SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED JUNE 30, 2000 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION
PERIOD FROM _____________ TO _____________________.
Commission file number: 0-25910
LOGANSPORT FINANCIAL CORP.
(Exact name of registrant specified in its charter)
Indiana 35-1945736
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
723 East Broadway
P.O. Box 569
Logansport, Indiana 46947
(Address of principal executive offices
including Zip Code)
(219) 722-3855
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
The number of shares of the Registrant's common stock, without par value, as of
August 1, 2000 was 1,083,510.
1
<PAGE>
Logansport Financial Corp.
Form 10-Q
Index
Page No.
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements 3
Consolidated Statements of Financial
Condition as of June 30, 2000
and December 31, 1999
Consolidated Statements of Earnings
for the three and six months ended June 30,
2000 and 1999
Consolidated Statements of Shareholders'
Equity for the six months ended
June 30, 2000 and 1999
Consolidated Statements of Cash Flows
for the six months ended
June 30, 2000 and 1999
Notes to Consolidated Condensed Financial
Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 16
Item 4. Submission of Matters to a Vote of Security Holders 16
Item 6. Exhibits and Reports of Form 8-K 16
SIGNATURES
2
<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Financial Condition
(In thousands, except share data)
June 30, December 31,
ASSETS 2000 1999
<S> <C> <C>
Cash and due from banks $ 617 $ 1,336
Interest-bearing deposits in other financial institutions 6,273 3,810
------- -------
Cash and cash equivalents 6,890 5,146
Investment securities available for sale-at market 11,772 8,539
Mortgage-backed securities available for sale-at market 5,415 5,898
Loans receivable-net 98,200 90,900
Office premises and equipment-at depreciated cost 1,879 1,902
Federal Home Loan Bank stock - at cost 1,423 1,273
Investment in real estate partnership 1,428 1,485
Accrued interest receivable on loans 481 416
Accrued interest receivable on mortgage-backed securities 44 47
Accrued interest receivable on investments 180 115
Prepaid expenses and other assets 66 45
Cash surrender value of life insurance 1,205 1,184
Prepaid income tax 199 46
Deferred income tax asset 489 472
------- -------
Total assets $129,671 $117,468
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 86,440 $ 76,011
Advances from the Federal Home Loan Bank 25,000 23,000
Notes payable 1,237 1,307
Accrued interest and other liabilities 914 1,004
------- -------
Total liabilities 113,591 101,322
Shareholders' equity
Common stock 5,515 5,979
Retained earnings-restricted 11,126 10,734
Less shares acquired by stock benefit plan (171) (239)
Accumulated comprehensive loss, unrealized losses on securities designated
as available for sale, net of related tax effects (390) (328)
------- -------
Total shareholders' equity 16,080 16,146
------- -------
Total liabilities and shareholders' equity $129,671 $117,468
======= =======
</TABLE>
3
<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Earnings
(In thousands, except share data)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Interest income
Loans $1,954 $1,563 $3,819 $3,049
Mortgage-backed securities 96 108 194 220
Investment securities 187 90 350 163
Interest-bearing deposits and other 106 60 189 119
----- ----- ----- -----
Total interest income 2,343 1,821 4,552 3,551
Interest expense
Deposits 1,010 799 1,919 1,572
Borrowings 358 151 692 253
----- ----- ----- -----
Total interest expense 1,368 950 2,611 1,825
----- ----- ----- -----
Net interest income 975 871 1,941 1,726
Provision for losses on loans 70 40 141 81
----- ----- ----- -----
Net interest income after provision for
losses on loans 905 831 1,800 1,645
Other income
Service charges on deposit accounts 42 32 74 62
Loss on equity investment (60) (50) (86) (50)
Other operating 67 30 111 66
----- ----- ----- -----
Total other income 49 12 99 78
General, administrative and other expense
Employee compensation and benefits 296 225 592 444
Occupancy and equipment 45 44 90 76
Federal deposit insurance premiums 4 10 8 20
Data processing 38 36 77 72
Other operating 112 105 215 234
----- ----- ----- -----
Total general, administrative and other expense 495 420 982 846
----- ----- ----- -----
Earnings before income taxes 459 423 917 877
Income tax expense 136 152 287 324
----- ----- ----- -----
NET EARNINGS $ 323 $ 271 $ 630 $ 553
===== ===== ===== =====
Other comprehensive loss, net of tax:
