28)
                                                                          ------       ------      -------
         Total income taxes                                                  521          511          678
                                                                          ------       ------       ------

         NET EARNINGS                                                     $1,398       $1,269       $1,224
                                                                           =====        =====        =====

         EARNINGS PER SHARE
           Basic                                                           $1.29        $1.16        $1.03
                                                                            ====         ====         ====

           Diluted                                                         $1.27        $1.16        $1.02
                                                                            ====         ====         ====

</TABLE>

The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                         For the year ended December 31,
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                   2001         2000         1999

<S>                                                              <C>          <C>          <C>
Net earnings                                                     $1,398       $1,269       $1,224

Other comprehensive income (loss), net of tax:
  Unrealized holding gains (losses) on securities
    during the period, net of taxes (benefits) of $93, $202
    and $(249) for the years ended December 31, 2001, 2000
    and 1999, respectively                                          180          392         (483)
  Reclassification adjustment for realized losses
    included in earnings, net of tax benefit of $6
    for the year ended December 31, 2000                             -            11           -
                                                                  -----      -------        -----

Comprehensive income                                             $1,578       $1,672      $   741
                                                                  =====        =====       ======

Accumulated comprehensive income (loss)                         $   255     $     75      $  (328)
                                                                 ======      =======       ======

</TABLE>


















The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

              For the years ended December 31, 2001, 2000 and 1999
                        (In thousands, except share data)
<TABLE>
<CAPTION>
                                                                                                  Unrealized
                                                                                    Shares    gains (losses)
                                                                                  acquired     on securities
                                                                                  by stock     designated as
                                                            Common      Retained   benefit         available
                                                             stock      earnings      plan          for sale      Total

<S>                                                         <C>          <C>         <C>                <C>     <C>
Balance at January 1, 1999                                  $6,670       $10,031     $(368)             $155    $16,488

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

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

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

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

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                     163            -         -                 -         163
Unrealized gains on securities designated
  as available for sale, net of related tax effects             -             -         -                180        180
Amortization expense of stock benefit plan                      45            -         40                -          85
Cash dividends of $.48 per share                                -           (516)       -                 -        (516)
                                                             -----      --------       ---               ---     ------

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

</TABLE>



The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                         For the year ended December 31,
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                           2001         2000         1999
<S>                                                                                    <C>          <C>          <C>
Cash flows from operating activities:
  Net earnings for the year                                                            $  1,398     $  1,269     $  1,224
  Adjustments to reconcile net earnings to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                                                            99          110           81
    Amortization of premiums on investments and mortgage-backed securities                   31           26           95
    Amortization expense of stock benefit plan                                               85          136          129
    Loss on sale of investment and mortgage-backed securities                                -            17           -
    Provision for losses on loans                                                           392          332          162
    Loss on investment in real estate partnership                                           207          244          121
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                                  103         (132)         (79)
      Accrued interest receivable on mortgage-backed securities                              13            6           19
      Accrued interest receivable on investments                                             15            8          (53)
      Prepaid expenses and other assets                                                     (24)         (19)          (9)
      Accrued interest and other liabilities                                                (87)         (98)        (207)
      Federal income taxes
        Current                                                                              27           48          (17)
        Deferred                                                                           (141)        (138)         (28)
                                                                                       --------     --------    ---------
         Net cash provided by operating activities                                        2,118        1,809        1,438

Cash flows provided by (used in) investing activities:
  Proceeds from sale of investment securities designated as available for sale               -         3,965           -
  Purchase of investment securities designated as available for sale                     (1,053)      (4,082)      (4,925)
  Maturities of investment securities designated as available for sale                    3,775          800          875
  Purchase of mortgage-backed securities designated as available for sale                  (514)          -            -
  Principal repayments on mortgage-backed securities designated as
    available for sale                                                                    1,313          834        1,948
  Purchase of loans                                                                        (499)          -          (981)
  Sales of loan participations                                                              416           -            -
  Loan disbursements                                                                    (61,082)     (51,693)     (44,410)
  Principal repayments on loans                                                          51,430       39,843       27,402
  Investment in real estate partnership                                                    (104)        (113)        (108)
  Purchases of and additions to office premises and equipment                               (59)         (51)        (455)
  Purchase of Federal Home Loan Bank stock                                                   -          (700)        (705)
  Increase in cash surrender value of life insurance policy                                 (57)         (50)         (49)
                                                                                      ---------    ---------    ---------
         Net cash used in investing activities                                           (6,434)     (11,247)     (21,408)
                                                                                        -------       ------       ------

