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, 2002.
                                   -------------



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

1,888,626 shares of common stock outstanding at July 31, 2002.
                                                --------------

<PAGE>

                  Webster City Federal Bancorp and Subsidiaries

                                      Index




                                                                        Page
                                                                        ----

Part I. Financial Information


         Item 1. Financial Statements

                  Consolidated Balance Sheets
                  at June 30, 2002 and December 31, 2001                  1
                  Consolidated Statements of Operations
                  for the three and six months ended June 30, 2002
                  and 2001                                                2

                  Consolidated Statements of Cash Flows
                  for the six months ended June 30, 2002
                  and 2001                                                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 Savings Bancorp and Subsidiaries

                           Consolidated Balance Sheets

<TABLE>
<CAPTION>

                                                                                June 30,              December 31,
                                                                                  2002                   2001
                                                                             --------------          -------------
Assets                                                                         (Unaudited)
------

<S>                                                                            <C>                     <C>
Cash and cash equivalents                                                      $ 3,965,805             $ 9,183,215
Time deposits in other financial institutions                                    2,491,000               1,399,000
Securities available-for-sale                                                   10,642,070              10,188,900
Investment securities held-to-maturity (market value                             3,859,859               4,574,354
    of $3,940,741 and $4,654,121, respectively)
Loans receivable, net                                                           76,094,614              74,492,269
Real estate owned                                                                   96,755                       -
Office property and equipment, net                                                 807,376                 882,238
Federal Home Loan Bank stock, at cost                                              704,900                 613,200
Deferred taxes on income                                                           185,000                 189,000
Accrued interest receivable                                                        676,931                 568,569
Prepaid expenses and other assets                                                  522,432                 270,618
                                                                             -------------           -------------

      Total assets                                                           $ 100,046,742           $ 102,361,363
                                                                             =============           =============


Liabilities and Stockholders' Equity
------------------------------------

Deposits                                                                      $ 67,138,372            $ 70,042,590
FHLB advance                                                                     9,700,000               9,700,000
Advance payments by borrowers for
    taxes and insurance                                                            347,885                 338,167
Accrued interest payable                                                            44,901                  53,454
Current income taxes payable                                                            --                  84,414
Accrued expenses and other liabilities                                             904,274                 794,438
                                                                              ------------            ------------

      Total liabilities                                                         78,135,432              81,013,063
                                                                              ------------            ------------


Stockholders' Equity
--------------------

Common stock,  $.10 par value.  20,000,000 shares authorized:                      215,061                 213,339
     2,150,610  issued and 1,886,126 outstanding at June 30, 2002
     2,133,386  issued and 1,871,151 outstanding at December 31, 2001
Additional paid-in capital                                                       9,440,991               9,242,996
Retained earnings, substantially restricted                                     16,086,227              15,749,736
Unrealized gain on securities available-for-sale                                    49,970                  23,168
Treasury stock, 262,238 shares at June 30,2002 and December 31, 2001            (3,880,939)             (3,880,939)
                                                                             -------------           -------------
      Total stockholders' equity                                                21,911,310              21,348,300

      Total liabilities and stockholders' equity                             $ 100,046,742           $ 102,361,363
                                                                             =============           =============
</TABLE>

See notes to consolidated financial statements.


<PAGE>



                  Webster City Federal Bancorp and Subsidiaries

                      Consolidated Statements of Operations

<TABLE>
<CAPTION>

                                                                      For the Three Months                   For the Six Months
                                                                         Ended June 30,                        Ended June 30,
                                                                 -----------------------------         -----------------------------
                                                                    2002               2001              2002               2001
                                                                 ----------         ----------         ----------         ----------
                                                                                             (Unaudited)
Income
------

<S>                                                              <C>                <C>                <C>                <C>
Interest Income:
   Loans receivable                                              $1,411,467         $1,384,941         $2,833,318         $2,763,416
   Mortgage-backed & related securities                              58,098             86,600            123,143            193,514
   Investment securities                                            144,288             59,340            298,767            225,737
   Other interest earning assets                                     50,106            129,922             93,755            215,210
                                                                 ----------         ----------         ----------         ----------
      Total interest income                                       1,663,959          1,660,803          3,348,983          3,397,877

