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 March 31, 2002.
                                  ---------------


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

   For the transition period from                  to
                                 -----------------   ------------------

   Commission File 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.

1,874,651 shares of common stock were outstanding at April 30, 2002.


<PAGE>



                  Webster City Federal Bancorp and Subsidiaries

                                      Index




                                                                         Page
                                                                         ----

Part I. Financial Information


         Item 1. Financial Statements

                 Consolidated Balance Sheets
                 at March 31, 2002 and December 31, 2001                  1

                 Consolidated Statements of Operations
                 or the three months ended March 31, 2002
                 and 2001                                                 2

                 Consolidated Statements of Cash Flows
                 for the three months ended March 31, 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                                       10


<PAGE>



              Webster City Federal Savings Bancorp and Subsidiaries

                           Consolidated Balance Sheets

<TABLE>
<CAPTION>

                                                                           March 31,          December 31,
                                                                         ---------------------------------
                                                                             2002                2001
                                                                         -------------     ---------------
                                                                                   (Unaudited)
<S>                                                                      <C>                    <C>
Assets

Cash and cash equivalents                                                $   5,199,889     $   9,183,215
Time deposits in other financial institutions                                3,191,000         1,399,000
Securities available-for-sale                                               12,136,269        10,188,900
Investment securities held-to-maturity (market value                         4,204,056         4,574,354
  of $4,277,776 and $4,654,121, respectively)
Loans receivable, net                                                       74,268,127        74,492,269
Real estate owned                                                               42,305                 -
Office property and equipment, net                                             850,975           882,238
Federal Home Loan Bank stock, at cost                                          704,900           613,200
Deferred taxes on income                                                       185,000           189,000
Accrued interest receivable                                                    690,839           568,569
Prepaid expenses and other assets                                              310,026           270,618
                                                                         -------------     -------------

      Total assets                                                       $ 101,783,386     $ 102,361,363
                                                                         =============     =============


Liabilities and Stockholders' Equity

Deposits                                                                 $  68,920,487     $  70,042,590
FHLB advance                                                                 9,700,000         9,700,000
Advance payments by borrowers for
  taxes and insurance                                                        170,614             338,167
Accrued interest payable                                                       427,731            53,454
Current income taxes payable                                                         -            84,414
Accrued expenses and other liabilities                                       1,055,036           794,438
                                                                         -------------     -------------

      Total liabilities                                                     80,273,868        81,013,063
                                                                         -------------     -------------


Stockholders' Equity

Common stock, $.10 par value. 20,000,000 shares authorized:                    213,495           213,339
  2,134,950 issued and 1,872,712 outstanding at March 31, 2002
  2,133,386 issued and 1,871,151 outstanding at December 31, 2001
Additional paid-in capital                                                   9,242,841         9,242,996
Retained earnings, substantially restricted                                 15,910,107        15,749,736
Unrealized gain on securities available-for-sale                                24,014            23,168
Treasury stock, 262,238 shares and 262,238 shares, respectively             (3,880,939)       (3,880,939)
                                                                         -------------     -------------
      Total stockholders' equity                                            21,509,518        21,348,300

      Total liabilities and stockholders' equity                         $ 101,783,386     $ 102,361,363
                                                                         =============     =============

</TABLE>

See notes to consolidated financial statements.


                                      1
<PAGE>


              Webster City Federal Savings Bancorp and Subsidiaries

                      Consolidated Statements of Operations

<TABLE>
<CAPTION>

                                                                For the Three Months
                                                                  Ended March 31,
                                                            ---------------------------
                                                                 2002           2001
                                                            -----------     -----------
                                                                    (Unaudited)
<S>                                                         <C>             <C>
Income

Interest income:
   Loans receivable                                         $ 1,421,851     $ 1,378,475
   Mortgage-backed & related securities                          65,045         106,914
   Investment securities                                        154,479         166,397
   Other interest-earning assets                                 43,649          85,288
                                                            -----------     -----------
      Total interest income                                   1,685,024       1,737,074

Interest expense:
   Deposits                                                     638,747         777,948
   FHLB advance                                                 124,988         121,600
                                                            -----------     -----------
      Total interest expense                                    763,735         899,548
                                                            -----------     -----------
   Net interest income                                          921,289         837,526
Provision for losses on loans                                         -               -
                                                            -----------     -----------
   Net interest income after
      provision for losses on loans                             921,289         837,526
                                                            -----------     -----------

