SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------------
FORM 10-QSB
(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.
[ ] 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: 0-26577
Webster City Federal Bancorp
(Exact name of registrant as specified in its charter)
United States 42-1491186
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
820 Des Moines Street, Webster City, Iowa 50595-0638
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 515-832-3071
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- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 reports), and (2) has been subject to such
filing requirements for the past 90 days. [ X ] Yes No [ ]
Indicate the number of shares outstanding for each of the issuer's classes
of common stock, as of the latest practicable date.
1,934,814 shares of common stock outstanding at July 31, 2000.
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Webster City Federal Bancorp and Subsidiaries
Index
Page
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
at June 30, 2000 and December 31, 1999 1
Consolidated Statements of Operations
for the three and six months ended June 30, 2000
and 1999 2
Consolidated Statements of Cash Flows
for the six months ended June 30, 2000
and 1999 3
Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II. Other Information
Other Information 9
Webster City Federal Bancorp and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
2000 1999
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Assets (Unaudited)
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Cash and cash equivalents $ 2,572,100 $ 4,986,099
Time deposits in other financial institutions -- 2,585,000
Investment securities held to maturity 21,782,183 22,721,595
Loans receivable, net 66,231,472 62,192,330
Office property and equipment, net 507,806 485,085
Federal Home Loan Bank stock, at cost 613,200 613,200
Deferred taxes on income 156,000 156,000
Accrued interest receivable 686,310 761,267
Prepaid expenses and other assets 33,259 24,513
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Total assets $ 92,582,330 $ 94,525,089
============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Deposits $ 66,826,234 $ 67,918,202
FHLB advance 3,200,000 3,200,000
Advance payments by borrowers for
taxes and insurance 320,900 274,377
Accrued interest payable 84,559 122,212
Current income taxes payable -- 27,458
Accrued expenses and other liabilities 769,837 634,535
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Total liabilities 71,201,530 72,176,784
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Stockholders' Equity
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Common stock, $.10 par value 212,222 212,222
Additional paid-in capital 9,093,682 9,093,681
Retained earnings, substantially restricted 14,862,760 14,518,728
Treasury Stock (2,787,864) (1,476,326)
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Total stockholders' equity 21,380,800 22,348,305
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Total liabilities and stockholders' equity $ 92,582,330 $ 94,525,089
============ ============
See notes to consolidated financial statements
Webster City Federal Bancorp and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months
Ended June 30,
-------------------------------
2000 1999
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(Unaudited)
Cash flows from operating activities
Net earnings $ 668,960 $ 606,176
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Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation 25,607 16,502
Amortization of premiums and discounts, net 3,952 2,144
Stock appreciation of allocated ESOP shares -- 9,060
Decrease (increase) in accrued interest receivable 74,957 (93,022)
(Increase) decrease in prepaid expenses and other assets (8,746) 26,797
Decrease in accrued interest payable (37,653) (20,640)
Increase in accrued expenses and other liabilities 135,302 8,314
Decrease in accrued current taxes on income (27,458) (51,554)
Net change in ESOP stock plan -- 159,064
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Total adjustments 165,961 56,665
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Net cash provided by operating activities 834,921 662,841
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Cash flows from investing activities
Proceeds from the maturity of interest bearing deposits 2,585,000 2,265,000
Purchase of interest bearing deposits (34,226) (2,611,000)
Proceeds from the maturity of investment securities -- 3,900,000
Purchase of investment securities -- (9,905,818)
Purchase of mortgage-backed securities -- (1,070,487)
Principal collected on mortgage-backed and related securities 966,473 1,754,664
Proceeds on sale of real estate -- 22,460
Net change in loans receivable (4,035,929) (1,100,520)
Purchase of office property and equipment (48,328) (9,255)
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Net cash used in investing activities (567,010) (6,754,956)
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Cash flows from financing activities
Net change in savings deposits (1,091,968) (1,937,828)
Net increase in advance payments by borrowers
for taxes and insurance 46,523 24,335
Proceeds from stock options -- 32,207
Payments on ESOP borrowings -- (159,064)
Treasury stock purchase (1,311,538) --
Dividends paid (324,927) (382,125)
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Net cash used in financing activities (2,681,910) (2,422,475)
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Net decrease in cash and cash equivalents (2,413,999) (8,514,590)
Cash and cash equivalents at beginning of period 4,986,099 13,186,836
------------ ------------
Cash and cash equivalents at end of period $ 2,572,100 $ 4,672,246
============ ============
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 1,506,671 $ 1,481,548
Taxes on income 368,229 419,182
See notes to consolidated financial statements.