Interest Expense:
   Deposits                                                         564,633            775,498          1,203,381          1,553,446
   FHLB advance                                                     126,376            122,951            251,364            244,551
                                                                 ----------         ----------         ----------         ----------
      Total interest expense                                        691,009            898,449          1,454,745          1,797,997
                                                                 ----------         ----------         ----------         ----------
   Net interest income                                              972,950            762,354          1,894,238          1,599,880
Provision for losses on loans                                            --                 --                 --                 --
                                                                 ----------         ----------         ----------         ----------
   Net interest income after
      provision for losses on loans                                 972,950            762,354          1,894,238          1,599,880
                                                                 ----------         ----------         ----------         ----------

Non-interest income:
   Fees and service charges                                          64,398             61,159            130,899            105,697
   Other                                                             62,616             44,427            104,539             89,635
                                                                 ----------         ----------         ----------         ----------
      Total non-interest income                                     127,014            105,586            235,438            195,332
                                                                 ----------         ----------         ----------         ----------

Expense
-------

Non-interest expense:
   Compensation, payroll taxes,
     and employees benefits                                         272,100            229,905            539,930            471,250
   Office property and equipment                                     58,233             19,838             86,986             35,996
   Data processing services                                          39,525             30,647             81,435             62,779
   Federal insurance premiums                                         3,129              3,459              6,258              6,839
   Other real estate expenses, net                                   19,918                304             19,268              1,149
   Advertising                                                        8,536              7,190             13,857             13,597
   Other                                                            115,121            139,173            246,758            293,368
                                                                 ----------         ----------         ----------         ----------
      Total non-interest expense                                    516,562            430,516            994,492            884,978
                                                                 ----------         ----------         ----------         ----------

Earnings before taxes on income                                     583,402            437,424          1,135,184            910,234

Taxes on income                                                     212,800            172,232            414,442            356,132
                                                                 ----------         ----------         ----------         ----------

Net earnings                                                     $  370,602         $  265,192         $  720,742         $  554,102
                                                                 ==========         ==========         ----------         ----------

Earnings per share - basic                                       $     0.20         $     0.14         $     0.38         $     0.29
                                                                 ==========         ==========         ==========         ==========

Earnings per share - diluted                                     $     0.20         $     0.14         $     0.38         $     0.29
                                                                 ==========         ==========         ==========         ==========
</TABLE>

   See notes to consolidated financial statements.


<PAGE>


                  Webster City Federal Bancorp and Subsidiaries

                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                        For the Six Months
                                                                                            Ended June 30,
                                                                                  ----------------------------------
                                                                                      2002                  2001
                                                                                  ------------          ------------
                                                                                             (Unaudited)
<S>                                                                                  <C>                   <C>
Cash flows from operating activities
   Net earnings                                                                   $    720,742          $    554,102
                                                                                  ------------          ------------
  Adjustments to reconcile net earnings to net cash provided by operating
     activities:
        Depreciation                                                                    74,862                31,662
        Amortization of premiums and discounts, net                                      5,050                 7,853
        Gain on sale of investments available-for-sale                                      --                (3,464)
        Change in:
             Accrued interest receivable                                              (108,362)              133,130
             Prepaid expenses and other assets                                        (175,643)              (97,128)
             Accrued interest payable                                                   (8,553)               14,119
             Accrued expenses and other liabilities                                    109,836               141,962
             Accrued current taxes on income                                           (72,399)              (90,119)
                                                                                  ------------          ------------

                  Total adjustments                                                   (175,209)              138,015
                                                                                  ------------          ------------

                  Net cash provided by operating activities                            545,533               692,117
                                                                                  ------------          ------------

Cash flows from investing activities
   Proceeds from the maturity of interest bearing deposits                           1,001,000                    --
   Purchase of interest earning deposits                                            (2,093,000)                   --
   Proceeds from sales of securities available-for-sale                              2,497,650             8,524,123
   Purchase of securities available-for-sale                                        (3,000,000)                   --
   Principal collected on mortgage-backed and related securities                       708,010               920,210
   Net change in loans receivable                                                   (1,697,854)           (3,579,895)
   Purchase of FHLB Stock                                                              (91,700)             (425,993)
                                                                                  ------------          ------------

