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 September 2000.



[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from_______________to_________________

     COMMISSON Number: 0-26577

                              Webster City Federal Bancorp
                 ------------------------------------------------------
                 (Exact name of registrant as specified in its charter)

           United States                                    42-1491186
 ------------------------------                        ----------------------
(State or other jurisdiction of                            (I.R.S. Employer
 incorporation or organization)                         Identification Number)

820 Des Moines Street, Webster City, Iowa                       50595-0638
-----------------------------------------                       ----------
(Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code  515-832-3071
                                                    ------------


--------------------------------------------------------------------------------
   (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.

1,937,981 shares of common stock were outstanding at October 31, 2000.
                                                     -----------------
<PAGE>



                     Webster City Federal Bancorp and Subsidiaries

                                         Index




                                                                           Page

Part I. Financial Information


         Item 1. Financial Statements

                  Consolidated Balance Sheets
                  at September 30, 2000 and December 31, 1999                1

                  Consolidated Statements of Operations
                  for the three and nine months ended September 30, 2000
                  and 1999                                                   2

                  Consolidated Statements of Cash Flows
                  for the nine months ended September 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

<PAGE>



                     Webster City Federal Bancorp and Subsidiaries

                       Notes to Consolidated Financial Statements

<TABLE>
<CAPTION>

                                                              Sepember 30,          December 31,
                                                                  2000                  1999
                                                          -----------------      ----------------
Assets                                                          (Unaudited)
------

<S>                                                            <C>                   <C>
Cash and cash equivalents                                      $ 2,583,459           $ 4,986,099
Time deposits in other financial institutions                            -             2,585,000
Investment securities held to maturity                          21,265,867            22,721,595
Loans receivable, net                                           67,360,567            62,192,330
Office property and equipment, net                                 536,507               485,085
Federal Home Loan Bank stock, at cost                              613,200               613,200
Deferred taxes on income                                           156,000               156,000
Accrued interest receivable                                        635,627               761,267
Prepaid expenses and other assets                                  188,705                24,513
                                                          -----------------      ----------------

      Total assets                                            $ 93,339,932          $ 94,525,089
                                                          =================      ================


Liabilities and Stockholders' Equity

Deposits                                                      $ 65,090,071          $ 67,918,202
FHLB advance                                                     5,200,000             3,200,000
Advance payments by borrowers for
    taxes and insurance                                            129,944               274,377
Accrued interest payable                                           498,490               122,212
Current income taxes payable                                             -                27,458
Accrued expenses and other liabilities                             835,399               634,535
                                                          -----------------      ----------------

      Total liabilities                                         71,753,904            72,176,784
                                                          -----------------      ----------------


Stockholders' Equity

Common stock, $.10 par value                                       212,222               212,222
Additional paid-in capital                                       9,093,682             9,093,681
Retained earnings, substantially restricted                     15,067,988            14,518,728
Treasury Stock                                                  (2,787,864)           (1,476,326)
                                                          -----------------      ----------------

      Total stockholders' equity                                21,586,028            22,348,305
                                                          -----------------      ----------------

      Total liabilities and stockholders' equity              $ 93,339,932          $ 94,525,089
                                                          =================      ================
</TABLE>


See notes to consolidated financial statements.


                                       1
<PAGE>

                  Webster City Federal Bancorp and Subsidiaries

                      Consolidated Statements of Operations

<TABLE>
<CAPTION>

                                                        For the Three Months                        For the Nine Months
                                                         Ended September 30,                        Ended September 30,
                                                 ------------------------------------       ------------------------------------
                                                      2000                 1999                  2000                1999
                                                 ----------------     ---------------       ----------------    ----------------
                                                                                   (Unaudited)
Income

Interest Income:
<S>                                                   <C>                <C>                     <C>                <C>
   Loans receivable                                   $1,319,265         $ 1,126,751             $3,808,643         $ 3,326,603
   Mortgage-backed & related securities                  106,462             140,104                350,894             443,098
   Investment securities                                 222,209             239,282                661,705             694,862
   Other interest earning assets                          43,928              83,708                168,532             330,768
                                                 ----------------     ---------------       ----------------    ----------------
      Total interest income                            1,691,864           1,589,845              4,989,774           4,795,331

