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William Penn Bancorporation Announces Quarter End Results and Cash Dividend to Shareholders

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William Penn Bancorporation announced its financial results for the three and nine months ended March 31, 2024, with net income of $136 thousand for the quarter and $326 thousand for the nine months. The Board declared a cash dividend of $0.03 per share. The company repurchased shares and maintained a robust capital level. Asset quality metrics remained strong, with a decrease in non-performing assets. Stockholders' equity decreased due to share repurchases and dividend payments.
William Penn Bancorporation ha annunciato i risultati finanziari per i tre e i nove mesi conclusi il 31 marzo 2024, registrando un reddito netto di 136 mila dollari per il trimestre e di 326 mila dollari per i nove mesi. Il Consiglio ha dichiarato un dividendo in contanti di 0,03 dollari per azione. La società ha riacquistato azioni e mantenuto un solido livello di capitale. Gli indicatori di qualità degli asset sono rimasti forti, con una riduzione degli asset non performanti. Il patrimonio netto degli azionisti è diminuito a causa dei riacquisti di azioni e dei pagamenti di dividendi.
William Penn Bancorporation anunció sus resultados financieros para los tres y nueve meses finalizados el 31 de marzo de 2024, con un ingreso neto de $136 mil para el trimestre y $326 mil para los nueve meses. La Junta declaró un dividendo en efectivo de $0.03 por acción. La compañía recompró acciones y mantuvo un nivel de capital robusto. Los métricos de calidad de los activos se mantuvieron fuertes, con una disminución en los activos no productivos. El patrimonio de los accionistas disminuyó debido a la recompra de acciones y los pagos de dividendos.
윌리엄 펜 밴코퍼레이션은 2024년 3월 31일로 끝난 3개월과 9개월 동안의 재무 결과를 발표했으며, 분기에는 13만 6천 달러, 9개월에는 32만 6천 달러의 순수익을 기록했습니다. 이사회는 주당 0.03달러의 현금 배당을 선언했습니다. 회사는 주식을 매입하고 강력한 자본 수준을 유지하였습니다. 자산 품질 지표는 강세를 유지하며, 비수행 자산이 감소하였습니다. 주주 자본은 주식 매입과 배당금 지급으로 인해 감소하였습니다.
William Penn Bancorporation a annoncé ses résultats financiers pour les trois et neuf mois se terminant le 31 mars 2024, avec un bénéfice net de 136 mille dollars pour le trimestre et de 326 mille dollars pour les neuf mois. Le conseil a déclaré un dividende en espèces de 0,03 dollar par action. La société a racheté des actions et maintenu un niveau de capital solide. Les indicateurs de qualité des actifs sont restés forts, avec une diminution des actifs non performants. Les fonds propres des actionnaires ont diminué en raison des rachats d'actions et des paiements de dividendes.
William Penn Bancorporation gab seine Finanzergebnisse für die drei und neun Monate bis zum 31. März 2024 bekannt. Das Unternehmen erzielte einen Nettogewinn von 136 Tausend Dollar für das Quartal und 326 Tausend Dollar für die neun Monate. Der Vorstand beschloss eine Bardividende von 0,03 Dollar pro Aktie. Das Unternehmen kaufte Aktien zurück und hielt ein robustes Kapitalniveau aufrecht. Die Qualitätskennzahlen der Vermögenswerte blieben stark, mit einem Rückgang der nicht leistungsfähigen Vermögenswerte. Das Eigenkapital der Aktionäre verringerte sich aufgrund von Aktienrückkäufen und Dividendenzahlungen.
Positive
  • William Penn recorded net income of $136 thousand for the three months ended March 31, 2024, and $326 thousand for the nine months.
  • The Board declared a cash dividend of $0.03 per share, payable on May 9, 2024.
  • The company repurchased shares under existing stock repurchase programs and maintained a robust capital level.
  • Asset quality metrics remained strong, with non-performing assets decreasing to 0.41% as of March 31, 2024.
  • Stockholders' equity decreased by $34.9 million primarily due to share repurchases and dividend payments.
Negative
  • Net interest income decreased for the three and nine months ended March 31, 2024, primarily due to increased interest expense on deposits and borrowings.
  • Total assets decreased by $14.4 million, primarily due to a decrease in available for sale and held to maturity investments.
  • Deposits decreased by $9.5 million, mainly due to a decrease in money market and savings accounts.
  • Borrowings increased by $31.0 million, primarily to fund share repurchases.
  • Stockholders' equity decreased by $34.9 million, primarily due to share repurchases and dividend payments.

