SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998 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 specified in its charter)


         Indiana                                             35-1945736
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                        Identification Number)


                                723 East Broadway
                                  P.O. Box 569
                            Logansport, Indiana 46947
                     (Address of principal executive offices
                               including Zip Code)

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

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  report),  and  (2)  has  been  subject  to such  filing
requirements  for the past 90 days.  

Yes [X] No [ ] 

The number of shares of the Registrant's common stock,  without par value, as of
August 1, 1998 was 1,261,800.



<PAGE>




                           Logansport Financial Corp.
                                    Form 10-Q
                                      Index       
                                                                      Page No.

PART 1.  FINANCIAL INFORMATION
Item 1.    Financial Statements                                               3

           Consolidated Statements of Financial
           Condition as of June 30, 1998
           (Unaudited) and December 31, 1997

           Consolidated Statements of Earnings for
           the three and six months ended June 30, 
           1998 and 1997 (Unaudited )

           Consolidated Statements of Shareholders'
           Equity for the six months ended
           June 30, 1998 and 1997 (Unaudited)

           Consolidated Statements of Cash Flows
           for the six months ended
           June 30, 1998 and 1997 (Unaudited)

           Notes to Consolidated Financial Statements                        8

Item 2.    Management's Discussion and Analysis
           of Financial Condition and Results
           of Operations                                                    12

Item 3.   Quantitative and Qualitative Disclosures About Market Risk        16

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings                                                18

Item 4.   Submission of Matters to a Vote of Security Holders               18

Item 6.    Exhibits and Reports of Form 8-K                                 19

SIGNATURES


                                       2

<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>
                 Consolidated Statements of Financial Condition
                                   (Unaudited)
                        (In thousands, except share data)

                                                                     June 30,              December 31,
                                                                         1998                      1997

              ASSETS
<S>                                                                     <C>                       <C>
Cash and due from banks                                               $   508                   $   589
Interest-bearing deposits in other financial institutions               4,346                     1,680
                                                                       ------                    ------
     Cash and cash equivalents                                          4,854                     2,269

Certificates of deposit in other financial institutions                    -                        100
Investment securities available for sale-at market                      4,823                     5,750
Mortgage-backed securities available for sale-at market                 9,113                     9,932
Loans receivable-net                                                   67,050                    63,635
Real estate acquired through foreclosure-net                               -                        106
Office premises and equipment-at depreciated cost                         472                       465
Federal Home Loan Bank stock- at cost                                     568                       494
Investment in real estate partnership                                   1,554                     1,540
Accrued interest receivable on loans                                      315                       299
Accrued interest receivable on mortgage-backed securities                  69                        83
Accrued interest receivable on investments                                 95                       121
Prepaid expenses and other assets                                          40                        33
Cash surrender value of life insurance                                  1,106                     1,085
Deferred income tax asset                                                 205                       203
                                                                       ------                    ------

     Total assets                                                     $90,264                   $86,115
                                                                       ======                    ======

     LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                              $64,415                   $60,595
Advances from the Federal Home Loan Bank                                6,500                     6,500
Notes payable                                                           1,450                     1,525
Accrued interest and other liabilities                                    886                       861
Accrued income taxes                                                       26                        92
                                                                       ------                    ------
     Total liabilities                                                 73,277                    69,573

Shareholders' equity
  Common stock                                                          7,573                     7,566
  Retained earnings-restricted                                          9,680                     9,316
  Less shares acquired by stock benefit plan                             (338)                     (400)
  Unrealized gains on securities designated as
    available for sale, net of related tax effects                         72                        60
                                                                       ------                    ------
     Total shareholders' equity                                        16,987                    16,542
                                                                       ------                    ------

     Total liabilities and shareholders' equity                       $90,264                   $86,115
                                                                       ======                    ======

</TABLE>


                                       3
<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>
                       Consolidated Statements of Earnings
                                   (Unaudited)
                        (In thousands, except share data)
                                                                        Three months ended           Six months ended
                                                                              June 30,                     June 30,
                                                                         1998         1997            1998         1997
                                                                         ----         ----            ----         ----
<S>                                                                      <C>           <C>            <C>           <C>
Interest income
  Loans                                                                $1,385       $1,207          $2,701       $2,369
  Mortgage-backed securities                                              130          136             282          260
  Investment securities                                                    61          103             136          203
  Interest-bearing deposits and other                                      63           54             108          107
                                                                        -----        -----           -----        -----
         Total interest income                                          1,639        1,500           3,227        2,939

