First Resource Bank has declared four 5% stock dividends since inception which affect the cost basis of your common stock investment.
The dates of each stock dividend are listed below:
|May 4, 2012||May 11, 2012
|December 19, 2007||January 2, 2008
|February 1, 2007||February 15, 2007
|January 30, 2006||February 13, 2006
For each stock dividend that occurred when an investor owned First Resource Bank common stock, multiply the shares held before the dividend by 1.05 to obtain the new number of shares held. Divide the original cost of the shares by the new share number to calculate the investor's adjusted basis.
EXAMPLE: If an investor owned 100 shares at a cost of $10 per share, a 5% stock dividend would increase the number of shares held to 105. The total cost of the shares is unchanged at $1,000 and the new cost basis is $1,000/105 shares, or $9.52. This process would continue for each stock dividend that occurred while the stock was held.
Click HERE for a copy of IRS Form 8937 which further explains the May 2012 5% stock dividend. This IRS reporting requirement was implemented in 2011, therefore it is unavailable for the stock dividends paid prior to that year.