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, 1997 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 3, 1997 was 1,260,920.


<PAGE>



                                                   


                           Logansport Financial Corp.
                                    Form 10-Q
                                      Index

                                                                      Page No.

PART 1.  FINANCIAL INFORMATION
Item 1.    Financial Statements                                             3

           Consolidated  Condensed  Statements  of 
           Financial  Condition  as  of September 30, 1997
           and December 31, 1996 (Unaudited)

           Consolidated  Condensed  Statements  of
           Income for the three and nine months ended 
           September 30, 1997 and 1996 (Unaudited )

           Consolidated  Condensed Statements of Changes 
           in Shareholders' Equity for the nine months 
           ended September 30, 1997 and 1996 (Unaudited)

           Consolidated  Condensed  Statements of Cash 
           Flows for the nine months ended September 30, 1997
           and 1996 (Unaudited)

           Notes to Consolidated Financial Statements                        8

Item 2.    Management's Discussion and Analysis
           of Financial Condition and Results
           of Operations                                                    11

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings                                                15

Item 6.    Exhibits and Reports of Form 8-K                                 15

SIGNATURES                                                                  16


<PAGE>


                           LOGANSPORT FINANCIAL CORP.
            Consolidated Condensed Statements of Financial Condition
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                       September 30,              December 31,
Assets                                                                          1997                      1996

<S>                                                                            <C>                       <C>          
  Cash                                                                 $     483,960             $     997,552
  Short-term interest bearing deposits                                     3,831,121                 2,761,126
                                                                         -----------               -----------
         Total cash and cash equivalents                                   4,315,081                 3,758,678

  Interest bearing deposits                                                  100,000                   100,000
  Securities available for sale                                           16,038,351                14,303,105
  Loans                                                                   61,229,636                57,038,066
  Allowance for loan losses                                                 (235,814)                 (235,970)
                                                                        -------------             ------------
         Net loans                                                        60,993,822                56,802,096

  Real estate owned                                                          105,686                        -
  Premises and equipment                                                     467,385                   476,325
  Federal Home Loan Bank stock, at cost                                      494,000                   386,500
  Cash value of life insurance                                             1,067,242                 1,040,242
  Other assets                                                             2,219,670                   801,547
                                                                         -----------             -------------

         Total assets                                                    $85,801,237               $77,668,493
                                                                          ==========                ==========


Liabilities
  Deposits                                                               $61,741,234               $57,396,200
  Borrowings                                                               5,500,000                 3,400,000
  Dividends payable                                                          126,062                   125,638
  Other liabilities                                                        2,223,072                 1,319,767
                                                                         -----------               -----------

         Total liabilities                                                69,590,368                62,241,605
                                                                          ----------                ----------

Shareholders' Equity
  Common stock, 5,000,000 shares authorized,
    no par value; 1,260,620 shares issued                                  7,562,762                 7,518,062
  Retained earnings-substantially restricted                               9,081,899                 8,587,979
  Shares acquired by stock benefit plans                                    (430,197)                 (522,382)
  Net unrealized losses on securities available
    for sale, net of related tax effects                                      (3,595)                 (156,771)
                                                                      --------------              ------------

         Total shareholders' equity                                       16,210,869                15,426,888
                                                                          ----------                ----------

         Total liabilities and shareholders' equity                      $85,801,237               $77,668,493
                                                                          ==========                ==========

</TABLE>

<PAGE>


                           LOGANSPORT FINANCIAL CORP.
                   Consolidated Condensed Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                  Three Months Ended                  Nine Months Ended
                                                                      September 30,                      September 30,
                                                                   -----------------                  ----------------
                                                                 1997           1996                1997           1996
                                                                 ----           ----                ----           ----
Interest Income
<S>                                                              <C>            <C>                 <C>            <C>       
  Loans                                                    $1,296,949     $1,142,036          $3,729,466     $3,250,330
  Investment securities
    Taxable                                                   206,852        243,004             609,170        731,503
    Tax-exempt                                                 29,223         31,573              89,454         94,107
  Other interest and dividends                                 59,806         36,511             166,492        119,198
                                                          -----------    -----------          ----------     ----------
    Total interest income                                   1,592,830      1,453,124           4,594,582      4,195,138
                                                            ---------      ---------           ---------      ---------
  Interest Expense
    Deposits  731,697                                         656,729      2,123,531           1,922,390
    Borrowings                                                 72,764         27,303             170,715         56,102
                                                          -----------    -----------          ----------    -----------
         Total interest expense                               804,461        684,032           2,294,246      1,978,492
                                                           ----------     ----------           ---------      ---------