Interest expense
  Deposits                                                                762          708           1,494        1,392
  Borrowings                                                               95           54             189           98
                                                                        -----        -----           -----        -----
         Total interest expense                                           857          762           1,683        1,490
                                                                        -----        -----           -----        -----

         Net interest income                                              782          738           1,544        1,449

Provision for losses on loans                                               9            5              18            8
                                                                        -----        -----           -----        -----

         Net interest income after provision for
           losses on loans                                                773          733           1,526        1,441

Other income
  Service charges on deposit accounts                                      24           19              43           37
  Gain (loss) on sale of investment and mortgage-backed
    securities                                                              3           -                3          (32)
  Gain on sale of real estate acquired through foreclosure                  6           -                6            1
  Other operating                                                          37           24              70           56
                                                                        -----        -----           -----        -----
         Total other income                                                70           43             122           62

General, administrative and other expense
  Employee compensation and benefits                                      184          169             359          333
  Occupancy and equipment                                                  17           16              36           38
  Federal deposit insurance premiums                                        9            9              19           18
  Data processing                                                          25           22              51           45
  Other operating                                                          85           78             172          157
                                                                        -----        -----           -----        -----
         Total general, administrative and other expense                  320          294             637          591
                                                                        -----        -----           -----        -----

         Earnings before income taxes                                     523          482           1,011          912

Income tax expense                                                        198          179             382          337
                                                                        -----        -----           -----        -----

NET EARNINGS                                                           $  325       $  303          $  629       $  575
                                                                       ======       ======          ======       ======

Other comprehensive income, net of tax
Unrealized gains (losses) on securities                                   (19)         125              12          106
                                                                       ------       ------          ------       ------

COMPREHENSIVE INCOME                                                   $  306       $  428          $  641       $  681
                                                                       ======       ======          ======       ======

EARNINGS PER SHARE
  Basic (based on net earnings)                                          $.26         $.24            $.50         $.46
                                                                         ====         ====            ====         ====
  Diluted (based on net earnings)                                        $.25         $.24            $.48         $.45
                                                                         ====         ====             ===         ====
</TABLE>


                                       4
<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>
                 Consolidated Statements of Shareholders' Equity
                                   (Unaudited)
                        (In thousands, except share data)

                                                                          Six months ended
                                                                              June 30,
                                                                       1998              1997
                                                                       ----              ----
<S>                                                                     <C>                <C>
Balance at January 1                                                  $16,542           $15,427

Issuance of shares under stock option plan                                  7                42

Amortization of stock benefit plan                                         62                61

Cash dividends of $.21 per share in 1998 and $.20 in 1997               (265)             (251)

Comprehensive income on securities available for
  sale, net of related tax effects                                         12               106

Net earnings                                                              629               575
                                                                       ------            ------

Balance at June 30                                                    $16,987           $15,960
                                                                       ======            ======

Accumulated other comprehensive income (loss)                         $    72           $   (51)
                                                                       ======            ======
</TABLE>











                                       5

<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>

                      Consolidated Statements of Cash Flows

                                   (Unaudited)
                                 (In thousands)

                                                                                              Six months ended
                                                                                                   June 30,
                                                                                             1998           1997
<S>                                                                                          <C>           <C>
Cash flows from operating activities:
  Net earnings for the period                                                              $   629        $  575
  Adjustments to reconcile net earnings to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                                                              18             19
    Amortization of premiums on investments and mortgage-backed securities                     99             43
   Amortization expense of stock benefit plan                                                  62             61
    (Gain) loss  on sale of investment and mortgage-backed securities                          (3)            32
    Provision for losses on loans                                                              18              8
    Gain on sale of real estate acquired through foreclosure                                   (6)            (1)
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                                    (16)            (5)
      Accrued interest receivable on mortgage-backed securities                                14            (16)
      Accrued interest receivable on investments                                               26             11
      Prepaid expenses and other assets                                                        (7)            21
      Accrued interest and other liabilities                                                   25            (43)
      Federal income taxes
        Current                                                                               (66)           (18)
        Deferred                                                                               (2)            69
                                                                                           -------         -----
         Net cash provided by operating activities                                            791            756