Webster City Federal Bancorp and Subsidiaries
Consolidated Statements of Operations
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------------- --------------------------
2000 1999 2000 1999
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(Unaudited)
Income
- ------
Interest Income:
Loans receivable $1,256,347 $1,102,807 $2,489,378 $2,199,851
Mortgage-backed & related securities 121,406 152,791 244,432 302,994
Investment securities 217,677 238,912 439,496 455,580
Other interest earning assets 40,796 105,243 124,604 247,060
---------- ---------- ---------- ----------
Total interest income 1,636,226 1,599,753 3,297,910 3,205,485
Interest Expense:
Deposits 735,203 728,861 1,469,018 1,460,908
FHLB advance 54,192 14,530 99,085 28,900
ESOP loan -- 1,610 -- 4,294
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Total interest expense 789,395 745,001 1,568,103 1,494,102
---------- ---------- ---------- ----------
Net interest income 846,831 854,752 1,729,807 1,711,383
Provision for losses on loans -- -- -- --
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Net interest income after
provision for losses on loans 846,831 854,752 1,729,807 1,711,383
---------- ---------- ---------- ----------
Non-interest income:
Fees and service charges 42,222 26,909 80,967 68,639
Other 23,438 11,110 54,399 12,573
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Total non-interest income 65,660 38,019 135,366 81,212
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Expense
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Non-interest expense:
Compensation, payroll taxes,
and employees benefits 211,213 298,944 414,372 485,892
Office property and equipment 23,268 18,181 51,003 37,682
Data processing services 27,200 26,183 62,092 57,129
Federal insurance premiums 3,555 10,200 7,110 20,400
Other real estate expenses, net -- 73 770 1,008
Advertising 5,808 7,100 12,673 12,730
Other 94,596 101,483 245,945 205,575
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Total non-interest expense 365,640 462,164 793,965 820,416
---------- ---------- ---------- ----------
Earnings before taxes on income 546,851 430,607 1,071,208 972,179
Taxes on income 197,742 162,464 402,248 366,003
---------- ---------- ---------- ----------
Net earnings $ 349,109 $ 268,143 $ 668,960 $ 606,176
========== ========== ---------- ----------
Earnings per share - basic $ 0.18 $ 0.13 $ 0.34 $ 0.29
========== ========== ========== ==========
Earnings per share - dilluted $ 0.18 $ 0.13 $ 0.34 $ 0.29
========== ========== ========== ==========
See notes to consolidated financial statements.
Webster City Federal Bancorp and Subsidiaries
Notes to Consolidated Financial Statements
1. REORGANIZATION
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Webster City Federal Bancorp (the "Registrant" or "Bancorp") is the successor to
Webster City Federal Savings Bank, a federal stock savings bank (the "Bank")
which reorganized into the holding company structure, effective July 1, 1999
(the "Holding Company Reorganization"). In the Holding Company Reorganization,
each outstanding share of the Bank's common stock was converted into one share
of the Registrant's common stock, and each stockholder of the Bank received the
same ownership interest in the Registrant immediately following the Holding
Company Reorganization as he or she had in the Bank immediately prior to that
transaction.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
-----------------------------------------
The consolidated financial statements for the three and six-month periods ended
June 30, 2000 and 1999 are unaudited. In the opinion of management of Webster
City Federal Bancorp these financial statements reflect all adjustments,
consisting only of normal recurring accruals necessary to present fairly these
consolidated financial statements. The results of operations for the interim
periods are not necessarily indicative of results that may be expected for an
entire year. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted.