Net Interest Income                                           788,369        769,092           2,300,336      2,216,646
         Provision for losses on loans                          9,000          3,000              17,000          9,000
                                                         ------------   ------------         -----------   ------------
Net Interest Income After Provision
  for Losses on Loans                                         779,369        766,092           2,283,336      2,207,646
                                                           ----------     ----------           ---------      ---------

Other Income
  Service charges on deposit accounts                          26,893         19,553              64,420         48,639
  Net realized losses on sales of securities                  (19,093)       (34,392)            (50,620)       (26,516)
  Recoveries on previously
    written-off securities                                         -              -               13,083         17,291
  Other income                                                 11,611         13,007              37,182         35,717
                                                          -----------    -----------         -----------    -----------
         Total other income                                    19,411         (1,832)             64,065         75,131
                                                          -----------   -------------        -----------    -----------

Other Expenses
  Salaries and employee benefits                              178,841        172,932             531,470        478,489
  Net occupancy expenses                                        9,138          9,435              29,436         29,505
  Equipment expenses                                            8,296          8,722              26,284         29,107
  Deposit insurance expense                                     9,256        368,955              27,451        428,553
  Computer processing fees                                     27,102         24,512              72,444         68,526
  Other expenses                                               92,766         72,924             274,456        255,264
                                                          -----------    -----------          ----------     ----------
         Total other expenses                                 325,399        657,480             961,541      1,289,444
                                                           ----------     ----------          ----------      ---------

Income Before Income Tax                                      473,381        106,780           1,385,860        993,333
         Income tax expense                                   176,622         25,457             514,200        355,428
                                                           ----------    -----------          ----------     ----------

Net Income                                                $   296,759   $     81,323         $   871,660    $   637,905
                                                           ==========    ===========          ==========     ==========

Earnings per share                                               $.23           $.06                $.69            $.48
                                                                  ===            ===                 ===             ===

Weighted average shares outstanding                         1,260,593      1,322,500           1,258,594       1,322,500

</TABLE>

<PAGE>


                           LOGANSPORT FINANCIAL CORP.
            Consolidated Condensed Statements of Shareholders' Equity
                                   (Unaudited)

                                                            Nine  Months Ended
                                                               September 30,

                                                           1997            1996
                                                           ----            ----

Beginning balance                                   $15,426,888     $20,454,270

Net proceeds from exercise of stock options              44,700              -

Contribution for unearned compensation                       -         (614,567)

Amortization of unearned compensation                    92,185          61,456

Dividends                                              (377,740)     (4,364,250)

Net change in unrealized gain (loss)
  on securities available for sale                      153,176        (248,321)

Net income                                              871,660         637,905
                                                   ------------      ----------

Ending balance                                      $16,210,869     $15,926,493
                                                     ==========      ==========


<PAGE>


                           LOGANSPORT FINANCIAL CORP.
                 Consolidated Condensed Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                       Nine  Months Ended
                                                                                          September  30,
<S>                                                                                 <C>                   <C> 
                                                                                    1997                  1996
Operating Activities
  Net income                                                                 $   871,660           $   637,905
  Adjustments to reconcile net income to
  net cash provided by operating activities
    Provision for loan losses                                                     17,000                 9,000
    Securities (gains) losses                                                     50,620                26,516
    Gain on sale of foreclosed real estate                                        (1,136)                 (869)
    Securities amortization, net                                                  70,056                31,697
    Amortization of unearned compensation                                         92,185                61,457
    Depreciation                                                                  27,889                28,082
    Change in
      Other assets                                                               (20,592)              408,159
      Other liabilities                                                           80,602               166,764
                                                                             -----------            ----------

         Net cash provided by operating activities                             1,188,284             1,368,711
                                                                               ---------             ---------

Investing Activities
  Purchase of securities available for sale                                   (6,375,063)           (7,913,134)
  Proceeds from available for sale maturities                                    750,000             1,490,000
  Proceeds from sales of securities                                            2,216,645             5,750,174
  Payments on mortgage and asset-backed securities                             1,103,843             2,495,946
  Purchase of Federal Home Loan Bank Stock                                      (107,500)              (38,300)
  Net changes in loans                                                        (4,313,110)           (5,926,981)
  Investment in real estate owned                                                   (166)                 (242)
  Purchase of premises and equipment                                             (18,949)              (73,278)
                                                                             -----------           -----------