         Net cash used in operating and investing activities
           (subtotal carried forward)                                                    (4,316)      (9,438)     (19,970)
                                                                                        -------      -------       ------

</TABLE>


<PAGE>

                           Logansport Financial Corp.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                         For the year ended December 31,
                                 (In thousands)
<TABLE>
<CAPTION>

                                                                                           2001         2000         1999
<S>                                                                                    <C>          <C>          <C>
         Net cash used in operating and investing activities
           (subtotal brought forward)                                                  $ (4,316)    $ (9,438)   $ (19,970)

Cash flows provided by (used in) financing activities:
  Net increase in deposit accounts                                                        4,446        3,443        6,000
  Proceeds from Federal Home Loan Bank advances                                          12,750       33,000       31,000
  Repayment of Federal Home Loan Bank advances                                          (12,000)     (22,000)     (15,000)
  Proceeds from the exercise of stock options                                               163           -             5
  Dividends on common stock                                                                (516)        (477)        (521)
  Purchase of shares                                                                       (921)        (464)        (696)
                                                                                       --------     --------    ---------
         Net cash provided by financing activities                                        3,922       13,502       20,788
                                                                                        -------       ------      -------

Net increase (decrease) in cash and cash equivalents                                       (394)       4,064          818

Cash and cash equivalents at beginning of year                                            9,210        5,146        4,328
                                                                                        -------      -------     --------

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


Supplemental disclosure of cash flow information:
  Cash paid during the year for:
    Income taxes                                                                       $    590     $    629    $     724
                                                                                        =======      =======     ========

    Interest on deposits and borrowings                                                $  5,719     $  5,449    $   4,054
                                                                                        =======      =======     ========

Supplemental disclosure of noncash investing and financing activities:
  Transfers from loans to real estate acquired
    through foreclosure                                                                $     65     $    -      $     -
                                                                                        =======      =======     ========

  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                               $    180     $    403    $    (483)
                                                                                        =======      =======     ========

</TABLE>













The accompanying notes are an integral part of these statements.


<PAGE>


                           Logansport Financial Corp.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        December 31, 2001, 2000 and 1999


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, 2001 and 2000, 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, 2001, 2000 and 1999


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, 2001, 2000 and 1999


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:

                                                          2001              2000
                                                              (In thousands)

    Impaired loans with related allowance               $1,460            $1,379
    Impaired loans with no related allowance                -                 -
                                                          ----             -----

         Total impaired loans                           $1,460            $1,379
                                                         =====             =====


                                                       2001       2000      1999
                                                              (In thousands)

    Allowance on impaired loans
      Beginning balance                              $  228      $  48     $  -
      Provision                                         113        180        48
                                                      -----        ---      ----
      Ending balance                                 $  341      $ 228     $  48
                                                      =====        ===      ====

    Average balance of impaired loans                $1,419      $ 632     $ 488
    Interest income recognized on impaired loans     $   37      $  59     $  71

    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.


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     6.   Real Estate Acquired Through Foreclosure

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

     7.   Office Premises and Equipment

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

     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  $119,000,  $140,000
     and  $70,000  during the years  ended  December  31,  2001,  2000 and 1999,
     respectively,  as well as  federal  income  tax  credits  of  approximately
     $182,000,  $142,000 and $40,000 in 2001, 2000 and 1999, respectively.  This
     affordable  housing  project is expected  to  generate  tax credits for the
     Savings Bank in future years.

