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
         SEPTEMBER 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
November 1, 1998 was 1,198,710.










                                  Page 1 of 19


<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 September 30, 1998
             (Unaudited) and December 31, 1997

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

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

           Consolidated  Statements  of Cash  Flows
             for the nine months ended
             September 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 6.    Exhibits and Reports of Form 8-K                                18

SIGNATURES                                                                 19















                                        2


<PAGE>
<TABLE>


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

                                                                                  September 30,            December 31,
                                                                                           1998                    1997

         ASSETS
<S>                                                                                       <C>                      <C>
Cash and due from banks                                                                $    558                $    589
Interest-bearing deposits in other financial institutions                                 5,290                   1,680
                                                                                         ------                  ------
         Cash and cash equivalents                                                        5,848                   2,269

Certificates of deposit in other financial institutions                                      -                      100
Investment securities available for sale-at market                                        3,572                   5,750
Mortgage-backed securities available for sale-at market                                   8,985                   9,932
Loans receivable-net                                                                     69,475                  63,635
Real estate acquired through foreclosure-net                                                 -                      106
Office premises and equipment-at depreciated cost                                           715                     465
Federal Home Loan Bank stock- at cost                                                       568                     494
Investment in real estate partnership                                                     1,560                   1,540
Accrued interest receivable on loans                                                        323                     299
Accrued interest receivable on mortgage-backed securities                                    69                      83
Accrued interest receivable on investments                                                   40                     121
Prepaid expenses and other assets                                                            42                      33
Cash surrender value of life insurance                                                    1,116                   1,085
Deferred income tax asset                                                                   181                     203
                                                                                         ------                  ------

Total assets                                                                            $92,494                 $86,115
                                                                                         ======                  ======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                $67,421                 $60,595
Advances from the Federal Home Loan Bank                                                  6,500                   6,500
Notes payable                                                                             1,450                   1,525
Accrued interest and other liabilities                                                      919                     861
Accrued income taxes                                                                          3                      92
                                                                                         ------                  ------
Total liabilities                                                                        76,293                  69,573

Shareholders' equity
  Common stock                                                                            7,575                   7,566
  Retained earnings-restricted                                                            9,853                   9,316
  Treasury stock at cost, 63,090 shares                                                    (946)                     - 
  Less shares acquired by stock benefit plan                                               (400)                   (400)
  Unrealized gains on securities designated as
    available for sale, net of related tax effects                                          119                      60
                                                                                         ------                  ------
Total shareholders' equity                                                               16,201                  16,542
                                                                                         ------                  ------

Total liabilities and shareholders' equity                                              $92,494                 $86,115
                                                                                         ======                  ======


</TABLE>

                                        3


<PAGE>

<TABLE>

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

                                                                       Three months ended            Nine months ended
                                                                         September 30,                  September 30,
                                                                     1998             1997            1998         1997
<S>                                                                  <C>               <C>           <C>            <C>
Interest income
  Loans                                                            $1,401           $1,262          $4,102       $3,631
  Mortgage-backed securities                                          130              139             412          399
  Investment securities                                                54               96             190          299
  Interest-bearing deposits and other                                  79               60             187          167
                                                                    -----            -----           -----        -----
         Total interest income                                      1,664            1,557           4,891        4,496

Interest expense
  Deposits                                                            799              731           2,293        2,123
  Borrowings                                                           95               73             284          171
                                                                    -----            -----           -----        -----
         Total interest expense                                       894              804           2,577        2,294
                                                                    -----            -----           -----        -----

         Net interest income                                          770              753           2,314        2,202
Provision for losses on loans                                          13                9              31           17
                                                                    -----            -----           -----        -----
         Net interest income after provision for
           losses on loans                                            757              744           2,283        2,185

Other income
  Service charges on deposit accounts                                  26               27              69           64
  Loss on sale of investments and mortgage-backed securities           (3)             (19)             -           (51)
  Gain on sale of real estate acquired through foreclosure             -                -                6            1
  Other operating                                                      37               32             107           88
                                                                    -----            -----           -----        -----
         Total other income                                            60               40             182          102