BRISTOL, PA / ACCESSWIRE / April 17, 2024 / William Penn Bancorporation ("William Penn" or the "Company") (NASDAQ CM:WMPN), the parent company of William Penn Bank (the "Bank"), today announced its financial results for the three and nine months ended March 31, 2024. William Penn recorded net income of $136 thousand, or $0.02 per basic and diluted share, for the three months ended March 31, 2024 and recorded net income of $326 thousand, or $0.04 per basic share and $0.03 per diluted share, for the nine months ended March 31, 2024, compared to net income of $183 thousand and $2.3 million, or $0.01 and $0.17 per basic and diluted share, for the three and nine months ended March 31, 2023, respectively. William Penn recorded core net income of $21 thousand, or $0.00 per basic and diluted share, for the three months ended March 31, 2024, and a core net loss(1) of $25 thousand, or $(0.00) per basic and diluted share, for the nine months ended March 31, 2024, compared to core net income(1) of $443 thousand and $2.3 million, or $0.04 per basic share and $0.03 per diluted share and $0.17 per basic and diluted share, for the three and nine months ended March 31, 2023, respectively.

In addition, William Penn announced that its Board of Directors has declared a cash dividend of $0.03 per share, payable on May 9, 2024, to common shareholders of record at the close of business on April 29, 2024.

Kenneth J. Stephon, William Penn's Chairman, President, and CEO, stated, "We remain focused on delivering the maximum value to our shareholders. During our third fiscal quarter, we continued to repurchase shares under our existing stock repurchase programs and we repurchased 205,649 shares at a total cost of $2.5 million, an average cost of $12.22 per share. We are authorized to repurchase a total of 6,433,769 shares under our previously announced stock repurchase programs and, as of March 31, 2024, we have repurchased a total of 6,201,969 shares at a total cost of $72.5 million, an average of $11.69 per share."

Mr. Stephon added, "The Company continues to maintain a robust capital level, posting a stockholders' equity to assets ratio of 15.09% and a tangible common equity ratio(2) of 14.56% at March 31, 2024. Our healthy capital position has provided us with the flexibility to pay dividends and return excess capital to shareholders through share repurchases. The current interest rate environment, which is very difficult for banks with respect to profitability, is possibly going to remain with us longer than many people had anticipated. As we face these challenges, we continue to manage our expenses diligently, evaluate every opportunity to improve our financial results, and remain committed to maximizing stockholder value."

Highlights for the three and nine months ended March 31, 2024 are as follows:

  • During the three months ended March 31, 2024, we repurchased 205,649 shares at a total cost of $2.5 million, an average of $12.22 per share. As of March 31, 2024, the Company had repurchased a total of 6,433,769 shares under its previously announced repurchase programs at a total cost of $72.5 million, or $11.69 per share.
  • William Penn recorded net income of $136 thousand, or $0.02 per basic and diluted share, and core net income(1) of $21 thousand, or $0.00 per basic and diluted share, for the three months ended March 31, 2024.
  • The accumulated other comprehensive loss component of equity related to the unrealized loss on available for sale securities decreased $1.3 million, or 5.7%, during the nine months ended March 31, 2024.
  • During the nine months ended March 31, 2024, we recorded a $475 thousand recovery for credit losses primarily due to consistently low levels of net charge-offs, strong asset quality metrics and continued conservative lending practices. Non-performing assets to total assets decreased to 0.41% as of March 31, 2024 from 0.49% as of June 30, 2023 and William Penn recorded $16 thousand of net recoveries, or (0.00)% of average loans, during the nine months ended March 31, 2024.
  • Book value per share measured $13.30 as of March 31, 2024 compared to $12.91 as of June 30, 2023. Tangible book value per share(3) measured $12.74 as of March 31, 2024 compared to $12.48 as of June 30, 2023. The increase in both book value per share and tangible book value per share was primarily due to a $1.3 million decrease in the accumulated other comprehensive loss component of equity related to the unrealized loss on available for sale securities and the repurchase of 3,021,498 shares at a total cost of $36.8 million, or $12.18 per share.

Statement of Financial Condition

Total assets decreased $14.4 million, or 1.7%, to $833.2 million at March 31, 2024, from $847.6 million at June 30, 2023, primarily due to a $13.3 million decrease in available for sale and held to maturity investments. The Company used $36.8 million of cash during the nine months ended March 31, 2024 to repurchase shares of stock under its previously announced stock repurchase programs.

Cash and cash equivalents decreased $2.8 million, or 13.7%, to $18.0 million at March 31, 2024, from $20.8 million at June 30, 2023. The decrease in cash and cash equivalents was primarily due to the repurchase of 3,021,498 shares at a total cost of $36.8 million and a $9.5 million decrease in deposits, partially offset by a $31.0 million increase in advances from the Federal Home Loan Bank ("FHLB") of Pittsburgh and approximately $15.0 million of investment principal paydowns.