Non-interest income:
   Fees and service charges                                      66,501          44,538
   Other                                                         41,923          45,208
                                                            -----------     -----------
      Total non-interest income                                 108,424          89,746
                                                            -----------     -----------

Expense

Non-interest expense:
   Compensation, payroll taxes
     and employee benefits                                      267,830         241,345
   Office property and equipment                                 28,753          16,158
   Data processing services                                      45,678          32,132
   Federal insurance premiums                                     3,129           3,380
   Other real estate expenses (income), net                        (650)            845
   Advertising                                                    5,321           6,407
   Other                                                        127,869         154,194
                                                            -----------     -----------
      Total non-interest expense                                477,930         454,461
                                                            -----------     -----------

Earnings before taxes on income                                 551,783         472,811

Taxes on income                                                 201,642         183,900
                                                            -----------     -----------

Net earnings                                                $   350,141     $   288,911
                                                            ===========     ===========

Earnings per share - basic                                  $      0.18     $      0.15
                                                            ===========     ===========

Earnings per share - diluted                                $      0.18     $      0.15
                                                            ===========     ===========


</TABLE>

See notes to consolidated financial statements.


                                      2
<PAGE>


                  Webster City Federal Bancorp and Subsidiaries

                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>

                                                                                 For the Three Months
                                                                                   Ended March 31,
                                                                             ---------------------------
                                                                                  2002           2001
                                                                             -----------    ------------
                                                                                     (Unaudited)
<S>                                                                          <C>             <C>
Cash flows from operating activities
   Net earnings                                                              $   350,141     $   288,911
                                                                             -----------    ------------

Adjustments to reconcile net earnings to net cash
  provided by operating activities:
     Depreciation                                                                 31,263          13,240
     Amortization of premiums and discounts, net                                   3,522            (328)
     Change in:
          Accrued interest receivable                                           (122,270)         94,428
          Prepaid expenses and other assets                                      (39,301)       (18,183)
          Accrued interest payable                                               374,277         422,648
          Accrued expenses and other liabilities                                 260,598         307,149
          Accrued current taxes on income                                        (89,001)        (90,119)
                                                                             -----------    ------------

                  Total adjustments                                              419,088         728,835
                                                                             -----------    ------------

                  Net cash provided by operating activities                      769,229       1,017,746
                                                                             -----------    ------------

Cash flows from investing activities
   Proceeds from the maturity of interest bearing deposits                       301,000               -
   Purchase of investment securities                                          (1,947,369)              -
   Purchase of interest bearing deposits                                      (2,093,000)              -
   Purchase of FHLB stock                                                        (91,700)              -
   Proceeds from sales of securities available-for-sale                                -       5,520,753
   Principal collected on mortgage-backed and related securities                 366,476         310,255
   Net change in loans receivable                                                182,138        (768,175)
   Purchase of office property and equipment                                           -        (145,000)
                                                                             -----------    ------------

            Net cash provided by (used in) investing activities               (3,282,455)      4,917,833
                                                                             -----------    ------------

Cash flows from financing activities
   Net change in savings deposits                                             (1,122,103)       (200,521)
   Net decrease in advance payments by borrowers
     for taxes and insurance                                                    (167,553)       (160,641)
   Proceeds on stock options                                                        (156)         40,418
   Treasury stock purchase                                                             -         (93,975)
   Dividends paid                                                               (180,288)       (152,583)
                                                                             -----------    ------------
            Net cash used in financing activities                             (1,470,100)       (567,302)
                                                                             -----------    ------------

            Net increase (decrease) in cash and cash equivalents              (3,983,326)      5,368,277

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

Cash and cash equivalents at end of period                                   $ 5,199,889    $ 11,618,983
                                                                             ===========    ============

Supplemental disclosures of cash flow information:
Cash paid during the year for:
     Interest                                                                $   264,470     $   355,300
     Taxes on income                                                                   -               -
                                                                             ===========     ===========

        Transfer of loans to REO                                                 (42,305)              -
                                                                             ===========     -----------
</TABLE>

See notes to consolidated financial statements.


