WEBSTER CITY - Webster City Federal Bancorp's board of directors has determined not to pay its next scheduled quarterly dividend in August because of requirements imposed by the Federal Reserve Board on dividend waivers by the company's mutual holding company parent, WCF Financial, M.H.C.
Stephen L. Mourlam, president and chief executive officer, said, "Current Federal Reserve regulation require annual member approval of dividends, a procedure which would be very costly to perform. Without the dividend waiver, the company would be required to pay dividends to WCF Financial, M.H.C., and the owner of 2,300,000 of the total outstanding shares of 3,058,803 at the same rate they are paid to public stockholders. The board of directors is hopeful that the ongoing discussions with the Federal Reserve staff will result in less burdensome options in the future but, in the meantime, the company has determined not to pay the August dividend. All future dividends will be evaluated on a quarterly basis."
Webster City Federal Bancorp reported consolidated net earnings of $170,900 or 9 cents per share for the quarter ended June 30, compared to $266,200 or 14 cents per share for the same period ended June 30, 2012. For the six months ended June 30, Webster City Federal Bancorp reported consolidated net earnings of $278,100 or 9 cents per share, compared to $474,500 or 15cents per share for the same six-month period ended June 30, 2012.
Total assets of the company were $91,731,500 at June 30 compared to $92,826,600 at June 30, 2012. Stockholder's equity at June 30, 2013 was $14,454,500 compared to $14,593,100 for the same period ended June 30, 2012.
Webster City Federal Bancorp is the holding company for Webster City Federal Savings Bank. The Company stock trades in the Pink Sheets under the symbol of WCFB.