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William Penn Bancorporation Announces Third Quarter Results – Stocks News Feed

BRISTOL, PA / ACCESSWIRE / April 22, 2021 / William Penn Bancorporation (“William Penn” or the “Company”) (NASDAQ:WMPN), the parent company of William Penn Bank (the “Bank”), today announced its financial results for the three and nine months ended March 31, 2021. William Penn recorded net income of $1.1 million and $3.1 million, or $0.07 and $0.21 per diluted share, for the three and nine months ended March 31, 2021, respectively, compared to net income of $837 thousand and $2.6 million, or $0.06 and $0.20 per diluted share, for the three and nine months ended March 31, 2020. Net income for the nine months ended March 31, 2021 included a $435 thousand, or $0.03 per diluted share, gain on the disposition of premises and equipment primarily due to the sale of several commercial real estate properties that were acquired in connection with the Bank’s acquisitions of Washington Savings Bank (“Washington”) and Fidelity Savings and Loan Association of Bucks County (“Fidelity”), which were completed on May 1, 2020.

Kenneth J. Stephon, William Penn’s Chairman, President and CEO, stated “We are excited to have completed our second-step conversion and stock offering during the quarter. As a result of the share conversion, our tangible book value per share(1) measured $13.79 as of March 31, 2021. Following the second step, we remain focused on prudent capital management, organic growth, and improving our financial performance. We intend to deploy the second step proceeds to assist us in achieving our strategic and financial growth goals. We continue to experience reduced loan demand as a result of the difficult operating environment related to the COVID-19 pandemic. The low interest rate environment has made it challenging to effectively deploy the excess cash we hold on our balance sheet from two recent acquisitions and the second step offering. We believe the addition of Alan Turner as Executive Vice President and Chief Lending Officer will assist us with attaining our loan growth goals while maintaining consistent and conservative lending practices. In addition, we remain focused on maintaining a high-quality investment portfolio that provides a steady stream of cash flows both in the current and in rising interest rate environments.”

Highlights for the three months ended March 31, 2021 are as follows:

As previously announced on March 24, 2021, William Penn completed the stock offering conducted in connection with its second-step conversion. In connection with the conversion, 12,640,035 shares of common stock were sold, at a price of $10.00 per share, for gross proceeds of $126.4 million. William Penn contributed $61.7 million of the net offering proceeds to the Bank to support the continuing operations of the Bank.
Following the second-step conversion, our capital levels significantly increased with tangible capital to tangible assets totaling 25.77% at March 31, 2021 compared to 12.32% at December 31, 2020.
During the three months ended March 31, 2021, William Penn recorded net income of $1.1 million, or $0.07 per diluted share.
Net interest income increased $1.7 million, or 48.9%, for the three months ended March 31, 2021 compared to the same period in the prior year.
William Penn maintained strong credit reserves amidst the uncertain economic environment and recorded a $15 thousand provision for loan losses during the three months ended March 31, 2021.


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Asset quality metrics continued to remain strong with non-performing assets to total assets of 0.74% as of March 31, 2021. Our allowance for loan losses totaled $3.6 million, or 1.19% of total loans, excluding acquired loans(2), as of March 31, 2021, compared to $3.5 million, or 1.27% of total loans, excluding acquired loans(2), as of June 30, 2020.
The balance of loans on deferral in accordance with the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) decreased to $608 thousand as of March 31, 2021, compared to $49.8 million at June 30, 2020.

(1) 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.

(2) As used in this press release, the ratio of the allowance for loan losses to total loans, excluding acquired loans, is a non-GAAP financial measure. This non-GAAP financial measure excludes loans acquired in a business combination. 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.

Balance Sheet
Total assets increased $80.9 million, or 11.0%, to $817.4 million at March 31, 2021, from $736.5 million at June 30, 2020. The increase in total assets can primarily be attributed to a $96.7 million increase in total cash and cash equivalents and a $19.2 million increase in investment securities, partially offset by a $32.8 million decrease in gross loans.

Cash and cash equivalents increased $96.7 million, or 116.6%, to $179.6 million at March 31, 2021, from $82.9 million at June 30, 2020. The increase in cash and cash equivalents was primarily driven by $126.4 million of gross offering proceeds received in connection with the second step offering and a $32.8 million decrease in gross loans. These increases to cash and cash equivalents were partially offset by an $11.5 million decrease in deposits, a $19.2 million increase in investment securities and a $23.9 million decrease in advances from the Federal Home Loan Bank (“FHLB”) of Pittsburgh. The decrease in advances from the FHLB of Pittsburgh was due to the strategic prepayment of $23.2 million of higher-cost advances during the three months ended September 30, 2020.