General, administrative and other expense
  Employee compensation and benefits                                  177              176             536          509
  Occupancy and equipment                                              22               18              58           56
  Federal deposit insurance premiums                                    9                9              28           27
  Data processing                                                      30               27              81           72
  Other operating                                                      82               80             254          237
                                                                    -----            -----           -----        -----
         Total general, administrative and other expense              320              310             957          901
                                                                    -----            -----           -----        -----

         Earnings before income taxes                                 497              474           1,508        1,386
Income tax expense                                                    189              177             571          514
                                                                    -----            -----           -----        -----

         NET EARNINGS                                              $  308           $  297          $  937       $  872
                                                                    =====            =====           =====        =====
Other comprehensive income, net of tax
Unrealized gains on securities                                         47               47              59          153
                                                                    -----            -----           -----        -----
COMPREHENSIVE INCOME                                               $  355           $  344          $  996       $1,025
                                                                    =====            =====           =====        =====
EARNINGS PER SHARE
  Basic (based on net earnings)                                      $.24             $.23            $.74         $.69
                                                                      ===              ===             ===          ===
  Diluted (based on net earnings)                                    $.24             $.23            $.72         $.68
                                                                      ===              ===             ===          ===

</TABLE>


                                        4


<PAGE>

<TABLE>

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

                                                                               Nine months ended
                                                                                September 30,
                                                                           1998                  1997
<S>                                                                       <C>                     <C>
Balance at January 1                                                    $16,542               $15,427

Issuance of shares under stock option plan                                    9                    45

Purchase of shares for stock benefit plan                                   (93)                   - 

Amortization of stock benefit plan                                           93                    92

Purchase of shares                                                         (946)                   - 

Cash dividends of $.32 per share in 1998 and $.30 in 1997                  (400)                 (378)

Unrealized gains on securities designated as
available for sale, net of related tax effects                               59                   153

Net earnings                                                                937                   872
                                                                         ------                ------

Balance at September 30                                                 $16,201               $16,211
                                                                         ======                ======

Accumulated other comprehensive income                                  $   119               $    (4)
                                                                         ======                ====== 

</TABLE>























                                        5


<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                 (In thousands)

                                                                                    Nine months ended
                                                                                     September 30,
                                                                               1998                  1997
<S>                                                                            <C>                   <C>
Cash flows from operating activities:
  Net earnings for the period                                               $   937               $   872
  Adjustments to reconcile net earnings to net cash
  provided by (used in) operating activities:
    Depreciation and amortization                                                28                    28
    Amortization of premiums on investments and
      mortgage-backed securities                                                142                    70
    Amortization expense of stock benefit plan                                   93                    92
    Loss on sale of investment and mortgage-backed securities                    -                     51
    Provision for losses on loans                                                31                    17
    Gain on sale of real estate acquired through foreclosure                     (6)                   (1)
    Increase (decrease) in cash, due to changes in:
      Accrued interest receivable on loans                                      (24)                  (10)
      Accrued interest receivable on mortgage-backed securities                  14                   (26)
      Accrued interest receivable on investments                                 81                    49
      Prepaid expenses and other assets                                          (9)                   17
      Accrued interest and other liabilities                                     58                     6
      Federal income taxes
        Current                                                                 (89)                  (42)
        Deferred                                                                 22                   100
                                                                             ------                ------
         Net cash provided by operating activities                            1,278                 1,223

