**Exhibit 14**

 

**LOGAN COUNTY BANCSHARES, INC.CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS**

 

As leaders of Logan CountyBancShares, Inc. and its subsidiaries (collectively, the “Corporation”), thePresident and Chief Executive Officer, Executive Vice President and ChiefFinancial Officer (collectively, the “Senior Financial Officers”) are expectedto set an appropriate example of behavior for the Corporation.  The Senior Financial Officers are expected toconduct business and act in an honest and ethical manner at all times. In thisregard, the Senior Financial Officers have the following responsibilities andethical obligations:

 

**•****                      ****Regulatoryand Public Reporting. **Within thescope of his or her duties, provide, or cause to be provided, full, fair,accurate, timely and understandable disclosure in reports and documents thatthe Corporation files with or submits to the to the Securities and ExchangeCommission (“SEC”) and in other public communications. Accordingly, each SeniorFinancial Officer is required to comply with the Corporation’s disclosurecontrols and procedures and internal control over financial reporting.  In addition, Senior Financial Officers areresponsible for ensuring that financial records are maintained in accordancewith generally accepted accounting principles and any other applicableaccounting rules and regulations.  EachSenior Financial Officer should promptly report to the General Counsel and/orthe Audit Committee of the Corporation’s Board of Directors (the “AuditCommittee”) any material information of which he or she may become aware thatcould affect the disclosures made by the Corporation in its filings with theSEC and in other public communications.

 

**•****                      ****ReportingDeficiencies and Fraud. **Promptly reportto the General Counsel and/or the Audit Committee any information concerning(1) significant deficiencies in the design or operation of the Corporation’sinternal control over financial reporting that could adversely affect theCorporation’s ability to record, process, summarize, and report financial dataand (2) any fraud, whether or not material, that involves management or otheremployees who have a significant role in the Corporation’s financial reporting,disclosures, or internal control over financial reporting.

 

**•****                      ****CorporateOpportunities. **Each SeniorFinancial Officer is prohibited from taking for himself or herself personallyopportunities that are discovered through the use of corporate property,information, or position.  No SeniorFinancial **Officer** may usecorporate property, information, or position for improper personal gain orcompete with the Corporation directly or indirectly.

 

**•****                      ****Protectionand Proper Use of Corporation Assets. **Each SeniorFinancial Officer should endeavor to protect the Corporation’s assets andensure their efficient use.  Theft,carelessness, and waste have a direct impact on the **Corporation’s** profitability. Corporation equipment should be used only for legitimate businesspurposes, though incidental personal use, except in connection with personal politicalactivities, may be permitted.

 

**•****                      ****FairDealing. **Each Senior FinancialOfficer should endeavor to respect the rights of and deal fairly with theCorporation’s clients, suppliers, competitors, and employees.  No Senior Financial Officer should take unfairadvantage of anyone through manipulation, concealment, abuse of privilegedinformation, misrepresentation of material facts, or any other intentionalunfair-dealing practice.

 

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**•****                      ****ReportingCode and Legal Violations. **Promptly reportto the General Counsel and/or the CEO any information concerning any violationof this Code by any other Senior Financial Officer and any informationconcerning evidence of a material violation of securities laws or other laws,rules, or regulations applicable to the Corporation and the business operationof the Corporation or any agent thereof. The Corporation will not permit retaliation for reporting any violationor potential violation of this Code made in good faith.

 

**•****                      ****Disciplinary Measures**.  Any violation or potential violation of thisCode by a Senior Financial Officer shall be reported to the Board of Directors,and the Board shall take action reasonably designed to deter wrongdoing and topromote accountability by Senior Financial Officers for adherence to this Code.  Following investigation by the Board, writtennotice shall be given to the Senior Financial Officer involved if and when theBoard determines that a violation of this Code of Ethics has occurred or that apotential violation may occur.  In suchevent, the written notice shall state the findings of the Board and shallinclude, as appropriate, any corrective actions, which may include, withoutlimitation, censure by the Board, demotion or reassignment of the SeniorFinancial Officer involved, suspension with or without pay or benefits, and/ortermination of employment.  Indetermining the appropriate **corrective**action in a particular case, the Board, or its designee, shall take intoaccount all relevant information, including the nature and severity of theviolation or potential violation, whether the violation or potential violationwas a single occurrence or involved repeated occurrences, whether the violationor potential violation appears to have been intentional or inadvertent, whetherthe Senior Financial Officer involved had been advised prior to the violationor potential violation as to the proper course of action, and whether or notthe Senior Financial Officer had committed other violations or potentialviolations in the past. In cases of illegal activity or wrongdoing, the Board,or its designee, will notify the appropriate legal authorities.

 

**•****                      ****Waiver or Modification of Codefor Senior Financial Officers**.  A request by a Senior Financial Officer for awaiver of or exception to this Code, or modification or amendment thereto,shall be directed to, and shall only be granted by, the Board or a designatedBoard committee.  Any such waivers willbe disclosed as required by law or SEC regulation.

 

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