Investments increased $19.2 million, or 21.3%, to $109.2 million at March 31, 2021, from $90.0 million at June 30, 2020. The Company remains focused on maintaining a high-quality investment portfolio that provides a steady stream of cash flows both in the current and in rising interest rate environments.

Gross loans decreased $32.8 million, or 6.4%, to $479.3 million at March 31, 2021, from $512.1 million at June 30, 2020. The COVID-19 pandemic and low interest rate environment have created a highly competitive market for residential lending. The Company maintains conservative lending practices and is focused on lending to borrowers with high credit quality within its market footprint.

Deposits decreased $11.5 million, or 2.1%, to $548.3 million at March 31, 2021, from $559.8 million at June 30, 2020. The decrease in deposits was primarily due to a $25.6 million decrease in time deposits, partially offset by a $9.4 million increase in non-interest business checking accounts and a $6.5 million increase in savings accounts. The decrease in time deposits was consistent with the planned run-off associated with our re-pricing of higher-cost, non-relationship-based accounts.

Borrowings decreased $23.9 million, or 36.8%, to $41.0 million at March 31, 2021, from $64.9 million at June 30, 2020. The decrease in borrowings was primarily due to the previously discussed prepayment of $23.2 million of higher-cost advances from the FHLB of Pittsburgh during the three months ended September 30, 2020.

Stockholders’ equity increased $118.6 million, or 123.2%, to $215.0 million at March 31, 2021, from $96.4 million at June 30, 2020. The increase in stockholders’ equity was primarily due to net proceeds received in connection with the second-step conversion and net income of $3.1 million, partially offset by $1.9 million of dividends paid to common shareholders in August 2020 and a $1.3 million decrease in the accumulated other comprehensive loss component of the unrealized loss on available-for-sale investment securities during the nine months ended March 31, 2021. Tangible book value per share(1) measured $13.79 as of March 31, 2021.

Net Interest Income
For the three months ended March 31, 2021, net interest income was $5.3 million, an increase of $1.7 million, or 48.9%, from the three months ended March 31, 2020. The increase in net interest income was primarily due to an increase in interest-earning assets as a result of the acquisitions of Washington and Fidelity effective May 1, 2020. The net interest margin measured 2.91% for the three months ended March 31, 2021 compared to 3.44% for the same period in 2020. The decrease in the net interest margin is consistent with the recent decrease in interest rates and current margin compression that is primarily due to the COVID-19 pandemic and its impact on the economy and interest rate environment, as well as the excess cash that the Bank held in connection with the second-step offering during the three months ended March 31, 2021.

For the nine months ended March 31, 2021, net interest income was $16.1 million, an increase of $5.8 million, or 56.9%, from the nine months ended March 31, 2020. The increase in net interest income was primarily due to an increase in interest-earning assets as a result of the acquisitions of Washington and Fidelity effective May 1, 2020. The net interest margin measured 3.08% for the nine months ended March 31, 2021 compared to 3.39% for the same period in 2020. The decrease in the net interest margin is consistent with the recent decrease in interest rates and current margin compression that is primarily due to the COVID-19 pandemic and its impact on the economy and interest rate environment.

Non-interest Income
For the three months ended March 31, 2021, non-interest income totaled $535 thousand, an increase of $150 thousand, or 39.0%, from the three months ended March 31, 2020. The increase was primarily due to a $48 thousand increase in service fees as a result of higher deposit transaction volume due primarily to the acquisitions of Washington and Fidelity effective May 1, 2020 and a $160 thousand gain recorded in connection with the sale of other real estate owned. These increases to non-interest income were partially offset by a $68 thousand decrease in the net gain on sale of investment securities. In addition, the $34 thousand loss on the disposition of premises and equipment relates to the strategic decision to consolidate three existing Bank branches into one branch based on branch deposit levels and the close geographic proximity of the three consolidating branches.

For the nine months ended March 31, 2021, non-interest income totaled $1.8 million, an increase of $756 thousand, or 74.2%, from the nine months ended March 31, 2020. The increase was primarily due to a $435 thousand net gain on the disposition of premises and equipment primarily related to the sale of five commercial real estate properties and a $206 thousand gain recorded in connection with the sale of other real estate owned. The increase in non-interest income can also be attributed to a $121 thousand increase in service fees as a result of higher deposit transaction volume due primarily to the acquisitions of Washington and Fidelity effective May 1, 2020, as well as a $71 thousand increase in earnings on bank-owned life insurance. These increases to non-interest income were partially offset by a $191 thousand decrease in the net gain on sale of investment securities.