Total investments decreased $12.9 million, or 4.9%, to $253.5 million at March 31, 2024, from $266.4 million at June 30, 2023. The decrease in investments was primarily due to approximately $15.0 million of principal paydowns of securities included in the available for sale and held to maturity portfolios, partially offset by a $1.7 million decrease in the gross unrealized loss on available for sale securities. The Company remains focused on maintaining a high-quality investment portfolio that provides a steady stream of cash flows.

Net loans increased $714 thousand, or 0.1%, to $478.3 million at March 31, 2024, from $477.5 million at June 30, 2023. The interest rate environment has caused a slowdown in borrower demand and the Company continues to maintain conservative lending practices and pricing discipline.

Deposits decreased $9.5 million, or 1.5%, to $625.8 million at March 31, 2024, from $635.3 million at June 30, 2023. The decrease in deposits was primarily due to a $22.6 million decrease in money market accounts and a $7.1 million decrease in savings accounts, partially offset by an $11.8 million increase in interest bearing checking accounts and a $9.3 million increase in certificate of deposit accounts. The interest rate environment has created significant pricing competition for deposits within our market.

Borrowings increased $31.0 million, or 91.2%, to $65.0 million at March 31, 2024, from $34.0 million at June 30, 2023. During the nine months ended March 31, 2024, the Company borrowed from the FHLB of Pittsburgh to fund a portion of the $36.8 million of share repurchases.

Stockholders' equity decreased $34.9 million, or 21.8%, to $125.8 million at March 31, 2024, from $160.7 million at June 30, 2023. The decrease in stockholders' equity was primarily due to the repurchase of 3,021,498 shares at a total cost of $36.8 million, or $12.18 per share, during the nine months ended March 31, 2024 under the Company's previously announced stock repurchase programs, the payment of three $0.03 per share quarterly cash dividends totaling $900 thousand, and a $226 thousand one-time cumulative effect decrease to retained earnings from the adoption of the Current Expected Credit Losses ("CECL") accounting standard. These decreases to stockholders' equity were partially offset by a $1.3 million decrease in the accumulated other comprehensive loss component of equity related to the unrealized loss on available for sale securities and $326 thousand of net income during the nine months ended March 31, 2024. Book value per share measured $13.30 as of March 31, 2024 compared to $12.91 as of June 30, 2023, and tangible book value per share(3) measured $12.74 as of March 31, 2024 compared to $12.48 as of June 30, 2023.

Net Interest Income

For the three months ended March 31, 2024, net interest income was $4.0 million, a decrease of $1.5 million, or 27.5%, from the three months ended March 31, 2023. The decrease in net interest income was primarily due to an increase in interest expense on deposits and borrowings, partially offset by an increase in interest income on loans. The net interest margin measured 2.15% for the three months ended March 31, 2024, compared to 2.84% for the three months ended March 31, 2023. The decrease in the net interest margin during the three months ended March 31, 2024, compared to the same period in 2023, was primarily due to an increase in the average balance of borrowings and the rise in interest rates that caused an increase in the cost of borrowings and deposits that exceeded the increase in interest income on loans.

For the nine months ended March 31, 2024, net interest income was $13.0 million, a decrease of $4.8 million, or 27.2%, from the nine months ended March 31, 2023. The decrease in net interest income was primarily due to an increase in interest expense on deposits and borrowings, partially offset by an increase in interest income on loans. The net interest margin measured 2.32% for the nine months ended March 31, 2024, compared to 3.04% for the nine months ended March 31, 2023. The decrease in the net interest margin during the nine months ended March 31, 2024, compared to the same period in 2023, was primarily due to an increase in the average balance of deposits and the rise in interest rates that caused an increase in the cost of borrowings and deposits that exceeded the increase in interest income on loans and investments.

Non-interest Income

For the three months ended March 31, 2024, non-interest income totaled $725 thousand, an increase of $551 thousand, or 316.7%, from the three months ended March 31, 2023. The increase was primarily due to a $585 thousand increase in the unrealized gain on equity securities from a $435 thousand unrealized loss during the three months ended March 31, 2023 to a $150 thousand unrealized gain during the three months ended March 31, 2024.

For the nine months ended March 31, 2024, non-interest income totaled $2.2 million, an increase of $845 thousand, or 62.2%, from the nine months ended March 31, 2023. The increase was primarily due to a $1.0 million increase in the unrealized gain on equity securities from a $654 thousand unrealized loss during the nine months ended March 31, 2023 to a $371 thousand unrealized gain during the nine months ended March 31, 2024, as well as a $99 thousand increase in earnings on bank-owned life insurance. These increases to non-interest income were partially offset by a $396 thousand net gain on the sale of premises and equipment primarily associated with the sale of two properties recorded during the nine months ended March 31, 2023.