Principles of Consolidation
- ---------------------------
The consolidated financial statements include the accounts of the Bancorp and
its wholly owned subsidiary, Webster City Federal Savings Bank, which is engaged
in banking. All material inter-company accounts and transactions have been
eliminated.
3. EARNINGS PER SHARE COMPUTATIONS
-------------------------------
2000
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Earnings per share - basic is computed using the weighted average number of
common shares outstanding of 1,934,814 and 1,955,529 for the three and six
months ended June 30, 2000, respectively, and divided into the net earnings of
$349,100 and $669,000 for the three and six months ended June 30, 2000,
respectively, resulting in net earnings per share of $.18 and $.34 for the three
and six months ended June 30, 2000, respectively.
Earnings per share - diluted is computed using the weighted average number of
common shares outstanding after giving effect to additional shares assumed to be
issued in relation to the Bank's stock option plan using the average price per
share for the period. There were no additional shares for the three and six
months ended June 30, 2000, respectively, due to the average price per share
being less than the stock option price. Net earnings for the three and six
months ended June 30, 2000 were $349,100 and $669,000, respectively, resulting
in net earnings per share of $.18 and $.34 for the three and six months ended
June 30, 2000, respectively.
1999
- ----
Earnings per share - basic is computed using the weighted average number of
common shares outstanding of 2,119,049 and 2,118,650 for the three and six
months ended June 30, 2000, respectively, reduced by the 13,539 weighted average
unearned ESOP shares and divided into the net earnings of $268,100 and $606,200
for the three and six months ended June 30, 2000, respectively, resulting in net
earnings per share of $.13 and $.29 for the three and six months ended June 30,
2000, respectively.
Earnings per share - diluted is computed using the weighted average number of
common shares outstanding after giving effect to additional shares assumed to be
issued in relation to the Bank's stock option plan using the average price per
share for the period. Such additional shares were 5,172 and 7,454 for the three
and six months ended June 30, 2000, respectively. Net earnings for the three and
six months ended June 30, 2000 were $268,100 and $606,200, respectively,
resulting in net earnings per share of $.13 and $.29 for the three and six
months ended June 30, 2000, respectively.
4. DIVIDENDS
---------
On April 19, 2000 the Bancorp declared a cash dividend on its common stock
payable on May 24, 2000 to stockholders of record as of May 9, 2000, equal to
$.20 per share or approximately $387,596. Of this amount, the payment of
approximately $230,000 (representing the dividend payable on 1,150,000 shares
owned by WCF Financial, M.H.C., the Bancorp's mutual holding company) was waived
by the mutual holding company, resulting in an actual dividend distribution of
$157,596.
Webster City Federal Bancorp and Subsidiaries
Management's Discussion and Analysis of Financial Condition
and Results of Operations
FINANCIAL CONDITION
- -------------------
Total assets decreased by $1.9 million, or 2.1%, from December 31, 1999 to June
30, 2000. Cash and cash equivalents decreased $2.4 million or 48.1% and time
deposits in other financial institutions decreased by $2.6 million from $2.6
million to zero as of June 30, 2000. Loans receivable increased $940,000, or
6.4% during the same period. At June 30, 2000, the Bank had no real estate
owned. Investment securities decreased $939,000 or 4.1%, from December 31, 1999
to June 30, 2000. During the six-month period deposits decreased $1.1 million,
or 1.6%.
Total stockholders' equity decreased by $967,500 to $21.4 million at June 30,
2000 from $22.3 at December 31, 1999 as earnings of $669,000 were offset by two
quarterly dividends totaling $325,000 and the repurchase of common stock
totaling $1,311,500.