            Net cash (used in) provided by investing activities                     (2,675,894)            5,438,445
                                                                                  ------------          ------------

Cash flows from financing activities
   Net change in deposits                                                           (2,904,218)              792,988
   Net decrease in advance payments by borrowers
     for taxes and insurance                                                             9,718                25,341
   Proceeds on exercise of stock options                                               199,717               100,981
   Repurchase of common stock                                                               --              (310,100)
   Dividends paid                                                                     (392,266)             (299,807)
                                                                                  ------------          ------------
            Net cash (used in) provided by financing activities                     (3,087,049)              309,403
                                                                                  ------------          ------------

            Net (decrease) increase in cash and cash equivalents                    (5,217,410)            6,439,965

Cash and cash equivalents at beginning of period                                     9,183,215             6,250,706
                                                                                  ------------          ------------

Cash and cash equivalents at end of period                                        $  3,965,805          $ 12,690,671
                                                                                  ============          ============

Supplemental disclosures of cash flow information: Cash paid during the year
   for:
     Interest                                                                     $  1,211,934          $  1,539,327
     Taxes on income                                                                   384,571               392,890
                                                                                  ============          ============

     Transfers from loans to real estate acquired
     through foreclosure                                                          $    247,160          $         --
                                                                                  ============          ============
</TABLE>

See notes to consolidated financial statements.

<PAGE>

                 Webster City Federal Bancorp and Subsidiaries

                   Notes to Consolidated Financial Statements

                                   (Unaudited)

1. DESCRIPTION OF BUSINESS
   -----------------------

Webster City Federal  Bancorp ( the  "Company" ) and its  subsidiaries,  Webster
City  Federal  Savings  Bank,  a federal  stock  savings  bank (the  "Bank") and
Security Title and Abstract,  Inc.,  conduct operations in Webster City, Iowa, a
community of approximately  8,000 people.  The Bank is primarily  engaged in the
business of attracting  deposits from the general  public in its market area and
investing  such  deposits  in  mortgage  loans  secured  by  one-to-four  family
residential real estate.  The Bank's primary area of lending and other financial
services  consists of Hamilton  County,  Iowa,  and the  surrounding  contiguous
counties.  Security  Title and  Abstract,  Inc.  is engaged in the  business  of
providing  abstracting  and title  services for  properties  located in Hamilton
County, Iowa.

Webster City Federal  Bancorp was formed as the holding  company for the Bank on
July 1, 1999  pursuant to a plan of  reorganization  adopted by the Bank and its
stockholders. Pursuant to the reorganization, each share of Webster City Federal
Savings  Bank  common  stock  held by  existing  stockholders  of the  Bank  was
exchanged  for a share of common  stock of Webster  City  Federal  Bancorp.  The
reorganization had no financial  statement impact and is reflected for all prior
periods presented.  Approximately 60% of the Company's  outstanding common stock
is  owned by WCF  Financial  M.H.C.,  a mutual  holding  company  (the  "Holding
Company").  The remaining 40% of the Company's outstanding common stock is owned
by the general public including the Bank's Employee Stock Ownership Plan.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
   -----------------------------------------

The consolidated financial statements for the three and six-month periods ended
June 30, 2002 and 2001 are unaudited. In the opinion of management of the
Company, 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 Webster  City
Federal Bancorp, Security Title and Abstract, Inc., Webster City Federal Savings
Bank and its wholly owned subsidiary, WCF Service Corporation,  which is engaged
in the sales of  mortgage  life and credit  life  insurance  to the Bank's  loan
customers.  All  material  inter-company  accounts  and  transactions  have been
eliminated in the consolidation.

