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                                    FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)
[X]  Annual Report  Pursuant to Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934


For the fiscal year ended December 31, 2000

                                       or

[ ]  Transition  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934

For the transition period from _____________ to _______________

Commission File Number      0-25910

                           LOGANSPORT FINANCIAL CORP.
             (Exact name of registrant as specified in its charter)

         INDIANA                                          35-1945736
(State or other Jurisdiction                     (I.R.S. Employer Identification
of Incorporation or Organization)                            Number)

  723 East Broadway, Logansport, Indiana                    46947
    (Address of Principal Executive Offices)             (Zip Code)

Registrant's telephone number including area code:
                                              (219) 722-3855

Securities Registered Pursuant to Section 12(b) of the Act:
                                      NONE

Securities Registered Pursuant to Section 12(g) of the Act:
                         Common Stock, without par value
                               (Title of Class)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements  for the past 90 days.  YES  X    NO___

Indicate by check mark if disclosure of delinquent  filers pursuant to Item 405,
Regulation S-K (ss. 229.405 of this chapter) is not contained  herein,  and will
not be contained,  to the best of Registrant's knowledge, in definitive proxy or
information  statements  incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K.  [X]

The aggregate market value of the issuer's voting stock held by  non-affiliates,
as of March 26, 2001, was $11,318,577.

The  number of shares of the  Registrant's  Common  Stock,  without  par  value,
outstanding as of March 26, 2001, was 1,083,510 shares.

                       DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to  Shareholders  for the year ended  December 31,
2000, are  incorporated  into Part II.  Portions of the Proxy  Statement for the
2001 Annual Meeting of Shareholders are incorporated in Part I and Part III.

                            Exhibit Index on Page E-1
                               Page 1 of 31 Pages
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<PAGE>

                           LOGANSPORT FINANCIAL CORP.

                                    Form 10-K

                                      INDEX

                                                                            Page
                                                                            ----
Forward Looking Statements..................................................   1
PART I
Item  1.          Business..................................................   1
Item  2.          Properties................................................  26
Item  3.          Legal Proceedings.........................................  26
Item  4.          Submission of Matters to a Vote of Security Holders.......  26
Item  4.5.        Executive Officers of Registrant..........................  26

PART II

Item  5.          Market for Registrant's Common Equity and Related
                    Stockholder Matters.....................................  27
Item  6.          Selected Financial Data...................................  28
Item  7.          Management's Discussion and Analysis of Financial
                    Condition and Results of Operations.....................  28
Item 7A.          Quantitative and Qualitative Disclosures About Market Risk  28
Item  8.          Financial Statements and Supplementary Data...............  28
Item  9.          Changes in and Disagreements with Accountants on
                    Accounting and Financial Disclosure.....................  28
PART III

Item 10.          Directors and Executive Officers of Registrant............  28
Item 11.          Executive Compensation....................................  29
Item 12.          Security Ownership of Certain Beneficial Owners
                    and Management..........................................  29
Item 13.          Certain Relationships and Related Transactions............  29

PART IV

Item 14.          Exhibits, Financial Statement Schedules, and Reports
                    on Form 8-K.............................................  30
                  Signatures................................................  31


<PAGE>


                           FORWARD LOOKING STATEMENTS

     This Annual Report on Form 10-K ("Form  10-K")  contains  statements  which
constitute  forward  looking  statements  within  the  meaning  of  the  Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-K and include  statements  regarding the intent,  belief,
outlook,  estimate  or  expectations  of the Company  (as  defined  below),  its
directors or its officers primarily with respect to future events and the future
financial  performance  of the Company.  Readers of this Form 10-K are cautioned
that any such forward looking  statements are not guarantees of future events or
performance  and involve risks and  uncertainties,  and that actual  results may
differ  materially from those in the forward  looking  statements as a result of
various  factors.  The  accompanying  information  contained  in this  Form 10-K
identifies  important factors that could cause such  differences.  These factors
include but are not limited to changes in interest  rates;  loss of deposits and
loan demand to other savings and financial institutions;  substantial changes in
financial  markets;  changes in real estate  values and the real estate  market;
regulatory changes; or unanticipated results in pending legal proceedings.

                                     PART I

Item 1.    Business.

General

     Logansport  Financial Corp. (the "Holding  Company" and,  together with the
Bank (as defined below), the "Company") is an Indiana  corporation  organized in
February,  1995,  to become a unitary  savings  and loan  holding  company.  The
Holding  Company  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 on June 13, 1995.  The  principal
asset of the  Holding  Company  consists  of 100% of the issued and  outstanding
shares of common stock,  $.01 par value per share,  of the Bank.  The Bank began
operations in Logansport,  Indiana under the name  Logansport  Building and Loan
Association  in 1925. In 1962,  the Bank changed its name to Logansport  Savings
and Loan Association,  and in 1992, the Bank converted to a federally  chartered
savings bank known as Logansport Savings Bank, FSB. The Bank serves the needs of
primarily residents of Cass County, Indiana.

     The Bank is the oldest financial  institution  headquartered in Logansport,
Indiana. Management believes the Bank has developed a solid reputation among its
loyal customer base because of its commitment to personal service and its strong
support  of the  local  community.  The Bank  offers a number  of  consumer  and
commercial  financial  services.  These services  include:  (i) residential real
estate  loans;  (ii) home  equity  loans;  (iii) home  improvement  loans;  (iv)
construction loans; (v) share loans; (vi) commercial real estate loans and other
commercial  loans;  (vii)  multi-family  loans;  (viii) consumer loans; (ix) NOW
accounts;  (x) passbook savings accounts;  (xi)  certificates of deposit;  (xii)
consumer  and  commercial  demand  deposit   accounts;   and  (xiii)  individual
retirement accounts.  In the fourth quarter of 1998, the Bank decided to offer a
complete line of commercial lending to include operating lines of credit secured
by  receivables  and inventory and term  financing for equipment  purchases.  In
1999,  the Bank began  offering  agricultural  loans and equipment  leases.  The
Holding  Company and the Bank conduct  business out of their main office located
in Logansport, Indiana. The Bank is and historically has been a significant real
estate mortgage lender in Cass County, Indiana,  originating approximately 33.5%
of the mortgage loan volume recorded in Cass County by Cass County  institutions
during the year ended December 31, 2000.

     The Bank  historically  has  concentrated  its  lending  activities  on the
origination  of  loans  secured  by  first  mortgage  liens  for  the  purchase,
construction  or refinancing of one- to four-family  residential  real property.
One- to four-family residential mortgage loans continue to be the major focus of
the Bank's loan  origination  activities,  representing  59.7% of the  Company's
total loan  portfolio at December 31,  2000.  The Bank also offers  multi-family
mortgage loans,  commercial real estate loans,  construction  loans,  commercial
loans and leases and consumer  loans.  Mortgage  loans  secured by  multi-family
properties and  commercial  real estate  totaled  approximately  2.0% and 12.7%,
respectively,  of the  Company's  total loan  portfolio  at December  31,  2000.
Commercial loans  constituted 6.8% and commercial  leases 2.1% of the total loan
portfolio at December 31, 2000.  Residential,  multi-family  and commercial real
estate construction loans constituted  approximately 2.7% of the Company's total
loan portfolio at December 31, 2000.  Installment,  share, home equity, and home
improvement  loans  constituted   approximately   6.8%,  .3%,  1.1%,  and  5.8%,
respectively, of the Company's total loan portfolio at December 31, 2000.

Lending Activities

     Loan Portfolio  Data. The following table sets forth the composition of the
Company's  loan  portfolio  by loan  type  and  security  type  as of the  dates
indicated,   including  a   reconciliation   of  gross  loans  receivable  after
consideration of the allowance for loan losses and loans in process.
<TABLE>
<CAPTION>

                                                                    At December 31,
                                    ------------------------------------------------------------------------------------------------
                                         2000               1999                1998                1997                1996
                                    -----------------  -----------------   -----------------   -----------------   -----------------
                                              Percent            Percent             Percent             Percent             Percent
                                    Amount   of Total  Amount   of Total   Amount   of Total   Amount   of Total   Amount   of Total
                                                                         (Dollars in thousands)
TYPE OF LOAN
Mortgage loans:
<S>                                 <C>       <C>      <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
   Residential.............         $62,277   59.73%   $57,889   62.23%    $52,205   69.35%    $46,419   72.48%    $41,109   72.05%
   Commercial real estate..          13,230   12.69     11,825   12.71       3,492    4.64       3,072    4.80       2,701    4.73
   Multi-family............           2,050    1.96      2,111    2.27       1,584    2.10       1,844    2.88       2,370    4.15
Construction:
   Residential ............           2,814    2.70      2,575    2.77       1,742    2.31       1,333    2.08         574    1.01
   Commercial
     real estate...........             ---     ---        ---     ---       1,400    1.86         ---     ---         194     .34
   Multi-family............             ---     ---        ---     ---         350     .47         ---     ---         248     .43
Commercial loans...........           7,088    6.80      4,102    4.41       1,486    1.97         ---     ---         ---     ---
Commercial leases..........           2,228    2.14      1,609    1.73         ---     ---         ---     ---         ---     ---
Consumer loans:
   Installment (2).........           7,045    6.75      6,107    6.56       6,021    8.00       5,409    8.44       4,615    8.09
   Share ..................             290     .28        289     .31         314     .42         313     .49         286     .50
   Home equity.............           1,164    1.12        974    1.05       1,090    1.45         685    1.07         595    1.04
   Home improvement........           6,076    5.83      5,544    5.96       5,589    7.43       4,972    7.76       4,368    7.66
                                   --------  ------    -------  ------     -------  ------     -------  ------     -------  ------
     Gross loans receivable        $104,262  100.00%   $93,025  100.00%    $75,273  100.00%    $64,047  100.00%    $57,060  100.00%
                                   ========  ======    =======  ======     =======  ======     =======  ======     =======  ======

TYPE OF SECURITY
   Residential (1).........         $73,056   70.07%   $66,150   71.11%    $61,291   81.42%    $53,409   83.39%    $46,689   81.83%
   Commercial real estate..          13,606   13.05     12,334   13.26       4,108    5.46       3,212    5.02       2,895    5.07
   Multi-family............           2,050    1.96      2,088    2.25       1,934    2.57       1,844    2.88       2,618    4.59
   Deposits................             290     .28        289     .31         314     .42         313     .49         286     .50
   Auto....................           3,223    3.09      2,477    2.66       2,210    2.94       2,148    3.35       2,042    3.58
   Consumer residential (2)           2,722    2.61      1,599    1.72       1,918    2.55       1,617    2.52       1,074    1.88
   Other security..........           9,315    8.94      8,088    8.69       3,498    4.64       1,504    2.35       1,456    2.55
                                   --------  ------    -------  ------     -------  ------     -------  ------     -------  ------
     Gross loans receivable         104,262  100.00%    93,025  100.00%     75,273  100.00%     64,047  100.00%    57,060   100.00%
Deduct:
Allowance for loan losses..             760     .73        440     .47         285     .38         245     .38         236     .41
Loans in process...........           1,084    1.04      1,685    1.81       1,915    2.54         167     .26          22     .04
                                   --------  ------    -------  ------     -------  ------     -------  ------     -------  ------
   Net loans receivable....        $102,418   98.23%   $90,900   97.72%    $73,073   97.08%    $63,635   99.36%    $56,802   99.55%
                                   ========  ======    =======  ======     =======  ======     =======  ======     =======  ======
Mortgage Loans:
   Adjustable-rate.........         $51,664   64.28%   $48,119   64.68%    $45,552   74.95%    $42,984   81.61%    $38,729   82.06%
   Fixed-rate..............          28,707   35.72     26,281   35.32      15,221   25.05       9,684   18.39       8,467   17.94
                                   --------  ------    -------  ------     -------  ------     -------  ------     -------  ------
     Total.................         $80,371  100.00%   $74,400  100.00%    $60,773  100.00%    $52,668  100.00%    $47,196  100.00%
                                   ========  ======    =======  ======     =======  ======     =======  ======     =======  ======
</TABLE>

(1)  Includes home equity, residential construction and home improvement loans.
(2)  Includes "one-pay" notes due in less than one year.



     The following  table sets forth certain  information  at December 31, 2000,
regarding the dollar amount of loans  maturing in the Company's  loan  portfolio
based on the date that final payment is due under the terms of the loan.  Demand
loans  having no stated  schedule  of  repayments  and no  stated  maturity  and
overdrafts  are  reported  as due in one year or less.  This  schedule  does not
reflect  the effects of  possible  prepayments  or  enforcement  of  due-on-sale
clauses.  Management  expects  prepayments  will cause actual  maturities  to be
shorter.
<PAGE>

<TABLE>
<CAPTION>
                                                              Balance due during years ending December 31,
                                                  -----------------------------------------------------------------------------
                                  Outstanding                                          2004       2006       2011        2016
                                 at December 31,                                        to         to         to         and
                                     2000           2001       2002        2003        2005       2010       2015     following
                                 ---------------    ----       ----        ----        ----       ----       ----     ---------
                                                                                  (In thousands)
Mortgage loans:
<S>                                 <C>           <C>         <C>        <C>         <C>        <C>        <C>        <C>
  Residential ..................    $ 65,091      $ 1,303     $   63     $   170     $   831    $ 7,394    $13,810    $41,520
  Multi-family..................       2,050          ---        ---         184         651      1,215        ---        ---
  Commercial real estate........      13,230          617        230         ---       1,035      3,532      4,078      3,738
Commercial loans................       7,088        5,127        362         490         703        406        ---        ---
Commercial leases...............       2,228          635        608         532         453        ---        ---        ---
Consumer loans:
  Home improvement..............       6,076           39        109         372         989      2,259      1,922        386
  Home equity...................       1,164          ---        ---         ---         ---        ---      1,164        ---
  Installment...................       7,045        2,693        534         802       2,190        386        440        ---
  Share.........................         290          290        ---         ---         ---        ---        ---        ---
                                    --------      -------     ------      ------      ------    -------    -------    -------
     Total......................    $104,262      $10,704     $1,906      $2,550      $6,852    $15,192    $21,414    $45,644
                                    ========      =======     ======      ======      ======    =======    =======    =======
</TABLE>

     The following  table sets forth, as of December 31, 2000, the dollar amount
of all loans due after one year which have fixed  interest rates and floating or
adjustable rates.
<TABLE>
<CAPTION>

                                                                       Due After December 31, 2001
                                                         ----------------------------------------------------
                                                         Fixed Rates          Variable Rates          Total
                                                         -----------          --------------          -----
                                                                             (In thousands)
Mortgage loans:
<S>                                                       <C>                      <C>               <C>
   Residential .............................              $19,090                  $44,698           $63,788
   Multi-family.............................                  184                    1,866             2,050
   Commercial real estate...................                5,802                    6,811            12,613
Commercial loans............................                1,468                      493             1,961
Commercial leases...........................                1,593                      ---             1,593
Consumer loans:
   Home improvement.........................                6,037                      ---             6,037
   Home equity..............................                  ---                    1,164             1,164
   Installment..............................                4,352                      ---             4,352
                                                          -------                  -------           -------
     Total..................................              $38,526                  $55,032           $93,558
                                                          =======                  =======           =======
</TABLE>

     Residential   Loans.   Residential  loans  consist  primarily  of  one-  to
four-family  loans.  Approximately  $62.3  million,  or 59.7%  of the  Company's
portfolio  of loans at  December  31,  2000,  consisted  of one- to  four-family
residential mortgage loans, of which approximately 65.3% had adjustable rates.