CAPITAL
- -------
The Bank's total stockholders' equity decreased by $970,000, to $21.4 million at
June 30, 2000 from $22.3 million at December 31, 1999. The Office of Thrift
Supervision (OTS) requires that the Bank meet certain minimum capital
requirements. As of June 30, 2000 the Bank was in compliance with all regulatory
capital requirements. The Bank's required, actual and excess capital levels as
of June 30, 2000 were as follows:
Required % of Actual % of Excess
Amount Assets Amount Assets Capital
------ ------ ------ ------ -------
(Dollars in thousands)
Tier 1 (Core) Capital $3,707 4.0% $21,215 22.89% $17,508
Risk-based Capital $3,594 8.0% $21,598 48.08% $18,004
LIQUIDITY
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OTS regulations require the Bank to maintain an average daily balance of
qualified liquid assets (cash, certain time deposits and specified United States
government, state or federal agency obligations) equal to a monthly average of
not less than 4% of its net withdrawable deposits plus short-term borrowings. At
June 30, 2000, the Bank's quarterly average liquidity position was $16.9 million
or 24.2% compared to $13.8 million or 19.7% at December 31, 1999.
RESULTS OF OPERATIONS
- ---------------------
Interest Income. Interest income increased by $36,500 or 2.3% from $1.6 million
for the three months ended June 30, 1999 to $1.6 million for the three months
ended June 30, 2000. This was the result of a increase in the average yield on
interest-earning assets to 7.23% for the three months ended June 30, 2000 from
7.08% for the three months ended June 30, 1999 and an increase in the average
balance of interest earning assets of $84,900 or .1% to $90.5 million for the
three months ended June 30, 2000 from $90.5 million for the three months ended
June 30, 1999. Interest income totaled $3.3 million for the six months ended
June 30, 2000 compared to $3.2 million for the six months ended June 30, 1999.
This was the result of an increase in the average yield on interest-earning
assets to 7.25% for the six months ended June 30, 2000 from 7.05% for the six
months ended June 30, 1999 and a decrease in the average balance of interest
earning assets of $86,700 or .1% to $90.9 million for the six months ended June
30, 2000 from $91.0 million for the six months ended June 30, 1999.
Interest on loans for the three months ended June 30, 2000 increased $153,500 or
13.9% compared to the three months ended June 30, 1999. The increase resulted
primarily from an increase in total loans outstanding during the period, offset
by a decrease in the yields on loans receivable from 7.66% for the six months
ended June 30, 1999 to 7.64% for the six months ended June 30, 2000. Interest on
loans for the six months ended June 30, 2000 increased $289,500 or 13.8%
compared to the six months ended June 30, 1999. The increase resulted primarily
from an increase in total loans
outstanding during the periods, and an increase in the yields on loans
receivable from 7.70% for the six months ended June 30, 1999 to 7.72% for the
six months ended June 30, 2000. The increase in the yield on loans receivable
was primarily due to higher market rates and adjustable rate loans repricing at
a higher rate based on the lagging index used by the Bank.
Interest on mortgage-backed securities decreased by $31,400 or 20.6% for the
three-month period ended June 30, 2000 as compared to the same period ended June
30, 1999. The decline resulted from a decrease of $2.5 million or 26.2% in the
average balance of mortgage-backed securities to $6.9 million for the three
months ended June 30, 2000 compared to $9.5 million for three months ended June
30, 1999 offset by an increase of 50 basis points in the average yield on
mortgage-backed securities to 6.95% for the three months ended June 30, 2000
from 6.45% for the three months ended June 30, 1999. Interest on mortgage-backed
securities decreased $58,600 or 19.3% for the six months ended June 30, 2000
compared to same period ended June 30, 1999. The decline resulted from a
decrease of $2.1 million or 22.5% in the average balance of mortgage-backed
securities to $7.2 million for the six months ended June 30, 2000 compared to
$9.3 million for six months ended June 30, 1999 offset by an increase of 31
basis points in the average yield on mortgage-backed securities to 6.81% for the
six months ended June 30, 2000 from 5.85% for the six months ended June 30,
1999.