The  consolidated  financial  statements  have been prepared in accordance  with
accounting  principles  generally  accepted in the Unites States of America.  In
preparing  such financial  statements,  management is required to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of contingent  assets and  liabilities  as of the date of the balance
sheet and  revenues and expenses  for the period.  Actual  results  could differ
significantly  from those  estimates.  Material  estimates that are particularly
susceptible to significant  change relate to management's  determination  of the
allowance for loan losses, which is a critical accounting policy of the Company.

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 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 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

<PAGE>

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.  Factors that could have a material adverse
effect  on  the  operations  and  future   prospects  of  the  Company  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  Company'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.

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

2002
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of 1,857,595  and  1,874,734  for the three and six
months ended June 30, 2002,  respectively,  and divided into the net earnings of
$382,500  and  $720,700  for the  three  and six  months  ended  June 30,  2002,
respectively, resulting in net earnings per share of $.20 and $.38 for the three
and six months ended June 30, 2002, 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 3,653 and 3,207 for the three
and six months ended June 30, 2002,  respectively,  due to the average price per
share being more than the stock option price. Net earnings for the three and six
months ended June 30, 2001 were $382,500 and $720,700,  respectively,  resulting
in net  earnings  per share of $.20 and $.38 for the three and six months  ended
June 30, 2002,  respectively.  Such options were the only potential stock of the
Company as defined in  Statement  of  Financial  Accounting  Standards  No. 128,
Earnings per Share.


2001
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of 1,874,040  and  1,878,675  for the three and six
months ended June 30, 2001,  respectively,  and divided into the net earnings of
$265,200  and  $554,100  for the  three  and six  months  ended  June 30,  2001,
respectively, resulting in net earnings per share of $.14 and $.29 for the three
and six months ended June 30, 2001, 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,  2001,  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, 2001 were $265,200 and $554,100,  respectively,  resulting
in net  earnings  per share of $.14 and $.29 for the three and six months  ended
June 30, 2001,  respectively.  Such options were the only potential stock of the
Company as defined in  Statement  of  Financial  Accounting  Standards  No. 128,
Earnings per Share.

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

On April 17,  2002 the  Company  declared a cash  dividend  on its common  stock
payable on May 22, 2002 to  stockholders  of record as of May 7, 2002,  equal to
$.25 per  share or  approximately  $534,222.  Of this  amount,  the  payment  of
approximately  $287,500  (representing  the dividend payable on 1,150,000 shares
owned by WCF Financial, M.H.C., the Company's mutual holding company) was waived
by the mutual holding company,  resulting in an actual dividend  distribution of
$246,722.

<PAGE>

5. INTANGIBLE ASSET
   ----------------

A company subsidiary  maintains an intangible asset relating to a customer list.
It has an  estimated  useful life of 15 years and is being  amortized  using the
straight-line  method.  At June 30, 2002, the gross carrying amount was $145,000
with  accumulated  amortization  of  $17,725.  Amortization  expense fro the six
months ended June 30, 2002 and 2001 was $4,833 respectively.

The  estimated  amortization  expense for the  following  five year period is as
follows:

         December 31, 2003          $  9,667.
         December 31, 2004             9,667.
         December 31, 2005             9,667.
         December 31, 2006             9,667.
         December 31, 2007             9,667.



                  Webster City Federal Bancorp and Subsidiaries

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


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

Total assets decreased by $2.3 million,  or 2.3%, from December 31, 2001 to June
30, 2002. Cash and cash  equivalents  decreased $5.2 million or 56.6%.  Cash and
cash equivalents  decreased due to these funds being used for funding new loans,
securities  and  the  funding  of the  decline  in  deposits.  Loans  receivable
increased  $1.6 million,  or 2.2% during the same period.  At June 30, 2002, the
Company  had  $96,800  in  real  estate  owned.  Securities   available-for-sale
increased  by $453,200 or 4.5% from  December  31,  2001 to June 30,  2002,  and
investment  securities  held to  maturity  decreased  $714,500  or  15.6%,  from
December   31,   2001  to  June   30,   2002.   The   increase   in   securities
available-for-sale  was due to the purchase of additional  securities during the
first part of 2002. During the six-month period deposits decreased $2.9 million,
or 4.1% due to a decline in interest rates being paid on deposits.