Cash flows provided by (used in) investing activities:
  Proceeds from certificate of deposits in other institutions                                 100             -
  Proceeds from sale of investment securities                                                  -           1,068
  Purchase of investment securities                                                          (400)          (401)
  Maturities/calls of investment securities                                                 1,355            400
  Purchase of Federal Home Loan Bank stock                                                    (74)          (107)
  Proceeds from sale of mortgage-backed securities                                            802             -
  Purchase of mortgage-backed securities                                                   (1,948)        (2,893)
  Principal repayments on mortgage-backed securities                                        1,857            607
  Loan disbursements                                                                      (11,857)        (8,579)
  Investment in real estate partnership                                                       (14)            -
  Principal repayments on loans                                                             8,528          5,862
  Purchases and additions to office premises and equipment                                    (25)            (6)
  Proceeds from sale of real estate acquired through foreclosure                                4             14
  Increase in cash surrender value of life insurance policy                                   (21)           (18)
                                                                                           -------         ------
         Net cash used in investing activities                                             (1,693)        (4,053)

</TABLE>





                                       6
<PAGE>


<TABLE>
                           LOGANSPORT FINANCIAL CORP.

<CAPTION>
                Consolidated Statements of Cash Flows (continued)

                                   (Unaudited)
                                 (In thousands)
                                                                                                 Six months ended
                                                                                                      June  30,
                                                                                             1998                  1997
<S>                                                                                           <C>                  <C>
Cash provided by (used in) financing activities:
  Net increase in deposit accounts                                                         $3,820                $3,003
  Proceeds from Federal Home Loan Bank advances                                             5,500                 8,500
  Proceeds from note payable                                                                   -                    100
  Repayment of Federal Home Loan Bank advances                                             (5,500)               (6,000)
  Repayment of note payable                                                                   (75)               (1,500)
  Proceeds from the exercise of stock options                                                   7                    42
  Dividends on common stock                                                                  (265)                 (251)
                                                                                            ------                ------
         Net cash provided by financing activities                                          3,487                 3,894
                                                                                            -----                 -----

Net increase in cash and cash equivalents                                                   2,585                   597

Cash and cash equivalents, beginning of period                                              2,269                 3,759
                                                                                            -----                 -----

Cash and cash equivalents, end of period                                                   $4,854                $4,356
                                                                                            =====                ======


Supplemental disclosure of cash flow information: Cash paid during the year for:
    Interest on deposits and borrowings                                                    $1,679                $1,496
                                                                                           ======                ======

    Income taxes                                                                           $  449                $  355
                                                                                           ======                ======

    Dividends payable at end of period                                                     $  139                $  126
                                                                                           ======                ======

    Foreclosed mortgage loans transferred to
      real estate acquired through foreclosure                                             $   54                $   30
                                                                                           ======                ======

    Loan originated through sales of real estate owned                                     $  148                $   14
                                                                                           ======                ======
</TABLE>








                                       7


<PAGE>


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE A:  Basis of Presentation

The unaudited interim consolidated  financial statements include the accounts of
Logansport  Financial  Corp.  (the  "Company")  and its  subsidiary,  Logansport
Savings Bank, FSB, (the "Bank").

The unaudited interim  consolidated  financial  statements have been prepared in
accordance with the instructions to Form 10-Q and, therefore, do not include all
information and disclosures required by generally accepted accounting principles
for complete  financial  statements.  Accordingly,  these  financial  statements
should be read in conjunction  with the  consolidated  financial  statements and
notes  thereto  included  in the  Annual  Report on Form 10-K for the year ended
December  31,  1997.  In the opinion of  management,  the  financial  statements
reflect all adjustments (consisting of only normal recurring accruals) necessary
to present fairly the Company's  financial position as of June 30, 1998, results
of  operations  for the three and six month periods ended June 30, 1998 and 1997
and cash flows for the six month periods ended June 30, 1998 and 1997.