     9.   Income Taxes

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



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     9.   Income Taxes (continued)

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

     10.  Benefit Plans

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

     The Plan  sponsor has advised the Savings  Bank that the pension plan meets
     the  criteria of a  multi-employer  pension plan as defined in SFAS No. 87,
     "Employers'  Accounting for Pensions".  In accordance with SFAS No. 87, net
     pension cost is recognized for any required  contribution for the period. A
     liability is  recognized  for any  contributions  due and unpaid.  Due to a
     continuation of the Plan's overfunded status, no contributions were made to
     the pension plan during the years ended  December 31, 2001,  2000 and 1999.
     The  provision  for pension  expense was  computed by the Plan's  actuaries
     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  and $1.2  million at  December  31,  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  $63,000,  $108,000  and $81,000 for the years ended  December  31,
     2001, 2000 and 1999, 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, 2001, 2000 or 1999.

     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



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     10.  Benefit Plans (continued)

     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  $40,000,  $136,000  and $129,000 for the years ended
     December 31, 2001, 2000 and 1999, 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  $19,000,  $14,000  and $11,000 for the
     years ended December 31, 2001, 2000 and 1999, respectively.

     11.  Earnings Per Share

     Basic  earnings per share is computed based upon  1,084,377,  1,090,800 and
     1,194,070  weighted-average shares outstanding for the years ended December
     31,  2001,  2000 and  1999,  respectively.  Diluted  earnings  per share is
     computed taking into  consideration  common shares outstanding and dilutive
     potential common shares to be issued under the  Corporation's  stock option
     plan.  Weighted-average  common shares deemed  outstanding  for purposes of
     computing  diluted  earnings per share  totaled  1,104,323,  1,090,800  and
     1,203,324  for  the  years  ended   December  31,  2001,   2000  and  1999,
     respectively.  Incremental  shares related to the assumed exercise of stock
     options  included in the calculation of diluted  earnings per share totaled
     19,946  and  9,254  for  the  years  ended  December  31,  2001  and  1999,
     respectively.  There were no  incremental  shares  related  to the  assumed
     exercise of stock options  included in the calculation of diluted  earnings
     per share for the year ended December 31, 2000.  Options to purchase 2,500,
     125,915 and 2,500 shares of common stock with a respective weighted-average
     exercise price of $13.75,  $10.59 and $13.75,  were outstanding at December
     31,  2001,  2000  and  1999,  respectively,  but  were  excluded  from  the
     computation  of diluted  earnings per share because their  exercise  prices
     were greater than the average market price of the common shares.

     12.  Cash and Cash Equivalents

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

     13.  Fair Value of Financial Instruments

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


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     13.  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, 2001 and 2000:

               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,  2001 and 2000.  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, 2001 and 2000, 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, 2001, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued)

     13.  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>
                                                                2001                           2000
                                                     Carrying           Fair        Carrying           Fair
                                                        value          value           value          value
                                                                          (In thousands)
<S>                                                <C>            <C>             <C>            <C>
    Financial assets
      Cash and cash equivalents                    $    8,816     $    8,816      $    9,210     $    9,210
      Investment securities                             5,788          5,788           8,322          8,322
      Mortgage-backed securities                        4,419          4,419           5,165          5,165
      Loans receivable                                111,696        112,990         102,418        102,674
      Federal Home Loan Bank stock                      1,973          1,973           1,973          1,973
                                                    ---------    -----------       ---------      ---------

                                                     $132,692       $133,986        $127,088       $127,344
                                                      =======        =======         =======        =======

    Financial liabilities
      Deposits                                      $  83,900      $  85,098       $  79,454      $  79,547
      Advances from the Federal Home Loan Bank         34,750         34,777          34,000         33,943
      Notes payable                                     1,165          1,165           1,237          1,237
                                                    ---------      ---------       ---------      ---------

                                                     $119,815       $121,040        $114,691       $114,727
                                                      =======        =======         =======        =======
</TABLE>

     14.  Advertising

     Advertising costs are expensed when incurred. The Corporation's advertising
     expense totaled  $56,000,  $41,000 and $37,000 for the years ended December
     31, 2001, 2000 and 1999, respectively.

     15.  Reclassifications

     Certain  prior year amounts have been  reclassified  to conform to the 2001
     consolidated financial statement presentation.



