First Resource Bank has declared eight 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 6, 2021||May 20, 2021|
|May 6, 2019||May 20, 2019|
|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 2021, May 2019, 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.