         Net cash used by investing activities                                (6,744,300)           (4,215,815)
                                                                               ---------             ---------

</TABLE>

<PAGE>


                           LOGANSPORT FINANCIAL CORP.
                 Consolidated Condensed Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                       Nine  Months Ended
                                                                                           September  30,
<S>                                                                                 <C>                   <C> 
                                                                                    1997                  1996

Financing Activities
  Net change in
    Noninterest-bearing, interest-bearing
      demand and savings deposits                                             $1,849,294            $1,085,549
    Certificates of deposit                                                    2,495,740             2,386,838
    Short-term borrowings                                                     (1,400,000)                   -
  Payment of Federal Home Loan Bank advances                                  (6,000,000)                   -
  Proceeds from Federal Home Loan Bank advances                                9,500,000             2,000,000
  Contribution for unearned compensation                                                              (614,567)
  Proceeds from exercise of stock options                                         44,700                    -
  Dividends                                                                     (377,315)             (396,750)
                                                                              ----------           -----------

         Net cash provided by financing activities                             6,112,419             4,461,070
                                                                               ---------             ---------

Net Change in Cash and Cash Equivalents                                          556,403             1,613,966

Cash and Cash Equivalents, Beginning of Period                                 3,758,678             3,242,579
                                                                               ---------             ---------

Cash and Cash Equivalents, End of Period                                      $4,315,081            $4,856,545
                                                                               =========             =========



Additional Cash Flow and Supplementary
  Information
    Interest paid                                                             $2,278,266            $1,967,831
                                                                               =========             =========

    Income tax paid                                                          $   556,105           $   552,329
                                                                              ==========            ==========

    Dividends payable                                                        $   126,062            $4,099,750
                                                                              ==========             =========

</TABLE>


<PAGE>


              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS



NOTE A:  Basis of Presentation

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

The unaudited  interim  consolidated  condensed  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, 1996.  In the opinion of  management,  the
financial  statements  reflect all  adjustments  necessary to present fairly the
Company's financial position as of September 30, 1997, results of operations for
the three and nine month  periods  ended  September  30,  1997 and 1996 and cash
flows for the nine month periods ended September 30, 1997 and 1996.


NOTE B:  Plan of Conversion and Other Matters

Effective  June 13, 1995,  the Bank  completed its  conversion  from a federally
chartered  mutual savings bank to a federally  chartered stock savings bank (the
"Conversion"),  and became a  wholly-owned  subsidiary  of the  Company.  In the
Conversion, the Company sold 1,322,500 shares of Common Stock, with no par value
("Common  Stock"),  for $10.00 per share and used all proceeds except $3,982,500
to acquire  complete  ownership of the Bank. Net proceeds of the Company's stock
issuance, after costs, were $12,670,006.

At a  meeting  of the  Company's  shareholders  on April 9,  1996,  the Board of
Directors  submitted  for  shareholder  approval a stock option plan (the "Stock
Option Plan"), and at that time made certain awards pursuant to the Stock Option
Plan.  The plan was approved by the Company's  shareholders.  Common Stock in an
aggregate  amount  of 10.0% of the  shares  issued  in the  Conversion  (132,250
shares) were  reserved for issuance  upon the exercise of options  granted under
the Stock  Option Plan.  Options  were  granted  under the Stock Option Plan for
108,691  shares of common  stock and have an  exercise  price per share equal to
$12.50,  the fair market  value of the shares on the date of grant.  Pursuant to
the  terms  of the  Option  Plan  and in order  to  ensure  equivalent  economic
consequence to the option holders  following the special cash  distribution paid
by the Company on December 10, 1996, the number of options  granted was adjusted
to 129,340 at a per share  option  price of $10.53.  The  Company  accounts  for
stock-based  compensation as prescribed in Accounting  Principles  Board Opinion
No. 25,  Accounting  for Stock Issued to Employees,  with  appropriate  proforma
disclosures made in the notes to its annual financial statements.