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


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, 2001 and 2000, are as follows:
<TABLE>
<CAPTION>
                                                                                            2001
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)
<S>                                                                <C>             <C>              <C>            <C>
    U.S. Government agency obligations                             $1,900          $  13            $    5         $1,908
    State and municipal obligations                                 2,789            113                 1          2,901
    FHLMC stock                                                         4            244                -             248
    Corporate debt obligations                                        710             22                 1            731
                                                                   ------           ----             -----         ------

         Total investment securities                               $5,403           $392            $    7         $5,788
                                                                    =====            ===             =====          =====


                                                                                            2000
                                                                                   Gross             Gross      Estimated
                                                                Amortized     unrealized        unrealized           fair
                                                                     cost          gains            losses          value
                                                                                       (In thousands)

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

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

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

                                                                          2001                             2000
                                                                               Estimated                        Estimated
                                                                Amortized           fair         Amortized           fair
                                                                     cost          value              cost          value
                                                                                        (In thousands)

    Due in one year or less                                      $     25       $     25           $   125        $   125
    Due after one year through three years                          1,004          1,035               550            547
    Due after three years through five years                          937            959             1,114          1,147
    Due after five years through ten years                          2,379          2,436             3,829          3,763
    Due after ten years                                             1,054          1,085             2,488          2,481
                                                                    -----          -----             -----          -----
                                                                    5,399          5,540             8,106          8,063
    FHLMC stock                                                         4            248                 4            259
                                                                    -----          -----             -----          -----

                                                                   $5,403         $5,788            $8,110         $8,322
                                                                    =====          =====             =====          =====

</TABLE>

<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


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

     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, 2001
     and 2000 are presented below.
<TABLE>
<CAPTION>

                                                                                          2001
                                                                                 Gross             Gross        Estimated
                                                            Amortized       unrealized        unrealized             fair
                                                                 cost            gains            losses            value
                                                                                     (In thousands)
<S>                                                           <C>               <C>                  <C>          <C>
    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
                                                                =====             ====              ====            =====

                                                                                         2000
                                                                                 Gross             Gross        Estimated
                                                            Amortized       unrealized        unrealized             fair
                                                                 cost            gains            losses            value
                                                                                     (In thousands)

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

         Total mortgage-backed securities                      $5,264           $    5              $104           $5,165
                                                                =====            =====               ===            =====

</TABLE>


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


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

     The amortized cost and estimated fair value of  mortgage-backed  securities
     at December 31, 2001 and 2000, 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>
                                                                       2001                              2000
                                                                             Estimated                          Estimated
                                                            Amortized             fair         Amortized             fair
                                                                 cost            value              cost            value
                                                                                   (In thousands)
<S>                                                           <C>              <C>               <C>              <C>
      Due within one year                                     $   805          $   805           $   691          $   677
      Due after one year to three years                           989              991             1,082            1,062
      Due after three years to five years                         531              531               721              707
      Due after five years to ten years                           786              785             1,159            1,133
      Due after ten years                                       1,307            1,307             1,611            1,586
                                                                -----            -----             -----            -----

         Total mortgage-backed securities                      $4,418           $4,419            $5,264           $5,165
                                                                =====            =====             =====            =====
</TABLE>


NOTE C - LOANS RECEIVABLE

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

                                                        2001                2000
                                                             (In thousands)
    Residential real estate
      One- to four-family residential                $63,863           $  62,277
      Multi-family residential                         1,816               2,050
      Construction                                     2,278               2,814
    Nonresidential real estate and land               18,435              13,230
    Commercial                                         9,586               7,088
    Commercial leases                                  3,914               2,228
    Consumer and other                                13,635              14,575
                                                    --------            --------
                                                     113,527             104,262

    Less:
      Undisbursed portion of loans in process            699               1,084
      Allowance for loan losses                        1,132                 760
                                                    --------          ----------

                                                    $111,696            $102,418
                                                     =======             =======




<PAGE>
                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


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  $67.3  million,  or 60%, of the total loan
     portfolio  at December 31, 2001,  and $66.1  million,  or 64%, of the total
     loan portfolio at December 31, 2000.  Approximately 66% 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  34% 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  $1.1 million and $1.0 million at December
     31, 2001 and 2000, respectively.