Unrealized losses on securities available for sale (48) (165) (62) (230)
----- ----- ----- -----
COMPREHENSIVE INCOME $ 275 $ 106 $ 568 $ 323
===== ===== ===== =====
EARNINGS PER SHARE
Basic (based on net earnings) $.29 $.22 $.57 $.46
=== === === ===
Diluted (based on net earnings) $.29 $.22 $.57 $.45
=== === === ===
</TABLE>
4
<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Shareholders' Equity
(In thousands, except share data)
Six months ended
June 30,
2000 1999
<S> <C> <C>
Balance at January 1 $16,146 $16,488
Purchase of shares (464) -
Issuance of shares under stock option plan - 5
Amortization of stock benefit plan 68 64
Cash dividends of $.22 per share in both 2000 and 1999 (238) (263)
Unrealized losses on securities designated as
available for sale, net of related tax effects (62) (230)
Net earnings 630 553
------ ------
Balance at June 30 $16,080 $16,617
====== ======
Accumulated other comprehensive loss $ (390) $ (75)
====== ======
</TABLE>
5
<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows
For the six months ended June 30,
(In thousands)
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net earnings for the period $ 630 $ 553
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization 53 36
Amortization of premiums on investments and
mortgage-backed securities 16 60
Amortization expense of stock benefit plan 68 64
Provision for losses on loans 141 81
Loss on equity investment 86 50
Increase (decrease) in cash, due to changes in:
Accrued interest receivable on loans (65) (85)
Accrued interest receivable on mortgage-backed securities 3 14
Accrued interest receivable on investments (65) (25)
Prepaid expenses and other assets (21) (4)
Accrued interest and other liabilities (90) (300)
Federal income taxes
Current (153) (98)
Deferred 15 10
------ ------
Net cash provided by operating activities 618 356
Cash flows provided by (used in) investing activities:
Purchase of investment securities (3,318) (2,800)
Maturities/calls of investment securities - 375
Purchase of Federal Home Loan Bank stock (150) (256)
Principal repayments on mortgage-backed securities 458 1,158
Loan disbursements (24,957) (18,200)
Investment in real estate partnership (29) (27)
Principal repayments on loans 17,516 8,901
Purchases and additions to office premises and equipment (30) (393)
Increase in cash surrender value of life insurance policy (21) (21)
------ ------
Net cash used in investing activities (10,531) (11,263)
------ ------
Net cash used in operating and investing activities
(balance carried forward) (9,913) (10,907)
------ ------
</TABLE>
6
<PAGE>
LOGANSPORT FINANCIAL CORP.
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows (continued)
For the six months ended June 30,
(In thousands)
2000 1999
<S> <C> <C>
Net cash used in operating and investing activities
(balance brought forward) $(9,913) $(10,907)
Cash flows provided by (used in) financing activities:
Net increase in deposit accounts 10,429 4,867
Proceeds from Federal Home Loan Bank advances 15,000 17,000
Repayment of Federal Home Loan Bank advances (13,000) (10,000)
Repayment of note payable (70) (68)
Purchase of shares (464) -
Proceeds from the exercise of stock options - 5
Dividends on common stock (238) (263)
------ -------
Net cash provided by financing activities 11,657 11,541
------ -------
Net increase in cash and cash equivalents 1,744 634
Cash and cash equivalents, beginning of period 5,146 4,328
------ -------
Cash and cash equivalents, end of period $ 6,890 $ 4,962
====== =======
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest on deposits and borrowings $ 2,474 $ 1,833
====== =======
Income taxes $ 426 $ 414
====== =======
Dividends payable at end of period $ 123 $ 132
====== =======
</TABLE>
7
<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, 1999. In the opinion of management, the
financial statements reflect all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the Company's financial position
as of June 30, 2000, results of operations for the three and six month periods
ended June 30, 2000 and 1999 and cash flows for the three and six month periods
ended June 30, 2000 and 1999.
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 1,098,169 and 1,198,901 for the six month periods ended June 30, 2000
and 1999, respectively and 1,083,510 and 1,199,090 for the three month periods
ended June 30, 2000 and 1999, 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 1,098,169 and 1,217,789 for the six months
ended June 30, 2000 and 1999, respectively, and 1,083,510 and 1,211,230 for the
three months ended June 30, 2000 and 1999, respectively.