Non-interest Expense
For the three months ended March 31, 2021, non-interest expense totaled $4.5 million, an increase of $1.6 million, or 55.7%, from the three months ended March 31, 2020. The increase in non-interest expense was primarily due to an $857 thousand increase in salaries and employee benefits due to the addition of new employees from the acquisitions of Washington and Fidelity and a $414 thousand increase in occupancy and equipment expense due to additional operating costs from new branch offices and increased depreciation expense associated with premises and equipment from the acquisitions of Washington and Fidelity. The $142 thousand increase in data processing expense and the increase in other non-interest expense can be attributed to operating a larger organization that has resulted from the two acquisitions by William Penn Bank completed on May 1, 2020.

For the nine months ended March 31, 2021, non-interest expense totaled $13.9 million, an increase of $5.3 million, or 62.1%, from the nine months ended March 31, 2020. The increase in non-interest expense was primarily due to a $2.8 million increase in salaries and employee benefits due to the addition of new employees from the acquisitions of Washington and Fidelity and a $1.0 million increase in occupancy and equipment expense due to additional operating costs from new branch offices and increased depreciation expense associated with premises and equipment from the acquisitions of Washington and Fidelity. The $551 thousand increase in data processing expense and the increase in other non-interest expense can be attributed to operating a larger organization that has resulted from the two acquisitions by William Penn Bank completed on May 1, 2020. In addition, the nine months ended March 31, 2021 included $161 thousand of prepayment penalties associated with the prepayment of $23.2 million of higher-cost advances from the FHLB of Pittsburgh.

Income Taxes
For the three months ended March 31, 2021, we recorded a provision for income taxes of $273 thousand, reflecting an effective tax rate of 20.4%, compared to a provision for income taxes of $210 thousand, reflecting an effective tax rate of 20.1%, for the same period in 2020. The increase in the provision for income taxes for the three months ended March 31, 2021 compared to the same period a year ago is primarily due to higher income before income taxes.

For the nine months ended March 31, 2021, we recorded a provision for income taxes of $789 thousand, reflecting an effective tax rate of 20.2%, compared to a provision for income taxes of $92 thousand, reflecting an effective tax rate of 3.4%, for the same period in 2020. The increase in the provision for income taxes for the nine months ended March 31, 2021 compared to the same period a year ago is primarily due to higher income before income taxes and the $408 thousand effect of a change in tax law related to the treatment of bank-owned life insurance acquired as part of our 2018 acquisition of Audubon Savings Bank that reduced income tax expense during the nine months ended March 31, 2020. The increase in the effective tax rate for the nine months ended March 31, 2021 compared to the same period a year ago is primarily due the $408 thousand effect of the previously discussed change in tax law related to the treatment of bank-owned life insurance that reduced income tax expense during the nine months ended March 31, 2020.

Asset Quality
Our ratio of non-performing assets to total assets remained low at 0.74% as of March 31, 2021. In addition, our net charge-offs remained low with $34 thousand, or 0.01% of gross loans, of net charge-offs recorded during the nine months ended March 31, 2021. As a result of the continued economic uncertainty due to the COVID-19 pandemic, we recorded a $113 thousand provision for loan losses during the nine months ended March 31, 2021 compared to a $21 thousand provision for loan losses during the same period in 2020. Our allowance for loan losses totaled $3.6 million, or 1.19% of total loans, excluding acquired loans(2), as of March 31, 2021, compared to $3.5 million, or 1.27% of total loans, excluding acquired loans(2), as of June 30, 2020. In addition, the balance of loans on deferral in accordance with the provisions of the CARES Act decreased to $608 thousand as of March 31, 2021, compared to $49.8 million at June 30, 2020.

Capital
The Bank’s capital position remains strong relative to current regulatory requirements. The Bank continues to have substantial liquidity that has been retained in cash or invested in high quality government-backed securities. As of March 31, 2021, William Penn’s tangible capital to tangible assets totaled 25.77%. In addition, at March 31, 2021, we had the ability to borrow up to $296.2 million from the Federal Home Loan Bank of Pittsburgh. The federal regulators issued a final rule, effective January 1, 2020, that set the elective community bank leverage ratio at 9% of tier 1 capital to average total consolidated assets. The Bank has elected to follow this alternative framework. As of March 31, 2021, William Penn Bank had a community bank leverage ratio of 19.27% and is considered well-capitalized under the prompt corrective action framework.