Total  stockholders'  equity  increased by $563,000 to $21.9 million at June 30,
2002 from $21.3 at December 31, 2001 as earnings of $720,700 and additional paid
in capital  received from officers of the Bank  exercising  their stock options,
were offset by two quarterly cash dividends totaling $492,600.

CAPITAL
-------

The Company's total stockholders' equity increased by $563,000, to $21.9 million
at June 30, 2002 from $21.3  million at December 31, 2001.  The Office of Thrift
Supervision   (OTS)  requires  that  the  Bank  meet  certain   minimum  capital
requirements. As of June 30, 2002 the Bank was in compliance with all regulatory
capital requirements.  The Bank's required,  actual and excess capital levels as
of June 30, 2002 were as follows:

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

Tier 1 (Core) Capital        $3,981      4.0%      $20,884    20.99%     $16,903
Risk-based Capital           $4,134      8.0%      $21,119    40.87%     $16,985


<PAGE>

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.

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

Interest Income. Interest income remained the same at $1.7 million for the three
months ended June 30, 2001 and the three  months  ended June 30, 2002.  This was
the result of a decrease  in the  average  yield on  interest-earning  assets to
6.85% for the three  months  ended June 30, 2002 from 7.07% for the three months
ended June 30, 2001  offset by an  increase  in the average  balance of interest
earning  assets of $3.1  million or 3.3% to $97.0  million for the three  months
ended June 30, 2002 from $93.9 million for the three months ended June 30, 2001.
Interest  income  totaled  $3.3  million for the six months  ended June 30, 2002
compared to $3.4 million for the six months  ended June 30,  2001.  This was the
result of a decrease in the average  yield on  interest-earning  assets to 6.84%
for the six months  ended June 30, 2002 from 7.30% for the six months ended June
30, 2001  partially  offset by an  increase  in the average  balance of interest
earning assets of $4.3 million or 4.6% to $97.9 million for the six months ended
June 30, 2002 from $93.6 million for the six months ended June 30, 2001.

Interest on loans for the three months ended June 30, 2002 increased  $26,500 or
1.9%  compared to the three months ended June 30,  2001.  The increase  resulted
primarily  from an  increase  in total  loans  outstanding  during  the  period,
partially  offset by a decrease in the yields on loans receivable from 7.72% for
the three  months  ended June 30, 2001 to 7.51% for the three  months ended June
30,  2002.  Interest on loans for the six months  ended June 30, 2002  increased
$69,900 or 2.5%  compared to the six months  ended June 30,  2001.  The increase
resulted  primarily  from an  increase  in total  loans  outstanding  during the
periods,  partially  offset by and a decrease in the yields on loans  receivable
from  7.83% for the six months  ended June 30,  2001 to 7.58% for the six months
ended June 30, 2002. The decrease in the yield on loans receivable was primarily
due to lower market rates and  adjustable  rate loans  repricing at a lower rate
based on the lagging index used by the Bank.

Interest on  mortgage-backed  securities  decreased  by $28,500 or 32.9% for the
three-month period ended June 30, 2002 as compared to the same period ended June
30, 2001.  The decline  resulted from a decrease of $1.7 million or 32.2% in the
average  balance of  mortgage-backed  securities  to $3.6  million for the three
months ended June 30, 2002  compared to $5.3 million for three months ended June
30,  2001  and  a  decrease  of  13  basis  points  in  the  average   yield  on
mortgage-backed  securities  to 6.43% for the three  months  ended June 30, 2002
from 6.56% for the three months ended June 30, 2001. Interest on mortgage-backed
securities  decreased  $72,400 or 37.4% for the six months  ended June 30,  2002
compared  to same  period  ended June 30,  2001.  The  decline  resulted  from a
decrease  of $1.8  million or 32.4% in the  average  balance of  mortgage-backed
securities  to $3.8 million for the six months  ended June 30, 2002  compared to
$5.6  million  for six  months  ended June 30,  2001 and a decrease  of 44 basis
points in the average yield on  mortgage-backed  securities to 6.53% for the six
months ended June 30, 2002 from 6.97% for the six months ended June 30, 2001.