NOTE D - ALLOWANCE FOR LOAN LOSSES

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

                                                 2001         2000         1999
                                                        (In thousands)

     Beginning balance                        $   760         $440         $285
     Provision for losses on loans                392          332          162
     Charge-offs of loans - net                   (20)         (12)          (7)
                                              -------         ----        -----

     Ending balance                            $1,132         $760         $440
                                                =====          ===          ===

     At December  31, 2001,  the Savings  Bank's  allowance  for loan losses was
     comprised entirely of a general loan loss allowance, which is includible as
     a component of regulatory  risk-based  capital.  At December 31, 2001, 2000
     and  1999,  the  Savings  Bank had  loans  of $1.9  million,  $336,000  and
     $666,000,  respectively,  which had been placed on nonaccrual status due to
     concerns as to borrowers' ability to pay. At December 31, 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
     $41,000,  $12,000 and $36,000 for the years ended  December 31, 2001,  2000
     and 1999, respectively.


NOTE E - OFFICE PREMISES AND EQUIPMENT

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

                                                            2001           2000
                                                              (In thousands)

    Land                                                 $   203        $   203
    Buildings and improvements                             1,766          1,742
    Furniture and equipment                                  435            473
                                                          ------         ------
                                                           2,404          2,418
    Less accumulated depreciation and amortization          (601)          (575)
                                                          ------         ------

                                                          $1,803         $1,843
                                                          ======         ======


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE F - DEPOSITS

     Deposits consist of the following major classifications at December 31:

<TABLE>
<CAPTION>
    Deposit type and weighted-average
    interest rate                                                  2001             2000
                                                                      (In thousands)
    NOW accounts
<S>                                                            <C>              <C>
      December 31, 2001 - 1.58%                                $  7,019
      December 31, 2000 - 2.63%                                                 $  6,080
    Passbook and club accounts
      December 31, 2001 - 2.47%                                   4,136
      December 31, 2000 - 3.57%                                                    3,478
    Money market deposit accounts
      December 31, 2001 - 2.48%                                  17,759
      December 31, 2000 - 4.29%                                                   15,823
    Non-interest bearing accounts                                 3,343            3,277
                                                                -------          -------

        Total demand, transaction and passbook deposits          32,257           28,658

    Certificates of deposit
     Original maturities of:
        Less than 12 months
          December 31, 2001 - 3.08%                               4,633
          December 31, 2000 - 6.84%                                                8,607
        12 months to 18 months
          December 31, 2001 - 4.80%                              20,955
          December 31, 2000 - 6.40%                                               21,093
        24 months to 30 months
          December 31, 2001 - 5.32%                              16,654
          December 31, 2000 - 5.56%                                               12,680
        More than 30 months
          December 31, 2001 - 5.63%                               3,370
          December 31, 2000 - 5.72%                                                3,226
      Individual retirement accounts
        December 31, 2001 - 5.16%                                 6,031
        December 31, 2000 - 5.90%                                                  5,190
                                                                -------          -------

      Total certificates of deposit                              51,643           50,796
                                                                 ------           ------

      Total deposits                                            $83,900          $79,454
                                                                 ======           ======
</TABLE>

     At December 31, 2001 and 2000, the Savings Bank had  certificate of deposit
     accounts with balances greater than $100,000 totaling $6.5 million and $6.1
     million, respectively.



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999



NOTE F - DEPOSITS (continued)

     Interest  expense on deposits for the year ended  December 31 is summarized
     as follows:
<TABLE>
<CAPTION>
                                                            2001            2000           1999
                                                                       (In thousands)

<S>                                                      <C>             <C>            <C>
     Passbook and money market deposit accounts          $   655         $   856        $   903
     NOW accounts                                            104             133            125
     Certificates of deposit                               2,918           2,918          2,291
                                                           -----           -----          -----

                                                          $3,677          $3,907         $3,319
                                                           =====           =====          =====
</TABLE>

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

                                                    2001             2000
                                                       (In thousands)

     Less than one year                           $31,551          $39,335
     One year to three years                       19,026           10,411
     Over three years                               1,066            1,050
                                                  -------          -------

                                                  $51,643          $50,796
                                                   ======           ======

NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK

     Advances  from the Federal Home Loan Bank,  collateralized  at December 31,
     2001 by a blanket  pledge of  residential  mortgage  loans  totaling  $58.2
     million are summarized as follows:

<TABLE>
<CAPTION>
                            Maturing year                   December 31,
     Interest rate       ending December 31,           2001                2000
                                                       (Dollars in thousands)
<S>                             <C>                <C>                  <C>
     6.46% - 6.71%              2001               $     -              $10,000
     2.76% - 4.06%              2002                  6,000                  -
     5.94%                      2004                  3,000               3,000
     5.10% - 6.75%              2005                  4,200               4,000
     5.04% - 5.30%              2006                  1,500                  -
     5.31% - 5.72%              2007                  1,050                  -
     5.60% - 5.99%              2010                 17,000              17,000
     4.75%                      2011                  2,000                  -
                                                    -------             -------

                                                    $34,750             $34,000
                                                     ======              ======

    Weighted-average interest rate                     5.39%               6.11%
                                                       ====                ====
</TABLE>
     Advances totaling  approximately $26.0 million are 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
     adjustment.


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE H - NOTES PAYABLE

     At December  31,  2001 and 2000,  notes  payable  consisted  of  borrowings
     secured by the Savings Bank's investment in a real estate partnership which
     will mature in 2009. The interest rate on the  variable-rate  borrowing was
     1.92% and 3.61% at December 31, 2001 and 2000, respectively.


NOTE I - INCOME TAXES

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

<TABLE>
<CAPTION>
                                                                         2001              2000           1999
                                                                                      (In thousands)

<S>                                                                      <C>               <C>            <C>
    Federal income taxes computed at the statutory rate                  $652              $605           $647
    Increase (decrease) in taxes resulting from:
      Tax exempt interest                                                 (42)              (37)           (22)
      Increase in cash surrender value of life insurance                  (19)              (17)           (17)
      Real estate partnership tax credits                                (182)             (142)           (40)
      State income tax provision                                          113               103            111
      Other                                                                (1)               (1)            (1)
                                                                        -----             -----          -----

    Income tax provision per consolidated
      financial statements                                               $521              $511           $678
                                                                          ===               ===            ===


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

    Taxes (payable) refundable on temporary                                                2001           2000
    differences at statutory rate:                                                           (In thousands)

    Deferred tax assets:
      Other than temporary declines in investment securities                              $  23          $  23
      Retirement expense                                                                    231            216
      General loan loss allowance                                                           481            323
      Stock benefit plan expense                                                             69             57
      Other                                                                                  33             14
                                                                                           ----           ----
         Total deferred tax assets                                                          837            633

    Deferred tax liabilities:
      State income taxes                                                                    (56)           (35)
      Percentage of earnings bad debt deduction                                             (24)           (37)
      Unrealized gains on securities designated as available for sale                      (131)           (38)
      Loss on investment in real estate partnership                                        (136)           (95)
      Book versus tax depreciation                                                          (38)           (25)
                                                                                           ----           ----
         Total deferred tax liabilities                                                    (385)          (230)
                                                                                            ---            ---

         Net deferred tax asset                                                            $452           $403
                                                                                            ===            ===
</TABLE>



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999



NOTE I - INCOME TAXES (continued)

     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, 2001. 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,
     2001.

     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.


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,  2001,  the Savings Bank had  outstanding  commitments  of
     approximately  $762,000 to originate residential one- to four-family loans.
     The Savings Bank also had  outstanding  commitments of  approximately  $1.0
     million to originate  non-residential  real estate loans and  approximately
     $300,000  to  originate  other  commercial  loans  at  December  31,  2001.
     Additionally, the Savings Bank had unused lines of credit under home equity
     loans and  commercial  loans of  approximately  $977,000 and $7.5  million,
     respectively,   at  December  31,  2001.  Finally,  the  Savings  Bank  had
     commitments  under  standby  letters  of credit  totaling  $2.7  million at
     December 31, 2001.  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, 2001, and will
     be funded from normal cash flow from operations.