About William Penn Bancorporation
William Penn Bancorporation, headquartered in Bristol, Pennsylvania, is the holding company for William Penn Bank, which serves the Delaware Valley area through thirteen full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington and Camden 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, the effect of the COVID-19 pandemic (including its impact on our business operations and credit quality, on our customers and their ability to repay their loan obligations and on general economic and financial market 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, 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 Fidelity Savings and Loan Association of Bucks County and Washington Savings Bank, each of which we recently acquired on May 1, 2020, into our business operations, and that the Company may not be successful in the implementation of its business strategy or its deployment of the proceeds raised in its second step conversion offering . Additionally, other risks and uncertainties may be described in William Penn’s prospectus, filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b)(3) on January 25, 2021, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, each of 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.

CONTACT:
Kenneth J. Stephon
President and CEO
PHONE: (856) 656-2201, ext. 1009

William Penn Bancorporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)

 

 
March 31,
 
 
December 31,
 
 
June 30,
 
 
March 31,
 

 

 
2021
 
 
2020
 
 
2020
 
 
2020
 

 

 
 
 
 
 
 
 
 
 
 
 
 

ASSETS

 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks

 
$
8,713
 
 
$
23,583
 
 
$
21,385
 
 
$
7,185
 

Interest bearing deposits with other banks

 
 
170,844
 
 
 
62,675
 
 
 
56,755
 
 
 
12,968
 

Federal funds sold

 
 

 
 
 

 
 
 
4,775
 
 
 

 

Total cash and cash equivalents

 
 
179,557
 
 
 
86,258
 
 
 
82,915
 
 
 
20,153
 

Interest-bearing time deposits

 
 
2,050
 
 
 
2,300
 
 
 
2,300
 
 
 
2,000
 

Securities available for sale

 
 
109,184
 
 
 
112,909
 
 
 
89,998
 
 
 
56,760
 

Loans receivable, net of allowance for loan losses of $3,599,

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

$3,587, $3,519, and $3,009, respectively

 
 
475,730
 
 
 
494,805
 
 
 
508,605
 
 
 
346,526
 

Premises and equipment, net

 
 
13,534
 
 
 
13,543
 
 
 
16,733
 
 
 
9,601
 

Regulatory stock, at cost

 
 
3,025
 
 
 
3,133
 
 
 
4,200
 
 
 
3,175
 

Deferred income taxes

 
 
4,044
 
 
 
3,721
 
 
 
4,817
 
 
 
1,795
 

Bank-owned life insurance

 
 
15,078
 
 
 
14,968
 
 
 
14,758
 
 
 
11,452
 

Goodwill

 
 
4,858
 
 
 
4,858
 
 
 
4,858
 
 
 
4,858
 

Intangible assets

 
 
1,000
 
 
 
1,064
 
 
 
1,192
 
 
 
996
 

Accrued interest receivable and other assets

 
 
9,367
 
 
 
8,968
 
 
 
6,076
 
 
 
4,086
 

TOTAL ASSETS

 
$
817,427
 
 
$
746,527
 
 
$
736,452
 
 
$
461,402
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

LIABILITIES

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Deposits

 
$
548,316
 
 
$
597,079
 
 
$
559,848
 
 
$
314,248
 

Advances from Federal Home Loan Bank

 
 
41,000
 
 
 
41,000
 
 
 
64,892
 
 
 
61,000
 

Advances from borrowers for taxes and insurance

 
 
3,403
 
 
 
3,056
 
 
 
4,536
 
 
 
3,584
 

Accrued interest payable and other liabilities

 
 
9,668
 
 
 
8,203
 
 
 
10,811
 
 
 
5,400
 

TOTAL LIABILITIES

 
 
602,387
 
 
 
649,338
 
 
 
640,087
 
 
 
384,232
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

STOCKHOLDERS’ EQUITY

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Preferred stock, $.01 par value

 
 

 
 
 

 
 
 

 
 
 

 

Common Stock, $.01 par value

 
 
152
 
 
 
467
 
 
 
467
 
 
 
416
 

Additional paid-in capital

 
 
168,349
 
 
 
42,932
 
 
 
42,932
 
 
 
22,441
 

Treasury stock

 
 

 
 
 
(3,710
)
 
 
(3,710
)
 
 
(3,710
)

Unearned common stock held by employee stock ownership plan

 
 
(10,104
)
 
 

 
 
 

 
 
 

 

Retained earnings

 
 
57,827
 
 
 
56,760
 
 
 
56,600
 
 
 
57,892
 

Accumulated other comprehensive (loss) income

 
 