Incremental shares related to the assumed exercise of stock options included in
the computation of diluted earnings per share totaled 18,888 and 12,140 for the
six and three month periods, respectively, ended June 30, 1999. Options to
purchase 125,915 shares of common stock with a weighted-average exercise price
of $10.59 were outstanding at June 30, 2000, but were excluded from the
computation of common share equivalents because their exercise prices were
greater than the average market price of the common shares.
A cash dividend of $.11 per common share was declared on June 1, 2000, payable
on July 10, 2000, to stockholders of record as of June 20, 2000.
NOTE C: Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("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.
8
<PAGE>
NOTE C: Recent Accounting Pronouncements (continued)
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, as amended by SFAS No. 137, is effective for fiscal years
beginning after June 15, 2000. 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 position or results of operations.
The foregoing discussion of the effects of recent accounting pronouncements
contains forward-looking statements that involve risks and uncertainties.
Changes in economic circumstances or interest rates could cause the effects of
the accounting pronouncements to differ from management's foregoing assessment.
9
<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 loan losses and the effect of certain recent accounting pronouncements.
Discussion of Financial Condition Changes from December 31, 1999 to June 30,
2000
The Corporation reported total assets of $129.7 million at June 30, 2000,
compared to $117.5 million at December 31, 1999, an increase of $12.2 million,
or 10.4%. This increase was funded from an additional $2.0 million FHLB advance
and a growth in deposits of $10.4 million. Cash and cash equivalents increased
by approximately $1.7 million, to $6.9 million at June 30, 2000. Cash and cash
equivalents were high at June 30, 2000 in anticipation of repayment of $6.0
million of short-term public deposits due in late July. The growth in assets was
reinvested primarily in loans which increased by $7.3 million and investment and
mortgage-backed securities which increased by $2.8 million.
Net loans increased by $7.3 million, or 8.0%, from $90.9 million at December 31,
1999 to $98.2 million at June 30, 2000. Loan originations amounted to $25.0
million for the six months ended June 30, 2000, while principal repayments
amounted to $17.5 million. During the six months ended June 30, 2000, loan
origination volume exceeded that of the comparable period in 1999 by $6.8
million, or 37.1%. Loan originations during 2000 were comprised primarily of
loans secured by nonresidential and commercial real estate and other commercial
property. The commercial and nonresidential loan portfolios totaled $19.2
million at June 30, 2000, compared to $17.5 million at December 31, 1999.
Deposits totaled $86.4 million at June 30, 2000, compared to $76.0 million at
December 31, 1999, an increase of $10.4 million, or 13.7%, in the first six
months of 2000. Borrowings consisted of $25.0 million of FHLB advances and a
$1.2 million note payable related to an equity investment in low income housing.
Shareholders' equity was $16.1 million at both June 30, 2000 and December 31,
1999. The payment of dividends, repurchase of stock, and an increase in the
unrealized loss on securities available for sale contributed to a decrease in
equity, while earnings and the amortization of the stock benefit plan increased
equity by a corresponding amount.
10
<PAGE>
Results of Operations
Comparison of the Six Months Ended June 30, 2000 and June 30, 1999
Net earnings for the Company for the six months ended June 30, 2000 totaled
$630,000, compared with $553,000 for the six months ended June 30, 1999, an
increase of $77,000, or 13.9%. Net interest income increased $215,000, while
general, administrative and other expense increased $136,000 and taxes decreased
$37,000 due to the availability of low income housing tax credits. The major
contributor to the increase in net interest income was the growth in the loan
portfolio the past calendar year. Loans totaled $98.2 million at June 30, 2000
compared to $82.3 million at June 30, 1999. However, the impact of such growth
was partially offset by a corresponding increase in deposits and advances and a
decrease in the net interest margin. The interest rate spread amounted to 2.80%
at June 30, 2000, compared to 3.00% at June 30, 1999, and the net interest
margin totaled 3.51% and 3.70% for the six month periods ended June 30, 2000 and
1999, respectively.
The provision for losses on loans totaled $141,000 for the six months ended June
30, 2000 and $81,000 for the six months ended June 30, 1999. No properties were
in real estate owned for the quarter ended June 30, 2000 or June 30, 1999.
Non-performing loans decreased to $174,000, or .18% of loans at June 30, 2000
from $666,000, or 0.72% of loans at December 31, 1999. Loan loss reserves
amounted to $581,000 or .59% of total loans at June 30, 2000 compared to
$440,000 or .47% at December 31, 1999. The current period provision was
attributable primarily to the growth in the commercial and nonresidential loan
portfolios, which represented approximately 19.9% of the total loan portfolio at
June 30, 2000, compared to 18.9% at December 31, 1999.