     The Bank currently offers  adjustable-rate one- to four-family  residential
mortgage loans  ("ARMs")  which adjust  annually and are indexed to the one-year
U.S. Treasury securities yields adjusted to a constant maturity. These ARMs have
a current margin above such index of 2.75%, or 3.00% for loans in which interest
is amortized and payments are due bi-weekly.  Interest rates cannot adjust lower
than the rate at the time of origination.  Many of the  residential  ARMs in the
Company's  portfolio at December 31, 2000 provided for a maximum rate adjustment
per year of 1%,  although  the Bank  began  originating  residential  ARMs which
provide  for a  maximum  rate  adjustment  of 2% per  year in 1995.  The  Bank's
residential  ARMs provide for a maximum rate  adjustment  of 5% over the life of
the loan. These ARMs generally bear terms of between 15 and 30 years.

     The Bank also  currently  offers  fixed-rate  loans  which  provide for the
payment of principal and interest over a period that  generally  does not exceed
15 years.  At December 31, 2000,  34.7% of the  Company's  residential  mortgage
loans had fixed rates of interest.

     The Bank does not currently  originate  residential  mortgage  loans if the
ratio of the loan amount to the lesser of current cost or appraised value of the
property (i.e.,  the  "loan-to-value  ratio") exceeds 95% and does not currently
require private  mortgage  insurance on its residential  single-family  mortgage
loans.

     Substantially  all  of  the  residential   mortgage  loans  that  the  Bank
originates  include  "due-on-sale"  clauses,  which  give the Bank the  right to
declare a loan  immediately  due and  payable  in the event  that,  among  other
things, the borrower sells or otherwise disposes of the real property subject to
the mortgage and the loan is not repaid.

     The  Bank's  residential  mortgage  loans are not  originated  on terms and
conditions  and using  documentation  that conform to the standard  underwriting
criteria required to sell such loans on the secondary market. The Bank generally
retains its loans in its portfolio and does not  anticipate the need to sell its
non-conforming loans. See "-- Origination, Purchase and Sale of Loans."

     At December 31, 2000,  residential  loans amounting to $240,000,  or .2% of
total loans, were included in non-performing  assets.  See  "Non-Performing  and
Problem Assets."

     Commercial Real Estate Loans. At December 31, 2000, $13.2 million, or 12.7%
of the  Company's  total loan  portfolio,  consisted of  commercial  real estate
loans. Of these loans, $1.1 million constituted  participations in loans secured
by  commercial   real  estate  which  were   purchased   from  other   financial
institutions.  The  commercial  real  estate  loans  included  in the  Company's
portfolio are  primarily  secured by  non-residential  real estate such as small
office  buildings,  nursing homes,  churches,  light  manufacturing  facilities,
retail and service  outlets,  warehouses,  professional  buildings and farm real
estate.  The  Bank  currently   originates   commercial  real  estate  loans  as
adjustable-rate  loans indexed to the one-year  U.S.  Treasury or the prime with
various margins,  or as fixed rate loans. The Bank underwrites  these loans on a
case-by-case  basis and, in addition to its normal  underwriting  criteria,  the
Bank evaluates the borrower's ability to service the debt from the net operating
income of the property.  No single  commercial  real estate loan at December 31,
2000  exceeded  $934,000.  No  commercial  real  estate  loans were  included in
non-performing assets at that date.

     Loans secured by commercial  real estate  generally are larger than one- to
four-family  residential loans and involve a greater degree of risk.  Commercial
real estate  loans often  involve  large loan  balances to single  borrowers  or
groups of related borrowers. Payments on these loans depend to a large degree on
results of operations  and management of the properties and may be affected to a
greater extent by adverse conditions in the real estate market or the economy in
general.  Accordingly,  the nature of the loans  makes them more  difficult  for
management to monitor and evaluate.

     Multi-Family  Loans.  Approximately $2.1 million,  or 2.0% of the Company's
portfolio of loans at December 31, 2000,  consisted of multi-family loans. These
loans are generally purchased  participations and secured by apartment complexes
and  other  multi-family  residential  properties.  At  December  31,  2000,  no
multi-family loan was included in non-performing assets.

     Construction  Loans.  The Bank offers  construction  loans with  respect to
owner-occupied  residential  real estate and, in limited  cases,  to builders or
developers constructing such properties on a speculative investment basis (i.e.,
before the  builder/developer  obtains a commitment from a buyer).  The Bank may
also purchase participations.

     At December 31, 2000,  $2.8 million,  or 2.7%, of the Company's  total loan
portfolio  consisted of construction  loans. All construction  loans at December
31, 2000 were one- to four-family  residential  loans. The largest  construction
loan at December 31, 2000 was approximately $450,000. No construction loans were
included in non-performing assets on that date.

     Construction  loans  originated  by the Bank are written such that interest
only is payable during the  construction  phase,  which is typically  limited to
nine months,  and following the  construction  phase,  a permanent loan is made.
Inspections are made prior to any disbursement under a construction loan.

     Commercial  Loans.  At December  31,  2000,  $7.1  million,  or 6.8% of the
Company's total loan portfolio consisted of commercial loans provided to finance
receivables, inventory or equipment. These loans were originated by the Bank and
provided  to  existing  businesses  located in Cass  County  and its  contiguous
counties. Loans are underwritten on a case-by-case basis with emphasis placed on
cash flow analysis and the borrower's debt service capacity. The majority of the
loans are  written  on a  variable  rate  using the  national  prime rate as the
primary index rate. The weighted  average  maturity of the variable rate portion
of the  portfolio  was 7 months and the weighted  average  maturity of the fixed
rate portion of the portfolio was 33 months at December 31, 2000.

     Commercial  Leases.  At December 31,  2000,  $2.2  million,  or 2.1% of the
Company's  total loan  portfolio  consisted  of  commercial  leases  provided to
finance  equipment.  The Bank's lease  portfolio  consists of a joint  marketing
effort between the Bank and SCI Leasing Group, a Carmel,  Indiana based concern,
with all  credit  decisions  made  solely  by the Bank  and  following  the same
underwriting  standards as are applied to traditional  commercial loan requests.
Commercial  leases are a fixed rate  financing  tool with the  weighted  average
maturity of the Bank's lease portfolio at 58 months as of December 31, 2000.

     Consumer Loans.  Federal laws and regulations  permit  federally  chartered
savings  associations  to  make  secured  and  unsecured  consumer  loans  in an
aggregate amount up to 35% of the  association's  total assets.  In addition,  a
federally  chartered  savings  association  has lending  authority above the 35%
limit for certain consumer loans, such as property improvement loans and deposit
account  secured  loans.  However,  the  Qualified  Thrift  Lender  test  places
additional  limitations  on a savings  association's  ability  to make  consumer
loans. See "Regulation -- Qualified Thrift Lender."

     The Company's consumer loans,  consisting primarily of installment,  share,
home improvement, and home equity loans, aggregated $14.6 million as of December
31, 2000, or 14.0% of the Company's total loan portfolio.  The Bank consistently
originates  consumer  loans to meet the needs of its  customers and to assist in
meeting its  asset/liability  management goals. All of the Bank's consumer loans
originated by the Bank,  except home equity loans,  are  fixed-rate  loans,  and
substantially all are secured loans.

     Installment  loans,  totaling  $7.0  million,  or 6.8% of  total  loans  at
December  31,  2000,  are  fixed-rate  loans  generally  secured by  collateral,
including  automobiles,  and  are  made  for  maximum  terms  of up to 10  years
(depending  on the  collateral).  The  Bank's  installment  loans  also  include
"one-pay" notes, some of which are secured by residential real estate and all of
which  amortize at rates  similar to those for home  improvement  loans and have
maximum terms of 6 months to one year.

     Share loans, totaling $290,000, or .3% of total loans at December 31, 2000,
are made up to 80% of the original  account balance and accrue at a rate of 2-3%
over the underlying certificate of deposit rate. Interest on share loans is paid
quarterly. Home improvement loans totaled $6.1 million, or 5.8% of the Company's
total loan portfolio at December 31, 2000, and are close-ended  fixed-rate loans
made for maximum  terms up to 15 years.  The Bank's home  improvement  loans are
generally  made only to those  borrowers  for whom the Bank  holds  the  primary
mortgage on the property, if any.

     The Bank also offers  open-ended  lines of credit  secured by a lien on the
equity in the borrower's home in amounts up to 90% of the appraised value of the
real estate  (taking into  account any other  mortgages  on the  property).  The
Bank's home equity loans are adjustable-rate  loans with interest rates equal to
the  national  prime  rate  and  payments  equal  to  the  greater  of 2% of the
outstanding loan balance or $50. The Bank's home equity loans are generally made
only to those  borrowers  for whom the Bank holds the  primary  mortgage  on the
property, if any, and generally have a maximum term of 15 years. At December 31,
2000,  the Bank had approved  $1.8 million of home equity  loans,  of which $1.2
million were outstanding.

     As a general rule,  consumer loans involve a higher level of risk than one-
to four-family  residential  mortgage loans because consumer loans are generally
made based upon the  borrower's  ability to repay the loan,  which is subject to
change, rather than the value of the underlying collateral, if any. However, the
relatively  higher  yields and shorter  terms to maturity of consumer  loans are
believed  to be helpful  in  reducing  interest-rate  and  credit  risks.  As of
December  31,  2000,   consumer   loans   totaling   $96,000  were  included  in
non-performing  assets,  which indicates the Bank's success in managing consumer
loan risk.

     Letters of Credit Securing  Tax-Exempt Bonds. The Bank currently  maintains
four  letters of  credit,  each in the amount of  $253,000,  to secure  payments
required under  tax-exempt  bonds issued to raise funds for  low-income  housing
projects in Franklin,  Kokomo and Michigan City, Indiana and Hamilton, Ohio. The
issuer of the  tax-exempt  bonds is permitted to draw against  these  letters of
credit  only in the event it  defaults  in making  payments  required  under the
bonds, and any such draws made against the letters of credit would be secured by
a mortgage  on the  subject  housing  project.  The Bank also has two letters of
credit totaling $1.5 million  associated with the equity investment owned by the
Bank; these also secure payments required for tax-exempt bonds. No draws against
any letters of credit had been made as of December 31, 2000.  In addition to the
above,  the Bank held $195,000 in standby  letters of credit for two  commercial
loan customers.

     Origination,  Purchase  and Sale of Loans.  In an effort to  control  costs
incurred by its mortgage customers,  the Bank currently  originates its mortgage
loans  pursuant to its own  underwriting  standards  which are not in conformity
with the  standard  criteria  of the  Federal  Home  Loan  Mortgage  Corporation
("FHLMC") or Federal National Mortgage  Association  ("FNMA").  If it desired to
sell its mortgage  loans,  the Bank might  therefore  experience some difficulty
selling such loans quickly in the secondary  market.  The Bank has no intention,
however,  of attempting to sell such loans.  The Bank's ARMs vary from secondary
market criteria because,  among other things,  the Bank does not require current
property  surveys in most cases and does not require  escrow  accounts for taxes
and insurance.

     The Bank confines its loan origination activities primarily to Cass County,
Indiana.  The Bank's loan  originations  are generated  from referrals from real
estate dealers and existing customers, and newspaper and periodical advertising.
Business  loans  originations  also  arise from an active  business  development
calling  program.  All loan  applications  are processed and underwritten at the
Bank's main office.

     Under the Financial  Institutions Reform,  Recovery, and Enforcement Act of
1989  ("FIRREA"),  a savings  association  generally  may not make any loan to a
borrower or its  related  entities if the total of all such loans by the savings
association  exceeds 15% of its capital (plus up to an additional 10% of capital
in the case of loans fully  collateralized  by readily  marketable  collateral);
provided,  however,  that  loans up to  $500,000  regardless  of the  percentage
limitations  may be made  and  certain  housing  development  loans of up to $30
million or 30% of capital,  whichever is less, are permitted. The maximum amount
which the Bank could have  loaned to one  borrower  and the  borrower's  related
entities  under the 15% of capital  limitation  was $2.6 million at December 31,
2000. The Company's  portfolio of loans currently  contains no loans that exceed
the 15% of capital limitation.