Cash flows provided by (used in) investing activities:
  Proceeds from certificates of deposit in other institutions                   100                    - 
  Proceeds from sale of investment securities                                    -                  1,797
  Purchase of investment securities                                            (400)               (1,401)
  Maturities/calls of investment securities                                   2,655                   750
  Purchase of Federal Home Loan Bank stock                                      (74)                 (107)
  Proceeds from sale of mortgage-backed securities                            1,177                   420
  Purchase of mortgage-backed securities                                     (3,039)               (4,974)
  Principal repayments on mortgage-backed securities                          2,673                 1,104
  Loan disbursements                                                        (18,550)              (13,845)
  Investment in real estate partnership                                         (20)                   (8)
  Principal repayments on loans                                              12,763                 9,517
  Purchases and additions to office premises and equipment                     (278)                  (19)
  Proceeds from sale of real estate acquired through foreclosure                  4                    14
  Increase in cash surrender value of life insurance policy                     (31)                  (27)
                                                                             ------                ------
         Net cash used in investing activities                               (3,020)               (6,779)
                                                                             ------                ------

</TABLE>






                                        6


<PAGE>

<TABLE>

                           LOGANSPORT FINANCIAL CORP.
<CAPTION>
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                 (In thousands)
                                                                                 Nine months ended
                                                                                  September 30,
                                                                            1998                  1997
<S>                                                                         <C>                  <C>
Cash flows provided by (used in) financing activities:
  Net increase in deposit accounts                                        $6,826                $4,345
  Proceeds from Federal Home Loan Bank advances                            5,500                 9,500
  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                                  9                    45
  Purchase of shares for stock benefit plan                                  (93)                   - 
  Purchase of shares                                                        (946)                   - 
  Dividends on common stock                                                 (400)                 (378)
                                                                           -----                 -----
         Net cash provided by financing activities                         5,321                 6,112
                                                                           -----                 -----

Net increase in cash and cash equivalents                                  3,579                   556

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

Cash and cash equivalents, end of period                                  $5,848                $4,315
                                                                           =====                 =====


Supplemental disclosure of cash flow information:
  Cash paid during the year for:
    Interest on deposits and borrowings                                   $2,560                $2,278
                                                                           =====                 =====

    Income taxes                                                          $  675                $  556
                                                                           =====                 =====

    Dividends payable at end of period                                    $  135                $  126
                                                                           =====                 =====

    Foreclosed mortgage loans transferred to
      real estate acquired through foreclosure                            $   54                $  136
                                                                           =====                 =====

    Loan originated through sales of real estate owned                    $  148                $   14
                                                                           =====                 =====

</TABLE>













                                        7


<PAGE>


              NOTES TO CONSOLIDATED CONDENSED 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 September 30, 1998,
results of operations  for the three and nine month periods ended  September 30,
1998 and 1997 and cash flows for the nine month periods ended September 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  1,259,225 and 1,258,594 for the nine month periods ended  September 30,
1998 and 1997,  respectively,  and  1,255,155  and 1,260,593 for the three month
periods ended September 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  1,305,333 and 1,286,547 for the
nine months ended September 30, 1998 and 1997,  respectively,  and 1,294,506 and
1,294,529 for the three months ended September 30, 1998 and 1997, respectively.

A cash  dividend of $.11 per common  share was  declared on  September  9, 1998,
payable on October 9, 1998, to stockholders of record as of September 21, 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










                                        8


<PAGE>


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 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.











                                        9


<PAGE>


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 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 a material impact on the Company's financial statements.

In June  1998,  the  FASB  issued  SFAS  No.  133,  "Accounting  for  Derivative
Instruments and Hedging  Activities,"  which requires  entities to recognize all
derivatives  in their  financial  statements  as either  assets  or  liabilities
measured at fair value.  SFAS No. 133 also  specifies  new methods of accounting
for hedging  transactions,  prescribes  the items and  transactions  that may be
hedged,  and  specifies  detailed  criteria  to be  met  to  qualify  for  hedge
accounting.

The definition of a derivative  financial instrument is complex, but in general,
it is an instrument  with one or more  underlyings,  such as an interest rate or
foreign exchange rate, that is applied to a notional  amount,  such as an amount
of currency,  to determine the settlement  amount(s).  It generally  requires no
significant initial investment and can be settled net or by delivery of an asset
that is  readily  convertible  to cash.  SFAS No.  133  applies  to  derivatives
embedded in other contracts, unless the underlying of the embedded derivative is
clearly and closely related to the host contract.