Additionally,  at a meeting of the Company's shareholders held on April 9, 1996,
the  Board  of  Directors  submitted  for  shareholder   approval  a  Management
Recognition  and Retention  Plan and Trust (the "RRP").  The RRP was approved by
the shareholders.  The Bank contributed funds to the RRP to enable it to acquire
an aggregate  amount of Common Stock equal to up to 4.0% of the shares issued in
the Conversion,  (52,900 shares) either directly from the Company or in the open
market.  Shares  awarded  under the RRP vest at a rate of 20% at the end of each
full twelve months of service with the Bank after the date of grant. As of April
9, 1996,  the number of shares  awarded  under the RRP was 46,675.  All of these
shares were acquired in the open market for an average price of $13.17

NOTE C:  Cash Dividends and Earnings Per Share

A cash  dividend of $.10 per common  share was  declared on  September  9, 1997,
payable on October 10, 1997, to shareholders of record as of September 22, 1997.
Earnings per share was computed  based upon the weighted  average  common shares
outstanding  during the period  subsequent  to the Bank's  conversion to a stock
savings bank on June 13,1995.

NOTE D:  Recent Accounting Pronouncements

In June 1996,  the  Financial  Accounting  Standards  Board (the "FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 125,  "Accounting for
Transfers  of  Financial  Assets,   Servicing  Rights,   and  Extinguishment  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  financial  assets  transferred  be allocated to components of the
transaction based on their relative fair values.  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,
securitizations   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  obligation  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  does not believe that  adoption of SFAS No. 125 will have a material
adverse effect on the Corporation's  consolidated  financial position or results
of operations.

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  Per Share",  which
requires  companies  to present  basic  earnings  per share and, if  applicable,
diluted  earnings per share,  instead of primary and fully diluted  earnings per
share,  respectively.  Basic  earnings per share is computed  without  including
potential common shares, i.e., no dilutive effect. Diluted earnings per share is
computed  taking into  consideration  common  shares  outstanding  and  dilutive
potential common shares, including options, warrants, convertible securities and
contingent stock agreements.  SFAS No. 128 is effective for periods ending after
December 15, 1997. Early adoption is not permitted. Based upon the provisions of
SFAS No. 128,  the  Corporation's  basic and diluted  earnings per share for the
three month period ended September 30, 1997 would have each been $.23. Basic and
diluted  earnings per share for the three month period ended  September 30, 1996
would have each been $.06.

In February 1997, the FASB issued SFAS No. 129, "Disclosures of Information
about Capital  Structure."  SFAS No. 129 consolidated  existing  accounting
guidance relating to disclosure about a company's capital  structure.  SFAS
No. 129 is effective  for  financial  statements  for periods  ending after
December 15, 1997.  SFAS No. 129 is not expected to have a material  impact
on the Corporation's financial statements.

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
specific  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.  SFAS No. 130 is not expected to
have a material impact on the Corporation'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 about
the way that management  organizes the segments within the enterprise for making
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. SFAS No. 131 is not expected to have a material impact on the
Corporation's financial statements.


<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  Corporation's  operations  and the  Corporation'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 Corporation'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 and the effect of certain accounting pronouncements.

Financial Condition

Total assets were $85.8  million at September 30, 1997 compared to $77.7 million
at December 31, 1996, an increase of $8.1 million or 10.5%.  Funds were obtained
primarily  from a growth in deposits of $4.3  million and an increase in Federal
Home Loan Bank  advances,  and were invested in securities  and loans.  The Bank
also recorded a $1.5 million equity  investment in a limited  partnership  which
will  construct  and  manage  residential  real  estate  apartments  for low and
moderate income residents. This investment reflects a 49.5% participation in the
partnership and is expected to generate  significant tax credits for the Bank in
future  years.  The  investment  resulted in an increase to total assets of $1.5
million with a corresponding increase in other liabilities:  however, no capital
contributions were required at inception. Capital contributions are due over the
course of the next twelve years and will be used to repay principal and interest
of tax exempt bonds and equity bridge loans used to finance  construction of the
development.  Securities  increased  from $14.3  million at December 31, 1996 to
$16.0 at September 30, 1997.  Net loans  increased $4.2 million,  or 7.4%,  from
$56.8 million at December 31, 1996 to $61.0 million at September 30, 1997.  Loan
demand  has been  strong in the  second  and third  quarters  after a flat first
quarter performance.

