EXHIBIT 99
PRESS RELEASE OF WEBSTER CITY FEDERAL BANCORP
Aug 6, 2004
FOR IMMEDIATE RELEASE
Contact: Phyllis A. Murphy, President
and Chief Executive Officer
Tel (515) 832-3071
WEBSTER CITY FEDERAL BANCORP
SECOND QUARTER 2004 EARNINGS NEWS
Webster City Federal Bancorp reported consolidated net earnings of $274,500 or
$.07 per share for the quarter ended June 30, 2004 compared to $300,800 or $.08
per share for the quarter ended June 30, 2003.
Total assets of the Company for the quarter ended June 30, 2004 were
$104,796,000 compared to $104,753,000 for the same period ended June 30, 2003.
Interest income decreased by $103,200 for the three months ended June 30, 2004
compared to the same period ending June 30, 2003. The decrease in interest
income was due to a decrease of 25 basis points in the average yield on interest
earning assets and a decrease of $2.7 million in the average balance of interest
earning assets from the quarter ended June 30, 2003.
Interest expense decreased by $89,000 for the three months ended June 30, 2004.
This decrease was due in part to a 44 basis point decrease in deposit rates.
Stockholder's equity decreased by $80,100 to $22.6 million at June 30, 2004 from
the year ended December 31, 2003. Earnings of $563,000 for the first half of
2004 were offset by two quarterly dividends of $500,600 and a decrease of
$141,000 in the unrealized gain on securities available for sale.
The asset quality of the Company remains strong, with reserves allocated in an
amount the Company believes to be adequate to absorb probable losses.
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.
Webster City Federal Bancorp and Subsidiaries
Consolidated Balance Sheets
June December 31,
2004 2003
------------- -------------
Assets (Unaudited)
Cash and cash equivalents $ 3,442,826 $ 3,430,915
Time deposits in other financial institutions 12,768,000 12,273,000
Securities available-for-sale 12,950,744 13,627,119
Securities held-to-maturity 3,699,067 3,478,632
(market value of $3,678,797 and $3,566,728, as of
June 30, 2004 and Decemeber 31, 2003, respectively.)
Loans receivable, net 69,032,794 69,028,234
Federal Home Loan Bank (FHLB) stock, at cost 555,500 555,400
Bankers' Bank stock, at cost 147,500 147,500
Office property and equipment, net 655,433 692,976
Deferred taxes on income 422,851 339,000
Accrued interest receivable 511,860 498,603
Prepaid expenses and other assets 609,129 681,154
------------- -------------
Total assets $ 104,795,704 $ 104,752,533
============= =============
Liabilities and Stockholders' Equity
Deposits $ 70,978,356 $ 70,855,734
Federal Home Loan Bank advances 9,700,000 9,700,000
Advance payments by borrowers for
taxes and insurance 366,596 314,758
Accrued interest payable 20,895 30,295
Current income taxes payable 10,681 76,611
Accrued expenses and other liabilities 1,139,943 1,117,061
------------- -------------
Total liabilities $ 82,216,471 $ 82,094,459
------------- -------------
Stockholders' Equity
Serial preferred stock, $0.10 par value -- --
Authorized 10,000,000 shares; issued none
Common stock, $.10 par value. 20,000,000 shares authorized: $ 430,123 $ 430,123
4,301,228 issued and 3,772,372 outstanding at
June 30, 2004 and at December 31, 2003
Additional paid-in capital 9,439,592 9,439,592
Retained earnings, substantially restricted 16,689,747 16,627,337
Unrealized (loss) gain on securities available-for-sale (98,851) 42,400
Treasury stock, 528,856 shares as of June 30, 2004 (3,881,378) (3,881,378)
and December 31, 2003, respectively
------------- -------------
Total stockholders' equity 22,579,233 22,658,074
------------- -------------
Total liabilities and stockholders' equity $ 104,795,704 $ 104,752,533
============= =============
See accompying notes to consolidated financial statements.
Webster City Federal Bancorp and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For the Three Mo For the Six Months
Ended June 30, Ended June 30,
----------------------- -----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Income
- ------
Interest Income:
Loans receivable $1,116,282 $1,229,392 $2,248,043 $2,526,417
Mortgage-backed & related securities 36,313 30,952 73,362 66,738
Investment securities 139,582 143,326 272,735 249,622
Other interest earning assets 111,346 103,030 216,097 225,638
---------- ---------- ---------- ----------
Total interest income 1,403,523 1,506,700 2,810,237 3,068,415
---------- ---------- ---------- ----------
Interest Expense:
Deposits 386,394 474,616 782,861 965,326
FHLB advances 125,601 126,376 238,214 251,364
---------- ---------- ---------- ----------
Total interest expense 511,995 600,992 1,021,075 1,216,690
---------- ---------- ---------- ----------
Net interest income 891,528 905,708 1,789,162 1,851,725
Provision for losses on loans -- -- -- --
---------- ---------- ---------- ----------
Net interest income after
provision for losses on loans 891,528 905,708 1,789,162 1,851,725
---------- ---------- ---------- ----------
Non-interest income:
Fees and service charges 56,551 53,487 103,027 105,260
Other 37,443 98,577 81,654 129,396
---------- ---------- ---------- ----------
Total non-interest income 93,994 152,064 184,681 234,656
---------- ---------- ---------- ----------
Expense
Non-interest expense:
Compensation, payroll taxes,
and employees benefits 306,186 293,195 620,496 595,509
Office property and equipment 37,543 43,917 77,636 81,713
Data processing services 52,917 47,977 106,547 102,656
Federal insurance premiums 2,712 2,838 5,483 5,677
Other real estate expenses, net 2,909 542 7,082 1,051
Advertising 10,109 10,013 16,461 18,994
Other 128,993 162,954 242,822 289,402
---------- ---------- ---------- ----------
Total non-interest expense 541,369 561,436 1,076,527 1,095,002
---------- ---------- ---------- ----------
Earnings before taxes on income 444,153 496,336 897,316 991,379
Taxes on income 169,650 195,495 334,300 384,967
---------- ---------- ---------- ----------
Net earnings $ 274,503 $ 300,841 $ 563,016 $ 606,412
========== ========== ---------- ----------
Earnings per share - basic $ 0.07 $ 0.08 $ 0.15 $ 0.16
========== ========== ========== ==========
Earnings per share - diluted $ 0.07 $ 0.08 $ 0.15 $ 0.16
========== ========== ========== ==========
See accompanying notes to consolidated financial statements.