Interest on investment  securities  increased by $82,600 or 139.2% for the three
months ended June 30, 2002 compared to the same period ended June 30, 2001. This
was due to an increase in the average balance of investment securities from $3.8
million for the three months ended June 30, 2001 to $11.3  million for the three
months  ended June 30, 2002  offset by a decrease  in the  average  yield of 124
basis points from 6.28%,  for the three months ended June 30, 2001 to 5.04%, for
the  three  months  ended  June 30,  2002.  Interest  on  investment  securities
increased by $73,000 or 32.3% for the six months ended June 30, 2002 as compared
to the same  period  ended June 30,  2001.  This was due to an  increase  in the
average  balance of investment  securities  from $6.9 million for the six months
ended June 30,  2001 to $11.6  million  for the six months  ended June 30,  2002
offset by a decrease in the average  yield of 136 basis  points from 6.51%,  for
the six months  ended June 30, 2001 to 5.15%,  for the six months ended June 30,
2002.  Both the  three  and six  month  increases  in the  average  balances  of
securities  was due to the Bank  borrowing  funds from the FHLB of Des Moines in
November of 2001 and investing those funds in higher rate securities.

Interest Expense. Interest expense decreased by $207,400, or 23.1%, from
-----------------
$898,400  for the three  months  ended June 30, 2001 to  $691,000  for the three
months ended June 30,  2002.  Interest  expense  decreased by $343,300 or 19.1%,
from $1.8 million for the six months ended June 30, 2001 to $1.5 million for the
six months  ended June 30, 2002.  The

<PAGE>

decrease in interest  expense was due to a decrease in deposit  interest expense
offset by an increase in on the FHLB  advance  interest  expense.  The  interest
expense on the advance  increased by $3,400 or 2.8% from  $123,000 for the three
months ended June 30, 2001 to $126,400 for the three months ended June 30, 2002.
The interest  expense on the advance  increased by $6,800 or 2.8% from  $244,600
for the six months ended June 30, 2001 to $251,400 for the six months ended June
30, 2002.  The  increase  was due to  additional  borrowing  from the FHLB.  The
average  interest  rate on the advances  decreased by 78 basis points from 5.96%
for the six months period ended June 30, 2001 to 5.18% for the same period ended
June 30, 2002.

Net Interest Income. Net interest income before provision for losses on loans
-------------------
increased by $208,200 or 27.3% from $762,400 for the three months ended June 30,
2001 to $970,600 for the three months ended June 30, 2002.  Net interest  income
decreased by $294,400 or 18.4% for the six months  ended June 30, 2002  compared
to the same period ended June 30, 2001.  The Company's  interest rate spread for
the six months  ended June 30, 2001  increased  by 75 basis points to 3.10% from
2.35% for the six months ended June 30, 2001.

Provision for Losses on Loans. There were no additional provisions for losses on
------------------------------
loans for the three and six  months  ended June 30,  2002.  The  Company  had no
charge offs or recoveries  during the three month period ended June 30, 2001 and
charge offs of $17,700 and  recoveries of $18,800  during the three month period
ended June 30, 2002. The Company had no charge offs and recoveries of $74 during
the six month  period  ended June 30,  2001 and had  charge-offs  of $26,700 and
recoveries  of $18,800  during the six month period ended June 30, 2002. On June
30, 2001 the Company had $330,400 in  non-accrual  loans compared to $471,700 on
June 30,  2002.  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 $21,400 or 20.3% for
--------------------
the three-month  period ended June 30, 2002 as compared to the same period ended
June 30, 2001. Non-interest income increased $40,100 or 20.5% for the six months
ended June 30,  2002 as compared to the same  period  ended June 30,  2001.  The
increase was due to additional fees received from the abstracting  company which
the Company  acquired in September  2000, and an increase in loan fees due to an
increase in loans originated.