Non-interest Expense

For the three months ended March 31, 2024, non-interest expense totaled $5.3 million, a decrease of $231 thousand, or 4.1%, from the three months ended March 31, 2023. The decrease in non-interest expense was primarily due to a $226 thousand decrease in salaries and employee benefits primarily due to a reduction in the number of full-time employees consistent with the Company's expense management initiatives.

For the nine months ended March 31, 2024, non-interest expense totaled $15.6 million, a decrease of $1.2 million, or 6.9%, from the nine months ended March 31, 2023. The decrease in non-interest expense was primarily due to an $893 thousand decrease in salaries and employee benefits primarily due to a reduction in the number of full-time employees consistent with the Company's expense management initiatives and a $245 thousand decrease in occupancy and equipment expense consistent with the closure of the Bank's branch office located in Collingswood, New Jersey effective December 31, 2022.

Income Taxes

For the three months ended March 31, 2024, the Company recorded a $230 thousand income tax benefit, reflecting an effective tax rate of (244.7)%, compared to an income tax benefit of $45 thousand, reflecting an effective tax rate of (32.6)%, for the same period in 2023. The income tax benefit recorded during the three months ended March 31, 2024 was primarily due to the $94 thousand loss before income taxes coupled with the $319 thousand of federal tax-exempt income recorded on bank-owned life insurance. The Company recorded an income tax benefit during the three months ended March 31, 2023 primarily due to $276 thousand of federal tax-exempt income recorded on bank-owned life insurance.

For the nine months ended March 31, 2024, the Company recorded a $313 thousand income tax benefit, reflecting an effective tax rate of (2407.7)%, compared to a provision for income taxes of $105 thousand, reflecting an effective tax rate of 4.4%, for the same period in 2023. The income tax benefit recorded during the nine months ended March 31, 2024 was primarily due to $13 thousand of income before income taxes coupled with the $922 thousand of federal tax-exempt income recorded on bank-owned life insurance. The Company recorded a $211 thousand income tax benefit related to a refund received associated with the carryback of net operating losses under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act during the nine months ended March 31, 2023.

Asset Quality

Asset quality metrics remain strong with non-performing assets to total assets decreasing to 0.41% as of March 31, 2024 from 0.49% as of June 30, 2023. During the nine months ended March 31, 2024, we recorded a $475 thousand recovery for credit losses primarily due to consistently low levels of net charge-offs, strong asset quality metrics and continued conservative lending practices. During the nine months ended March 31, 2023, we did not record a provision for credit losses due to improved asset quality metrics and continued low levels of net charge-offs and non-performing assets. Our allowance for credit losses ("ACL") totaled $3.1 million, or 0.65% of total loans, as of March 31, 2024, compared to $3.3 million, or 0.69% of total loans, as of June 30, 2023. Our total credit losses coverage ratio(4), including $2.2 million of fair value marks on acquired loans and the $3.1 million allowance for credit losses, was 1.10% as of March 31, 2024 compared to 1.20% as of June 30, 2023, including $2.5 million of fair value marks on acquired loans and the $3.3 million allowance for credit losses.

Capital and Liquidity

As of March 31, 2024, William Penn's stockholders' equity to assets ratio totaled 15.09% and tangible capital to tangible assets ratio(2) totaled 14.56%. The Bank's capital position remains strong relative to current regulatory requirements. The Bank has elected to follow the community bank leverage ratio framework and, as of March 31, 2024, the Bank had a community leverage ratio of 16.01% and is considered well-capitalized under the prompt corrective action framework.

The Bank continues to have substantial liquidity that has been retained in cash or invested in high quality government-backed securities. In addition, at March 31, 2024, we had the ability to borrow up to $280.8 million from the FHLB of Pittsburgh, $10.0 million from the Atlantic Community Bankers Bank, and $4.1 million from the Federal Reserve Bank.

About William Penn Bancorporation and William Penn Bank

William Penn Bancorporation, headquartered in Bristol, Pennsylvania, is the holding company for William Penn Bank, which is a community bank that serves the Delaware Valley area through twelve full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington, Camden and Mercer Counties in New Jersey. The Company's executive offices are located at 10 Canal Street, Suite 104, Bristol, Pennsylvania 19007. William Penn Bank's deposits are insured up to the legal maximum (generally $250,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC). The primary federal regulator for William Penn Bank is the FDIC. For more information about the Bank and William Penn, please visit www.williampenn.bank.