SFAS No. 133 is effective  for fiscal years  beginning  after June 15, 1999.  On
adoption, entities are permitted to transfer held-to-maturity debt securities to
the  available-for-sale  or trading category without calling into question their
intent to hold other debt securities to maturity in the future.  SFAS No. 133 is
not expected to have a material impact on the Company's financial statements.


Note D: Stock Repurchase

On September 8, 1998 the Company  announced  its intention to  repurchase,  from
time to time, on the open market, up to 5% of the Company's  outstanding  shares
of common  stock,  without par value,  or 63,090  shares.  Repurchases  began on
September  14, 1998 and the program was completed on September 18, 1998. A total
of 63,090 share were repurchased at an average price of $15.00 per share.













                                       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 $92.5  million at September 30, 1998 compared to $86.1 million
at December 31, 1997,  an increase of $6.4  million or 7.4%.  This  increase was
funded primarily from a growth in deposits.  Cash and cash equivalents increased
approximately  $3.5  million,  from $2.3  million at  December  31, 1997 to $5.8
million at September 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 $12.6  million at  September  30,  1998.  Mortgage-backed
securities experienced accelerated pay backs which resulted in a decrease in the
yield in the  investment  portfolio  and $2.7 million of  investment  securities
either matured or were called during the nine months ended September 30, 1998.

Net loans  increased $5.8 million,  or 9.2%,  from $63.6 million at December 31,
1997 to $69.4 million at September 30, 1998. Loan originations amounted to $18.6
million for the nine months  ended  September  30, 1998,  with payoffs  equaling
$12.8 million. Loan demand continued to be strong.

Deposits  were $67.4  million at September 30, 1998 compared to $60.6 million at
December 31, 1997, an increase of $6.8 million in the first nine 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 $16.2  million at September 30, 1998 and $16.5 million
at December 31, 1997.  During the third  quarter  approximately  $1.0 million of
equity was used to repurchase 5% of the  Company's  common stock and  additional
shares  were also  purchased  for the Bank RRP  Plan.  This,  combined  with the
payment of dividends,  resulted in a decrease in equity of $1.4 million.  Equity
was increased approximately $1.1 million by earnings,  amortization of the stock
benefit  plan,  and an  increase  in the  market  value  of  available  for sale
securities.









                                       11


<PAGE>


Results of Operations

Comparison of the Three Months Ended September 30, 1998  and September 30, 1997

Net earnings for the Company for the three months ended  September 30, 1998 were
$308,000  compared with  $297,000 for three months ended  September 30, 1997, an
increase  of  $11,000 or 3.7%.  Net  interest  income  increased  $17,000  while
general, administrative and other expenses increased $10,000 and taxes increased
$12,000.  The major  contributor to the increase in net interest  income was the
growth in the loan  portfolio  during the past twelve  months.  Loans were $69.4
million at September  30, 1998  compared to $61.0 million at September 30, 1997.
However,  the impact of such growth was off-set by a decline in the yield on the
loan and investment portfolios.

The provision  for loan losses was $13,000 for the three months ended  September
30, 1998 and $9,000 for the three months ended  September  30, 1997. No property
was in real estate owned on September 30, 1998.  One property,  which was valued
at $106,000, was in real estate owned on December 31, 1997. Non-performing loans
decreased to $225,000, or 0.32% of loans at September 30, 1998 from $431,000, or
0.67% of loans at December 31, 1997. Loan loss reserves  amounted to $253,000 or
 .36% of total loans at  September  30, 1998  compared to  $245,000,  or 0.38% at
December 31, 1997.

Although  management  believes  that it uses the best  information  available in
providing  for possible  loan losses and believes that the allowance is adequate
at September 30, 1998,  future  adjustments to the allowance  could be necessary
and net earnings could be affected if circumstances  and/or economic  conditions
differ   substantially   from  the  assumptions   used  in  making  the  initial
determinations.