Non-interest Expense. Non-interest expense increased $86,000 or 19.9% for the
---------------------
three-month  period  ended June 30, 2002  compared to the same period ended June
30, 2001.  Non-interest  expense  increased  $109,500 or 12.4% for the six-month
period  ended June 30, 2002  compared to the same  period  ended June 30,  2001.
Compensation and benefit costs increased  $42,200 or 18.6% from $229,900 for the
three  months  ended June 30, 2001 to $272,100  for the three month period ended
June 30, 2002. Compensation and benefit costs increased by $68,700 or 14.6% from
$471,300  for the six months  ended June 30, 2001 to $539,900 for the six months
ended June 30, 2002.  The  increases  were  primarily  due to an increase in the
Company's  contribution  to it's'  employee  retirement  plan and an increase in
compensation  and  addition  of three  people  employed  at  Security  Title and
Abstract, Inc.

Taxes on Income. Income taxes for the three and six months ended June 30, 2002,
---------------
increased to $212,800 and $414,400 from $172,200 and $356,000,  respectively for
the same  periods  for 2001.  The  effective  income  tax rate for the first six
months of 2002 was 36.5% compared to 39.1% for the first six months of 2001.

Net Earnings. Net earnings totaled $382,500 for the three months ended June 30,
-------------
2002 compared to $265,200 for the three months ended June 30, 2001. Net earnings
increased  $166,600 or 30.1% to $720,700 for the six-month period ended June 30,
2002 compared to $554,100 for the same period ended June 30, 2001.

<PAGE>

IMPACT OF NEW ACCOUNTING STANDARDS
----------------------------------

SFAS No. 141 & 142
------------------

In July 2001,  the FASB issued  Statement No. 141,  Business  Combinations,  and
Statement No. 142, Goodwill and Other Intangible Assets.  Statement 141 requires
that the purchase  method of  accounting  be used for all business  combinations
initiated  after  June  30,  2001  as  well  as  all  purchase  method  business
combinations completed after June 30, 2001. Statement 142 requires that goodwill
and intangible assets with indefinite  useful lives no longer be amortized,  but
instead  tested  for  impairment  at  least  annually  in  accordance  with  the
provisions of Statement 142.  Statement 142 also requires that intangible assets
with estimable useful lives be amortized over their respective  estimated useful
lives to their  estimated  residual  values,  and  reviewed  for  impairment  in
accordance  with  FAS  Statement  No.  121,  Accounting  for the  Impairment  of
Long-Lived  Assets and for  Long-Lived  Assets to Be  Disposed  Of. The  Company
adopted  the  provisions  of SFAS No. 141 as of July 1, 2001 and SFAS No. 142 on
January  2002.  The  effects of  implementation  had no impact on the  Company's
financial condition or results of operations.

SFAS No. 143 & 144
------------------

In June 2001,  the FASB  issued SFAS No. 143,  Accounting  for Asset  Retirement
Obligations (SFAS No. 143). SFAS No. 143 requires the Company to record the fair
value of an asset retirement obligation as a liability in the period in which it
incurs a legal obligation  associated with the retirement of tangible long-lived
assets that  result  from the  acquisition,  construction,  development,  and/or
normal use of the assets.  The Company also records a corresponding  asset which
is depreciated over the life of the asset. The Company is required to adopt SFAS
No. 143 on January 1, 2003.

In August 2001,  the FASB issued SFAS No. 144,  Accounting for the Impairment or
Disposal of Long-Lived  Assets (SFAS No. 144). SFAS No. 144 addresses  financial
accounting  and reporting for the  impairment or disposal of long-lived  assets.
The  Company   adopted  SFAS  No.  144  on  January  1,  2002.  The  effects  of
implementation  were immaterial on the Company's  financial condition or results
of operations.