Interest on investment securities decreased by $21,200 or 8.9% for the three
months ended June 30, 2000 compared to the same period ended June 30, 1999. This
was due to a decrease in the average balance of investment securities from $15.9
million for the three months ended June 30, 1999 to $14.9 million for the three
months ended June 30, 2000 and a decrease in the average yield of 20 basis
points from 6.04%, for the three months ended June 30, 1999 to 5.84%, for the
three months ended June 30, 2000. Interest on investment securities decreased by
$16,100 or 3.5% for the six months ended June 30, 2000 as compared to the same
period ended June 30, 1999. This was due to a decrease in the average balance of
investment securities from $15.6 million for the six months ended June 30, 1999
to $14.9 million for the six months ended June 30, 2000 offset by an increase in
the average yield of 4 basis points from 5.85%, for the six months ended June
30, 1999 to 5.89%, for the six months ended June 30, 2000.
Interest Expense. Interest expense increased by $44,400, or 6.0%, from $745,000
for the three months ended June 30, 1999 to $789,400 for the three months ended
June 30, 2000. Interest expense increased by $74,000 or 5.0%, from $1.5 million
for the six months ended June 30, 1999 to $1.6 for the six months ended June 30,
2000. The increase in interest expense was due to an increase in interest
expense on the FHLB advance. The interest expense on the advance increased by
$39,700 or 273.2% from $14,500 for the three months ended June 30, 1999 to
$54,200 for the three months ended June 30, 2000. The interest expense on the
advance increased by $70,200 or 242.9% from $28,900 for the six months ended
June 30, 1999 to $99,100 for the six months ended June 30, 2000. The increase
was due to the Bank borrowing an additional $2,000,000 from the FHLB in October
of 1999 and an additional $1,000,000 for 30 days during the second quarter of
2000. The average interest rate on the advances increased by 1.07% from 4.82%
for the six months period ended June 30, 1999 to 5.89% for the same period ended
June 30, 2000.
Net Interest Income. Net interest income before provision for losses on loans
decreased by $7,900 or 1.0% from $854,800 for the three months ended June 30,
1999 to $846,800 for the three months ended June 30, 2000. Net interest income
increased by $18,400 or 1.1% for the six months ended June 30, 2000 compared to
the same period ended June 30, 1999. The Bank's interest rate spread for the six
months ended June 30, 2000 increased by 10 basis points to 2.73% from 2.63% for
the six months ended June 30, 1999.
Provision for Losses on Loans. There were no provisions for losses on loans for
the three and six months ended June 30, 2000. The Bank had no non-performing
loans as of June 30, 2000. The allowance for losses on loans is based on
management's periodic evaluation of the loan portfolio and reflects an amount
that, in management's opinion, is adequate to absorb probable losses in the
existing portfolio. In evaluating the portfolio, management takes into
consideration numerous factors, including current economic conditions, prior
loan loss experience, the composition of the loan portfolio, and management's
estimate of anticipated credit losses.
Non-interest Income. Total non-interest income increased by $27,600 or 72.6% for
the three-month period ended June 30, 2000 as compared to the same period ended
June 30, 1999. Non-interest income increased $54,200 or 66.7% for the six months
ended June 30, 2000 as compared to the same period ended June 30, 1999. The
increases were related to an increase in fees and service charges, due to the
repricing of service charges.
Non-interest Expense. Non-interest expense decreased $96,500 or 20.9% for the
three-month period ended June 30, 2000 compared to the same period ended June
30, 1999. Non-interest expense decreased $26,500 or 3.2% for the six-month
period ended June 30, 2000 compared to the same period ended June 30, 1999.
Compensation and benefit costs decreased $87,700 or 29.3% from $298,900 for the
three months ended June 30, 1999 to $211,200 for the three month period ended
June 30, 2000. Compensation and benefit costs decreased by $71,500 to $414,400
for the six months ended June 30, 2000 from $485,900 for the six months ended
June 30, 1999. The decreases were primarily due to the Bank paying off the
balance of the ESOP loan of $141,800 on June 30, 1999.