                                      3
<PAGE>


                  Webster City Federal Bancorp and Subsidiaries

                   Notes to Consolidated Financial Statements
                                   (Unaudited)


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

Webster City Federal  Bancorp (the "Company") is a savings and loan holding
company whose primary  asset is 100% of the  outstanding  shares of Webster City
Federal Savings Bank (the "Bank"),  which  reorganized  into the holding company
structure,  effective July 1, 1999. The discussion  herein to the results of the
Company refers to the results of the Bank in the periods prior to July 1, 1999.

     The Company focuses on establishing and maintaining long-term relationships
with customers,  and is committed to serving the financial  service needs of the
communities in its market area. The Company  attracts  retail  deposits from the
general  public  and uses those  deposits,  together  with  borrowed  funds,  to
originate residential mortgage loans, home equity loans and consumer loans.

     The  Company's  current  business  strategy  is to  operate  the  Bank as a
well-capitalized,  profitable and  independent  community-oriented  savings bank
dedicated to providing  quality  customer  service.  Generally,  the Company has
sought to implement this strategy  primarily by using retail  deposits and, to a
lesser extent, public funds as its source of funds and maintaining a substantial
part of its assets in loans  secured  by one- to  four-family  residential  real
estate located in the Company's market area, home equity loans,  consumer loans,
mortgage-backed   securities   and  in  other  liquid   investment   securities.
Specifically,   the  Company's  business  strategy  incorporates  the  following
elements: (1) operating the Bank as a community-oriented  financial institution,
maintaining  a strong  core  customer  base by  providing  quality  service  and
offering  customers  the  access  to  senior  management  and  services  that  a
community-based  institution can offer;  (2)  maintaining  high asset quality by
emphasizing investment in residential mortgage loans, mortgage-backed securities
and other  securities  issued or guaranteed  by the United States  Government or
agencies thereof;  (3) maintaining capital in excess of regulatory  requirements
and growing only to the extent that adequate  capital  levels can be maintained;
and (4) managing interest rate risk exposure while achieving desirable levels of
profitability.

     The earnings of the Company  depend  primarily on its level of net interest
income,  which is the difference between interest earned on its interest-earning
assets,  consisting  primarily of mortgage  loans,  home equity loans,  consumer
loans,   mortgage-backed   securities,   interest-bearing   deposits   at  other
institutions, investment securities and other investments, and the interest paid
on interest-bearing liabilities,  which consist of savings deposits and advances
from the  Federal  Home Loan Bank.  Net  interest  income is a  function  of the
Company's  interest  rate spread,  which is the  difference  between the average
yield  earned  on   interest-earning   assets  and  the  average  rate  paid  on
interest-bearing  liabilities,  as well as a function of the average  balance of
interest-earning  assets  as  compared  to  interest-bearing   liabilities.  The
Company's  earnings  also  are  affected  by its  level of  non-interest  income
including  primarily  service  fees  and  charges,  and  non-interest   expense,
including  primarily  compensation  and  employee  benefits,  and  SAIF  deposit
insurance premiums.  Earnings of the Company also are affected  significantly by
general  economic and  competitive  conditions,  particularly  changes in market
interest rates, government policies and actions of regulatory authorities, which
events are beyond the control of the Company.

     The  Company's  critical  accounting  policy  relates to the  allowance for
losses on loans. In management's opinion, it is adequate to absorb 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 probable  credit losses.  The allowance for loan loss is established
through  a  provision  for loss  based on  management's  evaluation  of the risk
inherent in the loan  portfolio,  the  composition  of the  portfolio,  specific
impaired loans and current economic conditions. Such evaluation,  which includes
a review  of all  loans  on  which  full  collectibility  may not be  reasonably
assured,  considers among other matters,  the estimated net realizable  value or
the fair value of the underlying  collateral,  economic  conditions,  historical
loan loss experience and other factors that warrant recognition in providing for
an adequate loan loss experience.


                                      4
<PAGE>



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

The consolidated  financial  statements for the three-month  periods ended March
31, 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  consolidatedfinancial  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.

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 the  determination of the allowance
for loan losses.

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 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 which 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 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.


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

2002
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of  1,877,751  for the three months ended March 31,
2002, divided into the net earnings of $350,141 for the three months ended March
31, 2002, resulting in earnings per share of $.18 compared to $.15 for the three
months ended March 31, 2001.