Interest Expense:
   Deposits                                              779,718             729,429              2,248,736           2,190,337
   FHLB advance                                           73,307              14,689                172,392              43,589
   ESOP loan                                                   -                 792                      -               5,086
                                                 ----------------     ---------------       ----------------    ----------------
      Total interest expense                             853,025             744,910              2,421,128           2,239,012
                                                 ----------------     ---------------       ----------------    ----------------
   Net interest income                                   838,839             844,935              2,568,646           2,556,319
Provision for losses on loans                                  -                   -                      -                   -
                                                 ----------------     ---------------       ----------------    ----------------
   Net interest income after
      provision for losses on loans                      838,839             844,935              2,568,646           2,556,319
                                                 ----------------     ---------------       ----------------    ----------------

Non-interest income:
   Fees and service charges                               48,811              47,848                129,778             116,487
   Other                                                  69,138               1,967                123,537              14,540
                                                 ----------------     ---------------       ----------------    ----------------
      Total non-interest income                          117,949              49,815                253,315             131,027
                                                 ----------------     ---------------       ----------------    ----------------

Expense

Non-interest expense:
   Compensation, payroll taxes,
     and employees benefits                              216,630             154,939                631,002             640,831
   Office property and equipment                          22,348              18,755                 73,351              56,437
   Data processing services                               26,323              26,289                 88,415              83,418
   Federal insurance premiums                              3,458              10,085                 10,568              30,485
   Other real estate expenses, net                             -                   -                    770               1,008
   Advertising                                             6,370               7,541                 19,043              20,271
   Other                                                 112,889             143,243                358,834             348,819
                                                 ----------------     ---------------       ----------------    ----------------
      Total non-interest expense                         388,018             360,852              1,181,983           1,181,269
                                                 ----------------     ---------------       ----------------    ----------------

Earnings before taxes on income                          568,770             533,898              1,639,978           1,506,077

Taxes on income                                          210,403             210,848                612,651             576,851
                                                 ----------------     ---------------       ----------------    ----------------

Net earnings                                           $ 358,367           $ 323,050             $1,027,327           $ 929,226
                                                 ================     ===============       ----------------    ----------------

Earnings per share - basic                                $ 0.19              $ 0.16                 $ 0.53              $ 0.44
                                                 ================     ===============       ================    ================

Earnings per share - dilluted                             $ 0.19              $ 0.15                 $ 0.53              $ 0.44
                                                 ================     ===============       ================    ================
</TABLE>

See notes to consolidated financial statements.


                                       2
<PAGE>


                  Webster City Federal Bancorp and Subsidiaries

                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                   For the Nine Months
                                                                                   Ended September 30,
                                                                     -----------------------------------------------
                                                                          2000                          1999
                                                                     ----------------             ------------------
                                                                                     (Unaudited)
Cash flows from operating activities
<S>                                                                      <C>                              <C>
   Net earnings                                                          $ 1,027,327                      $ 929,226
                                                                     ----------------             ------------------

   Adjustments  to  reconcile  net  earnings to net cash
     provided by  operating activities:

        Depreciation                                                          39,253                         16,776
        Amortization of premiums and discounts, net                           11,736                          7,588
        Stock appreciation of allocated ESOP shares                                -                          9,061
        Decrease  (increase) in accrued interest receivable                  125,640                           (772)
        (Increase) decrease  in prepaid expenses and other assets           (164,192)                        55,891
        Decrease  in accrued interest payable                                376,278                        333,601
        Increase in accrued expenses and other liabilities                   200,864                         74,146
        Decrease in accrued current taxes on income                          (27,458)                       (51,554)
        Net change in ESOP stock plan                                              -                        159,064
                                                                     ----------------             ------------------

            Total adjustments                                                562,121                        603,801
                                                                     ----------------             ------------------

            Net cash provided by operating activities                      1,589,448                      1,533,027
                                                                     ----------------             ------------------

Cash flows from investing activities

   Proceeds from the maturity of interest bearing deposits                 2,585,000                      3,111,000
   Purchase of interest bearing deposits                                     (34,226)                    (3,431,000)
   Proceeds from the maturity of investment securities                        30,662                      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           1,445,333                      2,611,503
   Proceeds on sale of real estate                                                 -                         22,460
   Net change in loans receivable                                         (5,166,014)                    (3,143,630)
   Purchase of office property and equipment                                 (90,675)                        (9,255)
                                                                     ----------------             ------------------

            Net cash used in investing activities                         (1,229,920)                    (7,915,227)
                                                                     ----------------             ------------------