NOTE B:  Earnings Per Share and Dividends Per Share

Basic  earnings  per share is computed  based upon the  weighted-average  shares
outstanding  during  the  period.  Weighted-average  common  shares  outstanding
totaled  1,261,293  and  1,257,577 for the six month periods ended June 30, 1998
and 1997, respectively,  and 1,261,511 and 1,258,767 for the three month periods
ended  June 30,  1998 and  1997,  respectively.  Diluted  earnings  per share is
computed  taking into  consideration  common  shares  outstanding  and  dilutive
potential  common  shares to be issued  under the  Company's  stock option plan.
Weighted-average  common  shares  deemed  outstanding  for purposes of computing
diluted  earnings per share  totaled  1,310,512 and 1,282,238 for the six months
ended June 30, 1998 and 1997, respectively,  and 1,312,978 and 1,285,607 for the
three months ended June 30, 1998 and 1997, respectively.

A cash  dividend of $.10 per common share was declared on June 9, 1998,  payable
on July 10, 1998,  to  stockholders  of record as of June 22, 1998.


NOTE C:  Recent Accounting Pronouncements

In June 1996,  the  Financial  Accounting  Standards  Board (the "FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 125,  "Accounting for
Transfer and Servicing of Financial Assets and  Extinguishments of Liabilities",
that provides accounting guidance on transfers of financial assets, servicing of
financial assets, and extinguishment of liabilities.  SFAS No. 125 introduces an
approach to accounting  for transfers of financial  assets that provides a means
of dealing with more complex transactions in which the seller disposes of only a
partial  interest in the assets,  retains  rights or  obligations,  makes use of
special  purpose  entities  in the  transaction,  or  otherwise  has  continuing
involvement  with  the  transferred  assets.  The  new  accounting  method,  the
financial components approach, provides that the carrying amount of the





                                       8

<PAGE>


NOTE C:  Recent Accounting Pronouncements (continued)

financial assets transferred be allocated to components of the transaction based
on their  relative fair value.  SFAS No. 125 provides  criteria for  determining
whether control of assets has been relinquished and whether a sale has occurred.
If the transfer  does not qualify as a sale,  it is  accounted  for as a secured
borrowing. Transactions subject to the provisions of SFAS No. 125 include, among
others,  transfers involving repurchase agreements,  securitization of financial
assets,  loan   participations,   factoring   arrangements,   and  transfers  of
receivables with recourse.

An entity that undertakes an obligation to service  financial assets  recognizes
either a servicing asset or liability for the servicing contract (unless related
to a securitization of assets,  and all the securitized  assets are retained and
classified  as held  to  maturity).  A  servicing  asset  or  liability  that is
purchased or assumed is initially recognized at its fair value. Servicing assets
and  liabilities are amortized in proportion to and over the period of estimated
net  servicing  income  or net  servicing  loss and are  subject  to  subsequent
assessments for impairment based on fair value.

SFAS No. 125 provides that a liability is removed from the balance sheet only if
the debtor either pays the creditor and is relieved of its  obligations  for the
liability or is legally released from being the primary obligor.

SFAS No. 125 is effective for  transfers  and servicing of financial  assets and
extinguishment  of liabilities  occurring  after December 31, 1997, and is to be
applied  prospectively.  Earlier or  retroactive  application  is not permitted.
Management adopted SFAS No. 125 effective January 1, 1998, as required,  without
material effect on the Company's  consolidated  financial position or results of
operations.

In June 1997, the FASB issued SFAS No. 130,  "Reporting  Comprehensive  Income."
SFAS No. 130  establishes  standards for reporting and display of  comprehensive
income and its components (revenues,  expenses,  gains and losses) in a full set
of general-purpose  financial  statements.  SFAS No. 130 requires that all items
that are required to be recognized under  accounting  standards as components of
comprehensive income be reported in a financial statement that is displayed with
the same prominence as other financial statements. It does not require a special
format for that financial  statement but requires that an enterprise  display an
amount representing total comprehensive  income for the period in that financial
statement.

SFAS  No.  130  requires  that  an  enterprise   (a)  classify  items  of  other
comprehensive  income by their nature in a financial  statement  and (b) display
the accumulated balance of other  comprehensive  income separately from retained
earnings and additional  paid-in capital in the equity section of a statement of
financial  position.  SFAS No. 130 is effective for fiscal years beginning after
December 15, 1997.  Reclassification of financial statements for earlier periods
provided for comparative  purposes is required.  Management adopted SFAS No. 130
effective January 1, 1998, as required, without material impact on the Company's
financial statements.

