EXHIBIT 99
PRESS RELEASE OF WEBSTER CITY FEDERAL BANCORP
March 19, 2004
FOR IMMEDIATE RELEASE
Contact: Phyllis A. Murphy, President
and Chief Executive Officer
Tel (515) 832-3071
WEBSTER CITY FEDERAL BANCORP
ANNUAL EARNINGS NEWS
Webster City Federal Bancorp reported consolidated net earnings of $1,187,000 or
$.31 per share for the year ended December 31, 2003 compared to $1,437,000 or
$.38 per share for the period ended December 31, 2002.
The Company reported total assets of $104,753,000 for the year ended December
31, 2003 compared to $103,554,000 for the same period ended December 31, 2002.
The asset quality of the Company remained strong, with non-performing assets as
a percentage of total assets at .53%.
Refinancing of mortgage loans was at record levels in 2003. Webster City Federal
Savings Bank, the savings bank subsidiary of the Company, is a portfolio lender
and chose to keep rates somewhat higher than the market rather than put long
term, fixed rate assets on the books in this historically low interest rate
environment. This resulted in a reduction of loans outstanding from the prior
year and an increase in investment securities. By laddering it's investment
securities, the Company believes it is well-positioned to take advantage of
market opportunities as they arise.
The Company announced a two-for-one stock split paid on September 24, 2003. The
stock price at the close of 2002 was $9.50 per share (adjusted for the stock
split). The 2003 year end price was $14.00 per share, for an increase of 47%
from the prior year. The dividend paid to shareholders was increased by 36% in
the fourth quarter of 2003.
Webster City Federal Bancorp is the holding company for Webster City Federal
Savings Bank and Security Title & Abstract, Inc. The Company's stock trades
under the Nasdaq symbol of WCFB.
Safe Harbor Statement
- ---------------------
This news release and other releases and reports issued by the Company,
including reports to the Securities and Exchange Commission, may contain
"forward-looking statements". The Company 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 purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies, and expectations of the Company, are generally
identifiable by use of the words "believe", "expect," "intend," "anticipate,"
"estimate," "project" or similar expressions. The Company's ability to predict
results or the actual effect of future plans or strategies is inherently
uncertain.
Selected Financial Condition Data
At December 31,
--------- --------- --------- --------- ----------
2003 2002 2001 2000 1999
--------- --------- --------- --------- ----------
(In Thousands)
Total assets $104,753 $103,554 $102,361 $ 95,430 $ 94,525
Loans receivable, net
Real estate 66,196 69,510 70,031 63,831 58,592
Consumer and other 2,832 3,809 4,461 5,273 3,600
-------- -------- -------- -------- --------
Total loans receivable, net 69,028 73,319 74,492 69,104 62,192
Mortgage-backed securities 1,627 2,684 4,205 6,025 7,806
Investments 13,627 7,697 10,189 11,518 14,916
Cash and cash equivalents 3,431 5,252 9,183 6,251 4,986
Time deposits in other financial institutions 12,273 10,892 1,399
Deposits 70,856 70,217 70,043 65,146 67,918
Stockholders' equity, substantially
restricted 22,664 22,319 21,348 20,905 22,348
Summary of Operations
Year Ended December 31,
2003 2002 2001 2000 1999
-------------- ------------ ------------ ------------ ------------
(Dollars in thousands, except earnings per share
And cash dividends per share amounts)
Interest income $6,023 $6,652 $6,713 $6,702 $6,410
Interest expense 2,366 2,736 3,465 3,301 3,010
------ ------ ------ ------ ------
Net interest income before provision
for loan losses 3,657 3,917 3,248 3,401 3,400
Provision for loan losses -- 80 -- -- --
------ ------ ------ ------ ------
Net interest income after provision
for loan losses 3,657 3,837 3,248 3,401 3,400
------ ------ ------ ------ ------
Noninterest income:
Service charges and other fees 209 218 258 181 162
Other income 196 183 198 166 51
------ ------ ------ ------ ------
Total noninterest income
405 401 456 347 213
Noninterest expense:
Salaries and employee benefits 1,179 1,143 1,009 892 811
Premises and equipment 159 207 126 131 117
Other real estate expenses, net 2 22 6 1 2
Advertising 37 29 30 27 29
Federal deposit insurance premiums 15 10 13 14 40
Other 805 622 682 591 585
------ ------ ------ ------ ------
Total noninterest expense 2,197 2,035 1,866 1,656 1,584
------ ------ ------ ------ ------
Income before income taxes and accounting
changes 1,865 2,204 1,838 2,092 2,029
Income tax expense 678 766 648 791 780
------ ------ ------ ------ ------
Net income
$1,187 $1,437 $1,190 $1,301 $1,249
====== ====== ====== ====== ======
Earnings per share - basic $ 0.31 $ 0.38 $ 0.32 $ 0.34 $ 0.30
====== ====== ====== ====== ======
Earnings per share - diluted $ 0.31 $ 0.38 $ 0.32 $ 0.34 $ 0.30
====== ====== ====== ====== ======
Cash dividends per share $ .56 $ 0.50 $ 0.40 $ 0.40 $ 0.40
====== ====== ====== ====== ======
Financial Ratios and Other Data
At or for the Year Ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
------------ ----------- ----------- ------------ ----------
Equity to assets at year end 21.64% 21.55% 20.85% 21.91% 23.64%
Net interest spread 2.99% 3.24% 2.42% 2.60% 2.61%
Net interest margin 3.58% 3.42% 3.44% 3.72% 3.72%
Return on average assets 1.10% 1.43% 1.23% 1.39% 1.39%
Return on average equity 5.14% 6.81% 5.80% 6.17% 5.49%
Stockholders' equity to average assets ratio 21.45% 22.19% 22.03% 22.40% 23.98%
Non-interest income to average assets ratio 0.39% 0.40% 0.48% 0.35% 0.22%
Non-interest expense to average assets ratio 2.08% 2.02% 1.93% 1.64% 1.69%
Nonperforming loans to net loans .80% .18% 1.30% 0.29% 0.01%
Nonperforming assets to total assets .53% .12% 1.00% 0.21% 0.01%
Average interest-earning assets to
average interest-bearing liabilities 125.40% 126.21% 128.02% 131.21% 133.80%
Allowance for loan losses to
net loans receivable 0.56% 0.55% 0.51% 0.59% 0.61%
Allowance for loan losses to
nonperforming loans 69.65% 397.1% 41.61% N/M N/M
Net interest income to non-interest expense 166.48% 188.55% 174.03% 205.31% 214.71%
Number of full service offices 1 1 1 1 1
N/M = Not Meaningful