Cash flows from financing activities

   Net change in savings deposits                                         (2,828,131)                    (2,522,589)
   Net increase in advance payments by borrowers
     for taxes and insurance                                                (144,433)                      (135,487)
   Proceeds from stock options                                                     -                         72,586
   Payments on ESOP borrowings                                                     -                       (159,064)
   Treasury stock purchase                                                (1,311,538)                      (964,181)
  Net change in borrowings                                                 2,000,000
   Dividends paid                                                           (478,067)                      (570,630)
                                                                     ----------------             ------------------
            Net cash used in financing activities                         (2,762,169)                    (4,279,365)
                                                                     ----------------             ------------------

            Net decrease in cash and cash equivalents                     (2,402,641)                   (10,661,565)

Cash and cash equivalents at beginning of period                           4,986,099                     13,186,836
                                                                     ----------------             ------------------

Cash and cash equivalents at end of period                               $ 2,583,458                    $ 2,525,271
                                                                     ================             ==================

Supplemental  disclosures  of cash flow  information:
   Cash paid during the year for:

     Interest                                                            $ 1,872,458                    $ 1,856,736
     Taxes on income                                                         600,829                        834,691
</TABLE>


See notes to consolidated financial statements.


                                       3
<PAGE>


                  Webster City Federal Bancorp and Subsidiaries

                   Notes to Consolidated Financial Statements
                                  (Unaudited)

1. REORGANIZATION
   --------------

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 nine-month periods ended
September  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 and Security Title & Abstract, Inc. an abstract company. All material
inter-company accounts and transactions have been eliminated.

3. EARNINGS PER SHARE COMPUTATIONS
   -------------------------------

2000
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of 1,937,981  and  1,937,981 for the three and nine
months ended September 30, 2000, respectively, and divided into the net earnings
of $358,367 and  $1,027,327,  for the three and nine months ended  September 30,
2000, respectively, resulting in net earnings per share of $.19 and $.53 for the
three and nine months ended September 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  pursuant 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 nine
months ended  September  30, 2000,  respectively,  due to the average  price per
share being less than the stock  option  exercise  price.  Net  earnings for the
three and nine months ended  September  30, 2000 were  $358,367 and  $1,027,327,
respectively, resulting in net earnings per share of $.19 and $.53 for the three
and nine months ended September 30, 2000, respectively.

1999
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of 2,082,968  and  2,097,597 for the three and nine
months ended September 30, 1999, respectively.  Divided into the net earnings of
$323,050 and $929,226  for the three and nine months ended  September  30, 1999,
respectively, resulting in net earnings per share of $.16 and $.44 for the three
and nine months ended September 30, 1999, 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  pursuant to the Bancorp's  stock option plan using the average price per


                                       4
<PAGE>


share for the period.  Such additional shares were 6,965 and 7,291 for the three
and nine months ended  September  30, 2000,  respectively.  Net earnings for the
three and nine months  ended  September  30, 2000 were  $323,050  and  $929,226,
respectively, resulting in net earnings per share of $.15 and $.44 for the three
and nine months ended September 30, 2000, respectively.

4. DIVIDENDS
   ---------

On July 19,  2000 the  Bancorp  declared a cash  dividend  on its  common  stock
payable on August 24, 2000 to stockholders of record as of August 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.

5. 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 believes the adoption of SFAS 133 and SFAS 137 will not have a
material impact on the Bancorp's consolidated financial statements.  The Bancorp
expects to adopt SFAS 133 and 137 when required.

6. 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.



                                       5
<PAGE>



                  Webster City Federal Bancorp and Subsidiaries

         Management's Discussion and Analysis of Financial Condition and
                             Results of Operations


FINANCIAL CONDITION
-------------------

Total  assets  decreased by $1.2  million,  or 1.3%,  from  December 31, 1999 to
September 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 or
100%. Loans receivable  increased $5.2 million or 6.6% from December 31, 1999 to
September 30, 2000.  At September  30, 2000,  the Bank had no real estate owned.
Investment  securities decreased $1.5 million or 6.6%, from December 31, 1999 to
September 30, 2000.  Prepaid  expenses and other assets increased by $164,200 or
669.9%  December 31, 1999 to  September  30, 2000,  which  included  $153,100 in
assets acquired in the purchase of Security Title & Abstract,  Inc. on September
18, 2000. During the nine-month period deposits decreased $2.8 million, or 4.1%.

Total  stockholders'  equity decreased by $762,300 to $21.6 million at September
30, 2000 from $22.3 at December  31,  1999 as earnings of  $1,027,327  were more
than offset by three quarterly dividends totaling $478,100 and the repurchase of
common stock at an aggregate cost of $1,311,500.