In June 1997,  the FASB issued SFAS No. 131,  "Disclosures  about Segments of an
Enterprise and Related  Information." SFAS No. 131 significantly changes the way
that public business  enterprises report information about operating segments in
annual financial  statements and requires that those enterprises report selected
information  about reportable  segments in interim  financial  reports issued to
shareholders.  It also  establishes  standards  for  related  disclosures  about
products and services, geographic areas and major customers. SFAS No. 131 uses a
"management approach" to disclose financial and descriptive information








                                       9
<PAGE>


NOTE C:  Recent Accounting Pronouncements (continued)

about the way management organizes the segments within the enterprise for making
the operating  decisions and assessing  performance.  For many enterprises,  the
management  approach  will likely  result in more segments  being  reported.  In
addition,  SFAS No. 131 requires  significantly more information to be disclosed
for each reportable segment than is presently being reported in annual financial
statements  and also requires that selected  information  be reported in interim
financial statements. SFAS No. 131 is effective for fiscal years beginning after
December 15, 1997.  Management  adopted SFAS No. 131 effective  January 1, 1998,
without material impact on the Company's financial statements.


Note D:  Other Matters

As with all  providers of  financial  services,  the  Company's  operations  are
heavily dependent on information  technology systems. The Bank is addressing the
potential  problems  associated  with the  possibility  that the computers  that
control or operate the Bank's information  technology systems and infrastructure
may not be  programmed  to read  four-digit  date codes and, upon arrival of the
year 2000,  may  recognize  the  two-digit  code "00" as the year 1900,  causing
systems to fail to function or to generate  erroneous  data. The Bank is working
with the companies that supply or service its information  technology systems to
identify and remedy and year 2000 related problems.

As of June 30, 1998,  management  has developed an estimate of expenses that are
reasonably  likely to be  incurred  by the Bank in  connection  with this issue;
however,  the Company does not expect to incur significant expenses to implement
the necessary  corrective  measures.  No assurance can be given,  however,  that
significant  expense will not be incurred in future  periods.  In the event that
the Bank is  ultimately  required  to  purchase  replacement  computer  systems,
programs,  and/or  equipment,  or incur  substantial  expense to make the Bank's
systems, programs, and/or equipment year 2000 compliant, the Bank's net earnings
and financial condition could be adversely affected.

In addition to possible expense related to its own systems, the Bank could incur
losses if loan  payments  are delayed due to year 2000  problems  affecting  any
major  borrowers  in the Bank's  primary  market  area.  Because the Bank's loan
portfolio is highly diversified with regard to individual borrowers and types of
businesses,  and the Bank's primary market areas are not significantly dependent
upon any one employer or industry,  the Bank does not expect any  significant or
prolonged difficulties that will affect net earnings or cash flow.










                                       10
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operation.

Forward Looking Statements

In addition to historical information contained herein, the following discussion
contains  forward-looking  statements  that  involve  risks  and  uncertainties.
Economic  circumstances,  the  Company's  operations  and the  Company's  actual
results could differ  significantly from those discussed in the  forward-looking
statements.  Some  of the  factors  that  could  cause  or  contribute  to  such
differences  are  discussed  herein but also include  changes in the economy and
interest rates in the nation and the Company's market area generally.

Some of the  forward-looking  statements  included  herein  are  the  statements
regarding management's determination of the amount and adequacy of the allowance
for  losses on loans,  the  effect  of the year 2000 on  information  technology
systems and the effect of certain recent accounting pronouncements.

Financial Condition

Total assets were $90.3  million at June 30, 1998  compared to $86.1  million at
December 31, 1997, an increase of $4.2 million or 4.8%. This increase was funded
primarily  from a  growth  in  deposits.  Cash and  cash  equivalents  increased
approximately  $2.6  million,  from $2.3  million at  December  31, 1997 to $4.9
million at June 30,  1998.  Efforts to  reinvest  the growth of  deposits in new
loans and  investments  are on-going;  however,  the interest  rate  environment
contributed to the time required to obtain quality  investments  and resulted in
the increase in cash  equivalents.  Securities  decreased  from $15.7 million at
December 31, 1997 to $13.9 million at June 30, 1998.  Mortgage-backed securities
experienced  accelerated  paybacks  which resulted in a decrease in the yield in
the  investment  portfolio  and $1.4  million of  investment  securities  either
matured or were called during the six months ended June 30, 1998.