     The Bank's  loan  approval  process is  intended  to assess the  borrower's
ability to repay the loan,  the  viability  of the loan and the  adequacy of the
value of the  property  that will  secure  the loan.  To assess  the  borrower's
ability  to repay,  the Bank  studies  the  employment  and credit  history  and
information  on  the  historical  and  projected  income  and  expenses  of  its
mortgagors.

     The Bank generally requires  appraisals or loan officer  evaluations on all
property  securing its loans and requires  title  insurance or an abstract and a
valid  lien on its  mortgaged  real  estate.  Appraisals  for  residential  real
property are performed  either by an in-house  appraiser who is a state-licensed
residential appraiser or an independent  state-licensed  residential  appraiser.
From time to time,  the Bank also uses the  services  of  certified  residential
appraisers, who are not in-house, for performance of appraisals related to loans
in excess of $250,000. The Bank requires fire and extended coverage insurance in
amounts at least equal to the  principal  amount of the loan.  It also  requires
flood insurance to protect the property securing its interest if the property is
in a flood plain.

     The Bank's  underwriting  standards  for  consumer  loans are  intended  to
protect against some of the risks inherent in making  consumer  loans.  Borrower
character, paying habits and financial strengths are important considerations.

     The Bank  historically  has not  participated in the secondary  market as a
seller of its mortgage loans, but does occasionally  purchase  participations in
commercial real estate and multi-family loans from other financial institutions.

     The following table shows loan origination, purchase and repayment activity
for the Bank during the periods indicated.

<PAGE>

<TABLE>
<CAPTION>

                                                                         Year Ended December 31,
                                                            ------------------------------------------------
                                                            2000                  1999                   1998
                                                            ----                  ----                   ----
                                                                             (In thousands)
<S>                                                        <C>                   <C>                   <C>
Gross loans receivable
   at beginning of period............................      $93,025               $75,273               $64,047
Originations:
   Mortgage loans:
     Residential.....................................       17,598                17,229                14,691
     Commercial real estate and lines of credit
       and multi-family..............................       25,586                19,368                 1,400
                                                           -------               -------               -------
     Total mortgage loans and commercial loans.......       43,184                36,597                16,091
   Consumer loans:
     Installment.....................................        5,692                 5,597                 7,321
     Share...........................................          146                   169                   294
     Home improvement................................        2,447                 1,944                 2,333
     Home equity.....................................          224                   103                   736
                                                           -------               -------               -------
       Total consumer loans..........................        8,509                 7,813                10,684
                                                           -------               -------               -------
           Total originations........................       51,693                44,410                26,775
 Purchases:

   Commercial real estate and multi-family...........          ---                   981                   350
                                                           -------               -------               -------
           Total purchases...........................          ---                   981                   350
               Total originations and purchases......       51,693                45,391                27,125
Repayments and deductions............................       40,456                27,639                15,899
                                                          --------               -------               -------
Gross loans receivable at end of period..............     $104,262               $93,025               $75,273
                                                          ========               =======               =======
</TABLE>

     Origination and Other Fees. The Company  realizes  income from  origination
fees, late charges, checking account service charges, credit card fees, and fees
for other miscellaneous  services.  The Bank currently charges $300 plus closing
costs on its adjustable-rate mortgage loans. Points may be charged on fixed-rate
loans.  Late charges are generally  assessed if payment is not received within a
specified  number of days  after it is due.  The  grace  period  depends  on the
individual loan documents.

Non-Performing and Problem Assets

     Mortgage  loans are reviewed by the Bank on a regular  basis and are placed
on a non-accrual status when the loans become contractually past due ninety days
or more. At the end of each month,  delinquency notices are sent with respect to
all mortgage loans for which  payments have not been received.  Contact by phone
or in person is made,  if feasible,  with respect to all such loans.  When loans
are sixty days in default, an additional delinquency notice is sent and personal
contact is made with the borrower to establish an acceptable repayment schedule.
When loans are ninety days in default,  contact is made with the borrower by the
Senior Loan Officer who attempts to establish an acceptable  repayment schedule.
Management is authorized to commence  foreclosure  proceedings for any loan upon
making  a  determination  that it is  prudent  to do so.  All  loans  for  which
foreclosure  proceedings  have been commenced are placed on non-accrual  status.
Late  notices are sent to  commercial  loan  borrowers  at five and fifteen days
after which personal contact by the Account Officer is made.

     Consumer loans are reviewed by the Bank on a daily basis.  Notices are sent
to  borrowers  when  any  consumer  loan is 5, 10 and 15 days  past  due.  After
consumer  loans are 15 days  delinquent,  a late fee in the amount of 10% of the
payment is imposed until the loan is brought current.

     Non-Performing  Assets.  At December  31,  2000,  $336,000,  or .25% of the
Company's total assets, were  non-performing  assets (loans delinquent more than
90  days,   non-accruing  loans,  real  estate  owned  ("REO"),   troubled  debt
restructurings and non-accruing investments),  compared to $666,000, or .57%, of
the  Company's  total  assets at  December  31,  1999.  At  December  31,  2000,
residential   loans  and  consumer   loans   accounted   for  71.4%  and  28.6%,
respectively,  of non-performing assets. There were no non-accruing  investments
at December 31, 2000.

     The table  below sets forth the  amounts and  categories  of the  Company's
non-performing  assets (non-accruing loans and real estate owned) as of the date
indicated.  It is the policy of the  Company  that all  earned  but  uncollected
interest on all loans be reviewed  monthly to determine  if any portion  thereof
should  be  classified  as  uncollectible  for any loan past due in excess of 90
days.
<TABLE>
<CAPTION>

                                                                            At December 31,
                                                      ----------------------------------------------------------
                                                      2000          1999         1998          1997         1996
                                                      ----          ----         ----          ----         ----
                                                                        (Dollars in thousands)
<S>                                                     <C>          <C>          <C>          <C>          <C>
Non-accruing loans (1).....................             $336         $666         $315         $431         $406
Real estate owned, net.....................              ---          ---          ---          106          ---
                                                        ----         ----         ----         ----         ----
   Total non-performing assets.............             $336         $666         $315         $537         $406
                                                        ====         ====         ====         ====         ====
Non-performing loans to total loans, net (2)             .32%         .72%         .42%         .67%         .71%
Non-performing assets to total assets......              .25          .57          .33          .62          .52

</TABLE>
---------------
(1)  The Company generally places loans on a non-accruing  status when the loans
     become  contractually  past  due 90 days or more.  At  December  31,  2000,
     $240,000 of  non-accruing  loans were  residential  loans and $96,000  were
     consumer loans. For the year ended December 31, 2000, the income that would
     have been recorded had the non-accruing  loans not been in a non-performing
     status totaled $12,000.

(2)  Total loans less loans in process.

     Classified Assets.  Federal regulations and the Bank's Internal Loan Review
policy provide for the classification of loans and other assets such as debt and
equity   securities   considered  by  the  OTS  to  be  of  lesser   quality  as
"substandard," "doubtful" or "loss" assets. An asset is considered "substandard"
if it is inadequately  protected by the current net worth and paying capacity of
the obligor or of the collateral pledged, if any.  "Substandard"  assets include
those  characterized  by the "distinct  possibility"  that the association  will
sustain "some loss" if the deficiencies are not corrected.  Assets classified as
"doubtful"   have  all  of  the   weaknesses   inherent   in  those   classified
"substandard,"  with the added  characteristic  that the weaknesses present make
"collection or liquidation in full," on the basis of currently  existing  facts,
conditions,  and values, "highly questionable and improbable." Assets classified
as "loss" are those  considered  "uncollectible"  and of such little  value that
their continuance as assets without the establishment of a specific loss reserve
is not warranted.  Assets which do not currently expose the insured  institution
to  sufficient  risk  to  warrant  classification  in one of the  aforementioned
categories  but  possess  weaknesses  are  required  to be  designated  "special
mention" by management.

     An insured institution is required to establish general allowances for loan
losses  in  an  amount  deemed  prudent  by  management  for  loans   classified
substandard or doubtful,  as well as for other problem loans. General allowances
represent loss allowances  which have been established to recognize the inherent
risk associated with lending activities,  but which, unlike specific allowances,
have  not  been  allocated  to  particular  problem  assets.   When  an  insured
institution  classifies  problem  assets as  "loss,"  it is  required  either to
establish  a specific  allowance  for losses  equal to 100% of the amount of the
asset so classified or to charge off such amount. An institution's determination
as to  the  classification  of its  assets  and  the  amount  of  its  valuation
allowances is subject to review by the OTS, which can order the establishment of
additional general or specific loss allowances.

     At December 31, 2000,  the  aggregate  amount of the  Company's  classified
assets and the Company's general and specific loss allowances were as follows:
<PAGE>

                                                    At December 31, 2000
                                                    --------------------
                                                       (In thousands)
Substandard loans...........................               $2,866
Doubtful loans..............................                  ---
Loss loans..................................                  ---
                                                           ------
   Total classified loans...................               $2,866
                                                           ======
General loss allowances.....................                 $760
Specific loss allowances....................                  ---
                                                           ------
   Total allowances.........................                 $760
                                                           ======
     The Company  regularly  reviews its loan portfolio to determine whether any
loans require  classification  in accordance  with applicable  regulations.  The
substandard  loans consist of all nonaccrual loans,  three additional  purchased
participation  loans secured by multi-family real estate of $744,000,  which are
current on payments but considered  substandard because of cash flow, one letter
of  credit  for   $253,000   related  to  one  of  the   substandard   purchased
participtions, and one commercial relationship for $1.5 million which is current
but classified substandard because of cash flow.

Allowance for Loan Losses

     The  allowance  for loan losses is  maintained  through the  provision  for
losses on loans, which is charged to earnings. The provision for losses on loans
is determined in conjunction with management's  review and evaluation of current
economic conditions (including those of the Bank's lending area), changes in the
character and size of the loan portfolio,  loan delinquencies (current status as
well as past and  anticipated  trends) and adequacy of collateral  securing loan
delinquencies,  historical and estimated net  charge-offs,  and other  pertinent
information  derived  from a  review  of the  loan  portfolio.  In  management's
opinion,  the  Company's  allowance  for  loan  losses  is  adequate  to  absorb
anticipated future losses from loans at December 31, 2000. However, there can be
no assurance that regulators, when reviewing the Company's loan portfolio in the
future,  will not require  increases  in its  allowance  for loan losses or that
changes in economic  conditions  will not adversely  affect the  Company's  loan
portfolio.

     Summary of Loan Loss  Experience.  The following table analyzes  changes in
the allowance  for loan losses  during the past five (5) one-year  periods ended
December 31, 2000.
<TABLE>
<CAPTION>

                                                                        Year Ended December 31,
                                                      ----------------------------------------------------------
                                                      2000          1999         1998          1997         1996
                                                      ----          ----         ----          ----         ----
                                                                        (Dollars in thousands)

<S>                                                     <C>          <C>          <C>          <C>          <C>
Balance of allowance at beginning
   of period.................................           $440         $285         $245         $236         $223
Recoveries...................................              1          ---          ---            1            1
Less charge-offs:
   Residential real estate loans.............            ---          ---           13           10          ---
   Consumer loans............................             13            7           10            8          ---
                                                        ----         ----         ----         ----         ----
Net charge-offs..............................             12            7           23           17          (1)
Provisions for losses on loans...............            332          162           63           26           12
                                                        ----         ----         ----         ----         ----
Balance of allowance at end of period........           $760         $440         $285         $245         $236
                                                        ====         ====         ====         ====         ====
   Net charge-offs to total average
     loans receivable for period.............            (*)          (*)          .03          .03          (*)
   Allowance at end of period to
     net loans receivable at end
     of period (1)...........................            .73          .47          .38          .38          .41
   Allowance to total non-performing
     loans at end of period..................         226.19        66.07        90.48        56.84        58.12
</TABLE>

-------------------
(1)  Total loans less loans in process.
(*)  Less than .01%.
<PAGE>
     Allocation of Allowance for Loan Losses.  The following  table  presents an
analysis of the  allocation  of the  Company's  allowance for loan losses at the
dates indicated.



<TABLE>
<CAPTION>

                                                                 At December 31,
                           ------------------------------------------------------------------------------------------
                                  2000              1999              1998               1997               1996
                           ------------------  ---------------   ---------------   -----------------  ---------------
                                      Percent          Percent           Percent             Percent          Percent
                                     of loans         of loans          of loans            of loans         of loans
                                      in each          in each           in each             in each          in each
                                     category         category          category            category         category
                                     of total         of total          of total            of total         of total
                            Amount     loans   Amount   loans    Amount   loans    Amount     loans   Amount   loans
                            ------   --------  ------ --------   ------ --------   ------   --------  ------ --------
                                                               (Dollars in thousands)
Balance at end of period
   applicable to:
<S>                         <C>      <C>       <C>      <C>      <C>      <C>      <C>      <C>       <C>     <C>
Residential................ $  12    59.73%    $270     62.23%   $232     69.35%   $193     72.48%    $158    72.05%
Commercial real estate.....   126    12.69        8     12.71       6      4.64       6      4.80        6     4.73
Multi-family...............   100     1.96      117      2.27       1      2.10       1      2.88        1     4.15
Construction loans.........   ---     2.70      ---      2.77     ---      4.64     ---      2.08      ---     1.78
Commercial paper and
   bankers' acceptances....   ---      ---      ---       ---     ---       ---     ---       ---      ---      ---
Commercial loans...........   180     6.80      ---      4.41     ---      1.97     ---       ---      ---      ---
Commercial leases..........   ---     2.14      ---      1.73     ---       ---     ---       ---      ---      ---
Consumer loans.............    15    13.98       45     13.88      46     17.30      45     17.76       71    17.29
Unallocated................   327      ---      ---       ---     ---       ---     ---       ---      ---      ---
                            -----   ------     ----    ------    ----    ------    ----    ------     ----   ------
   Total...................  $760   100.00%    $440    100.00%   $285    100.00%   $245    100.00%    $236   100.00%
                            =====   ======     ====    ======    ====    ======    ====    ======     ====   ======
</TABLE>
<PAGE>

Investments and Mortgage- and Other Asset-Backed Securities

     Federally  chartered  savings  associations have the authority to invest in
various types of liquid assets, including U.S. Treasury obligations,  securities
of various federal  agencies,  certain  certificates of deposit of insured banks
and savings institutions,  repurchase agreements and federal funds sold. Subject
to various  restrictions,  federally  chartered  savings  associations  may also
invest a portion of their assets in corporate debt  securities and  asset-backed
securities.  The  investment  policy  of the  Bank,  which  is  established  and
implemented  by the  Bank's  Investment  Committee,  is  designed  primarily  to
maximize  the yield on the  investment  portfolio  subject to minimal  liquidity
risk,  default  risk  and  interest  rate  risk,  and  prudent   asset/liability
management.

