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 MARCH 31, 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
May 1, 1998 was 1,261,600.
<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 March 31, 1998
(Unaudited) and December 31, 1997
Consolidated Statements of Earnings
for the three months ended March 31,
1998 and 1997 (Unaudited )
Consolidated Statements of Shareholders'
Equity for the three months ended
March 31, 1998 and 1997 (Unaudited)
Consolidated Statements of Cash Flows
for the three months ended
March 31, 1998 and 1997 (Unaudited)
Notes to Consolidated Financial
Statements 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 17
Item 6. Exhibits and Reports of Form 8-K 17
SIGNATURES
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<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Financial Condition
(Unaudited)
(In thousands, except share data)
March 31, December 31,
1998 1997
ASSETS
<S> <C> <C>
Cash and due from banks $ 411 $ 589
Interest-bearing deposits in other financial institutions 4,114 1,680
------- -------
Cash and cash equivalents 4,525 2,269
Certificates of deposit in other financial institutions 100 100
Investment securities available for sale-at market 4,628 5,750
Mortgage-backed securities available for sale-at market 9,959 9,932
Loans receivable-net 65,394 63,635
Real estate acquired through foreclosure-net 148 106
Office premises and equipment-at depreciated cost 472 465
Federal Home Loan Bank stock- at cost 494 494
Investment in real estate partnership 1,547 1,540
Accrued interest receivable on loans 276 299
Accrued interest receivable on mortgage-backed securities 80 83
Accrued interest receivable on investments 49 121
Prepaid expenses and other assets 36 33
Cash surrender value of life insurance 1,096 1,085
Deferred income tax asset 195 203
-------- --------
Total assets $88,999 $86,115
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $63,330 $60,595
Advances from the Federal Home Loan Bank 6,500 6,500
Notes payable 1,450 1,525
Accrued interest and other liabilities 873 861
Accrued income taxes 62 92
------- -------
Total liabilities 72,215 69,573
Shareholders' equity
Common stock 7,568 7,566
Retained earnings-restricted 9,494 9,316
Less shares acquired by stock benefit plan (369) (400)
Unrealized gains on securities designated as
available for sale, net of related tax effects 91 60
------ ------
Total shareholders' equity 16,784 16,542
------ ------
Total liabilities and shareholders' equity $88,999 $86,115
====== ======
</TABLE>
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<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Earnings
(Unaudited)
(In thousands, except share data)
Three months ended
March 31,
1998 1997
<S> <C> <C>
Interest income
Loans $1,316 $1,162
Mortgage-backed securities 152 124
Investment securities 75 100
Interest-bearing deposits and other 45 53
------ ------
Total interest income 1,588 1,439
Interest expense
Deposits 732 684
Borrowings 94 44
------ ------
Total interest expense 826 728
------ ------
Net interest income 762 711
Provision for losses on loans 9 3
------ ------
Net interest income after provision for
losses on loans 753 708
Other income
Service charges on deposit accounts 19 18
Loss on sale of investment and mortgage-backed securities - (32)
Gain on sale of real estate acquired through foreclosure - 1
Other operating 33 32
------ ------
Total other income 52 19
General, administrative and other expense
Employee compensation and benefits 175 164
Occupancy and equipment 19 22
Federal deposit insurance premiums 10 9
Data processing 26 23
Other operating 87 79
------ ------
Total general, administrative and other expense 317 297
------ ------
Earnings before income taxes 488 430
Income tax expense 184 158
------ ------
NET EARNINGS $ 304 $ 272
====== ======
Other comprehensive income, net of tax
Unrealized gains (losses) on securities 31 (19)
------ ------
COMPREHENSIVE INCOME $ 335 $ 253
====== ======
EARNINGS PER SHARE
Basic (based on net earnings) $.24 $.22
=== ===
Diluted (based on net earnings) $.23 $.21
=== ===
</TABLE>
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<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Shareholders' Equity
(Unaudited)
(In thousands, except share data)
Three months ended
March 31,
1998 1997
<S> <C> <C>
Balance at January 1 $16,542 $15,427
Issuance of shares under stock option plan 2 -
Amortization of stock benefit plan 31 31
Cash dividends of $.10 per share (126) (126)
Unrealized gains (losses) on securities designated as
available for sale, net of related tax effects 31 (19)
Net earnings 304 272
------ ------
Balance at March 31 $16,784 $15,585
====== ======
</TABLE>
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<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended
March 31,
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net earnings for the period $ 304 $ 272
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization 9 10
Amortization of premiums on investments and
mortgage-backed securities 42 15
Amortization expense of stock benefit plan 31 31
Loss of sale of investment and mortgage-backed securities - 32
Provision for losses on loans 9 3
Gain on sale of real estate acquired through foreclosure - (1)
Increase (decrease) in cash, due to changes in:
Accrued interest receivable on loans 23 34
Accrued interest receivable on mortgage-backed securities 3 (14)
Accrued interest receivable on investments 72 46
Prepaid expenses and other assets (3) 22
Accrued interest and other liabilities 12 (49)
Federal income taxes
Current (30) 127
Deferred 8 (12)
-------- -------
Net cash provided by operating activities 480 516
Cash flows provided by (used in) investing activities:
Proceeds from sale of investment securities - 1,068
Purchase of investment securities (100) (301)
Maturities/calls of investment securities 1,255 150
Proceeds from sale of mortgage-backed securities 297 -
Purchase of mortgage-backed securities (1,084) (2,235)
Principal repayments on mortgage-backed securities 725 238
Loan disbursements (6,029) (3,239)
Investment in real estate partnership (7) -
Principal repayments on loans 4,210 3,131
Purchases and additions to office premises and equipment (16) (4)
Proceeds from sale of real estate acquired through foreclosure - 14
Increase in cash surrender value of life insurance policy (11) (9)
------- --------
Net cash used in investing activities (760) (1,187)
</TABLE>
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<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended
March 31,
1998 1997
<S> <C> <C>
Cash provided by (used in) financing activities:
Net increase in deposit accounts $2,735 $1,993
Proceeds from Federal Home Loan Bank advances - 3,500
Proceeds from note payable - 100
Repayment of Federal Home Loan Bank advances - (2,000)
Repayment of note payable (75) (1,500)
Proceeds from the exercise of stock options 2 -
Dividends on common stock (126) (126)
------ ------
Net cash provided by financing activities 2,536 1,967
----- -----
Net increase in cash and cash equivalents 2,256 1,296
Cash and cash equivalents, beginning of period 2,269 3,759
----- -----
Cash and cash equivalents, end of period $4,525 $5,055
===== ======
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest on deposits and borrowings $ 810 $ 712
====== ======
Income taxes $ 214 $ 31
====== =======
Dividends payable at end of period $ 126 $ 126
====== ======
Foreclosed mortgage loans transferred to
real estate acquired through foreclosure $ 54 $ 13
======= =======
</TABLE>
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<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 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 March 31, 1998, results
of operations for the three month periods ended March 31, 1998 and 1997 and cash
flows for the three month periods ended March 31, 1998 and 1997.
NOTE B: Earnings Per Share and Dividends Per Share
Basic earnings per share is computed based upon the weighted-average shares
outstanding during the period. Weighted-average common shares outstanding
totaled 1,261,072 and 1,256,375 for the three month periods ended March 31, 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
1,308,043 and 1,279,435 for the three month periods ended March 31, 1998 and
1997, respectively.
A cash dividend of $.10 per common share was declared on March 10, 1998, payable
on April 10, 1998, to stockholders of record as of March 25, 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
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<PAGE>
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 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
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<PAGE>
effective January 1, 1998, as required, without material impact on the Company's
financial statements.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS No. 131 significantly changes the way
that public business enterprises report information about operating segments in
annual financial statements and requires that those enterprises report selected
information about reportable segments in interim financial reports issued to
shareholders. It also establishes standards for related disclosures about
products and services, geographic areas and major customers. SFAS No. 131 uses a
"management approach" to disclose financial and descriptive information 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. SFAS No. 131 is not expected to have a material impact on the
Company's financial statements.