Total other income increased by $20,000, or 50.0%, during the three months ended
September 30, 1998,  mainly  because of a $19,000 loss on the sale of securities
in the three month  period  ending  September  30, 1997.  In  addition,  service
charges  on  deposit  accounts  decreased  $1,000  and  other  operating  income
increased $5,000.

Total general,  administrative and other expenses increased $10,000, or 3.2%, in
the three months ended  September 30, 1998 compared to September 30, 1997.  Data
processing  fees  increased  $3,000 due to loan and deposit growth and occupancy
and equipment expense increased $4,000 mainly because of increased  depreciation
related to the purchase of new computer equipment.

The Company's  effective tax rate for the three months ended  September 30, 1998
was 38.0% and was 37.3% for the three months ended September 30, 1997.


Comparison of the Nine Months Ended September 30,1998 and September 30, 1997

Net earnings for the Company for the nine months  ended  September  30, 1998 was
$937,000 compared with $872,000 for the nine months ended September 30, 1997, an
increase of $65,000 or 7.5%. Interest income increased  $395,000,  or 8.8%, as a
result  of the  increase  in the  loan  portfolio.  Interest  expense  increased
$283,000,  or 12.3%  resulting  in an  improvement  in net  interest  income  of
$112,000,  or 5.1%,  when comparing the nine months ended  September 30, 1998 to
the nine months ended September 30, 1997.

The  provision  for loan losses was $31,000 for the nine months ended  September
30, 1998 and $17,000 for the nine months ended  September  30, 1997.  There were
two properties  taken into real estate owned in the nine months ended  September
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


                                       12


<PAGE>


written  off for  $9,000,  resulting  in a total of $23,000  being  written  off
against the allowance in the first nine months of 1998.  Three  properties  were
taken into real estate owned during the nine months ended September 30, 1997 and
net loan chargeoffs and recoveries  totaled $17,000 for the first nine months of
1997.

Total other income increased by $80,000,  or 78.4%, during the nine months ended
September  30,  1998,  compared to the nine months  ended  September  30,  1997,
primarily  because  of the  $51,000  loss on the  sale  of  available  for  sale
securities  during the nine months ended September 30, 1997.  Service charges on
deposit  accounts  increased  $5,000,  or 7.8%.  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 nine months ended June 30, 1997.

Although  management  believes  that it uses the best  information  available in
providing  for possible  loan losses and believes that the allowance is adequate
at September 30, 1998,  future  adjustments to the allowance  could be necessary
and net earnings could be affected if circumstances  and/or economic  conditions
differ   substantially   from  the  assumptions   used  in  making  the  initial
determinations.

Total general, administrative and other expenses increased $56,000, or 6.2%, for
the nine  months  ended  September  30, 1998  compared to the nine months  ended
September 30, 1997.  Employee  compensation and benefits increased  $27,000,  or
5.3%. Data processing  costs increased  $9,000 as a result of an increase in the
volume of accounts  and price  increases.  Other  operating  expenses  increased
$17,000,  or 7.2%,  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 nine months ended September 30,1998 was
37.9% compared to 37.1% for the nine months ended September 30, 1997.


























                                       13


<PAGE>


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  September  30,  1998,  the Bank's  tangible  capital  ratio was 17.24%,  its
leverage ratio was 17.24%,  and its risk-based  capital to risk-weighted  assets
ratio was 31.84%.  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
September 30, 1998.
<TABLE>
<CAPTION>

Capital Standard         Required           Bank's                  Excess
----------------         --------           ------                  ------
<S>                         <C>                <C>                    <C>
Tangible (1.5%)         $1,381,000        $15,870,000            $14,489,000
Core (4.0%)              3,683,000         15,870,000             12,187,000
Risk-based (8.0%)        4,051,000         16,123,000             12,072,000
</TABLE>

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
accounts  and  borrowings  due within one year.  The minimum  required  ratio is
currently set by the Office of Thrift  Supervision  at 4%. At September 30, 1998
the Bank's regulatory liquidity ratio was 34.3%.