SFAS No. 145 & 146
------------------

SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB
Statement  No. 13,  and  Technical  Corrections"  was issued  April  2002.  This
Statement  rescinds  FASB  Statement  No. 4,  Reporting  Gains and  Losses  from
Extinguishment  of Debt, and an amendment of that Statement,  FASB Statement No.
64,  Extinguishments  of Debt Made to Satisfy  Sinking-Fund  Requirements.  This
Statement also rescinds FASB Statement No. 44,  Accounting for Intangible Assets
of Motor Carriers.  This Statement amends FASB Statement No. 13,  Accounting for
Leases,  to  eliminate an  inconsistency  between the  required  accounting  for
sale-leaseback  transactions  and the  required  accounting  for  certain  lease
modifications  that have  economic  effects  that are similar to  sale-leaseback
transactions.   This  Statement   also  amends  other   existing   authoritative
pronouncements  to make various  technical  corrections,  clarify  meanings,  or
describe their applicability  under changed  conditions.  The provisions of this
Statement  related to the  rescission  of Statement 4 shall be applied in fiscal
years  beginning  after May 15, 2002. The provisions in paragraphs 8 and 9(c) of
this  Statement  related to  Statement 13 shall be  effective  for  transactions
occurring  after May 15, 2002. All other  provisions of this Statement  shall be
effective for financial  statements issued on or after May 15, 2002. The effects
of  implementation  are  not  material.  SFAS  No.  146  "Accounting  for  Costs
Associated  with  Exit or  Disposal  Activities"  was  issued  June  2002.  This
Statement addresses financial accounting and reporting for costs associated with
exit or disposal  activities  and  nullifies  Emerging  Issues Task Force (EITF)
Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits
and Other  Costs to Exit an  Activity  (including  Certain  Costs  Incurred in a
Restructuring)."  The  provisions  of this  Statement are effective for exit and
disposal activities that are initiated after December 31, 2002.

<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.
        ----------------------------------------------------

          The  Registrant  convened its 2002 Annual Meeting of  Stockholders  on
          April 17,  2002.  At the meeting the  stockholders  of the  Registrant
          considered and voted upon:

               1.   The  election  of Dr. Leo  Moriarty  and Donald I. Newman as
                    directors  for a term of three years and Stephen L.  Mourlam
                    and Kyle R. Swon for a term of one year.

               2.   The  ratification of the appointment of KPMG LLP as auditors
                    of the  Registrant  for the fiscal year ending  December 31,
                    2002.

               The election of Dr. Leo Moriarty,  as director was as approved by
               a  vote  of  1,696,647  votes  in  favor,   500  withheld  and  0
               abstaining.

               The election of Donald I. Newman as director was as approved by a
               vote of 1,696,647 votes in favor, 500 withheld and 0 abstaining.

               The  election of Stephen L Mourlam as director was as approved by
               a  vote  of  1,696,647  votes  in  favor,   500  withheld  and  0
               abstaining.

               The  election  of Kyle R. Swon as  director  was as approved by a
               vote of 1,696,647 votes in favor, 500 withheld and 0 abstaining.

               The  ratification  of the  engagement of KPMG LLP as auditors was
               approved by a vote of 1,694,197 votes in favor, 2,000 opposed and
               950 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, 2002.
<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: August 8, 2002        By: /s/ Phyllis A. Murphy
--------------------            ------------------------------------------------
                                Phyllis A. Murphy
                                President and Chief Executive Officer




Date: August 8, 2002        By: /s/ Stephen L. Mouriam
      --------------            ------------------------------------------------
                                Stephen L. Mourlam
                                Executive Vice President/Chief Financial Officer

<PAGE>

     7 Certification of Chief Executive Officer and Chief Financial Officer
            Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



Phyllis A.  Murphy,  Chief  Executive  Officer  and  Stephen L.  Mourlam,  Chief
Financial  Officer of Webster City Federal  Bancorp (the "Company") each certify
in their  capacity  as an officer of the  Company  that they have  reviewed  the
quarterly report on Form 10-QSB for the quarter ended June 30, 2002 and that:

               (1)  the report fully complies with the  requirements of Sections
                    13(a) or 15(d) of the Securities Exchange Act of 1934; and

               (2)  the information  contained in the report fairly presents, in
                    all material respects,  the financial  condition and results
                    of operations.

       August 14, 2002                               /s/ Phyllis A. Murphy
---------------------------------                        -----------------------
            Date                                         Phyllis A. Murphy
                                                         Chief Executive Officer

       August 14, 2002                               /s/ Stephen L. Mourlam
--------------------------------                         -----------------------
            Date                                         Stephen L. Mourlam
                                                         Chief Financial Officer