Forward Looking Statements

This news release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions (including higher inflation and its impact on national and local economic conditions), changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, changes to consumer and business confidence, investor sentiment, or consumer spending of savings behavior, adverse changes in the securities markets, changes in deposit flows, changes in the quality or composition of our loan or investment portfolios and our ability to successfully integrate the business operations of acquired businesses into our business operations, the ability to attract, develop and retain qualified employees, our ability to maintain the security of our data processing and information technology systems, and that the Company may not be successful in the implementation of its business strategy. Additionally, other risks and uncertainties may be described in William Penn's Annual Report on Form 10-K for the year ended June 30, 2023, which is available through the SEC's EDGAR website located at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, William Penn assumes no obligation to update any forward-looking statements.

(1)As used in this press release, core net (loss) income is a non-GAAP financial measure. This non-GAAP financial measure excludes certain pre-tax adjustments and the tax impact of such adjustments, and income tax benefit adjustments. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measure, see "Non-GAAP Reconciliation" at the end of the press release.

(2)As used in this press release, tangible common equity is a non-GAAP financial measure. This non-GAAP financial measure excludes goodwill and other intangible assets. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

(3)As used in this press release, tangible book value per share is a non-GAAP financial measure. This non-GAAP financial measure excludes goodwill and other intangible assets. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

(4)As used in this press release, total credit losses coverage ratio is a non-GAAP financial measure. This non-GAAP financial measure includes the fair value mark on acquired loans. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

WILLIAM PENN BANCORPORATION AND SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition
(Dollars in thousands, except share amounts)

March 31, December 31, June 30, March 31,
2024 2023 2023 2023
ASSETS
Cash and due from banks
$5,792 $6,122 $7,652 $4,848
Interest bearing deposits with other banks
12,163 11,402 11,561 6,314
Federal funds sold
- - 1,580 8,715
Total cash and cash equivalents
17,955 17,524 20,793 19,877
Interest-bearing time deposits
100 100 600 600
Securities available-for-sale, at fair value
156,643 160,938 165,127 171,611
Securities held-to-maturity, net of allowance for credit losses of $0 as of March 31, 2024 and December 31, 2023
94,871 96,404 99,690 101,410
Equity securities
2,000 1,850 1,629 1,604
Loans receivable, net of allowance for credit losses of $3,120, $3,601, $3,313 and $3,337, respectively
478,257 467,214 477,543 484,858
Premises and equipment, net
7,352 7,521 9,054 10,946
Regulatory stock, at cost
3,747 3,313 2,577 2,669
Deferred income taxes
9,261 9,002 9,485 8,930
Bank-owned life insurance
41,497 41,179 40,575 40,292
Goodwill
4,858 4,858 4,858 4,858
Intangible assets
396 437 519 566
Operating lease right-of-use assets
8,459 8,617 8,931 9,116
Accrued interest receivable and other assets
7,793 7,074 6,198 5,035
TOTAL ASSETS
$833,189 $826,031 $847,579 $862,372

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits
$625,797 $626,663 $635,260 $632,675
Advances from Federal Home Loan Bank
65,000 54,000 34,000 38,000
Advances from borrowers for taxes and insurance
2,767 2,481 3,227 2,990
Operating lease liabilities
8,694 8,834 9,107 9,270
Accrued interest payable and other liabilities
5,169 5,107 5,240 5,391
TOTAL LIABILITIES
707,427 697,085 686,834 688,326

STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value
- - - -
Common stock, $0.01 par value
95 96 125 135
Additional paid-in capital
98,608 100,651 134,387 145,240
Unearned common stock held by employee stock ownership plan
(8,890) (8,991) (9,194) (9,295)
Retained earnings
58,005 58,132 58,805 58,637
Accumulated other comprehensive loss
(22,056) (20,942) (23,378) (20,671)
TOTAL STOCKHOLDERS' EQUITY
125,762 128,946 160,745 174,046
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$833,189 $826,031 $847,579 $862,372

WILLIAM PENN BANCORPORATION AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(Dollars in thousands, except per share amounts)

For the Three Months Ended For the Nine Months Ended
March 31, December 31, March 31, March 31, March 31,
2024 2023 2023 2024 2023
INTEREST INCOME
Loans receivable, including fees
$6,338 $6,194 $5,725 $18,671 $16,688
Securities
1,652 1,700 1,714 5,063 5,078
Other
174 169 169 504 485
Total interest income
8,164 8,063 7,608 24,238 22,251
INTEREST EXPENSE
Deposits
3,200 3,220 1,623 9,150 3,106
Borrowings
950 632 452 2,119 1,335
Total interest expense
4,150 3,852 2,075 11,269 4,441