     The  Company's  investments  consist of U.S.  government  and other  agency
securities  which are primarily  callable fixed rate notes,  mortgage- and other
asset-backed  securities,  state and  municipal  bonds,  corporate  obligations,
marketable   equity   securities,   and  FHLB  stock.   At  December  31,  2000,
approximately $15.5 million,  or 11.7% of the Company's total assets,  consisted
of such investments.

     At December 31, 2000,  the Company had $5.2 million of mortgage-  and other
asset-backed securities  outstanding,  all of which were classified as available
for sale. These fixed-rate  mortgage- and other  asset-backed  securities may be
used as  collateral  for  borrowings  and  through  repayments,  as a source  of
liquidity.  Mortgage- and other asset-backed securities offer yields above those
available  for   investments   of  comparable   credit   quality  and  duration.
Mortgage-backed securities are qualifying thrift investments under the Qualified
Thrift Lender test. See "Regulation--Qualified Thrift Lender."

     The following  table sets forth the amortized  cost and market value of the
Company's  investments  and mortgage- and other  asset-backed  securities at the
dates indicated.
<TABLE>
<CAPTION>

                                                                           At December 31,
                                                  --------------------------------------------------------------
                                                          2000                  1999                  1998
                                                  -------------------   ------------------   -------------------
                                                  Amortized   Market    Amortized   Market   Amortized    Market
                                                    Cost      Value      Cost       Value      Cost       Value
                                                  ---------   ------    ---------   ------   ---------    ------
                                                                           (In thousands)

Securities available for sale:
<S>                                                 <C>        <C>      <C>         <C>      <C>        <C>
   Federal agencies........................         $4,746     $4,625   $  6,295    $5,901   $  2,845   $  2,825
   State and municipal.....................          2,800      2,899      1,931     1,939      1,323      1,393
   Mortgage- and other asset-backed
     securities............................          5,264      5,165      6,145     5,898      8,193      8,129
   Corporate obligations...................            560        539        560       523        561        571
   Marketable equity securities............              4        259          4       176          4        244
                                                   -------    -------    -------   -------    -------    -------
     Total securities available for sale...         13,374     13,487     14,935    14,437     12,926     13,162
FHLB stock (1).............................          1,973      1,973      1,273     1,273        568        568
                                                   -------    -------    -------   -------    -------    -------
     Total investments.....................        $15,347    $15,460    $16,208   $15,710    $13,494    $13,730
                                                   =======    =======    =======   =======    =======    =======
</TABLE>
---------------
(1)  Market value approximates carrying values.

<PAGE>



     The following table sets forth investment  securities,  mortgage- and other
asset-backed  securities  and FHLB stock which mature during each of the periods
indicated  and the  weighted  average  yields  for each range of  maturities  at
December 31, 2000.
<TABLE>
<CAPTION>

                                                 Amount at December 31, 2000, which matures in
                                       -----------------------------------------------------------------------------
                                                One             One to             Five to              Over
                                           Year or Less       Five Years          Ten Years        Ten Years(4)
                                       ------------------- ------------------ ------------------  -------------------
                                                  Weighted           Weighted           Weighted             Weighted
                                      Amortized   Average  Amortized Average  Amortized Average   Amortized  Average
                                        Cost       Yield     Cost     Yield     Cost     Yield      Cost      Yield
                                      ---------   -------- --------- -------- -------- --------  ---------  --------
                                                                   (Dollars in thousands)
<S>                                    <C>                 <C>        <C>     <C>        <C>       <C>        <C>
Securities available for sale (1)(3) :
   Federal agencies..................  $  ---        ---%  $   500    6.02%   $ 2,796    6.31%     $ 1,450    7.11%
   State and municipal (2)...........     125       7.15     1,164    7.99        574    7.94          938    8.41
   Mortgage- and other
      asset-backed securities........     702       6.58     1,803    6.80      1,148    7.21        1,611    7.49
   Corporate obligations.............                                             459    6.12          100    7.41
   Marketable equity securities......     ---        ---       ---     ---        ---     ---            4   67.43
                                       ------       ----   -------    ----    -------    ----      -------   -----
     Total securities
        available for sale...........     827       6.72     3,467    7.09      4,977    6.69        4,103    7.62
FHLB stock...........................     ---                                                        1,973    8.28
                                       ------       ----   -------    ----    -------    ----      -------   -----
     Total investments...............  $  827       6.72%  $ 3,467    7.09%   $ 4,977    6.69%     $ 6,076    7.84%
                                       ======       ====   =======    ====    =======    ====      =======    ====
</TABLE>

(1)  Securities  available for sale are set forth at amortized cost for purposes
     of this table.

(2)  Fully taxable equivalent basis.

(3)  No  effect  is given  for  possible  prepayments  or  securities  which are
     callable.


Sources of Funds

     General.  Deposits have  traditionally  been the Bank's  primary  source of
funds for use in lending and investment activities. In addition to deposits, the
Company derives funds from scheduled loan payments, loan prepayments, and income
on earning  assets.  While  scheduled loan payments and income on earning assets
are relatively  stable sources of funds,  deposit  inflows and outflows can vary
widely and are influenced by prevailing  interest rates,  market  conditions and
levels of competition. Borrowings from the FHLB of Indianapolis are also used to
compensate for reductions in deposits or deposit  inflows at less than projected
levels.

     Deposits.  Deposits  are  attracted,  principally  from within Cass County,
through the offering of a broad selection of deposit  instruments  including NOW
and other transaction accounts,  fixed-rate certificates of deposit,  individual
retirement accounts, and savings accounts. The Bank does not actively solicit or
advertise for deposits outside of Cass County.  Substantially  all of the Bank's
depositors are residents of that county.  Deposit  account terms vary,  with the
principal differences being the minimum balance required, the amount of time the
funds remain on deposit and the interest  rate.  The Bank does not pay a fee for
any deposits it receives.

     Deposits totaled $79.5 million at December 31, 2000.

     Interest rates paid, maturity terms,  service fees and withdrawal penalties
are  established  by the Bank on a periodic  basis.  Determination  of rates and
terms are predicated on funds acquisition and liquidity requirements, rates paid
by competitors, growth goals, and federal regulations. The Bank relies, in part,
on customer service and  long-standing  relationships  with customers to attract
and retain its  deposits,  but also  closely  prices its deposits in relation to
rates offered by its competitors.

     The flow of  deposits  is  influenced  significantly  by  general  economic
conditions,   changes  in  money  market  and  prevailing  interest  rates,  and
competition.  The variety of deposit accounts offered by the Bank has allowed it
to be competitive in obtaining funds and to respond with  flexibility to changes
in  consumer  demand.  The  Bank  has  become  more  susceptible  to  short-term
fluctuations  in deposit  flows as  customers  have  become more  interest  rate
conscious.  The Bank  manages  the pricing of its  deposits in keeping  with its
asset/liability   management  and   profitability   objectives.   Based  on  its
experience,  the Bank believes that its passbook,  NOW and  non-interest-bearing
checking  accounts  are  relatively  stable  sources of deposits.  However,  the
ability of the Bank to attract and  maintain  certificates  of deposit,  and the
rates paid on these  deposits,  has been and will  continue to be  significantly
affected by market conditions.

     An analysis of the Bank's deposit accounts by type,  maturity,  and rate at
December 31, 2000, is as follows:
<TABLE>
<CAPTION>

                                                  Minimum         Balance at                           Weighted
                                                  Opening        December 31,            % of          Average
Type of Account                                   Balance            2000              Deposits         Rate
---------------                                  ---------       ------------          --------        --------
                                                                       (Dollars in thousands)
<S>                                              <C>                <C>                  <C>             <C>
Withdrawable:
   Passbook savings accounts................     $      25          $ 3,478              4.38%           3.57%
   Regular money market accounts............         2,500            1,041              1.31            3.32
   Hi yield money market accounts...........        10,000           14,782             18.61            4.30
   Super NOW accounts.......................         2,500              614               .77            2.39
   NOW and other transaction accounts.......           200            5,466              6.88            2.02
   Non-interest bearing accounts............           100            3,277              4.12             ---
                                                                    -------             -----
Total withdrawable..........................                         28,658             36.07            3.20
Certificates (original terms):
   91 days..................................         1,000              668               .84            6.33
   6 months.................................         1,000            7,939              9.99            6.88
   12 months................................         1,000           19,830             24.96            6.44
   18 months................................           500            1,263              1.59            5.74
   24 months................................           500            7,255              9.13            5.49
   30 months................................           500            5,425              6.83            5.67
   60 months................................         1,000            3,226              4.06            5.72
IRAs
   18 months................................           100            5,190              6.53            5.90
                                                                    -------            ------
Total certificates..........................                         50,796             63.93            6.17
                                                                    -------            ------
Total deposits .............................                        $79,454            100.00%           5.10%
                                                                    =======            ======            ====
</TABLE>

     The  following  table sets forth by various  interest rate  categories  the
composition of time deposits of the Bank at the dates indicated:

                                             At December 31,
                            -----------------------------------------------
                              2000                  1999              1998
                              ----                  ----              ----
                                               (In thousands)

4.00% and under..........   $   746               $   175           $   234
4.01 - 6.00 %............    25,112                44,496            39,027
6.01 - 8.00%.............    24,938                   826               416
                            -------               -------           -------
Total....................   $50,796               $45,497           $39,677
                            =======               =======           =======


<PAGE>

     The following table  represents,  by various interest rate categories,  the
amounts of time  deposits  maturing  during  each of the three  years  following
December  31,  2000,  and  the  total  amount   maturing   thereafter.   Matured
certificates  which have not been  renewed as of December  31,  2000,  have been
allocated based upon certain rollover assumptions:
<TABLE>
<CAPTION>

                                                                         Amounts At
                                                              December 31, 2000, Maturing in
                                                --------------------------------------------------------------
                                                One Year            Two              Three        Greater Than
                                                 or Less           Years             Years         Three Years
                                                --------           -----             -----        ------------
                                                                       (In thousands)

<S>                                             <C>                <C>              <C>               <C>
4.00% and under.............................    $   746            $  ---           $  ---            $  ---
4.01 - 6.00 %...............................     14,314             8,139            1,850               809
6.01-8.00%..................................     24,275               402               20               241
                                                -------            ------           ------            ------
Total.......................................    $39,335            $8,541           $1,870            $1,050
                                                =======            ======           ======            ======
</TABLE>

     The  following  table  indicates the amount of the Bank's  certificates  of
deposit of greater than $100,000 by time remaining until maturity as of December
31, 2000.

   Maturity                                                     (In thousands)
   --------                                                     --------------
   Three months or less.........................................     $1,513
   Greater than three months through six months.................      2,229
   Greater than six months through twelve months................      1,557
   Over twelve months ..........................................        754
        Total...................................................     $6,053

<PAGE>



     The following  table sets forth the dollar amount of savings in the various
types of deposits  programs offered by the Bank at the dates indicated,  and the
amount of  increase or  decrease  in such  deposits as compared to the  previous
period.
<TABLE>
<CAPTION>

                                                                        Deposit Activity
                                           -------------------------------------------------------------------------
                                                                     Increase                              Increase
                                                                    (Decrease)                            (Decrease)
                                            Balance at                 from       Balance at                 from
                                           December 31,    % of    December 31,  December 31,    % of     December
                                               2000      Deposits      1999          1999      Deposits    31, 1998
                                           ------------  --------  ------------  ------------  --------   ---------
                                                                     (Dollars in thousands)
<S>                                          <C>            <C>      <C>           <C>           <C>     <C>
Withdrawable:
   Passbook savings accounts...............  $  3,478       4.38%    $   609       $2,869        3.77%   $   (302)
   Regular money market accounts...........     1,041       1.31        (125)       1,166        1.53          13
   Hi yield money market accounts..........    14,782      18.61      (3,339)      18,121       23.84      (1,241)
   Super NOW accounts......................       614        .77         287          327         .43         (39)
   NOW accounts............................     5,466       6.88         116        5,350        7.04         560
   Non-interest bearing accounts...........     3,277       4.12         596        2,681        3.53       1,189
                                              -------      -----      -------      ------       -----       -----
Total withdrawable.........................    28,658      36.07      (1,856)      30,514       40.14         180
Certificates (original terms):
   91 days.................................       668        .84         146          522         .69        (705)
   6 months................................     7,939       9.99       4,701        3,238        4.26        (353)
   12 months...............................    19,830      24.96       7,661       12,169       16.01       6,198
   18 months...............................     1,263       1.59         131        1,132        1.49        (700)
   24 months...............................     7,255       9.13      (4,514)      11,769       15.48         636
   30 months...............................     5,425       6.83      (2,718)       8,143       10.71         574
   60 months...............................     3,226       4.06        (169)       3,395        4.47        (224)
IRAs
   18 months...............................     5,190       6.53          61        5,129        6.75         394
                                              -------     ------      ------      -------      ------       -----
Total certificates.........................    50,796      63.93       5,299       45,497       59.86       5,820
                                              -------     ------      ------      -------      ------       -----
Total deposits.............................   $79,454     100.00%     $3,443      $76,011      100.00%     $6,000
                                              =======     ======      ======      =======      ======      ======
</TABLE>