Other income amounted to $99,000 for the six months ended June 30, 2000, an
increase of $21,000, or 26.9%, over the comparable period in 1999. Service
charges on deposit accounts increased by $12,000, or 19.4%, and other operating
income increased by $45,000, or 68.2%, mainly due to additional fees related to
loan processing and increased sales of insurance related to mortgage loans. Such
increases were partially offset by a $36,000 increase in the pre-tax loss from
an equity investment in a low income housing tax credit investment.
General, administrative and other expense increased by $136,000, or 16.1%, in
the period ended June 30, 2000 compared to June 30, 1999. Employee compensation
and benefits increased $148,000, or 33.3%, as a result of salary increases and
additional personnel compared to the same period in 1999, coupled with a one
time charge of $38,000 due to the retirement of personnel. Data processing fees
increased $5,000, or 6.9%, due to loan and deposit growth. Occupancy and
equipment expense increased $14,000, or 18.4%, due primarily to a full six
months of depreciation related to the purchase of new equipment and the new
banking facility, while the corresponding period in 1999 reflected only three
months in the new facility. Other operating expenses decreased $19,000, or 8.1%,
compared to the period ended June 30, 1999, which had a one time non-recurring
charge of $35,000 related to deposit operations. This charge was partially
recovered in the fourth quarter of 1999.
The Company's effective tax rate for the six months ended June 30, 2000 was
31.3% and was 36.9% for the six months ending June 30, 1999. The reduction for
the 2000 period was due to the availability of additional tax credits from the
low income housing equity investment.
11
<PAGE>
Results of Operations
Comparison of the Three Months Ended June 30, 2000 and June 30, 1999
Net earnings for the Company for the three months ended June 30, 2000 totaled
$323,000, compared with $271,000 for the three months ended June 30, 1999, an
increase of $52,000, or 19.2%. Net interest income increased $104,000, while
general, administrative and other expense increased $75,000 and taxes decreased
$16,000 due to the availability of low income housing tax credits. The major
contributor to the increase in net interest income was the growth in the loan
portfolio the past calendar year. The interest rate spread amounted to 2.80% and
3.00% at June 30, 2000 and 1999, respectively. The net interest margin totaled
3.46% and 3.79% for the three month periods ended June 30, 2000 and 1999,
respectively.
The provision for losses on loans totaled $70,000 for the three months ended
June 30, 2000 and $40,000 for the three months ended June 30, 1999. No
properties were in real estate owned for the quarter ended June 30, 2000 or June
30, 1999. The increase in the provision was primarily attributable to the growth
in the loan portfolio over the periods.
Other income amounted to $49,000 for the three months ended June 30, 2000, an
increase of $37,000 over the comparable quarter in 1999. Service charges on
deposit accounts increased by $10,000 and other operating income increased by
$37,000.
Total general, administrative and other expense increased by $75,000, or 17.9%,
in the period ending June 30, 2000 compared to the same period ended June 30,
1999. Employee compensation and benefits increased $71,000, or 31.6%, as a
result of salary increases and additional personnel compared to the 1999
quarter. Data processing fees increased $2,000, or 5.6%, due to loan and deposit
growth. Other operating expenses increased $7,000, or 6.7%, compared to the
quarter ended June 30, 1999.
The Company's effective tax rate for the three months ended June 30, 2000 was
29.6% and was 35.9% for the three months ending June 30, 1999. The decrease in
the effective tax rate was primarily attributable to tax credits available from
the Corporation's investment in a low income housing investment.
12
<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 June 30, 2000, the Bank's tangible capital ratio was 12.24%, its leverage
ratio was 12.24%, and its risk-based capital to risk-weighted assets ratio was
20.70%. Therefore, the Bank's capital significantly exceeded all of the capital
requirements currently in effect. The following table provides the minimum
regulatory capital requirements and the Bank's capital ratios as of June 30,
2000.
<TABLE>
<CAPTION>
Capital Standard Required Bank's Excess
---------------- -------- ------ ------
<S> <C> <C> <C>
Tangible (1.5%) $1,946,000 $15,870,000 $13,924,000
Core (4.0%) 5,188,000 15,870,000 10,682,000
Risk-based (8.0%) 6,357,000 16,451,000 10,094,000
</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 June 30, 2000 the
Bank's regulatory liquidity ratio was 22.96%.