Net interest income
4,014 4,211 5,533 12,969 17,810
(Recovery) provision for credit losses
(505) 25 - (475) -
NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR CREDIT LOSSES
4,519 4,186 5,533 13,444 17,810
OTHER INCOME
Service fees
210 225 197 650 617
Net gain on sale of securities
- 85 - 85 -
Earnings on bank-owned life insurance
319 309 276 922 823
Net gain on disposition of premises and equipment
- - 97 - 396
Unrealized gain (loss) on equity securities
150 148 (435) 371 (654)
Other
46 61 39 175 176
Total other income
725 828 174 2,203 1,358
OTHER EXPENSES
Salaries and employee benefits
2,991 2,861 3,217 8,787 9,680
Occupancy and equipment
772 728 810 2,260 2,505
Data processing
518 504 480 1,516 1,383
Professional fees
249 192 208 651 729
Amortization of intangible assets
41 41 49 123 146
Other
767 745 805 2,297 2,349
Total other expense
5,338 5,071 5,569 15,634 16,792

(Loss) income before income taxes
(94) (57) 138 13 2,376

Income tax (benefit) expense
(230) (68) (45) (313) 105
NET INCOME
$136 $11 $183 $326 $2,271

Basic earnings per share
$0.02 $0.00 $0.01 $0.04 $0.17
Diluted earnings per share
$0.02 $0.00 $0.01 $0.03 $0.17
Basic average common shares outstanding
8,336,654 8,845,633 12,643,435 9,264,297 13,024,076
Diluted average common shares outstanding
8,423,209 8,910,313 12,718,167 9,321,974 13,069,858

WILLIAM PENN BANCORPORATION AND SUBSIDIARIES
Unaudited Selected Consolidated Financial and Other Data
(Dollars in thousands)

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average daily balances of assets or liabilities, respectively, for the periods presented. Loan fees, including prepayment fees, are included in interest income on loans and are not material. Non-accrual loans are included in the average balances only. Any adjustments necessary to present yields on a tax equivalent basis are insignificant.


For the Three Months Ended For the Nine Months Ended

March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023

Average Interest and Yield/ Average Interest and Yield/ Average Interest and Yield/ Average Interest and Yield/

Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost

Interest-earning assets:
Loans(1)
$479,959 $6,338 5.28%$487,676 $5,725 4.70%$477,117 $18,671 5.22%$483,225 $16,688 4.60%
Investment securities(2)
256,404 1,652 2.58 277,161 1,714 2.47 258,197 5,063 2.61 280,557 5,078 2.41
Other interest-earning assets
11,217 174 6.20 13,281 169 5.09 11,383 504 5.90 16,196 485 3.99
Total interest-earning assets
747,580 8,164 4.37 778,118 7,608 3.91 746,697 24,238 4.33 779,978 22,251 3.80
Non-interest-earning assets
81,970 81,895 82,558 82,753
Total assets
$829,550 $860,013 $829,255 $862,731

Interest-bearing liabilities:
Interest-bearing checking accounts
$131,360 531 1.62%$125,529 81 0.26%$130,531 1,424 1.45%$129,858 244 0.25%
Money market deposit accounts
188,255 1,386 2.94 204,172 1,004 1.97 194,354 4,275 2.93 185,356 1,768 1.27
Savings, including club deposits
83,530 10 0.05 95,672 16 0.07 85,334 35 0.05 99,922 53 0.07
Certificates of deposit
160,551 1,273 3.17 143,697 522 1.45 161,382 3,416 2.82 136,492 1,041 1.02
Total interest-bearing deposits
563,696 3,200 2.27 569,070 1,623 1.14 571,601 9,150 2.13 551,628 3,106 0.75
FHLB advances and other borrowings
65,864 950 5.77 37,244 452 4.85 49,053 2,119 5.76 49,394 1,335 3.60
Total interest-bearing liabilities
629,560 4,150 2.64 606,314 2,075 1.37 620,654 11,269 2.42 601,022 4,441 0.99

Non-interest-bearing liabilities:
Non-interest-bearing deposits
56,610 58,238 56,307 62,252
Other non-interest-bearing liabilities
17,081 19,438 17,505 15,566
Total liabilities
703,251 683,990 694,466 678,840
Total equity
126,299 176,023 134,789 183,891
Total liabilities and equity
$829,550 $860,013 $829,255 $862,731

Net interest income
$4,014 $5,533 $12,969 $17,810

Interest rate spread(3)
1.73% 2.54% 1.91% 2.81%
Net interest-earning assets(4)
$118,020 $171,804 $126,043 $178,956
Net interest margin(5)
2.15% 2.84% 2.32% 3.04%
Ratio of interest-earning assets to interest-bearing liabilities
118.75% 128.34% 120.31% 129.78%
  1. Includes nonaccrual loan balances and interest, if any, recognized on such loans.
  2. Includes securities available for sale and securities held to maturity.
  3. Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
  4. Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
  5. Net interest margin represents net interest income divided by average total interest-earning assets.

