-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A2od7PbyArhoOe2M/YAoHR205AZWbLOMPlUxAODniBab/7plgjubZdzL2Mvolyak ia6nFrBJOK7EcDGM6vxbdw== /in/edgar/work/20000811/0001046386-00-000097/0001046386-00-000097.txt : 20000921 0001046386-00-000097.hdr.sgml : 20000921 ACCESSION NUMBER: 0001046386-00-000097 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOGANSPORT FINANCIAL CORP CENTRAL INDEX KEY: 0000939928 STANDARD INDUSTRIAL CLASSIFICATION: [6035 ] IRS NUMBER: 351945736 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-25910 FILM NUMBER: 692741 BUSINESS ADDRESS: STREET 1: 723 E BROADWAY STREET 2: PO BOX 569 CITY: LOGANSPORT STATE: IN ZIP: 46947 BUSINESS PHONE: 2197223855 MAIL ADDRESS: STREET 1: 723 EAST BROADWAY STREET 2: P O BOX 569 CITY: LOGANSPORT STATE: IN ZIP: 46947 10-Q 1 0001.txt QUARTERLY FINANCIAL STATEMENTS 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 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 LOGANSPORT FINANCIAL CORP.
Consolidated Statements of Financial Condition (In thousands, except share data) June 30, December 31, ASSETS 2000 1999 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 ======= =======
3 LOGANSPORT FINANCIAL CORP.
Consolidated Statements of Earnings (In thousands, except share data) Three months ended Six months ended June 30, June 30, 2000 1999 2000 1999 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 === === === ===
4 LOGANSPORT FINANCIAL CORP.
Consolidated Statements of Shareholders' Equity (In thousands, except share data) Six months ended June 30, 2000 1999 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) ====== ======
5 LOGANSPORT FINANCIAL CORP.
Consolidated Statements of Cash Flows For the six months ended June 30, (In thousands) 2000 1999 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) ------ ------
6 LOGANSPORT FINANCIAL CORP.
Consolidated Statements of Cash Flows (continued) For the six months ended June 30, (In thousands) 2000 1999 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 ====== =======
7 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 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 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 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 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 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.
Capital Standard Required Bank's Excess - ---------------- -------- ------ ------ 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
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 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.
Change Net Portfolio Value NPV as % of PV of Assets In Rates $ Amount $ Change % Change NPV Ratio Change (Dollars in thousands) +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
14 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 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 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 EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
9 1,000 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 617 6,273 0 0 17,187 0 0 98,200 581 129,671 86,440 0 2,151 25,000 0 0 5,515 10,565 129,671 3,819 544 189 4,552 1,919 2,611 1,941 141 0 982 917 630 0 0 630 .57 .57 3.51 174 0 0 0 440 0 0 581 0 0 581
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