Deposits  were $61.7  million at September 30, 1997 compared to $57.4 million at
December 31, 1996, or an increase of $4.3 million in the first three quarters of
1997.  Management  continued  its effort to achieve a moderate rate of growth in
the  deposit  portfolio  through  marketing  and  pricing  strategies.  The Bank
currently has a $1.5 million  putable  advance due in two years from the Federal
Home Loan Bank. The rate is guaranteed  for one year,  until January of 1998, at
which time the  Federal  Home Loan Bank may  convert  the  advance to a periodic
adjustable  advance.  If this is done the  Bank has the  option  to  prepay  the
advance  without a fee. The Bank also has $3.0 million in short-term  adjustable
rate advances.  During the quarter ended September 30, 1997, the Bank obtained a
two year fixed rate advance which was used to purchase securities.

Shareholders'  equity was $16.2  million at September 30, 1997 and $15.4 million
at December 31, 1996.  The payment of  dividends,  a decrease in the  unrealized
loss  on  securities   available  for  sale,   the   amortization   of  unearned
compensation,  the exercise of stock options,  and net income combined to result
in an increase of $783,981 for the nine months ended September 30, 1997.


<PAGE>


Results of Operations
Comparison of the Three Months Ended September 30, 1997 and September 30, 1996

Net income for the Company for the three months ended  September  30, 1997 was $
296,759  compared with $81,323 for the three months ended September 30, 1996, or
an increase of $215,436.  This increase is the result of the one-time assessment
to recapitalize the Savings  Association  Insurance Fund which took place in the
quarter ending September 30, 1996. The pretax charge was approximately  $338,000
and the after tax effect was  $204,000.  Without the  assessment  in the quarter
ending September 30, 1996, net income would have been $285,323.  Interest income
increased  $139,706 for the three months ended  September  30, 1997  compared to
September 30, 1996. The major contributor to the increase in interest income was
the growth in the loan  portfolio and the slightly  higher  interest  rates that
have resulted as ARM loans  repriced.  Interest  expense  increased  $120,429 or
17.6% for the three months ended September 30, 1997 compared to the three months
ended  September  30, 1996.  The increase in the volume of deposits and advances
have been the primary  cause of this  increase as the over-all  cost of deposits
has increased only 4 basis points from the quarter ended September 30, 1996. Net
interest  income for the three  months  ended  September  30, 1997 was  $788,369
compared to $769,092 at September 30, 1996, an increase of $19,277 or 2.5%.

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
on  historical  experience,  the  volume and type of  lending  conducted  by the
Company,  the  status  of past due  principal  and  interest  payments,  general
economic  conditions,  particularly as such  conditions  relate to the Company's
market area, and other factors  related to the  collectibility  of the Company's
loan  portfolio.  As a result of such  analysis,  management  recorded  a $9,000
provision  for losses on loans for the  quarter  ended  September  30,  1997 and
$3,000 for the quarter  ended  September  30, 1996.  One property was taken into
real estate owned for the quarter  ended  September 30, 1996 and was sold during
the quarter for a gain of $869.  One  property  was taken into real estate owned
for the quarter  ended  September  30, 1997 and  remained  there at quarter end.
Non-performing loans were $318,000, or 0.52% of loans, at September 30, 1997 and
$406,000,  or 0.71% of loans, at December 31, 1996. Loan loss reserves  amounted
to  $235,814,  or 0.39% of total  loans,  at  September  30,  1997  compared  to
$235,970, or 0.41% at December 31, 1996. There can be no assurance that the loan
loss  allowance  of  the  Association  will  be  adequate  to  cover  losses  on
nonperforming assets in the future.

Realized losses on the sale of available for sale securities amounted to $19,093
in the quarter  ending  September  30,  1997 and  $34,392 in the quarter  ending
September 30, 1996.  Service charges on deposit accounts increased by $7,340, or
37.5%, from September 30, 1997 over September 30, 1996.

Total other  expenses  increased  $27,618  without  considering  the decrease of
$359,699 in deposit insurance expense.  Salaries and employee benefits increased
$5,909,  or 3.4% as a result of  general  and merit pay  increases  for the 1997
year. Other expenses experienced an increase of $19,842 or 27.2%. Other expenses
were $92,766 for the three months ended  September  30, 1997 compared to $72,924
for the three months ended  September  30,  1996.  Approximately  $14,000 of the
increase is related to advertising increases and costs associated with increased
account volume.  In the quarter ending September 30, 1997 the Bank also recorded
a  charitable  donation  of $8,000 as it donated a property  held in real estate
owned at June 30, 1997 to Habitat for Humanity of Cass County, Indiana, Inc.

The Company's  effective tax rate for the three months ended  September 30, 
1997 was 37.3%  compared to 23.8% for the three months ended September 30,1996.