                                                     Deposit Activity
                                           ------------------------------------
                                                                     Increase
                                                                    (Decrease)
                                           Balance at                  from
                                           December 31,    % of    December 31,
                                               1998      Deposits      1997
                                           ------------  --------  ------------
                                                  (Dollars in thousands)
Withdrawable:
   Passbook savings accounts...............    $3,171       4.53%    $   101
   Regular money market accounts...........     1,153       1.65         103
   Hi yield money market accounts..........    19,362      27.66       3,676
   Super NOW accounts......................       366        .52         (98)
   NOW accounts............................     4,790       6.84       1,058
   Non-interest bearing accounts...........     1,492       2.13         630
                                               ------      -----       -----
Total withdrawable.........................    30,334      43.33       5,470
Certificates (original terms):
   91 days.................................     1,227       1.75         865
   6 months................................     3,591       5.13          50
   12 months...............................     5,971       8.53         220
   18 months...............................     1,832       2.62         813
   24 months...............................    11,133      15.90         603
   30 months...............................     7,569      10.81       1,287
   60 months...............................     3,619       5.17          67
IRAs

   18 months...............................     4,735       6.76          41
                                               ------      -----       -----
Total certificates.........................    39,677      56.67       3,946
                                              -------     ------      ------
Total deposits ............................   $70,011     100.00%     $9,416
                                              =======     ======      ======
<PAGE>

     Borrowings.  The Bank focuses on  generating  high  quality  loans and then
seeks the best source of funding from deposits, investments or borrowings. There
are  regulatory  restrictions  on advances from the FHLBs.  See  "Regulation  --
Federal Home Loan Bank System" and "-- Qualified Thrift Lender." At December 31,
2000, the Company had $10.0 million in borrowings  from the FHLB of Indianapolis
which mature  within one year and $24.0 million which mature in greater than one
year. The weighted  average  interest rate related to these borrowings was 6.11%
at December  31,  2000.  The  Company  does not  anticipate  any  difficulty  in
obtaining  advances  appropriate  to meet its  requirements  in the  future.  At
December 31, 2000, notes payable  consisted of borrowings  secured by the Bank's
investment in a real estate  partnership which will mature in 2009. The interest
rate on the variable rate borrowing was 3.61% at December 31, 2000.

Employees

     As of December 31, 2000, the Bank employed 20 persons on a full-time  basis
and  five  persons  on a  part-time  basis.  None of the  Bank's  employees  are
represented by a collective bargaining group.  Management considers its employee
relations to be excellent.

     The Bank's employee benefits for full-time  employees include,  among other
things,  a Financial  Institutions  Retirement  Fund, which is a defined benefit
pension plan ("FIRF" or the "Pension Plan"), a 401(k) plan and major medical and
long-term disability insurance.

     Employee benefits are considered by management to be competitive with those
offered by other financial institutions and major employers in the Bank's market
area. See "Executive Compensation and Related Transactions."


Competition

     The Bank  operates in North  Central  Indiana  and makes  almost all of its
loans to and  accepts  most of its  deposits  from  residents  of Cass County in
Indiana.

     The Bank is subject to  competition  from various  financial  institutions,
including  state and national  banks,  state and federal  savings  institutions,
credit unions,  certain  non-banking  consumer  lenders,  and other companies or
firms,  including  brokerage houses and mortgage  brokers,  that provide similar
services in Cass County.  The Bank must also compete with money market funds and
with insurance companies with respect to its individual retirement accounts. See
"Regulation--Acquisitions or Dispositions and Branching."

     The primary  factors in  competing  for  deposits  are  interest  rates and
convenience  of  office  locations.  The Bank  competes  for  loan  originations
primarily  through the efficiency and quality of services it provides  borrowers
and through interest rates and loan fees it charges. Competition is affected by,
among other things,  the general  availability  of lendable  funds,  general and
local economic conditions, current interest rate levels, and other factors which
are not readily predictable.

                                   REGULATION

General

     The Bank, as a federally chartered savings bank, is a member of the Federal
Home Loan Bank  System  ("FHLB  System")  and its  deposits  are  insured by the
Federal Deposit Insurance Corporation ("FDIC") and it is a member of the Savings
Association Insurance Fund (the "SAIF"),  which is administered by the FDIC. The
Bank is subject to extensive regulation by the OTS. Federal associations may not
enter into certain  transactions unless certain regulatory tests are met or they
obtain prior  governmental  approval and the associations must file reports with
the  OTS  about  their  activities  and  their  financial  condition.   Periodic
compliance  examinations  of the Bank are  conducted  by the OTS which  has,  in
conjunction  with the FDIC in certain  situations,  examination  and enforcement
powers.   This  supervision  and  regulation  are  intended  primarily  for  the
protection of depositors and federal deposit  insurance  funds. The Bank is also
subject  to  certain  reserve  requirements  under  regulations  of the Board of
Governors of the Federal Reserve System ("FRB").

     An OTS  regulation  establishes a schedule for the  assessment of fees upon
all savings  associations to fund the operations of the OTS. The regulation also
establishes a schedule of fees for the various types of applications and filings
made by savings associations with the OTS. The general assessment, to be paid on
a  semiannual  basis,  is based upon the  savings  association's  total  assets,
including  consolidated  subsidiaries,  as reported in a recent quarterly thrift
financial report.  Currently,  the quarterly assessment rates range from .01164%
of assets for  associations  with  assets of $67  million or less to .00308% for
associations  with  assets in  excess  of $35  billion.  The  Bank's  semiannual
assessment under this assessment scheme, based upon its total assets at December
31, 2000, was approximately $18,500.

     The Bank is also subject to federal and state regulation as to such matters
as loans to officers,  directors, or principal shareholders,  required reserves,
limitations as to the nature and amount of its loans and investments, regulatory
approval of any merger or  consolidation,  issuances or retirements of their own
securities,  and  limitations  upon  other  aspects of  banking  operations.  In
addition,  the  activities and operations of the Bank are subject to a number of
additional  detailed,  complex and sometimes  overlapping federal and state laws
and regulations.  These include state usury and consumer credit laws, state laws
relating to fiduciaries,  the Federal Truth-In-Lending Act and Regulation Z, the
Federal Equal Credit Opportunity Act and Regulation B, the Fair Credit Reporting
Act, the Community  Reinvestment Act,  anti-redlining  legislation and antitrust
laws.

Holding Company Regulation

     The Holding Company is regulated as a "non-diversified  unitary savings and
loan  holding  company"  within the  meaning of the Home  Owners'  Loan Act,  as
amended  ("HOLA"),  and subject to  regulatory  oversight of the Director of the
OTS. As such, the Holding Company is registered with the OTS and thereby subject
to OTS regulations,  examinations,  supervision and reporting requirements. As a
subsidiary of a savings and loan holding company, the Bank is subject to certain
restrictions  in its dealings with the Holding  Company and with other companies
affiliated with the Holding Company.

     The HOLA generally  prohibits a savings and loan holding  company,  without
obtaining  the prior  approval of the  Director of the OTS,  from (i)  acquiring
control of any other savings  association or savings and loan holding company or
controlling  the  assets  thereof or (ii)  acquiring  or  retaining  more than 5
percent of the voting shares of a savings association or holding company thereof
which is not a subsidiary. Except with the prior approval of the Director of the
OTS,  no director  or officer of a savings  and loan  holding  company or person
owning or  controlling  by proxy or  otherwise  more than 25% of such  company's
stock  may  also  acquire  control  of any  savings  institution,  other  than a
subsidiary institution, or any other savings and loan holding company.

     The Holding  Company's Board of Directors  presently intends to continue to
operate the Holding Company as a unitary savings and loan holding company. Under
current OTS regulations,  there are generally no restrictions on the permissible
business activities of a unitary savings and loan holding company.

     The  Holding  Company  currently  operates  as a unitary  savings  and loan
holding company.  Prior to the enactment of the Gramm-Leach-Bliley Act (the "GLB
Act") on  November  12,  1999,  there were no  restrictions  on the  permissible
business  activities of a unitary savings and loan holding company.  The GLB Act
included a provision  that  prohibits  any new unitary  savings and loan holding
company,  defined as a company that  acquires a thrift  after May 4, 1999,  from
engaging in commercial  activities.  This  provision also includes a grandfather
clause,  however,  that  permits a company  that was a savings and loan  holding
company as of May 4, 1999,  or had an  application  to become a savings and loan
holding company on file with the OTS as of that date, to acquire and continue to
control a thrift and to continue to engage in commercial activities. Because the
Holding Company qualifies under this grandfather provision,  the GLB Act did not
affect  the  Holding  Company's  authority  to  engage in  diversified  business
activities.

     Notwithstanding  the above rules as to permissible  business  activities of
unitary  savings  and  loan  holding  companies,   if  the  savings  association
subsidiary of such a holding  company fails to meet the Qualified  Thrift Lender
("QTL")  test,  then such unitary  holding  company would be deemed to be a bank
holding company subject to all of the provisions of the Bank Holding Company Act
of 1956 and other  statutes  applicable to bank holding  companies,  to the same
extent as if the Holding Company were a bank holding company and the Bank were a
bank.  See  "-Qualified  Thrift  Lender." At December 31, 2000, the Bank's asset
composition  was in excess of that  required  to qualify as a  Qualified  Thrift
Lender.

     If  the  Holding  Company  were  to  acquire  control  of  another  savings
institution  other than through a merger or other business  combination with the
Bank, the Holding  Company would  thereupon  become a multiple  savings and loan
holding  company.  Except where such acquisition is pursuant to the authority to
approve  emergency  thrift   acquisitions  and  where  each  subsidiary  savings
association meets the QTL test, the activities of the Holding Company and any of
its subsidiaries (other than the Bank or other subsidiary savings  associations)
would  thereafter be subject to further  restrictions.  The HOLA provides  that,
among other things,  no multiple  savings and loan holding company or subsidiary
thereof  which is not a savings  association  shall  commence or continue  for a
limited  period of time  after  becoming  a multiple  savings  and loan  holding
company or subsidiary  thereof,  any business activity other than (i) furnishing
or performing  management  services for a subsidiary savings  association,  (ii)
conducting an insurance agency or escrow business,  (iii) holding,  managing, or
liquidating assets owned by or acquired from a subsidiary  savings  institution,
(iv) holding or managing  properties  used or occupied by a  subsidiary  savings
institution,  (v) acting as trustee under deeds of trust,  (vi) those activities
in which  multiple  savings  and loan  holding  companies  were  authorized  (by
regulation)  to directly  engage on March 5, 1987,  to be engaged in by multiple
holding companies or (vii) those activities authorized by the FRB as permissible
for  bank  holding  companies,  unless  the  Director  of the OTS by  regulation
prohibits  or limits such  activities  for savings and loan  holding  companies.
Those activities  described in (vii) above must also be approved by the Director
of the OTS prior to being  engaged in by a  multiple  savings  and loan  holding
company.

     The  Director of the OTS may also  approve  acquisitions  resulting  in the
formation of a multiple  savings and loan holding company which controls savings
associations  in more than one state,  if the multiple  savings and loan holding
company involved controls a savings  association which operated a home or branch
office in the state of the  association  to be acquired as of March 1987,  or if
the  laws of the  state in which  the  institution  to be  acquired  is  located
specifically permit institutions to be acquired by state-chartered  institutions
or savings and loan holding  companies  located in the state where the acquiring
entity is located (or by a holding  company that controls  such  state-chartered
savings institutions).  Also, the Director of the OTS may approve an acquisition
resulting in a multiple  savings and loan holding  company  controlling  savings
associations  in more than one  state in the case of  certain  emergency  thrift
acquisitions.

     Indiana law permits federal and state savings association holding companies
with  their  home  offices   located  outside  of  Indiana  to  acquire  savings
associations  whose home offices are located in Indiana and savings  association
holding  companies with their principal  place of business in Indiana  ("Indiana
Savings  Association Holding Companies") upon receipt of approval by the Indiana
Department of Financial  Institutions.  Moreover,  Indiana  Savings  Association
Holding  Companies  may acquire  savings  associations  with their home  offices
located outside of Indiana and savings associations holding companies with their
principal place of business  located outside of Indiana upon receipt of approval
by the Indiana Department of Financial Institutions.

Federal Home Loan Bank System

         The Bank is a member of the FHLB system,  which consists of 12 regional
banks.  The Federal  Housing  Finance Board  ("FHFB"),  an  independent  agency,
controls the FHLB System,  including the FHLB of  Indianapolis.  The FHLB System
provides a central credit facility primarily for member financial  institutions.
At December 31, 2000, the Bank's investment in stock of the FHLB of Indianapolis
was  $1,973,000.  For the  fiscal  year ended  December  31,  2000,  the FHLB of
Indianapolis paid approximately $130,000 in dividends to the Bank.

         All 12 FHLB's are  required to provide  funds to  establish  affordable
housing  programs  through  direct  loans or interest  subsidies  on advances to
members  to be used  for  lending  at  subsidized  interest  rates  for  low-and
moderate-income, owner-occupied housing projects, affordable rental housing, and
certain other community  projects.  These  contributions  and obligations  could
adversely affect the value of FHLB stock in the future. A reduction in the value
of such stock may result in a corresponding reduction in the Bank's capital.

         The FHLB of Indianapolis serves as a reserve or central bank for member
institutions  within its assigned  region.  It is funded primarily from proceeds
derived from the sale of consolidated  obligations of the FHLB System.  It makes
advances to members in accordance  with policies and  procedures  established by
the FHLB and the Board of Directors of the FHLB of Indianapolis.

