Webster City Federal Bancorp is a savings and loan holding company whose primary asset is 100% of the outstanding shares of Webster City Federal Savings Bank (the Bank). The Bank is a federally chartered savings and loan association that conducts its operations from a single office in Webster City, Iowa. It is primarily engaged in the business of attracting deposits from the general public in its market area and investing such deposits, together with other sources of funds, in mortgage loans secured by one- to four-family residential real estate for retention in its portfolio. The Bank also invests in mortgage-backed securities issued or guaranteed by the United States Government or agencies thereof. The Company has another subsidiary, Security Title and Abstract, Inc., which is engaged in the business of providing abstracting and title services for properties located in Hamilton County, Iowa.