Net loans  increased $3.4 million,  or 5.4%,  from $63.6 million at December 31,
1997 to $67.0  million at June 30,  1998.  Loan  originations  amounted to $11.9
million for the six months  ended June 30,  1998,  with  payoffs  equaling  $8.5
million. Loan demand in the first six months of 1998 was very strong compared to
the first six months of 1997 in which loans grew by $2.7 million.

Deposits  were  $64.4  million at June 30,  1998  compared  to $60.6  million at
December 31, 1997,  an increase of $3.8 million in the first six months of 1998.
Borrowings  consisted of $6.5  million of FHLB  advances and a $1.5 million note
payable related to an equity investment in low income housing.

Shareholders'  equity was $17.0  million at June 30,  1998 and $16.5  million at
December 31, 1997. The payment of dividends,  an increase in the unrealized gain
on securities available for sale, the amortization of the stock benefit plan and
net  earnings  for the six months  ended June 30, 1998  combined to result in an
increase of $445,000 for the period.











                                       11
<PAGE>


Results of Operations

Comparison of the Three Months Ended June 30, 1998  and June 30, 1997
---------------------------------------------------------------------

Net  earnings  for the  Company  for the three  months  ended June 30, 1998 were
$325,000  compared  with  $303,000  for three  months  ended June 30,  1997,  an
increase  of  $22,000 or 7.3%.  Net  interest  income  increased  $44,000  while
general, administrative and other expenses increased $26,000 and taxes increased
$19,000.  The major  contributor to the increase in net interest  income was the
growth in the loan portfolio the past calendar year. Loans were $67.0 million at
June 30, 1998 compared to $59.5 million at June 30, 1997.

The  provision  for loan losses was $9,000 for the three  months  ended June 30,
1998 and $5,000 for the three months ended June 30, 1997.  All three  properties
in real estate  owned at the end of the quarter  ending March 31, 1998 were sold
during April 1998 resulting in a small gain for the Company.  No property was in
real estate owned on June 30, 1998.  One  property,  which was valued at $8,000,
was in real estate owned on June 30,  1997.  Non-performing  loans  decreased to
$232,000, or 0.34% of loans at June 30, 1998 from $431,000, or 0.67% of loans at
December  31,  1997.  Loan loss  reserves  amounted to $240,000 or .36% of total
loans at June 30, 1998 compared to $245,000, or 0.38% at December 31, 1997.

Total other income increased by $27,000, or 62.8%, during the three months ended
June 30, 1998,  because of a $3,000 gain on the sale of securities  and a $6,000
gain on the sale of real estate owned.  In addition,  service charges on deposit
accounts  increased $5,000 and other operating income increased  $13,000.  Other
operating  income includes  various loan fees and a one time fee of $4,300 which
represented a prepayment penalty on a participation loan.

Total general,  administrative  and other expenses  increased $26,000 or 8.8% in
the three  months  ended  June 30,  1998  compared  to June 30,  1997.  Employee
compensation and benefits  increased $15,000 or 8.9%. This increase was a result
of salary  increases  and  additional  personnel  compared  to a year ago and an
increase in medical  insurance costs.  Data processing fees increased $3,000 and
other operating  expenses  increased $7,000,  mainly in the area of bank service
fees.  Bank  service  fees have  increased  due to changes in handling our daily
deposit  but are offset by an  increase  in  interest  income due to better cash
availability.

The  Company's  effective  tax rate for the three months ended June 30, 1998 was
37.9% and was 37.1% for the three months ended June 30, 1997.


Comparison of the Six Months Ended June 30,1998 and June 30, 1997

Net earnings for the Company for the six months ended June 30, 1998 was $629,000
compared  with  $575,000 for the six months ended June 30, 1997,  an increase of
$54,000 or 9.4%.  Interest income increased $288,000 as a result of the increase
in the loan  portfolio.  Interest  expense  increased  $193,000  resulting in an
improvement  in net interest  income of $95,000 or 6.6% when  comparing  the six
months ended June 30, 1998 to the six months ended June 30, 1997.