Year 2000 Compliance 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 any year 2000 related problems.

Management and the Board of Directors recognize and understand Year 2000 ("Y2K")
risks, are active in overseeing  corrective  efforts,  and are ensuring that all
necessary  resources  are  available to address the problem.  The  awareness and
assessment  phases of the Company's  Year 2000 plan have been  completed and the
testing  phase will begin soon.  The  Company's  data  processing  is  performed
primarily by a third party servicer. The Company also uses software and hardware
which are  covered  under  maintenance  agreements  with  third  party  vendors.
Consequently  the Company is dependent on these vendors to conduct its business.
The  Company  has  contacted  each  vendor to request  time tables for Year 2000
compliance  and the expected  costs,  if any, to be passed along to the Company.
The Company has been informed that its primary  service  provider is on schedule
and testing will begin in the fourth quarter.

During 1998 the Company has replaced or upgraded  all  equipment to be Year 2000
compliant at a cost of less than $30,000.  As of September 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 and
additional  costs  related to the Y2K issues are not expected to have a material
impact on the Company's 1998 or 1999 financial statements.





                                       14


<PAGE>


Should the Company's data center become unable to provide the necessary services
upon arrival of the Year 2000,  the Company will have the  capability to account
for  transactions  on a manual  basis  until the data  center  returns to normal
operations,  or the Company will consider the need to contract with an alternate
service provider.

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.










































                                       15

<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
June 30, 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.

<TABLE>
<CAPTION>

Change                             Net Portfolio Value      NPV as % of PV of Assets
In Rates        $ Amount        $ Change       % Change       NPV Ratio      Change
--------        --------        --------       --------       ---------      ------
                                   (Dollars in thousands)
<S>                <C>              <C>            <C>           <C>          <C>
+400bp            12,725          -5,309          -29%         15.07%        -469bp
+300bp            14,421          -3,614          -20%         16.67%        -309bp
+200bp            15,962          -2,072          -11%         18.05%        -171bp
+100bp            17,205            -829          - 5%         19.11%        - 65bp
   0bp            18,034                                       19.76%
-100bp            18,597             563           +3%         20.16%        + 40bp
-200bp            19,172           1,138           +6%         20.56%        + 80bp
-300bp            20,014           1,979          +11%         21.17%        +141bp
-400bp            21,145           3,111          +17%         21.99%        +223bp

</TABLE>

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

Pre-shock NPV Ratio: NPV as % of PV of Assets                 19.76 %
Exposure Measure: Post-Shock NPV Ratio                        18.05 %
Sensitivity Measure: Change in NPV Ratio                      (171 bp)


                                       16


<PAGE>



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.











































                                       17


<PAGE>


Part II.  OTHER INFORMATION
Item 1.  Legal Proceedings

Neither the Bank nor the  Company  were,  during the  three-month  period  ended
September  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 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.

               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.

               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.

               27.1 Financial  Data  Schedule  for the nine month  period  ended
                    September 30, 1998.

               27.2 Restated  Financial  Data Schedule for the nine month period
                    ended September 30, 1997.

         (b)      Reports on Form 8-K
                           One report on Form 8-K was filed on September 9, 1998
                           to report the Company's intention to repurchase 5% of
                           the Company's outstanding shares of common stock from
                           time to time on the open market.












                                       18


<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:    November  12, 1998             By:   /s/ Thomas G. Williams           
         ------------------                   ---------------------------------
                                              Thomas G. Williams, President and
                                              Chief Executive Officer


Date:    November  12, 1998             By:   /s/ Dottye Robeson              
         ------------------                   ---------------------------------
                                              Dottye Robeson, Secretary and
                                              Treasurer



































                                       19