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  Company's  stock option plan using the average  price
per share for the period. Such additional shares were 5,461 for the three months
ended March 31,  2002.  Earnings  for the three months ended March 31, 2002 were
$350,141, resulting in earnings per share of $.18 compared to $.15 for the three
months ended March 31, 2001.


                                        5

<PAGE>


2001
----

Earnings  per share - basic is computed  using the  weighted  average  number of
common  shares  outstanding  of  1,883,150  for the three months ended March 31,
2001, divided into the net earnings of $288,911 for the three months ended March
31, 2001, resulting in earnings per share of $.15 compared to $.16 for the three
months ended March 31, 2000.

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  Company's  stock option plan using the average  price
per share for the period. Such additional shares were 3,170 for the three months
ended March 31,  2001.  Earnings  for the three months ended March 31, 2001 were
$288,911, resulting in earnings per share of $.15 compared to $.16 for the three
months ended March 31, 2000.

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

On January  16, 2002 the Company  declared a cash  dividend on its common  stock
payable on February 20, 2002 to  stockholders  of record as of February 5, 2002,
equal to $.25 per share or approximately  $533,347.  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,  and $65,560  (representing the dividends payable
on treasury  shares owned by the  Company)  was not paid  resulting in an actual
dividend distribution of $180,288.


                                      6
<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 $578,000,  or .6%, from December 31, 2001 to March 31,
2002.  Cash and cash  equivalents  decreased  $4.0 million or 43.4%,  due to the
Company  investing  some  excess  funds  in time  deposits  in  other  financial
institutions  and the purchase of  securities,  and Loans  receivable  decreased
$224,100,  or .3% during the same  period.  At March 31,  2002,  the Company had
$42,300 in real estate owned.  Securities  available for sale  increased by $1.9
million or 19.1% from December 31, 2001 to March 31, 2002 due to the purchase of
securities  during the first quarter.  During the  three-month  period  deposits
decreased $1.1 million, or 1.6%.

Total  stockholders'  equity increased by $161,200 to $21.5 million at March 31,
2002 from $21.3 at December 31,  2001,  as earnings of $350,100  were  partially
offset by quarterly dividends paid totaling $180,300.

CAPITAL
-------

The Company's total stockholders' equity increased by $161,200, to $21.5 million
at March 31, 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  March  31,  2002  the  Bank  was in  compliance  with  all
regulatory capital requirements.  The Bank's required, actual and excess capital
levels as of March 31, 2002 were as follows:

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

Tier 1 (Core) Capital   $4,084     4.0%         $20,624         20.19%   $16,540
Risk-based Capital      $4,530     8.0%         $20,867         36.85%   $16,337

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 decreased by $52,100 for the three months ended
March 31, 2002  compared to the three months ended March 31, 2001.  The decrease
was due to a decrease in the average yield on  interest-earning  assets to 6.81%
for the three months ended March 31, 2002 compared to 7.44% for the three months
ended March 31,  2001  offset by an increase in the average  balance of interest
earning  assets of $5.4  million or 5.8% to $98.8  million for the three  months
ended March 31, 2002 from $93.3 million for the corresponding period ended March
31, 2001.

Interest  on loans for the  three  months  ended  March 31,  2002  increased  by
$137,500 or 2.5% compared to the three months ended March 31, 2001. The increase
resulted  primarily  from an  increase  in total  loans  outstanding  during the
period,  offset by a decrease in the yields on loans  receivable  from 7.94% for
the three  months ended March 31, 2001 to 7.66% for the three months ended March
31, 2002.  The decrease in the yields on loans  receivable  was primarily due to
lower market rates and a number of  adjustable  rate loans  repricing at a lower
rate based on the lagging index used by the Bank.

Interest on  mortgage-backed  securities  decreased  by $41,900 or 39.2% for the
three-month  period  ended March 31,  2002 as compared to the same period  ended
March 31, 2001. The decline resulted from a decrease of $1.9 million or 32.7% in
the average balance of mortgage-backed  securities to $3.9 million for the three
months ended March 31, 2002  compared to $5.8 million for the three months ended
March 31, 2001, and a decrease of 73 basis points in the average


                                      7
<PAGE>


yield on  mortgage-backed  securities  to 6.62% for the three months ended March
31, 2002 from 7.35% for the three  months  ended March 31,  2001,  as  remaining
adjustable rate loans repriced at a lower rate.