Comparison of the Nine Months Ended September 30, 1997 and September 30, 1996

Net income for the  Company  for the nine months  ended  September  30, 1997 was
$871,660  compared with  $637,905 for the nine months ended  September 30, 1996.
This is an  increase of $233,755  or 36.6%.  Without  the SAIF  assessment,  net
income would have increased $29,755 or 3.5%.  Interest income increased $399,444
for the nine months ended  September  30, 1997  compared to September  30, 1996.
Interest expense increased  $315,754 resulting in an improvement in net interest
income of $83,690 or 3.8%,  when  comparing the nine months ended  September 30,
1997 to the nine months ended September 30, 1996.

The  provision  for loan losses was $17,000 for the nine months ended  September
30, 1997 and $9,000 for the nine months ended  September 30, 1996. The growth in
loans  outstanding  resulted in a need for an additional loan loss provision but
has not  resulted in an  increase in  nonperforming  loans as  discussed  in the
previous section.

Realized  losses on the sale of available for sale  securities  were $50,620 for
the nine months ending September 30, 1997 and $26,516 for the nine months ending
September 30, 1996. Service charges on deposit accounts  increased  $15,781,  or
32.4%.  This  increase is a result of an  increase in the volume of  transaction
accounts and new service charges imposed.  There was a nonrecurring  recovery on
securities  previously written off of $17,291 in the nine months ended September
30, 1996 and $13,083 in the nine months ended September 30, 1997.

Total  other  expenses  increased  $73,199 or 8.5%,  for the nine  months  ended
September  30, 1997  compared to the nine months ended  September 30, 1996 after
eliminating the $401,102  difference related to deposit insurance  expense.  The
increases were  concentrated  in two areas,  salaries and employee  benefits and
other expenses.  Salary and employee benefits increased $52,981,  or 11.1%. This
is a result of general and merit pay increases and  amortization  of the expense
associated  with the RRP which was approved  April 9, 1996 at the  shareholder's
meeting.  The plan was  effective for six months of the nine month period ending
September 30, 1996 and resulted in amortization expense of $61,456. The plan was
effective for nine months of the nine month period ending September 30, 1997 and
resulted in amortization expense of $92,185.

Other expenses  increased  $19,192 for the nine months ended  September 30, 1997
compared to the nine months ended  September 30, 1996.  Approximately  $5,000 of
the  increase in cost is  associated  with an increase in the volume of checking
accounts and the  additional  services  connected  with these  accounts  such as
issuing ATM cards.  Advertising  expense  also  increased  by $12,000 as new and
additional means were used to promote the Bank's products.

The  Company's  effective  tax rate for the nine months ended September 30,1997
was 37.1%  compared to 35.8% for the nine months ended September 30, 1996.



Capital Resources

Pursuant to OTS capital regulations,  savings associations must currently meet a
1.5%  tangible  capital  requirement,  a 3%  leverage  ratio  (or core  capital)
requirement,  and total risk-based capital to risk-weighted  assets ratio of 8%.
At September 30, 1997, the Bank's tangible capital ratio was 18.7%, its leverage
ratio was 18.7%, and its risk-based  capital to  risk-weighted  assets ratio was
35.2%.  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, 1997.

Capital Standard            Required           Bank's              Excess
----------------            --------           ------              ------
Tangible (1.5%)            1,283,000       16,009,000          14,726,000
Core (3.0%)                2,565,000       16,009,000          13,444,000
Risk-based (8.0%)          3,696,000       16,245,000          12,549,000

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 5%, of which 1% must be
comprised of short-term  investments.  At September 30, 1997 the Company's ratio
was 11.19%, of which 6.95% was comprised of short-term investments.


<PAGE>


Part II.  OTHER INFORMATION

Item 1.  Legal Proceedings

Neither  the Bank nor the  Company  were  during the  three-month  period  ended
September 30, 1997 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:

                  (27)     Financial Data Schedule

         (b)      Reports on Form 8-K.

         The  Registrant  filed one report on Form 8-K during the fiscal quarter
         ended  September 30, 1997.  The report was filed on August 19, 1997 and
         reported a change in Registrant's Certifying Accountant.


<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 11,1997                  By:    /s/ Thomas G. Williams
                                                   Thomas G. Williams, President
                                                    and Chief Executive Officer


Date:    November 11, 1997                 By:     /s/ Dottye Robeson 
                                                    Dottye Robeson, Secretary
                                                      and Treasurer

<PAGE>