Note D: Other Matters
As with all providers of financial services, the Company's operations are
heavily dependent on information technology systems. The Bank is addressing the
potential problems associated with the possibility that the computers that
control or operate the Bank's information technology systems and infrastructure
may not be programmed to read four-digit date codes and, upon arrival of the
year 2000, may recognize the two-digit code "00" as the year 1900, causing
systems to fail to function or to generate erroneous data. The Bank is working
with the companies that supply or service its information technology systems to
identify and remedy any year 2000 related problems.
As of March 31, 1998, management has developed an estimate of expenses that are
reasonably likely to be incurred by the Bank in connection with this issue,
however does not expect to incur significant expenses to implement the necessary
corrective measures. No assurance can be given, however, that significant
expense will not be incurred in future periods. In the event that the Bank is
ultimately required to purchase replacement computer systems, programs, and/or
equipment, or incur substantial expense to make the Bank's systems, programs,
and/or equipment year 2000 compliant, the Bank's net earnings and financial
condition could be adversely affected.
In addition to possible expense related to its own systems, the Bank could incur
losses if loan payments are delayed due to year 2000 problems affecting any
major borrowers in the Bank's primary market area. Because the Bank's loan
portfolio is highly diversified with regard to individual borrowers and types of
businesses, and the Bank's primary market areas are not significantly dependent
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<PAGE>
upon any one employer or industry, the Bank does not expect any significant or
prolonged difficulties that will affect net earnings or cash flow.
-11-
<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 $89.0 million at March 31, 1998 compared to $86.1 million at
December 31, 1997, an increase of $2.9 million or 3.3%. This increase was funded
primarily from a growth in deposits. Cash and cash equivalents increased
approximately $2.2 million, from $2.3 million at December 31, 1997 to $4.5
million at March 31, 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 slightly from $15.7
million at December 31, 1997 to $14.6 million at March 31, 1998.
Loans increased $1.8 million, or 2.8%, from $63.6 million at December 31, 1997
to $65.4 million at March 31, 1998. Mortgage loan origination exceeded $6.0
million for the quarter, with payoffs equaling $4.2 million. Loan demand in the
first quarter of 1998 was very strong compared to the first quarter of 1997 in
which there was no growth in the loan portfolio.
Deposits were $63.3 million at March 31, 1998 compared to $60.6 million at
December 31, 1997, an increase of $2.7 million in the first quarter 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 $16.8 million at March 31, 1998 and $16.5 million at
December 31, 1997. The payment of dividends, an increase in the unrealized gain
on securities available for sale, the amortization of the stock benefit plan and
quarterly net earnings combined to result in an increase of $242,000 for the
quarter.
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<PAGE>
Results of Operations
Comparison of the Three Months Ended March 31, 1998 and March 31, 1997
- -----------------------------------------------------------------------
Net earnings for the Company for the three months ended March 31, 1998 was
$304,000 compared with $272,000 for three months ended March 31, 1997. This was
a increase of $32,000 or 11.8%. Net interest income increased $51,000 while
other expenses increased $20,000 and taxes increased $26,000. The major
contributor to the increase in net interest income was the growth in the loan
portfolio the past calendar year. Loans were $65.4 million at March 31, 1998
compared to $57.1 million at March 31, 1997.
The provision for loan losses was $9,000 for the three months ended March 31,
1998 and $3,000 for the three months ended March 31, 1997. Two properties were
taken into real estate owned in the quarter ended March 31, 1998 with a combined
book value of $54,000. One property was written down from $37,000 to a net
realizable value of $23,000. Three properties remained in real estate owned at
the end of the quarter ending March 31, 1998, and all were sold during April
1998 resulting in a small gain for the Company. One property was taken into real
estate owned in the period ended March 31, 1997 and was sold at a gain before
the quarter ended. Non-performing loans decreased to $363,000, or 0.56% of loans
at March 31, 1998 from $431,000, or 0.67% of loans at December 31, 1997. Loan
loss reserves amounted to $240,000 or .37% of total loans at March 31, 1998
compared to $245,000, or 0.38% at December 31, 1997.
