First Resource Bank

First Resource Bank has declared six 5% stock dividends since inception which affect the cost basis of your common stock investment.

The dates of each stock dividend are listed below:

Record Date Payable Date
May 2, 2016 May 16, 2016
April 1, 2013 April 15, 2013
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.

The IRS forms below further explain the May 2016, April 2013 and May 2012 5% stock dividends. This IRS reporting requirement was implemented in 2011, therefore it is unavailable for the stock dividends paid prior to that year.

  • May 2012 – IRS Form 8937 (PDF)
  • April 2013 – IRS Form 8937 (PDF)
  • May 2016 – IRS Form 8937 (PDF)
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