Asset Quality Indicators (unaudited)

March 31, December 31, June 30, March 31,
(Dollars in thousands)
2024 2023 2023 2023
Non-performing assets:
Non-accruing loans
$2,977 $3,017 $4,033 $4,241
Accruing loans past due 90 days or more
- - - -
Total non-performing loans
$2,977 $3,017 $4,033 $4,241

Real estate owned
440 141 141 141

Total non-performing assets
$3,417 $3,158 $4,174 $4,382

Non-performing loans to total loans
0.62% 0.64% 0.84% 0.87%
Non-performing assets to total assets
0.41% 0.38% 0.49% 0.51%
ACL to total loans and leases
0.65% 0.76% 0.69% 0.68%
ACL to non-performing loans
104.80% 119.36% 82.15% 78.68%

Key Performance Ratios (unaudited)

For the Three Months Ended For the Nine Months Ended
March 31, December 31, March 31, March 31, March 31,
2024 2023 2023 2024 2023
PERFORMANCE RATIOS:
(annualized for the three and nine months ended)
Return on average assets
0.07% 0.01% 0.09% 0.05% 0.35%
Core return on average assets(5)
0.01% (0.08)% 0.21% 0.00% 0.35%
Return on average equity
0.43% 0.04% 0.42% 0.32% 1.65%
Core return on average equity(5)
0.07% (0.54)% 1.01% (0.02)% 1.64%
Net interest margin
2.15% 2.28% 2.84% 2.32% 3.04%
Net charge-off ratio
(0.00)% 0.01% 0.00% (0.00)% 0.02%
Efficiency ratio
112.64% 100.64% 97.58% 103.05% 87.60%
Core efficiency ratio(5)
116.32% 105.51% 92.13% 106.24% 86.44%
Tangible common equity(2)
14.56% 15.07% 19.68% 14.56% 19.68%

(5) As used in this press release, core return on average assets, core return on average equity, and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments, and income tax benefit adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Non-GAAP Reconciliation (unaudited)

In this press release, we present the non-GAAP financial measures included in the tables below, which are used to evaluate our performance and exclude the effects of certain transactions and one-time events that we believe are unrelated to our core business and not necessarily indicative of our current performance or financial position. Management believes excluding these items facilitates greater visibility into our core businesses and underlying trends that may, to some extent, be obscured by inclusion of such items. The following tables include a reconciliation of the non-GAAP financial measures used in this press release to their comparable GAAP measures.

William Penn Bancorporation and Subsidiaries
Non-GAAP Reconciliation
(Dollars in thousands, except share and per share data)

March 31, June 30,
2024 2023
Calculation of tangible capital to tangible assets:
Total assets (GAAP)
$833,189 $847,579
Less: Goodwill and other intangible assets
5,254 5,377
Tangible assets (non-GAAP)
$827,935 $842,202

Total stockholders' equity (GAAP)
$125,762 $160,745
Less: Goodwill and other intangible assets
5,254 5,377
Total tangible equity (non-GAAP)
$120,508 $155,368

Stockholders' equity to assets (GAAP)
15.09% 18.97%
Tangible capital to tangible assets (non-GAAP)
14.56% 18.45%

Calculation of tangible book value per share:
Total stockholders' equity (GAAP)
$125,762 $160,745
Less: Goodwill and other intangible assets
5,254 5,377
Total tangible equity (non-GAAP)
$120,508 $155,368

Total common shares outstanding
9,457,967 12,452,921

Book value per share (GAAP)
$13.30 $12.91
Tangible book value per share (non-GAAP)
$12.74 $12.48

Calculation of the total credit losses coverage ratio:
Allowance for credit losses
$3,120 $3,313
Purchase accounting fair value mark
2,176 2,488
Total credit losses coverage
$5,296 $5,801
Gross loans receivable
$481,377 $480,856
Gross loans receivable, excluding purchase accounting fair value mark
$483,553 $483,344

Allowance for credit losses to total loans (GAAP)
0.65% 0.69%
Total credit losses coverage to total loans (non-GAAP)
1.10% 1.20%
For the Three Months Ended For the Nine Months Ended
March 31, December 31, March 31, March 31, March 31,
2024 2023 2023 2024 2023
Calculation of core net income:
Net income (GAAP)
$136 $11 $183 $326 $2,271
Less pre-tax adjustments:
Net gain on sale of securities
- (85) - (85) -
Net gain on disposition of premises and equipment
- - (97) - (396)
Unrealized (gain) loss on equity securities
(150) (148) 435 (371) 654
Tax impact of pre-tax adjustments
35 54 (78) 105 (59)
Income tax benefit adjustment
- - - - (211)
Core net income (loss) (non-GAAP)
$21 $(168)$443 $(25)$2,259