<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE K - REGULATORY CAPITAL

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

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

     As of December 31, 2001 and 2000, management believes that the Savings Bank
     met all capital adequacy requirements to which it was subject.
<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>


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE K - REGULATORY CAPITAL (continued)
<TABLE>
<CAPTION>
     2000:                                                                            To be "well-
                                                                                  capitalized" under
                                                          For capital              prompt corrective
                                   Actual              adequacy purposes           action provisions
                             ----------------          -----------------           -----------------
                             Amount     Ratio           Amount    Ratio             Amount     Ratio
                                                      (Dollars in thousands)
<S>                         <C>         <C>             <C>         <C>             <C>           <C>
     Tangible capital       $16,587     12.5%         =>$1,988    =>1.5%          =>$6,625     => 5.0%

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

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

     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,  $700,000  and $1.0 million were paid in 2001,  2000 and 1999,
     respectively.  During 2001,  the Savings Bank  received an  additional  OTS
     approval  to  make up to  $2.0  million  in  capital  distributions  to the
     Corporation.  Of this amount,  dividend payments of $1,050,000 were paid in
     2001.  At December  31, 2001,  $950,000 was  available to be paid in future
     years.


NOTE L - STOCK OPTION PLANS

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

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


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE L - 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, 2001,  2000 and 1999,  and changes  during the years ending on
     those dates is presented below:
<TABLE>
<CAPTION>

                                                  2001                         2000                        1999
                                                         Weighted-                   Weighted-                   Weighted-
                                                           average                     average                     average
                                                          exercise                    exercise                    exercise
                                               Shares        price         Shares        price         Shares        price
<S>                                           <C>           <C>           <C>          <C>            <C>           <C>
     Outstanding at beginning of year         125,915       $10.59        125,915      $10.59         126,415       $10.59
     Granted                                      -            -              -           -               -            -
     Exercised                                (15,463)       10.53            -           -              (500)       10.53
     Forfeited                                 (3,656)       10.53            -           -               -            -
                                            ---------        -----        -------      ------         -------        -----

     Outstanding at end of year               106,796       $10.61        125,915      $10.59         125,915       $10.59
                                              =======        =====        =======       =====         =======        =====

     Options exercisable at year-end          105,796       $10.58         98,547      $10.56          72,179       $10.55
                                              =======        =====         ======       =====          ======        =====

     The following  information  applies to options  outstanding at December 31,
     2001:

     Number outstanding                                                                                            106,796
     Range of exercise prices                                                                              $10.53 - $13.75
     Weighted-average exercise price                                                                                $10.61
     Weighted-average remaining contractual life                                                                 4.3 years

</TABLE>


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE M - CONDENSED FINANCIAL STATEMENTS OF LOGANSPORT FINANCIAL CORP.

     The  following  condensed  financial  statements  summarize  the  financial
     position of  Logansport  Financial  Corp. as of December 31, 2001 and 2000,
     and the  results  of its  operations  and cash  flows for the  years  ended
     December 31, 2001, 2000 and 1999.
<TABLE>
<CAPTION>

                           Logansport Financial Corp.
                        STATEMENTS OF FINANCIAL CONDITION
                                  December 31,
                                 (In thousands)
    ASSETS                                                                         2001                2000
<S>                                                                           <C>                 <C>
    Cash and cash equivalents                                                 $     121           $     103
    Investment in subsidiary                                                     16,363              16,662
    Dividend receivable from subsidiary                                             950                 300
    Prepaid expenses and other                                                       94                  69
                                                                              ---------           ---------

          Total assets                                                          $17,528             $17,134
                                                                                 ======              ======

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Accrued expenses and other liabilities                                    $     126             $   121

    Shareholders' equity
      Common stock                                                                4,802               5,515
      Retained earnings                                                          12,408              11,526
      Shares acquired by stock benefit plan                                         (63)               (103)
      Unrealized gains on securities designated as available for sale, net          255                  75
                                                                                -------           ---------
          Total shareholders' equity                                             17,402              17,013
                                                                                 ------              ------

          Total liabilities and shareholders' equity                            $17,528             $17,134
                                                                                 ======              ======
</TABLE>