                                       12
<PAGE>


Comparison of the Six Months Ended June 30,1998 and June 30, 1997 (continued)

The provision for loan losses was $18,000 for the six months ended June 30, 1998
and $8,000 for the six months  ended June 30,  1997.  There were two  properties
taken into real estate owned in the six months ended June 30, 1998. One property
was written down from $37,000 to a net  realizable  value of $23,000  during the
first quarter.  During the second  quarter,  two consumer loans were written off
for  $9,000,  resulting  in a total of $23,000  being  written  off  against the
allowance in the first six months of 1998. Two  properties  were taken into real
estate  owned  during the six months  ended  June 30,  1997 and loan  chargeoffs
totaled $16,000 for the first six months of 1997.

Total other income  increased  by $60,000 or 96.8%,  during the six months ended
June 30, 1998, compared to the six months ended June 30, 1997, primarily because
of the $32,000 loss on the sale of available for sale securities  during the six
months ended June 30, 1997. Service charges on deposit accounts increased $6,000
or 16.2%.  This increase is a result of an increase in the volume of transaction
accounts. There was a nonrecurring recovery on securities previously written off
of $13,083 which is reflected in other operating income for the six months ended
June 30, 1997.

Total general,  administrative  and other expenses increased $46,000 or 7.8% for
the six months  ended June 30, 1998  compared  to the six months  ended June 30,
1997.  Employee  compensation  and  benefits  increased  $26,000  or 7.8%.  Data
processing  costs  increased  $6,000 as a result of an increase in the volume of
accounts and price increases.  Other operating expenses increased $15,000 mainly
as a result of an increase in bank service fees incurred in processing  our cash
deposit.  This is offset by an increase in interest  income due to improved cash
availability.

The Company's effective tax rate for the six months ended June 30,1998 was 37.8%
compared to 37.0% for the six months ended June 30, 1997.


Capital Resources

Pursuant to OTS capital regulations,  savings associations must currently meet a
1.5%  tangible  capital  requirement,  a 4%  leverage  ratio  (or core  capital)
requirement,  and total risk-based capital to risk-weighted  assets ratio of 8%.
At June 30, 1998,  the Bank's  tangible  capital ratio was 18.51%,  its leverage
ratio was 18.51%, and its risk-based  capital to risk-weighted  assets ratio was
34.26%.  Therefore, the Bank's capital significantly exceeded all of the capital
requirements  currently  in effect.  The  following  table  provides the minimum
regulatory  capital  requirements  and the Bank's  capital ratios as of June 30,
1998.

Capital Standard            Required          Bank's                Excess
----------------            --------          ------                ------
Tangible (1.5%)            $1,347,000        $16,621,000           $15,274,000
Core (4.0%)                 3,592,000         16,621,000            13,029,000
Risk-based (8.0%)           3,937,000         16,861,000            12,924,000


Liquidity

The standard measure of liquidity for savings  associations is the ratio of cash
and eligible  investments to a certain  percentage of net  withdrawable  savings
account  and  borrowings  due within one year.  The  minimum  required  ratio is
currently  set by the Office of Thrift  Supervision  at 4%. At June 30, 1998 the
Bank's regulatory liquidity ratio was 35.5%.