Calculation of core basic earnings per share:
Basic earnings per share (GAAP)
$0.02 $0.00 $0.01 $0.04 $0.17
Less pre-tax adjustments:
Net gain on sale of securities
- (0.01) - (0.01) -
Net gain on disposition of premises and equipment
- - - - (0.03)
Unrealized (gain) loss on equity securities
(0.02) (0.02) 0.03 (0.04) 0.05
Tax impact of pre-tax adjustments
- 0.01 - 0.01 -
Income tax benefit adjustment
- - - - (0.02)
Core basic earnings (loss) per share (non-GAAP)
$0.00 $(0.02)$0.04 $(0.00)$0.17

Calculation of core diluted earnings per share:
Diluted earnings per share (GAAP)
$0.02 $0.00 $0.01 $0.03 $0.17
Less pre-tax adjustments:
Net gain on sale of securities
- (0.01) - - -
Net gain on disposition of premises and equipment
- - (0.01) - (0.03)
Unrealized (gain) loss on equity securities
(0.02) (0.02) 0.03 (0.04) 0.05
Tax impact of pre-tax adjustments
- 0.01 - 0.01 -
Income tax benefit adjustment
- - - - (0.02)
Core diluted earnings (loss) per share (non-GAAP)
$0.00 $(0.02)$0.03 $(0.00)$0.17

Calculation of core return on average assets:
Return on average assets (GAAP)
0.07% 0.01% 0.09% 0.05% 0.35%
Less pre-tax adjustments:
Net gain on sale of securities
- (0.04)% - (0.01)% -
Net gain on disposition of premises and equipment
- - (0.04)% - (0.06)%
Unrealized (gain) loss on equity securities
(0.08)% (0.08)% 0.20% (0.06)% 0.10%
Tax impact of pre-tax adjustments
0.02% 0.03% (0.04)% 0.02% (0.01)%
Income tax benefit adjustment
- - - - (0.03)%
Core return (loss) on average assets (non-GAAP)
0.01% (0.08)% 0.21% 0.00% 0.35%
Average assets
$829,550 $822,124 $860,013 $829,255 $862,731

Calculation of core return on average equity:
Return on average equity (GAAP)
0.43% 0.04% 0.42% 0.32% 1.65%
Less pre-tax adjustments:
Net gain on sale of securities
- (0.27)% - (0.08)% -
Net gain on disposition of premises and equipment
- - (0.22)% - (0.29)%
Unrealized (gain) loss on equity securities
(0.47)% (0.48)% 0.99% (0.36)% 0.47%
Tax impact of pre-tax adjustments
0.11% 0.17% (0.18)% 0.10% (0.04)%
Income tax benefit adjustment
- - - - (0.15)%
Core return (loss) on average equity (non-GAAP)
0.07% (0.54)% 1.01% (0.02)% 1.64%
Average equity
$126,299 $125,199 $176,023 $134,789 $183,891

Calculation of core efficiency ratio:
Non-interest expense (GAAP)
$5,338 $5,071 $5,569 $15,634 $16,792
Less adjustments:
Core non-interest expense (non-GAAP)
$5,338 $5,071 $5,569 $15,634 $16,792
Net interest income
$4,014 $4,211 $5,533 $12,969 $17,810
Non-interest income (GAAP)
$725 $828 $174 $2,203 $1,358
Less adjustments:
Net gain on sale of securities
- (85) - (85) -
Net gain on disposition of premises and equipment
- - (97) - (396)
Unrealized (gain) loss on equity securities
(150) (148) 435 (371) 654
Core non-interest income (non-GAAP)
$575 $595 $512 $1,747 $1,616

Efficiency ratio (GAAP)
112.64% 100.64% 97.58% 103.05% 87.60%
Core efficiency ratio (non-GAAP)
116.32% 105.51% 92.13% 106.24% 86.44%
CONTACT: Kenneth J. Stephon
Chairman, President and CEO
PHONE: (856) 656-2201, ext. 1009

SOURCE: William Penn Bancorporation



View the original press release on accesswire.com

FAQ

What was William Penn Bancorporation's net income for the three months ended March 31, 2024?

William Penn recorded net income of $136 thousand for the three months ended March 31, 2024.

What was the cash dividend declared by William Penn Bancorporation's Board of Directors?

The Board declared a cash dividend of $0.03 per share, payable on May 9, 2024.

What caused the decrease in stockholders' equity for William Penn Bancorporation?

Stockholders' equity decreased by $34.9 million primarily due to share repurchases and dividend payments.

How did asset quality metrics perform for William Penn Bancorporation?

Asset quality metrics remained strong, with non-performing assets decreasing to 0.41% as of March 31, 2024.

What was the change in total assets for William Penn Bancorporation?

Total assets decreased by $14.4 million, primarily due to a decrease in available for sale and held to maturity investments.

William Penn Bancorporation

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