CAPITAL
-------

The Bank's total stockholders' equity decreased by $762,300, to $21.6 million at
September 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  September  30,  2000 the Bank was in  compliance  with all
regulatory capital requirements.  The Bank's required, actual and excess capital
levels as of September 30, 2000 were as follows:

                        Required    % of     Actual      % of   Excess
                         Amount    Assets    Amount     Assets  Capital
                         ------    ------   ---------   ------  -------
                                     (Dollars in thousands)

Tier 1 (Core) Capital   $3,731      4.0%     $21,285    22.82%  $17,554
Risk-based Capital      $3,605      8.0%     $21,665    48.08%  $18,063

LIQUIDITY
---------

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
September 30, 2000, the Bank's quarterly  average  liquidity  position was $17.4
million or 25.2% compared to $13.8 million or 19.7% at December 31, 1999.

RESULTS OF OPERATIONS
---------------------

Interest Income. Interest income increased by $100,000 or 6.3% from $1.6 million
for the three  months  ended  September  30, 1999 to $1.7  million for the three
months  ended  September  30,  2000.  This was the result of an  increase in the
average  yield on  interest-earning  assets to 7.39% for the three  months ended
September 30, 2000 from 7.04% for the three months ended  September 30, 1999 and
an increase in the average balance of interest earning assets of $1.0 million or
1.1% to $91.3  million for the three months ended  September 30, 2000 from $90.2
million for the three months ended  September 30, 1999.  Interest income totaled
$5.0  million  for the nine months  ended  September  30, 2000  compared to $4.8
million for the nine months ended  September 30, 1999. This was the result of an
increase in the average yield on  interest-earning  assets to 7.31% for the nine
months ended  September 30, 2000 from 7.05% for the nine months ended  September
30, 1999 and an increase in the average  balance of interest  earning  assets of
$289,600 or .3% to $91.0  million for the nine months ended  September  30, 2000
from $90.8 million for the nine months ended September 30, 1999.

Interest  on loans for the three  months  ended  September  30,  2000  increased
$192,500 or 17.1%  compared to the three months ended  September  30, 1999.  The
increase resulted  primarily from an increase in total loans outstanding  during


                                       6
<PAGE>


the period, and an increase in the yields on loans receivable from 7.63% for the
nine  months  ended  September  30,  1999 to  7.84%  for the nine  months  ended
September  30, 2000.  Interest on loans for the nine months ended  September 30,
2000 increased $482,000 or 14.5% compared to the nine months ended September 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 7.67% for the nine months ended September 30, 1999 to 7.76% for
the nine months ended  September  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 $33,600 or 24.0% for the
three-month period ended September 30, 2000 as compared to the same period ended
September  30,  1999.  The decline  resulted  from a decrease of $2.3 million or
26.3% in the average balance of  mortgage-backed  securities to $6.5 million for
the three months  ended  September  30, 2000  compared to $8.8 million for three
months ended  September 30, 1999 offset by an increase of 18 basis points in the
average yield on mortgage-backed  securities to 6.58% for the three months ended
September  30, 2000 from 6.40% for the three  months ended  September  30, 1999.
Interest on mortgage-backed  securities  decreased $92,200 or 20.8% for the nine
months ended  September  30, 2000  compared to same period ended  September  30,
1999.  The  decline  resulted  from a decrease  of $2.2  million or 24.1% in the
average  balance of  mortgage-backed  securities  to $6.9  million  for the nine
months ended  September  30, 2000 compared to $9.1 million for nine months ended
September 30, 1999 offset by an increase of 27 basis points in the average yield
on  mortgage-backed  securities to 6.74% for the nine months ended September 30,
2000 from 6.47% for the nine months ended September 30, 1999.

Interest on  investment  securities  decreased  by $17,100 or 7.2% for the three
months ended  September 30, 2000 compared to the same period ended September 30,
1999. This was due to a decrease in the average balance of investment securities
from $15.9  million  for the three  months  ended  September  30,  1999 to $14.9
million  for the three  months  ended  September  30, 2000 and a decrease in the
average  yield of 12  basis  points  from  6.04%,  for the  three  months  ended
September  30, 1999 to 5.92%,  for the three  months ended  September  30, 2000.
Interest  on  investment  securities  decreased  by $33,200 or 4.8% for the nine
months ended  September 30, 2000 as compared to the same period ended  September
30,  1999.  This was due to a decrease  in the  average  balance  of  investment
securities  from  $15.7million  for the nine months ended  September 30, 1999 to
$14.9 million for the nine months ended September 30, 2000 offset by an increase
in the average  yield of 2 basis  points from 5.89%,  for the nine months  ended
September 30, 1999 to 5.91%, for the nine months ended September 30, 2000.