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

                                                                        2001            2000           1999
<S>                                                                 <C>            <C>              <C>
    Revenue
      Interest income                                               $     14       $       6        $    12
      Equity in earnings of subsidiary                                 1,436           1,300          1,260
                                                                       -----           -----          -----
         Total revenue                                                 1,450           1,306          1,272

    General and administrative expenses                                   77              57             72
                                                                     -------         -------        -------

         Earnings before income tax credits                            1,373           1,249          1,200

    Income tax credits                                                   (25)            (20)           (24)
                                                                     -------         -------         ------

         NET EARNINGS                                                 $1,398          $1,269         $1,224
                                                                       =====           =====          =====
</TABLE>


<PAGE>


                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


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

<TABLE>
<CAPTION>

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

                                                                     2001            2000           1999
<S>                                                                <C>             <C>            <C>
    Cash flows provided by (used in) operating activities:
      Net earnings for the year                                    $1,398          $1,269         $1,224
      Adjustments to reconcile net earnings to net cash
      provided by (used in) operating activities:
        Excess distributions from (undistributed earnings of)
          consolidated subsidiary                                     (86)           (598)           239
        Increase (decrease) in cash due to changes in:
          Accrued expenses and other liabilities                        5             (70)           ( 6)
          Other                                                       (25)             69            (23)
                                                                  -------         -------        -------
         Net cash provided by operating activities                  1,292             670          1,434


    Cash flows provided by (used in) financing activities:
      Proceeds from exercise of stock options                         163              -               5
      Dividends on common stock                                      (516)           (477)          (521)
      Purchase of shares                                             (921)           (464)          (696)
                                                                   ------          ------         ------
         Net cash used in financing activities                     (1,274)           (941)        (1,212)
                                                                    -----          ------          -----

    Net increase (decrease) in cash and cash equivalents               18            (271)           222

    Cash and cash equivalents at beginning of year                    103             374            152
                                                                   ------          ------         ------

    Cash and cash equivalents at end of year                      $   121         $   103        $   374
                                                                   ======          ======         ======

</TABLE>

<PAGE>
                           Logansport Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                        December 31, 2001, 2000 and 1999


NOTE N - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

     The following table summarizes the Corporation's  quarterly results for the
     years ended  December 31, 2001 and 2000.  Certain  amounts,  as  previously
     reported, may have been reclassified to conform to the 2001 presentation.
<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
                                                                      ===          ===              ===               ===

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

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

    Net interest income                                               966          975             1,023              963

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

    Earnings before income taxes                                      458          459               454              409

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

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

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

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

</TABLE>

<PAGE>

                     MARKET PRICE OF LOGANSPORT FINANCIAL'S
                COMMON SHARES AND RELATED SECURITY HOLDER MATTERS

The  common  stock of the  Company  is traded  on the  National  Association  of
Securities Dealers Automated Quotation System ("Nasdaq") Small Cap Market, under
the symbol "LOGN." As of February 8, 2002, there were 775 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, 2001 and 2000. Such
price information was obtained from Nasdaq.

                                                                      Per Share
Year Ending December 31,                 High             Low         dividends

2001

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

2000

Quarter ending March 31, 2000           $10.31           $9.06         $0.11
Quarter ending June 30, 2000              9.88            7.63          0.11
Quarter ending September 30, 2000        11.88            9.81          0.11
Quarter ending December 31, 2000         11.81           10.88          0.11


TRANSFER AGENT AND REGISTRAR.  The Fifth Third Bank of Cincinnati,  Ohio ("Fifth
Third")  is the  Company's  stock  transfer  agent and  registrar.  Fifth  Third
maintains the Company's shareholder records.  Shareholders requiring a change of
name,  address or ownership of stock, as well as information  about  shareholder
records,  lost or stolen  certificates,  dividend  checks,  or  dividend  direct
deposit should contact:

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

GENERAL COUNSEL.                                  INDEPENDENT AUDITORS.

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

SHAREHOLDER  & GENERAL  INQUIRIES.  The  Company is  required  to file an Annual
Report on Form 10-K for its year ended December 31, 2001 with the Securities and
Exchange Commission. Copies of this annual report may be obtained without charge
upon written request to:

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

OFFICE LOCATION.

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