                                       13

<PAGE>


Item 3.  Quantitative and Qualitative Disclosures About Market Risk


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

The Office of Thrift Supervision ("OTS") issued a regulation,  effective January
1, 1994, which uses a net market value  methodology to measure the interest rate
risk exposure of thrift  institutions.  Under OTS regulations,  an institution's
"normal"  level of  interest  rate  risk in the  event of an  assumed  change in
interest  rates,  is a  decrease  in  the  institution's  NPV in an  amount  not
exceeding 2% of the present value of its assets.  Thrift  institutions with over
$300 million in assets or less than a 12% risk-based  capital ratio are required
to file OTS Schedule CMR. Data from schedule CMR is used by the OTS to calculate
changes in NPV (and the related  "normal" level of interest rate risk based upon
certain interest rate changes (discussed below).  Institutions which do not meet
either of the filing requirements are not required to file OTS Schedule CMR, but
may do so  voluntarily.  The  Bank  does  not  currently  meet  either  of these
requirements,  but it does voluntarily file Schedule CMR. Presented below, as of
March 31, 1998, the latest  available date, is an analysis  performed by the OTS
of the Bank's interest rate risk as measured by changes in NPV for instantaneous
and sustained parallel shifts in the yield curve, in 100 basis point increments,
up and down  400  basis  points  and in  accordance  with  OTS  regulations.  As
illustrated in the table,  The Bank's NPV is more sensitive to rising rates than
declining  rates.  This occurs  principally  because,  as rates rise, the market
value of the Bank's investments,  adjustable-rate  mortgage loans (many of which
have maximum per year adjustments of 1%),  fixed-rate loans and  mortgage-backed
securities  declines due to the rate increase.  The value of the Bank's deposits
and borrowings change in approximately the same proportion in rising and falling
rate scenarios.

Change                 Net Portfolio Value          NPV as % of PV of Assets
In Rates       $ Amount   $ Change   % Change         NPV Ratio       Change
--------       --------   --------   --------         ---------       ------
                                    (Dollars in thousands)
+400bp           12,335     -5,942       -33 %          14.83 %        -540bp
+300bp           14,154     -4,123       -23 %          16.60 %        -363bp
+200bp           15,847     -2,431       -13 %          18.16 %        -207bp
+100bp           17,261     -1,016       - 6 %          19.39 %        - 84bp
   0bp           18,277                                 20.23 %
-100bp           18,940        662        +4 %          20.73 %        + 50bp
-200bp           19,473      1,195        +7 %          21.10 %        + 87bp
-300bp           20,275      1,997       +11 %          21.68 %        +145bp
-400bp           21,384      3,107       +17 %          22.51 %        +227bp




                                       14
<PAGE>


Interest Rate Risk Measures: 200 Basis Point (bp) Rate Shock

Pre-shock NPV Ratio: NPV as % of PV of Assets                 20.23 %
Exposure Measure: Post-Shock NPV Ratio                        18.16 %
Sensitivity Measure: Change in NPV Ratio                      (207 bp)

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

















                                       15
<PAGE>



Part II.  OTHER INFORMATION

Item 1.  Legal Proceedings

Neither the Bank nor the Company were, during the three-month  period ended June
30, 1998,  or are as of the date hereof  involved in any legal  proceeding  of a
material  nature.  From time to time,  the Bank is a party to legal  proceedings
wherein it enforces its security  interests in connection  with its mortgage and
other loans.

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

On April 14, 1998,  the Company held it 1997 annual meeting of  shareholders.  A
total of 1,004,016 shares, or 79.61% of the Company's shares  outstanding,  were
represented at the meeting either in person or by proxy.

Two directors  were  nominated by the Company's  Board of Directors to serve new
three year  terms.  This was the only item of  business  at the  meeting.  These
nominees, and the voting results for each are listed below.

                         For      Withheld     Abstentions      Broker Nonvotes
Donald G. Pollitt      999,135      4,881            0                0
Susanne S. Ridlen      999,685      4,331            0                0

The  continuing  directors  and the  remaining  amount of their terms are listed
below.

Norbert E. Adrian (two year term)
William Tincher Jr. (two year term)
Charles J. Evans (one year term)
David G. Wihebrink (one year term)
Thomas G. Williams (one year term)












                                       16
<PAGE>


Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits.

         The following exhibits are attached to this report on Form 10-Q:

                  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 is 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.

                  27.1     Financial  Data  Schedule  for the six  month  period
                           ended June 30, 1998.

                  27.2     Restated  Financial  Data  Schedule for the six month
                           period ended June 30, 1997.

         (b)      Reports on Form 8-K.

         The  Registrant  filed no reports on Form 8-K during the fiscal quarter
ended June 30, 1998.




















                                       17
<PAGE>


Signatures


Pursuant to the requirements 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:  August 12, 1998                    By:
                                              Thomas G. Williams, President and
                                              Chief Executive Officer


Date:  August 12, 1998                    By:
                                              Dottye Robeson, Secretary and
                                              Treasurer



















                                       18