Taxes on Income. Income taxes for the three and six months ended June 30, 2000,
increased to $197,700 and $402,200 from $162,500 and $366,000, respectively for
the same periods for 1999. The effective income tax rate for the first six
months of 2000 was 37.6% compared to 37.7% for the first six months of 1999.
Net Earnings. Net earnings totaled $349,100 for the three months ended June 30,
2000 compared to $268,100 for the three months ended June 30, 1999. Net earnings
increased $62,800 or 10.4% to $669,000 for the six-month period ended June 30,
2000 compared to $606,200 for the same period ended June 30, 1999.
SFAS No. 133 & 137
- ------------------
"Accounting for Derivative Instruments and Hedging Activities," and SFAS 137, an
amendment to SFAS 133, will be effective for the Bancorp beginning January 1,
2001. Management is evaluating the impact the adoption of SFAS 133 and SFAS 137
will have on the Bancorp's consolidated financial statements. The Bancorp
expects to adopt SFAS 133 and 137 when required.
Safe Harbor Statement
- ---------------------
This report contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Bancorp intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Reform Act of
1995, and is including this statement for the purposes of these safe harbor
provisions. Forward-looking statements, which are based on certain assumptions
and describe future plans, strategies and expectations of the Bancorp, are
generally identifiable by use of the words "believe," "expect," "intend,"
"anticipate," "estimate," "project," or similar expressions. The Bancorp's
ability to predict results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse effect on the
operations and future prospects of the Bancorp and its subsidiaries include, but
are not limited to, changes in: interest rates, general economic conditions,
legislative/regulatory changes, monetary and fiscal polices of the U.S.
Government, including polices of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of the loan or investment portfolios, demand
for loan products, deposit flows, competition, demand for financial services in
the Bancorp's market area and accounting principles, polices and guidelines.
These risks and uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements.
Further information concerning the Bank and its business, including additional
factors that could materially affect the Bank's financial results, is included
in the Bank's filings with the Office of Thrift Supervision.
Webster City Federal Bancorp and Subsidiaries
PART II. Other Information
Item 1. Legal Proceedings
-----------------
There are various claims and lawsuits in which the Registrant is
periodically involved incidental to the Registrant's business. In the opinion of
management, no material loss is expected from any of such pending claims or
lawsuits.
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults Upon Senior Securities
-------------------------------
None
Item 4. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
The Registrant convened its 1999 Annual Meeting of Stockholders on
April 19, 2000. At the meeting the stockholders of the Registrant
considered and voted upon:
1. The election of Ellis S. Swon and Dennis J. Tasler as
directors for a term of three years.
2. The ratification of the appointment of KPMG LLP as auditors of
the Registrant for the fiscal year ending December 31, 2000.
The election of Ellis S. Swon, as director was as approved by a vote
of 1,759,929 votes in favor, 1,050 withheld and 0 abstaining.
The election of Dennis J. Tasler, as director was as approved by a
vote of 1,759,929 votes in favor, 1,050 withheld and 0 abstaining.
The ratification of the engagement of KPMG LLP as auditors was
approved by a vote of 1,758,555 votes in favor, 550 opposed and
1,274 abstaining.
Item 5. Other Information
-----------------
None
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
No form 8-K reports were filed during the quarter ended June 30, 2000.
Webster City Federal Bancorp and Subsidiaries
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
WEBSTER CITY FEDERAL BANCORP
Registrant
Date: August 8, 2000 By: /s/Phyllis A. Murphy
-------------- --------------------
Phyllis A. Murphy
President and Chief Executive Officer
Date: August 8, 2000 By: /s/Stephen L. Mourlam
-------------- ---------------------
Stephen L. Mourlam
Exec. Vice President/Chief Financial Officer