         All FHLB advances  must be fully  secured by  sufficient  collateral as
determined by the FHLB.  Eligible  collateral  includes first mortgage loans not
more  than  90 days  delinquent  or  securities  evidencing  interests  therein,
securities (including mortgage-backed  securities) issued, insured or guaranteed
by the federal government or any agency thereof, cash or FHLB deposits,  certain
small business and  agricultural  loans of smaller  institutions and real estate
with readily  ascertainable  value in which a perfected security interest may be
obtained.  Other forms of collateral may be accepted as additional  security or,
under  certain  circumstances,  to renew  outstanding  advances.  All  long-term
advances are required to provide funds for  residential  home  financing and the
FHLB has  established  standards of community  service that members must meet to
maintain access to long-term advances.

         Interest rates charged for advances vary  depending upon maturity,  the
cost of funds to the FHLB of Indianapolis and the purpose of the borrowing.

Insurance of Deposits

     The FDIC is an independent federal agency that insures the deposits,  up to
prescribed  statutory limits, of banks and thrifts and safeguards the safety and
soundness  of the  banking  and  thrift  industries.  The FDIC  administers  two
separate  insurance  funds,  the Bank  Insurance Fund (the "BIF") for commercial
banks and state savings banks and the SAIF for savings  associations such as the
Bank and banks that have acquired deposits from savings  associations.  The FDIC
is required to maintain designated levels of reserves in each fund. During 1996,
the reserves of the SAIF were below the level required by law, primarily because
a significant  portion of the  assessments  paid into the SAIF have been used to
pay the cost of prior  thrift  failures,  while the  reserves of the BIF met the
level required by law. In 1996, however, legislation was enacted to recapitalize
the SAIF and  eliminate  the  premium  disparity  between  the BIF and SAIF,  as
further described below.

     The FDIC is authorized to establish  separate annual  assessment  rates for
deposit  insurance for members of the BIF and members of the SAIF.  The FDIC may
increase  assessment  rates for either fund if  necessary  to restore the fund's
ratio of reserves to insured  deposits to the target  level  within a reasonable
time and may decrease these rates if the target level has been met. The FDIC has
established a risk-based assessment system for both SAIF and BIF members.  Under
this system, assessments vary depending on the risk the institution poses to its
deposit  insurance fund. An institution's  risk level is determined based on its
capital level and the FDIC's level of supervisory concern about the institution.

     In 1996,  legislation  was enacted  that  included  provisions  designed to
recapitalize the SAIF and eliminate the significant  premium  disparity  between
the BIF and the SAIF. Under the new law, the Bank was charged a one-time special
assessment equal to $.657 per $100 in assessable deposits at March 31, 1996. The
Bank recognized this one-time assessment as a non-recurring operating expense of
$335,000 during the three-month  period ended September 30, 1996. The assessment
was fully  deductible for both federal and state income tax purposes.  Beginning
January 1, 1997,  the Bank's annual deposit  insurance  premium was reduced from
 .23% to .06% of total  assessable  deposits.  In addition to the  assessment for
deposit insurance,  savings  institutions are required to pay on bonds issued in
the   late   1980s  by  the   Financing   Corporation   ("FICO"),   which  is  a
federally-chartered  corporation  that  was  organized  to  provide  some of the
financing to resolve the thrift crisis in the 1980s.  During 1998, FICO payments
for SAIF members  approximated  6.10 basis  points,  while BIF members paid 1.22
basis points.  By law, payments on Financing  Corporation  obligations have been
shared equally between BIF members and SAIF members since January 1, 2000.

     Although Congress has considered  merging the SAIF and the BIF, until then,
savings  associations  with SAIF deposits may not transfer deposits into the BIF
system without  paying  various exit and entrance  fees.  Such exit and entrance
fees need not be paid if a SAIF institution converts to a bank charter or merges
with a bank, as long as the resulting bank continues to pay applicable insurance
assessments to the SAIF, and as long as certain other conditions are met.

Regulatory Capital

     Currently,  savings  associations  are  subject to three  separate  minimum
capital-to-assets  requirements:  (i) a leverage limit,  (ii) a tangible capital
requirement,  and  (iii) a  risk-based  capital  requirement.  The OTS  requires
savings  associations that receive the highest supervisory rating for safety and
soundness to maintain "core  capital" of at least 3% of total assets.  All other
savings  associations must maintain core capital of at least 4% of total assets.
Core  capital is generally  defined as common  shareholders'  equity  (including
retained income),  noncumulative  perpetual preferred stock and related surplus,
certain  minority  equity  interests  in  subsidiaries,  qualifying  supervisory
goodwill,   purchased  mortgage  servicing  rights  and  purchased  credit  card
relationships (subject to certain limits) less nonqualifying intangibles.  Under
the tangible capital  requirement,  a savings association must maintain tangible
capital  (core capital less all  intangible  assets  except  purchased  mortgage
servicing  rights which may be included after making the above-noted  adjustment
in an amount up to 100% of tangible  capital) of at least 1.5% of total  assets.
Under the risk-based capital  requirements,  a minimum amount of capital must be
maintained by a savings  association  to account for the relative risks inherent
in the type and amount of assets held by the savings association. The risk-based
capital requirement  requires a savings association to maintain capital (defined
generally for these purposes as core capital plus general  valuation  allowances
and  permanent  or maturing  capital  instruments  such as  preferred  stock and
subordinated  debt  less  assets  required  to be  deducted)  equal  to  8.0% of
risk-weighted  assets.  Assets are  ranked as to risk in one of four  categories
(0-100%).  A credit  risk-free  asset,  such as  cash,  requires  no  risk-based
capital,  while an asset with a significant  credit risk,  such as a non-accrual
loan,  requires a risk  factor of 100%.  Moreover,  a savings  association  must
deduct from capital, for purposes of meeting the core capital,  tangible capital
and risk-based  capital  requirements,  its entire  investment in and loans to a
subsidiary engaged in activities not permissible for a national bank (other than
exclusively   agency   activities   for  its   customers  or  mortgage   banking
subsidiaries). At December 31, 2000, the Bank was in compliance with all capital
requirements imposed by law.

     The OTS has  promulgated  a rule  which  sets  forth  the  methodology  for
calculating an interest rate risk  component to be used by savings  associations
in calculating  regulatory  capital.  The OTS has delayed the  implementation of
this rule, however.  The rule requires savings  associations with "above normal"
interest rate risk  (institutions  whose portfolio equity would decline in value
by more than 2% of assets in the event of a hypothetical 200-basis-point move in
interest rates) to maintain  additional capital for interest rate risk under the
risk-based capital framework. If the OTS were to implement this regulation,  the
Bank would not be required to maintain  additional  capital at December 31, 2000
under the terms of the OTS proposed  interest  rate risk rule.  The OTS recently
proposed  an  amendment  to the  interes  rate risk rule that  would  delete the
requirement  that a savings  association  with excess  exposure to interest rate
risk maintain additional capital.

     The OTS has also revised its standards regarding the management of interest
rate risk to  include  summary  guidelines  to assist  savings  associations  in
determining  their  exposures to interest rate risk. If an association is not in
compliance with the capital requirements,  the OTS is required to prohibit asset
growth and to impose a capital directive that may restrict,  among other things,
the payment of dividends and officers'  compensation.  In addition,  the OTS and
the FDIC generally are authorized to take enforcement  actions against a savings
association  that fails to meet its  capital  requirements.  These  actions  may
include  restricting  the operating  activities of the  association,  imposing a
capital directive, cease and desist order, or civil money penalties, or imposing
harsher  measures  such as appointing a receiver or  conservator  or forcing the
association to merge into another institution.

Prompt Corrective Action

     The Federal  Deposit  Insurance  Corporation  Improvement  Act of 1991,  as
amended ("FedICIA")  requires,  among other things, that federal bank regulatory
authorities take "prompt corrective action" with respect to institutions that do
not meet minimum capital requirements.  For these purposes,  FedICIA establishes
five capital tiers: well capitalized, adequately capitalized,  undercapitalized,
significantly undercapitalized, and critically undercapitalized. At December 31,
2000,  the Bank was  categorized as "well  capitalized,"  meaning that its total
risk-based  capital  ratio  exceeded  10%, its Tier I risk-based  capital  ratio
exceeded  6%,  its  leverage  ratio  exceeded  5%,  and it was not  subject to a
regulatory order, agreement or directive to meet and maintain a specific capital
level for any capital measure.

     The FDIC may order savings  associations which have insufficient capital to
take corrective actions. For example, a savings association which is categorized
as  "undercapitalized"  would be  subject  to  growth  limitations  and would be
required  to submit a capital  restoration  plan,  and a  holding  company  that
controls  such a savings  association  would be required to  guarantee  that the
savings   association   complies  with  the  restoration  plan.   "Significantly
undercapitalized"   savings   associations   would  be  subject  to   additional
restrictions.  Savings  associations  deemed  by  the  FDIC  to  be  "critically
undercapitalized"  would  be  subject  to  the  appointment  of  a  receiver  or
conservator.

Capital Distributions Regulation

     The OTS also  restricts the amount of "capital  distributions"  that may be
made by savings associations. The regulation defines a capital distribution as a
distribution of cash or other property to a savings  association's  owners, made
on account of their ownership.  This definition includes a savings association's
payment  of  cash  dividends  to  shareholders,  or  any  payment  by a  savings
association  to  repurchase,  redeem,  retire,  or otherwise  acquire any of its
shares or debt instruments that are included in total capital, and any extension
of credit to finance an  affiliate's  acquisition  of those shares or interests.
The amended regulation does not apply to dividends  consisting only of a savings
association's shares or rights to purchase such shares.

     The regulation  exempts certain savings  associations  from filing either a
notice or an application with the OTS before making any capital distribution and
requires a savings association to file an application for approval of a proposed
capital  distribution  with  the  OTS if the  association  is not  eligible  for
expedited  treatment  under OTS's  application  processing  rules,  or the total
amount  of  all  capital   distributions,   including   the   proposed   capital
distribution,  for the applicable  calendar year would exceed an amount equal to
the  savings  association's  net income  for that year to date plus the  savings
association's retained net income for the preceding two years (the "retained net
income  standard").  Based on the Bank's retained net income standard,  the Bank
would be required to file a notice or application with the OTS before making any
capital  distribution.  A savings  association must also file an application for
approval  of  a  proposed  capital   distribution  if,  following  the  proposed
distribution, the association would not be at least adequately capitalized under
the OTS prompt corrective action  regulations,  or if the proposed  distribution
would violate a prohibition contained in any applicable statute,  regulation, or
agreement between the association and the OTS or the FDIC.

     The  regulation  requires  a  savings  association  to file a  notice  of a
proposed  capital  distribution  in lieu of an application if the association or
the proposed  capital  distribution do not meet the conditions  described above,
and:  (1) the  savings  association  will not be at least well  capitalized  (as
defined  under the OTS  prompt  corrective  action  regulations)  following  the
capital  distribution;  (2) the capital distribution would reduce the amount of,
or retire any part of the savings  association's  common or preferred  stock, or
retire any part of debt instruments such as notes or debentures  included in the
association's  capital  under the OTS  capital  regulation;  or (3) the  savings
association is a subsidiary of a savings and loan holding  company.  Because the
Bank is a  subsidiary  of a  savings  and  loan  holding  company,  this  latter
provision requires that, at a minimum,  the Bank must file a notice with the OTS
thirty days before making any capital distributions to the Holding Company.

     In addition to these regulatory restrictions, the Bank's Plan of Conversion
imposes  additional  limitations on the amount of capital  distributions  it may
make to the Holding Company.  The Plan of Conversion by which the Bank converted
from the  mutual to the  stock  form of  ownership  (the  "Plan of  Conversion")
requires  the Bank to  establish  and  maintain a  liquidation  account  for the
benefit of Eligible  Account Holders and  Supplemental  Eligible Account Holders
(as those terms are defined in the Plan of  Conversion)  and  prohibits the Bank
from making capital  distributions to the Holding Company if its net worth would
be reduced below the amount required for the liquidation account.

Limitations on Rates Paid for Deposits

     Regulations  promulgated by the FDIC pursuant to FedICIA place  limitations
on the ability of insured depository  institutions to accept, renew or roll over
deposits by offering rates of interest which are  significantly  higher than the
prevailing  rates of interest on deposits  offered by other  insured  depository
institutions having the same type of charter in the institution's  normal market
area. Under these regulations,  "well-capitalized"  depository  institutions may
accept,  renew or roll  such  deposits  over  without  restriction,  "adequately
capitalized"  depository  institutions  may accept,  renew or roll such deposits
over with a waiver from the FDIC (subject to certain restrictions on payments of
rates) and "undercapitalized"  depository  institutions may not accept, renew or
roll such deposits over. The  regulations  contemplate  that the  definitions of
"well capitalized,"  "adequately capitalized" and "undercapitalized" will be the
same as the  definition  adopted by the  agencies to  implement  the  corrective
action  provisions of FedICIA.  The Bank does not believe that these regulations
will have a materially adverse effect on its current operations.

Liquidity

     The Financial  Regulatory Relief and Economic Efficiency Act of 2000, which
was  signed  into law on  December  27,  2000,  repealed  the  former  statutory
requirement that all savings  associations  maintain an average daily balance of
liquid assets in a minimum  amount of not less than 4% or more than 10% of their
withdrawable  accounts plus  short-term  borrowings.  The OTS adopted an interim
final rule in March 2001 that  implemented this revised  statutory  requirement,
although savings associations remain subject to the OTS regulation that requires
them to maintain sufficient liquidity to ensure their safe and sound operation.