13
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Bank, like other savings associations, is subject to interest rate risk to
the degree that its interest-bearing liabilities, primarily deposits with short
and medium-term maturities, mature or reprice at different rates than its
interest-earning assets. Management of the Bank believes it is critical to
manage the relationship between interest rates and the effect on the Bank's net
portfolio value ("NPV"). Generally, NPV is the discounted present value of the
difference between incoming cash flows on interest-earning and other assets and
outgoing cash flows on interest-bearing liabilities. Management of the Bank's
assets and liabilities is done within the context of the marketplace, regulatory
limitations and within limits established by the Board of Directors on the
amount of change in NPV which is acceptable given certain interest rate changes.
The Office of Thrift Supervision ("OTS") issued a regulation, effective January
1, 1994, which uses a net market value methodology to measure the interest rate
risk exposure of thrift institutions. Under OTS regulations, an institution's
"normal" level of interest rate risk in the event of an assumed change in
interest rates, is a decrease in the institution's NPV in an amount not
exceeding 2% of the present value of its assets. Thrift institutions with over
$300 million in assets or less than a 12% risk-based capital ratio are required
to file OTS Schedule CMR. Data from schedule CMR is used by the OTS to calculate
changes in NPV (and the related "normal" level of interest rate risk based upon
certain interest rate changes (discussed below). Institutions which do not meet
either of the filing requirements are not required to file OTS Schedule CMR, but
may do so voluntarily. The Bank does not currently meet either of these
requirements, but it does voluntarily file Schedule CMR. Presented below, as of
March 31, 2000, 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 300 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>
+300bp 9,522 -6,954 -42% 8.11% -500bp
+200bp 11,980 -4,496 -27% 9.96% -315bp
+100bp 14,336 -2,141 -13% 11.64% -146bp
0bp 16,476 13.11%
-100bp 18,055 1,578 +10% 14.13% +103bp
-200bp 18,854 2,377 +14% 14.61% +150bp
-300bp 19,496 3,019 +18% 14.97% +187bp
</TABLE>
14
<PAGE>
Interest Rate Risk Measures: 200 Basis Point (bp) Rate Shock
Pre-shock NPV Ratio: NPV as % of PV of Assets 13.11%
Exposure Measure: Post-Shock NPV Ratio 9.96%
Sensitivity Measure: Change in NPV Ratio 315bp
As with any method of measuring interest rate risk, certain shortcomings are
inherent in the method of analysis presented in the foregoing table. For
example, although certain assets and liabilities may have similar maturities or
periods to repricing, they may react in different degrees to changes in market
interest rates. Also, the interest rates on certain types of assets and
liabilities may fluctuate in advance of changes in market interest rates, while
interest rates on other types may lag behind changes in market rates.
Additionally, certain assets, such as adjustable-rate loans, have features which
restrict changes in interest rates on a short-term basis and over the life of
the asset. Further, in the event of a change in interest rates, expected rates
of prepayments on loans and early withdrawals from certificates could likely
deviate significantly from those assumed in calculating the table.
15
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Neither the Bank nor the Company were, during the six-month period ended June
30, 2000, or are as of the date hereof involved in any legal proceeding of a
material nature. From time to time, the Bank is a party to legal proceedings
wherein it enforces its security interests in connection with its mortgage and
other loans.
Item 4. Submission of Matters to a Vote of Security Holders
On April 11, 2000, the Company held its 2000 annual meeting of shareholders. A
total of 932,425 shares, or 82.48% of the Company's shares outstanding, were
represented at the meeting either in person or by proxy.
One director was nominated by the Company's Board of Directors to serve a new
three year term. The nominee, and the voting results are listed below.
For Withheld
William Tincher, Jr. (three year term) 924,075 8,350
The other Directors continuing in office are Susanne S. Ridlen, Brian Morrill,
Thomas Williams, Charles Evans, and David Wihebrink.
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 Financial Data Schedule for the six month period ended
June 30, 2000.
(b) Reports on Form 8-K.
The Registrant filed no reports on Form 8-K during the fiscal quarter
ended June 30, 2000.
16
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on behalf of the
undersigned thereto duly authorized.
Logansport Financial Corp.
Date: August 11, 2000 By:/s/ David G. Wihebrink
------------------------- ---------------------------------
David G. Wihebrink, President and
Chief Executive Officer
Date: August 11, 2000 By:/s/ Dottye Robeson
------------------------- ---------------------------------
Dottye Robeson, Secretary and
Treasurer
17