Other income increased by $33,000 primarily because of a $32,000 loss on the
sale of securities available for sale in the quarter ended March 31, 1997.
Service charges on deposit accounts and other operating income showed virtually
no change compared to the prior year.
Total other expenses increased $20,000 or 6.7% in the period ending March 31,
1998 compared to March 31, 1997. Employee compensation and benefits increased
$11,000 or 6.7%. This increase was a result of the salary increases and
additional personnel compared to a year ago. Data processing fees increased
$3,000 and other operating expenses increased $8,000, mainly in the area of
advertising, charitable contributions, and service fees. Service fees have
increased due to changes in handling our daily deposit but are offset by an
increase in interest income due to better cash availability.
The Company's effective tax rate for the three months ended March 31, 1998 was
37.7% and was 36.7% for the three months ending March 31, 1997.
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<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 March 31, 1998, the Bank's tangible capital ratio was 18.4%, its leverage
ratio was 18.4%, and its risk-based capital to risk-weighted assets ratio was
34.2%. 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 March 31,
1998.
Capital Standard Required Bank's Excess
- ---------------- -------- ------ ------
Tangible (1.5%) $1,325,000 $16,257,000 $14,932,000
Core (4.0%) 3,535,000 16,257,000 12,722,000
Risk-based (8.0%) 3,857,000 16,497,000 12,640,000
Liquidity
The standard measure of liquidity for savings associations is the ratio of cash
and eligible investments to a certain percentage of net withdrawable savings
account and borrowings due within one year. The minimum required ratio is
currently set by the Office of Thrift Supervision at 4%. At March 31, 1998 the
Bank's regulatory liquidity ratio was 34.4%.
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<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
December 31, 1997, 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.
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<PAGE>
<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 11,904 -6,160 -34 % 14.85 % -579bp
+300bp 13,766 -4,298 -24 % 16.73 -391bp
+200bp 15,512 -2,553 -14 % 18.40 % -225bp
+100bp 16,991 -1,074 - 6 % 19.73 % - 91bp
0bp 18,064 20.64 %
- - 100bp 18,830 766 +4 % 21.25 % + 60bp
- - 200bp 19,514 1,450 +8 % 21.76 % +112bp
- - 300bp 20,468 2,403 +13 % 22.49 % +184bp
- - 400bp 21,701 3,637 +20 % 23.43 % +278bp
</TABLE>
Interest Rate Risk Measures: 200 Basis Point (bp) Rate Shock
Pre-shock NPV Ratio: NPV as % of PV of Assets 20.64 %
Exposure Measure: Post-Shock NPV Ratio 18.40 %
Sensitivity Measure: Change in NPV Ratio (225 bp)
As with any method of measuring interest rate risk, certain shortcomings are
inherent in the method of analysis presented in the foregoing table. For
example, although certain assets and liabilities may have similar maturities or
periods to repricing, they may react in different degrees to changes in market
interest rates. Also, the interest rates on certain types of assets and
liabilities may fluctuate in advance of changes in market interest rates, while
interest rates on other types may lag behind changes in market rates.
Additionally, certain assets, such as adjustable-rate loans, have features which
restrict changes in interest rates on a short-term basis and over the life of
the asset. Further, in the event of a change in interest rates, expected rates
of prepayments on loans and early withdrawals from certificates could likely
deviate significantly from those assumed in calculating the table.
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<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Neither the Bank nor the Company were, during the three-month period ended March
31, 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.
27.1 Financial Data Schedule for the three month period ended
March 31, 1998.
27.2 Restated Financial Data Schedule for the three month period
ended March 31, 1997.
(b) Reports on Form 8-K.
The Registrant filed no reports on Form 8-K during the fiscal quarter
ended March 31, 1998.
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<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: May 12, 1998 By: /s/ Thomas G. Williams
--------------------------- ----------------------
Thomas G. Williams
President and
Chief Executive Officer
Date: May 12, 1998 By: /s/ Dottye Robeson
--------------------------- ------------------
Dottye Robeson
Secretary and
Treasurer
-18-
<TABLE> <S> <C>
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