Safety and Soundness Standards

     In 1995, the federal  banking  agencies  adopted final safety and soundness
standards for all insured  depository  institutions.  The standards,  which were
issued in the form of  guidelines  rather than  regulations,  relate to internal
controls,  information  systems,  internal audit systems,  loan underwriting and
documentation,   compensation  and  interest  rate  exposure.  In  general,  the
standards are designed to assist the federal banking agencies in identifying and
addressing  problems at insured depository  institutions  before capital becomes
impaired.  If an  institution  fails to meet these  standards,  the  appropriate
federal banking agency may require the institution to submit a compliance  plan.
Failure  to submit a  compliance  plan may  result in  enforcement  proceedings.
During  1996,  the federal  banking  agencies  added  asset  quality and earning
standards to the safety and soundness guidelines.

Real Estate Lending Standards

     OTS  regulations  require  savings  associations  to establish and maintain
written  internal  real estate  lending  policies.  Each  association's  lending
policies  must  be  consistent  with  safe  and  sound  banking   practices  and
appropriate  to the size of the  association  and the  nature  and  scope of its
operations.   The  policies  must  establish   loan  portfolio   diversification
standards;  establish prudent underwriting  standards,  including  loan-to-value
limits, that are clear and measurable;  establish loan administration procedures
for the  association's  real  estate  portfolio;  and  establish  documentation,
approval,   and  reporting   requirements   to  monitor   compliance   with  the
association's  real estate  lending  policies.  The  association's  written real
estate lending policies must be reviewed and approved by the association's board
of directors at least annually. Further, each association is expected to monitor
conditions  in its real  estate  market  to  ensure  that its  lending  policies
continue to be appropriate for current market conditions.

Loans to One Borrower

     Under OTS  regulations,  the Bank may not make a loan or extend credit to a
single or related group of borrowers in excess of 15% of its unimpaired  capital
and surplus.  Additional amounts may be lent, not in excess of 10% of unimpaired
capital and surplus,  if such loans or extensions of credit are fully secured by
readily marketable collateral,  including certain debt and equity securities but
not including real estate.  In some cases, a savings  association may lend up to
30 percent of  unimpaired  capital and surplus to one  borrower  for purposes of
developing domestic residential housing, provided that the association meets its
regulatory  capital  requirements  and the OTS authorizes the association to use
this expanded lending authority. At December 31, 2000, the Bank did not have any
loans or  extensions  of credit to a single or  related  group of  borrowers  in
excess  of  its   lending   limits.   The  Bank  does  not   believe   that  the
loans-to-one-borrower  limits  will have a  significant  impact on its  business
operations or earnings.

Qualified Thrift Lender

     Savings  associations must meet a QTL test that requires the association to
maintain  an  appropriate  level  of  qualified  thrift   investments   ("QTIs")
(primarily  residential  mortgages and related  investments,  including  certain
mortgage-related  securities)  and  otherwise  to qualify as a QTL. The required
percentage  of QTIs is 65% of  portfolio  assets  (defined  as all assets  minus
intangible  assets,  property used by the association in conducting its business
and liquid assets equal to 10% of total assets). Certain assets are subject to a
percentage  limitation  of  20%  of  portfolio  assets.  In  addition,   savings
associations may include shares of stock of the FHLBs,  FNMA, and FHLMC as QTIs.
Compliance  with the QTL test is  determined  on a monthly  basis in nine out of
every twelve months.

     A savings  association which fails to meet the QTL test must either convert
to a bank (but its deposit  insurance  assessments and payments will be those of
and paid to SAIF) or be subject to the following penalties: (i) it may not enter
into any new activity except for those permissible for a national bank and for a
savings association;  (ii) its branching activities shall be limited to those of
a  national  bank;  and  (iii) it shall be bound by  regulations  applicable  to
national banks  respecting  payment of dividends.  Three years after failing the
QTL  test the  association  must  dispose  of any  investment  or  activity  not
permissible  for a national  bank and a savings  association.  If such a savings
association  is  controlled  by a savings and loan  holding  company,  then such
holding company must,  within a prescribed time period,  become  registered as a
bank holding company and become subject to all rules and regulations  applicable
to bank holding companies (including restrictions as to the scope of permissible
business activities).

     A savings  association  failing to meet the QTL test may requalify as a QTL
if it  thereafter  meets the QTL test. In the event of such  requalification  it
shall not be subject to the penalties  described  above.  A savings  association
which  subsequently  again  fails to  qualify  under the QTL test  shall  become
subject to all of the described  penalties  without  application  of any waiting
period.

     At December 31, 2000,  82.91% of the Bank's portfolio assets (as defined on
that date) were  invested in qualified  thrift  investments  (as defined on that
date), and therefore the Bank's asset composition was in excess of that required
to qualify the Bank as a QTL.  Also,  the Bank does not expect to  significantly
change its lending or investment activities in the near future. The Bank expects
to continue to qualify as a QTL, although there can be no such assurance.

Acquisitions or Dispositions and Branching

     The  Bank  Holding  Company  Act  specifically  authorizes  a bank  holding
company, upon receipt of appropriate regulatory approvals, to acquire control of
any savings association or holding company thereof wherever located.  Similarly,
a savings and loan  holding  company may  acquire  control of a bank.  Moreover,
federal  savings  associations  may  acquire  or  be  acquired  by  any  insured
depository  institution.   Regulations  promulgated  by  the  FRB  restrict  the
branching authority of savings associations  acquired by bank holding companies.
Savings  associations  acquired by bank  holding  companies  may be converted to
banks if they continue to pay SAIF premiums,  but as such they become subject to
branching and activity restrictions applicable to banks.

     Subject  to  certain  exceptions,  commonly  controlled  banks and  savings
associations  must reimburse the FDIC for any losses suffered in connection with
a failed  bank or  savings  association  affiliate.  Institutions  are  commonly
controlled  if one is owned by another or if both are owned by the same  holding
company.  Such claims by the FDIC under this provision are subordinate to claims
of depositors,  secured creditors,  and holders of subordinated debt, other than
affiliates.

     The OTS has adopted  regulations which permit  nationwide  branching to the
extent  permitted by federal  statute.  Federal  statutes permit federal savings
associations to branch outside of their home state if the association  meets the
domestic  building  and loan  test in  ss.7701(a)(19)  of the Code or the  asset
composition  test of ss.7701(c) of the Code.  Branching that would result in the
formation of a multiple  savings and loan holding  company  controlling  savings
associations  in more  than one  state is  permitted  if the law of the state in
which the savings association to be acquired is located specifically  authorizes
acquisitions   of  its   state-chartered   associations   by  state-   chartered
associations  or their  holding  companies  in the  state  where  the  acquiring
association or holding company is located.  Moreover,  Indiana banks and savings
associations   are   permitted  to  acquire  other  Indiana  banks  and  savings
associations and to establish branches throughout Indiana.

     Finally, the Riegle-Neal Interstate Banking and Branching Efficiency Act of
1994 (the "Riegle-Neal  Act") permits bank holding companies to acquire banks in
other states and, with state consent and subject to certain limitations,  allows
banks  to  acquire  out-of-state  branches  either  through  merger  or de  novo
expansion.  The State of Indiana  enacted  legislation  establishing  interstate
branching  provisions for Indiana  state-chartered  banks  consistent with those
established by the Riegle-Neal Act (the "Indiana  Branching  Law").  The Indiana
Branching  Law,  which became  effective in 1996,  authorizes  Indiana  banks to
branch   interstate  by  merger  or  de  novo  expansion,   provided  that  such
transactions  are not permitted to  out-of-state  banks unless the laws of their
home  states  permit  Indiana  banks to merge or  establish  de novo  banks on a
reciprocal basis.

Transactions with Affiliates

     The Bank and Holding Company are subject to Sections 22(h),  23A and 23B of
the Federal Reserve Act, which restrict financial transactions between banks and
affiliated companies.  The statute limits credit transactions between a bank and
its executive  officers and its affiliates,  prescribes terms and conditions for
bank affiliate  transactions deemed to be consistent with safe and sound banking
practices,   and  restricts  the  types  of  collateral  security  permitted  in
connection with a bank's extension of credit to an affiliate.

Federal Securities Law

     The shares of Common Stock of the Holding  Company are registered  with the
Securities and Exchange  Commission (the "Commission")  under the Securities and
Exchange  Act of 1934,  as amended  (the "1934  Act").  The  Holding  Company is
subject to the information, proxy solicitation, insider trading restrictions and
other  requirements of the 1934 Act and the rules of the SEC thereunder.  If the
Holding  Company has fewer than 300  shareholders,  it may deregister the shares
under the 1934 Act and cease to be subject to the foregoing requirements.

     Shares of Common  Stock held by persons who are  affiliates  of the Holding
Company may not be resold without registration or unless sold in accordance with
the resale  restrictions  of Rule 144 under the  Securities  and Exchange Act of
1933  (the  "1933  Act").  If the  Holding  Company  meets  the  current  public
information  requirements  under Rule 144, each affiliate of the Holding Company
who complies with the other  conditions of Rule 144 (including  conditions  that
require  the  affiliate's  sale to be  aggregated  with those of  certain  other
persons) would be able to sell in the public  market,  without  registration,  a
number of shares not to exceed, in any three-month period, the greater of (i) 1%
of the  outstanding  shares of the Holding  Company or (ii) the  average  weekly
volume of trading in such shares during the preceding four calendar weeks.

Community Reinvestment Act Matters

     Federal law requires  that  ratings of  depository  institutions  under the
Community Reinvestment Act of 1977 ("CRA") be disclosed. The disclosure includes
both a four-unit descriptive rating -- outstanding, satisfactory, unsatisfactory
and  needs  improvement  --  and a  written  evaluation  of  each  institution's
performance.   Each  FHLB  is  required  to  establish  standards  of  community
investment  or service that its members must  maintain for  continued  access to
long-term  advances from the FHLBs.  The standards  take into account a member's
performance  under the CRA and its record of lending to first-time  home buyers.
The OTS examiners have  determined  that the Bank has a  satisfactory  record of
meeting community credit needs.

                                    Taxation

Federal Taxation

     Historically,  savings associations,  such as the Bank, have been permitted
to compute bad debt deductions  using either the bank  experience  method or the
percentage of taxable income method. However, for years beginning after December
31, 1995,  the Bank is no longer able to use the  percentage  of taxable  income
method of computing its allocable tax bad debt  deduction.  The Bank is required
to compute its allocable  deduction using the experience  method. As a result of
the repeal of the percentage of taxable income method, reserves taken after 1987
using the  percentage  of taxable  income method  generally  must be included in
future taxable income over a six-year  period,  although a two-year delay may be
permitted for institutions meeting a residential mortgage loan origination test.
In  addition,  the  pre-1988  reserve,  for which no  deferred  taxes  have been
recorded,  will not have to be  recaptured  into  income  unless (i) the Bank no
longer qualifies as a bank under the Code, or (ii) excess dividends are paid out
by the Bank.

     Depending on the composition of its items of income and expense,  a savings
institution may be subject to the alternative minimum tax. A savings institution
must pay an alternative minimum tax equal to the amount (if any) by which 20% of
alternative minimum taxable income ("AMTI"),  as reduced by an exemption varying
with AMTI,  exceeds the regular tax due.  AMTI  equals  regular  taxable  income
increased or decreased by certain tax  preferences  and  adjustments,  including
depreciation  deductions in excess of that allowable for alternative minimum tax
purposes, tax-exempt interest on most private activity bonds issued after August
7, 1986  (reduced by any related  interest  expense  disallowed  for regular tax
purposes), the amount of the bad debt reserve deduction claimed in excess of the
deduction  based on the  experience  method  and 75% of the  excess of  adjusted
current  earnings over AMTI (before this  adjustment and before any  alternative
tax net  operating  loss).  AMTI may be reduced only up to 90% by net  operating
loss carryovers,  but alternative  minimum tax paid that is attributable to most
preferences  (although not to  post-August 7, 1986  tax-exempt  interest) can be
credited against regular tax due in later years.

State Taxation

     The Bank is subject to Indiana's Financial  Institutions Tax ("FIT"), which
is imposed at a flat rate of 8.5% on "adjusted  gross income."  "Adjusted  gross
income," for purposes of FIT,  begins with taxable  income as defined by Section
63 of the Code and,  thus,  incorporates  federal  tax law to the extent that it
affects  the  computation  of taxable  income.  Federal  taxable  income is then
adjusted  by several  Indiana  modifications,  the most  notable of which is the
required  addback of interest that is tax-free for federal  income tax purposes.
Other  applicable state taxes include  generally  applicable sales and use taxes
plus real and personal property taxes.

Item 2.    Properties.

     At December 31, 2000, the Bank and the Holding Company  conducted  business
from a single office at 723 East Broadway,  Logansport,  Indiana.  The following
table provides  certain  information  with respect to the Company's office as of
December 31, 2000:
<TABLE>
<CAPTION>

                                                                Total Deposits   Net Book Value
                                                                      at          of Property,
                                         Owned or       Year     December 31,      Furniture &       Approximate
Description and Address                   Leased       Opened        2000           Fixtures       Square Footage
-----------------------                  --------      ------    ------------    --------------    --------------
                                                                     (Dollars in thousands)

<S>                                         <C>          <C>       <C>              <C>               <C>
723 East Broadway                           Owned        1962      $79,454          $1,843            11,000
Logansport, Indiana  46947
</TABLE>

     The Company owns computer and data  processing  equipment which is used for
transaction  processing and  accounting.  The net book value of electronic  data
processing equipment owned by the Company was $114,000 at December 31, 2000.

     The Bank also has contracted for the data processing and reporting services
of the  Intrieve  Data  Center  in  Cincinnati,  Ohio.  The cost of  these  data
processing services is approximately $14,000 per month.


<PAGE>

Item 3.    Legal Proceedings.

     Neither  the Holding  Company nor the Bank is a party to any pending  legal
proceedings, other than routine litigation incidental to its business.

Item 4.    Submission of Matters to a Vote of Security Holders.

     No matter was  submitted  to a vote of the Holding  Company's  shareholders
during the quarter ended December 31, 2000.