Interest  Expense.  Interest  expense  decreased  by  $135,800,  or 15.1%,  from
$899,500  for the three  months  ended March 31, 2001 to $763,700  for the three
months  ended March 31, 2002.  The  decrease in interest  expense was due to the
average cost of deposits decreasing by 118 basis points from 4.89% for the three
months  ended March 31, 2001 to 3.71% for the three months ended March 31, 2002,
offset by an increase in average deposits outstanding of $5.2 million from $63.9
million for the three months ended March 31, 2001 to $68.9 million for the three
months ended March 31, 2002,  and a slight  increase in interest  expense on the
FHLB advance of $3,400,  or 2.8% from  $121,600 for the three months ended March
31, 2001 to $125,000 for the three months ended March 31, 2002.

Net Interest  Income.  Net interest income before  provision for losses on loans
increased by $83,800 or 10.0% from $837,500 for the three months ended March 31,
2001 to $921,300  for the three  months  ended  March 31,  2002.  The  Company's
interest  rate spread for the three months  ended March 31, 2002  improved by 49
basis points to 2.93% from 2.44% for the three months ended March 31, 2001.  Due
to average loans rates  declining  offset by a larger decline in average deposit
interest rates.

Non-interest  Income.  Non-interest income increased by $20,000 or 28.7% for the
three-month  period  ended March 31,  2002 as compared to the same period  ended
March 31, 2001.  The  increase  was due to  additional  fees  received  from the
abstracting company and an increase in loan fees and service charges collected.

Non-interest Expense.  Non-interest expense increased by $23,500 or 5.2% for the
three-month  period ended March 31, 2002 compared to the same period ended March
31,  2001.  Compensation  and  benefit  costs  increased  $26,500  or 11.0% from
$241,300  for  the  three  months  ended  March  31,  2001 to  $267,800  for the
three-month  period  ended March 31, 2002.  The  increase  was due  primarily to
increased expenses related to the Company's retirement plan.

Provision for Losses on Loans.  There were no provisions for losses on loans for
the three  months  ended  March 31,  2002 or March 31,  2001.  The  Company  had
$632,900  in  non-performing  loans as of March 31,  2002.  The  Company  had no
charge-offs  during the first quarter of 2001,  and total  charge-offs of $7,800
during the first quarter of 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  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.

Taxes on Income.  Income taxes for the three  months ended March 31, 2002,  were
$201,600  compared to $183,900  for the same period  ended March 31,  2001.  The
effective  income tax rate for the three  months of 2002 was 36.6%  compared  to
38.9% for the first three  months of 2001 rate for the. In 2001 the Bancorp over
expensed for taxes by about 1.9%, in 2002 the Bancorp is slightly  under the 37%
effective tax Bancorp.

Net Earnings.  Net earnings of the Company totaled $350,100 for the three months
ended March 31, 2002  compared to $288,900  for the three months ended March 31,
2001.

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.


                                      8
<PAGE>


The  Company  adopted  the  provisions  of  Statement  141 on July 1, 2001,  and
Statement 142 effective January 1, 2002. Goodwill and intangible assets acquired
in business  combinations  completed  before July 1, 2001 were  continued  to be
amortized  and  tested  for  impairment  in  accordance   with  the  appropriate
pre-Statement  142  accounting  requirements  prior to the adoption of Statement
142. 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.

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.


                                      9
<PAGE>





                  Webster City Federal Bancorp and Subsidiaries

                           PART II. Other Information


Item 1. Legal Proceedings
        -----------------

     There are various claims and lawsuits in which the Company is  periodically
involved incidental to the Company'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.
        ---------------------------------

        (a) Exhibits:
                   None

        (b) No form 8-K reports were filed during the
            quarter ended March 31, 2002.


                                     10
<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: May 13, 2002    By:      /s/Phyllis A. Murphy
                         -----------------------------
                               Phyllis A. Murphy
                               President and Chief Executive Officer




Date: May 13, 2002    By:      /s/Stephen L. Mourlam
                         -----------------------------
                               Stephen L. Mourlam
                               Executive Vice President/Chief Financial Officer


                                       11

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