Interest  Expense.  Interest  expense  increased  by  $108,100,  or 14.5%,  from
$745,000 for the three months ended September 30, 1999 to $853,000 for the three
months ended September 30, 2000. Interest expense increased by $182,100 or 8.1%,
from $2.2 million for the nine months ended  September  30, 1999 to $2.4 for the
nine months  ended  September  30, 2000.  The  increase in interest  expense was
primarily  due to an  increase  in  interest  expense on the FHLB  advance.  The
interest expense on the advance  increased by $58,600 or 398.9% from $14,700 for
the three months ended  September 30, 1999 to $73,300 for the three months ended
September 30, 2000. The interest expense on the advance increased by $128,800 or
295.5% from $43,600 for the nine months ended September 30, 1999 to $172,400 for
the nine months  ended  September  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 94 basis points from 4.84% for the
nine months  period ended  September 30, 1999 to 5.78% for the same period ended
September 30, 2000.

Net Interest  Income.  Net interest income before  provision for losses on loans
decreased by $6,100 or .7% from  $844,900  for the three months ended  September
30, 1999 to $838,900 for the three months ended September 30, 2000. Net interest
income  increased by $12,300 or .5% for the nine months ended September 30, 2000
compared to the same period ended  September 30, 1999. The Bank's  interest rate
spread for the nine months ended  September 30, 2000 increased by 2 basis points
to 2.65% from 2.63% for the nine months ended September 30, 1999.

Provision for Losses on Loans.  There were no provisions for losses on loans for
the  three  and  nine  months  ended   September  30,  2000.  The  Bank  had  no
non-performing loans as of September 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.


                                       7
<PAGE>


Non-interest  Income.  Total non-interest  income increased by $68,100 or 136.7%
for the  three-month  period  ended  September  30, 2000 as compared to the same
period ended September 30, 1999.  Non-interest  income increased this quarter by
$45,200 from a refund  received  from the State of Iowa for taxes related to out
of state income earned between 1991 and 1994. Non-interest income also increased
$122,300 or 93.3% for the nine months  ended  September  30, 2000 as compared to
the same period ended  September  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  increased $27,200 or 7.5% for the
three-month  period ended  September  30, 2000 compared to the same period ended
September  30,  1999.  Non-interest  expense  increased  $1,000  or .9%  for the
nine-month  period ended  September  30, 2000  compared to the same period ended
September 30, 1999.  Compensation  and benefit costs increased  $61,700 or 39.8%
from $154,900 for the three months ended  September 30, 1999 to $216,600 for the
three-month  period ended  September  30, 2000.  Compensation  and benefit costs
decreased  by $9,800 to $631,000 for the nine months  ended  September  30, 2000
from $640,800 for the nine months ended September 30, 1999.

Taxes on Income.  Income taxes for the three months  ended  September  30, 2000,
decreased to $210,400  compared to $210,800 for the same period ended  September
30 1999.  Income taxes for the nine months ended  September 30, 2000,  increased
$35,800 or 6.2% to  $612,700  from  $576,900  for the  nine-month  period  ended
September 30 1999.  The  effective  income tax rate for the first nine months of
2000 was 37.4% compared to 38.3% for the first nine months of 1999.

Net Earnings. Net earnings totaled $358,400 for the three months ended September
30, 2000 compared to $323,000 for the three months ended September 30, 1999. Net
earnings  increased  $98,100 or 10.6% to $1.0 million for the nine-month  period
ended  September  30,  2000  compared  to  $929,200  for the same  period  ended
September 30, 1999.


                                       8
<PAGE>


                  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.
        ----------------------------------------------------
         None


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
          September 30, 2000.



                                       9
<PAGE>


                  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: November 8, 2000        By:  /s/ Phyllis A. Murphy
                                   --------------------------------------
                                   Phyllis A. Murphy
                                   President and Chief Executive Officer




Date: November 8, 2000        By:  /s/ Stephen L. Mourlam
                                   --------------------------------------------
                                   Stephen L. Mourlam
                                   Exec. Vice President/Chief Financial Officer