Item 4.5.  Executive Officers of the Registrant.

     Presented below is certain information  regarding the executive officers of
the Holding Company:

       Name                               Position
       ----                               --------
       David G. Wihebrink                 President and Chief Executive Officer
       Charles J. Evans                   Senior Vice President
       Dottye Robeson                     Secretary/Treasurer

     David G.  Wihebrink  (age 53) has served as President  and Chief  Executive
Officer of the Bank and the Holding  Company since April 2000.  Before that, Mr.
Wihebrink had served as Vice President and Chief Financial  Officer of TM Morris
Manufacturing Co., Inc.  ("Morris") since 1988. Morris is located in Logansport,
Indiana,  and  manufactures  lead  wire  assemblies  and  wiring  harnesses  and
stampings.  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.

     Charles J. Evans (age 55) has served as Senior Vice  President  of the Bank
since  January  2000 and as Vice  President  of the  Holding  Company  since its
organization.  Prior to becoming Senior Vice President,  Mr. Evans had served as
Vice President and Senior Loan Officer of the Bank since 1980.

     Dottye Robeson (age 51) has served as Chief  Financial  Officer of the Bank
since  1994  and  as  Secretary/Treasurer  of  the  Holding  Company  since  its
organization. She has been a certified public accountant since 1987.

                                     PART II

Item 5. Market for Registrant's Common Equity and Related Shareholder Matters.

     Logansport  Savings  Bank,  FSB converted  from a mutual  savings bank to a
stock form federal savings bank effective June 13, 1995 (the  "Conversion")  and
simultaneously  formed a savings and loan holding company,  Logansport Financial
Corp. The Holding Company's common stock, without par value ("Common Stock"), is
quoted on the National  Association of Securities  Dealers  Automated  Quotation
System  ("Nasdaq"),  Small Cap Market,  under the symbol  "LOGN." The  following
table sets forth the high and low trade prices and  dividends  paid per share of
Common Stock for the quarters  indicated.  Such price  information  was obtained
from Nasdaq.


   Quarter Ended                  High               Low      Dividends Declared
   -------------                  ----               ---      ------------------
   March 31, 2000                $10.313          $9.063          $  .11
   June 30, 2000                   9.875           7.625             .11
   September 30, 2000             11.875           9.813             .11
   December 31, 2000              11.813          10.875             .11

   March 31, 1999                $14.000         $12.000          $  .11
   June 30, 1999                  12.500          11.130             .11
   September 30, 1999             11.560           9.630             .11
   December 31, 1999              10.500           9.030             .11

     As of  February  8,  2001,  there were 800  record  holders of the  Holding
Company's  Common Stock.  The Holding Company has established a policy of paying
regular periodic cash dividends,  and the Board of Directors intends to continue
this  policy,  subject to the Holding  Company's  operating  results,  financial
condition,  capital,  income tax considerations,  regulatory  restrictions,  and
other relevant factors.

     Since  the  Holding  Company  has  no  independent  operations  other  than
investment-related  activities or other  subsidiaries  to generate  income,  its
ability  to  accumulate  earnings  for  the  payment  of cash  dividends  to its
shareholders  will be  directly  dependent  upon the  ability of the Bank to pay
dividends to the Holding Company.

     Under OTS regulations,  a converted savings  institution may not declare or
pay a cash  dividend  if the effect  would be to reduce its net worth  below the
amount required for the liquidation account created at the time it converted. In
addition,  under OTS regulations,  the extent to which a savings institution may
make  a  "capital  distribution,"  which  includes,  among  other  things,  cash
dividends, will depend upon in which one of three categories,  based upon levels
of capital, that savings institution is classified.  The Bank is now and expects
to continue to be a "tier one  institution"  and therefore  would be able to pay
cash dividends to the Holding Company during any calendar year up to 100% of its
net income  during that  calendar  year plus the amount that would reduce by one
half its "surplus  capital ratio" (the excess over its fully  phased-in  capital
requirements)  at the beginning of the calendar year. See "Regulation -- Capital
Distributions  Regulation."  Prior notice of any dividend to be paid by the Bank
to the Holding Company will have to be given to the OTS.

     Income of the Bank  appropriated  to bad debt  reserves  and  deducted  for
federal  income tax purposes is not available  for payment of cash  dividends or
other distributions to the Holding Company without the payment of federal income
taxes by the Bank on the amount of such income deemed  removed from the reserves
at the then-current  income tax rate. At December 31, 2000,  approximately  $1.7
million of the Bank's retained income  represented bad debt deductions for which
no federal income tax provision had been made. See "Taxation--Federal Taxation."

     Unlike  the  Bank,  generally  there is no  regulatory  restriction  on the
payment of  dividends  by the  Holding  Company.  Indiana  law,  however,  would
prohibit the Holding  Company from paying a dividend if, after giving  effect to
the payment of that dividend,  the Holding  Company would not be able to pay its
debts  as they  become  due in the  usual  course  of  business  or the  Holding
Company's total assets would be less than the sum of its total  liabilities plus
preferential rights of holders of preferred stock, if any.

Item 6.    Selected Financial Data.

     The  information  required by this item is incorporated by reference to the
material under the heading "Selected  Consolidated  Financial Data of Logansport
Financial Corp. and  Subsidiary" on pages 6 and 7 of the Holding  Company's 2000
Shareholder Annual Report (the "Shareholder Annual Report").

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operation.

     The information required by this item is incorporated by reference to pages
8 through 20 of the Shareholder Annual Report.

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

     The information required by this item is incorporated by reference to pages
17 through 19 of the Shareholder Annual Report.

Item 8.    Financial Statements and Supplementary Data.

     The Holding Company's  Consolidated  Financial Statements and Notes thereto
contained  on  pages  21  through  51  in  the  Shareholder  Annual  Report  are
incorporated  herein by reference.  The Company's unaudited quarterly results of
operations   contained  on  page  51  in  the  Shareholder   Annual  Report  are
incorporated herein by reference.

Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure.

     Not applicable.


                                    PART III

Item 10.   Directors and Executive Officers of the Registrant.

     The  information  required  by this  item  with  respect  to  directors  is
incorporated  by  reference  to  pages 2  through  4 and  page 8 of the  Holding
Company's  Proxy  Statement for its 2001 Annual  Shareholder  Meeting (the "2001
Proxy  Statement").  Information  concerning  the  Holding  Company's  executive
officers is included in Item 4.5 in Part I of this report.

Item 11.   Executive Compensation.

     The   information   required  by  this  item  with   respect  to  executive
compensation  is  incorporated  by  reference  to  pages  5 to 8 of the  Holding
Company's 2001 Proxy Statement.

Item 12.   Security Ownership of Certain Beneficial Owners and Management.

     The information required by this item is incorporated by reference to pages
2 and 3 of the 2001 Proxy Statement.

Item 13.   Certain Relationships and Related Transactions.

     The information  required by this item is incorporated by reference to page
8 of the 2001 Proxy Statement.


<PAGE>



                                     PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

 (a)      List the following documents filed as part of the report:

     Financial Statements

     Independent Auditor's Report (Grant Thornton LLP)....See Shareholder Annual
                                                              Report Page 21
     Consolidated Statements of Financial Condition
         at December 31, 2000, and 1999...................See Shareholder Annual
                                                              Report Page 22
     Consolidated Statements of Earnings for the Years
         Ended December 31, 2000, 1999, and 1998..........See Shareholder Annual
                                                              Report Page 23
     Consolidated Statements of Comprehensive Income
         for the Years Ended December 31, 2000, 1999
         and 1998.........................................See Shareholder Annual
                                                              Report Page 24
     Consolidated Statements of Changes in Shareholders'
         Equity for the Years Ended December 31, 2000,
         1999 and 1998....................................See Shareholder Annual
                                                              Report Page 25
     Consolidated Statements of Cash Flows for the Years
         Ended December 31, 2000, 1999, and 1998..........See Shareholder Annual
                                                              Report Page 26
     Notes to Consolidated Financial Statements...........See Shareholder Annual
                                                              Report Page 28

 (b) Reports on Form 8-K.

     The Holding  Company did not file any reports on Form 8-K during the fourth
     quarter of its 2000 fiscal year.

 (c) The exhibits filed  herewith or  incorporated  by reference  herein are set
     forth on the  Exhibit  Index on page E-1.  Included in those  exhibits  are
     Executive  Compensation  Plans and  Arrangements  which are  identified  as
     Exhibits 10(1) through 10(12).

 (d) All  schedules  are  omitted  as the  required  information  either  is not
     applicable  or is  included in the  Consolidated  Financial  Statements  or
     related notes.


<PAGE>



                                   SIGNATURES

     Pursuant  to the  requirement  of  Section  13 or 15(d)  of the  Securities
Exchange Act of 1934, as amended,  the Registrant has duly caused this report to
be signed on behalf of the undersigned, thereto duly authorized.

                                      LOGANSPORT FINANCIAL CORP.



Date: March 29, 2001                  By: /s/ David G. Wihebrink
                                         --------------------------------------
                                             David G. Wihebrink, President and
                                                Chief Executive Officer

     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities indicated on this 29th day of March, 2001.

/s/ David G. Wihebrink
----------------------
David G. Wihebrink

President, Chief Executive Officer and Director
(Principal Executive Officer)

/s/ Dottye Robeson
------------------
Dottye Robeson,

Secretary/Treasurer (Principal Financial and
Accounting Officer)

/s/ Charles J. Evans
--------------------
Charles J. Evans, Vice President and Director

/s/ Susanne S. Ridlen
---------------------
Susanne S. Ridlen, Director

/s/ William Tincher, Jr.
------------------------
William Tincher, Jr., Director

/s/ Brian J. Morrill
--------------------
Brian J. Morrill, Director

/s/ Thomas G. Williams
----------------------
Thomas G. Williams, Director


<PAGE>



                          EXHIBIT INDEX

Exhibit                                                                     Page
-------                                                                     ----
   3(1)           The Articles of  Incorporation  of the  Registrant
                  are  incorporated  by reference to Exhibit 3(1) to
                  the    Registration    Statement   on   Form   S-1
                  (Registration No. 33-89788).

   3(2)           The  Code  of  By-Laws  of  the   Registrant   are
                  incorporated  by  reference  to Exhibit 3.2 to the
                  Form  10-Q for the  period  ended  June 30,  1997,
                  filed with the  Commission  on August 13, 1997 and
                  resolutions   dated   October  13,   1998,   filed
                  herewith.

   10(1)          The Registrant's Stock Option Plan is incorporated
                  by  reference  to  Exhibit  A to the  Registrant's
                  Proxy Statement for its Annual Shareholder Meeting
                  held on April 9, 1996 and  resolutions  dated July
                  14, 1998,  amending the Registrant's  Stock Option
                  Plan are incorporated by reference to Exhibit 10.1
                  to the Form 10-Q for the  period  ended  September
                  30, 1998,  filed with the  Commission  on November
                  12, 1998.

   10(2)          Logansport   Savings  Bank,  FSB  Recognition  and
                  Retention  Plan  and  Trust  is   incorporated  by
                  reference to Exhibit B to the  Registrant's  Proxy
                  Statement for its Annual Shareholder  Meeting held
                  on April 9, 1996, and  resolutions  dated July 14,
                  1998,  amending the  Logansport  Savings Bank, FSB
                  Recognition  and  Retention  Plan  and  Trust  are
                  incorporated  by  reference to Exhibit 10.2 to the
                  Form 10-Q for the period ended September 30, 1998,
                  filed with the Commission on November 12, 1998.

   10(3)          Logansport   Savings  Bank,   FSB  Employee  Stock
                  Ownership Plan and Trust Agreement is incorporated
                  by reference to Exhibit 10(4) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(4)          Deferred Compensation Agreement between Logansport
                  Savings Bank,  FSB and David G.  Wihebrink,  dated
                  and effective as of April 12, 2000.

   10(5)          Employment  Agreement between  Logansport  Savings
                  Bank, FSB and Charles J. Evans is  incorporated by
                  reference  to  Exhibit  10(6) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(6)          Director Deferred  Compensation  Agreement between
                  Logansport   Savings  Bank,   FSB  and  Thomas  G.
                  Williams,  effective April 1, 1992 is incorporated
                  by reference to Exhibit 10(7) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(7)          Director Deferred  Compensation  Agreement between
                  Logansport  Savings  Bank,  FSB and  Don  Pollitt,
                  effective   April  1,  1992  is   incorporated  by
                  reference  to  Exhibit  10(8) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(8)          Director Deferred  Compensation  Agreement between
                  Logansport  Savings Bank, FSB and Norbert  Adrian,
                  effective   April  1,  1992  is   incorporated  by
                  reference  to  Exhibit  10(9) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(9)          Director Deferred  Compensation  Agreement between
                  Logansport  Savings Bank, FSB and Susanne  Ridlen,
                  effective   April  1,  1992  is   incorporated  by
                  reference  to Exhibit  10(10) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(10)         Director Deferred  Compensation  Agreement between
                  Logansport  Savings Bank, FSB and David Wihebrink,
                  effective   April  1,  1992  is   incorporated  by
                  reference  to Exhibit  10(11) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(11)         Executive Supplemental Retirement Income Agreement
                  between Logansport Savings Bank, FSB and Thomas G.
                  Williams,  executed May 7, 1992 is incorporated by
                  reference  to Exhibit  10(12) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   10(12)         Executive Supplemental Retirement Income Agreement
                  between  Logansport  Savings Bank, FSB and Charles
                  J. Evans,  executed May 7, 1992 is incorporated by
                  reference  to Exhibit  10(13) to the  Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   13             2000 Shareholder Annual Report

   21             Subsidiaries of the Registrant are incorporated by
                  reference  to  Exhibit  21  to  the   Registration
                  Statement on Form S-1 (Registration No. 33-89788).

   23             Independent Auditor's Consent (Grant Thornton LLP)