(1,184
)
 
 
740
 
 
 
76
 
 
 
131
 

TOTAL STOCKHOLDERS’ EQUITY

 
 
215,040
 
 
 
97,189
 
 
 
96,365
 
 
 
77,170
 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 
$
817,427
 
 
$
746,527
 
 
$
736,452
 
 
$
461,402
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

William Penn Bancorporation and Subsidiaries
Consolidated Statements of Income

(Dollars in thousands, except share and per share data)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
Three months ended
 
 
Nine months ended
 

 

 
March 31,
2021
 
 
December 31, 2020
 
 
March 31,
2020
 
 
March 31,
2021
 
 
March 31, 2020
 

INTEREST INCOME

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loans receivable, including fees

 
$
5,701
 
 
$
6,233
 
 
$
4,277
 
 
$
17,827
 
 
$
12,500
 

Securities

 
 
449
 
 
 
472
 
 
 
422
 
 
 
1,574
 
 
 
1,097
 

Other

 
 
80
 
 
 
79
 
 
 
125
 
 
 
270
 
 
 
409
 

Total Interest Income

 
 
6,230
 
 
 
6,784
 
 
 
4,824
 
 
 
19,671
 
 
 
14,006
 

INTEREST EXPENSE

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Deposits

 
 
652
 
 
 
918
 
 
 
891
 
 
 
2,651
 
 
 
2,658
 

Borrowings

 
 
262
 
 
 
267
 
 
 
364
 
 
 
888
 
 
 
1,064
 

Total Interest Expense

 
 
914
 
 
 
1,185
 
 
 
1,255
 
 
 
3,539
 
 
 
3,722
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net Interest Income

 
 
5,316
 
 
 
5,599
 
 
 
3,569
 
 
 
16,132
 
 
 
10,284
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Provision for loan losses

 
 
15
 
 
 
32
 
 
 
21
 
 
 
113
 
 
 
21
 

NET INTEREST INCOME AFTER PROVISION

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOR LOAN LOSSES

 
 
5,301
 
 
 
5,567
 
 
 
3,548
 
 
 
16,019
 
 
 
10,263
 

OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service fees

 
 
199
 
 
 
186
 
 
 
152
 
 
 
568
 
 
 
447
 

Net gain (loss) on sale of securities

 
 
35
 
 
 
(30
)
 
 
103
 
 
 
5
 
 
 
196
 

Earnings on bank-owned life insurance

 
 
110
 
 
 
98
 
 
 
84
 
 
 
320
 
 
 
249
 

Net (loss) gain on disposition of premises and equipment

 
 
(34
)
 
 
454
 
 
 

 
 
 
435
 
 
 

 

Net gain (loss) on sale of other real estate owned

 
 
160
 
 
 
46
 
 
 

 
 
 
206
 
 
 
(16
)

Other

 
 
65
 
 
 
86
 
 
 
46
 
 
 
241
 
 
 
143
 

Total Other Income

 
 
535
 
 
 
840
 
 
 
385
 
 
 
1,775
 
 
 
1,019
 

OTHER EXPENSES

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Salaries and employee benefits

 
 
2,490
 
 
 
2,526
 
 
 
1,633
 
 
 
7,570
 
 
 
4,818
 

Occupancy and equipment

 
 
813
 
 
 
655
 
 
 
399
 
 
 
2,227
 
 
 
1,208
 

Data processing

 
 
419
 
 
 
509
 
 
 
277
 
 
 
1,350
 
 
 
799
 

Professional fees

 
 
193
 
 
 
217
 
 
 
152
 
 
 
598
 
 
 
526
 

Amortization on intangible assets

 
 
64
 
 
 
64
 
 
 
58
 
 
 
192
 
 
 
176
 

Prepayment penalties

 
 

 
 
 

 
 
 

 
 
 
161
 
 
 

 

Other

 
 
517
 
 
 
690
 
 
 
367
 
 
 
1,794
 
 
 
1,043
 

Total Other Expense

 
 
4,496
 
 
 
4,661
 
 
 
2,886
 
 
 
13,892
 
 
 
8,570
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Income Before Income Taxes

 
 
1,340
 
 
 
1,746
 
 
 
1,047
 
 
 
3,902
 
 
 
2,712
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Income Tax Expense

 
 
273
 
 
 
370
 
 
 
210
 
 
 
789
 
 
 
92
 

NET INCOME

 
$
1,067
 
 
$
1,376
 
 
$
837
 
 
$
3,113
 
 
$
2,620
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted earnings per share

 
$
0.07
 
 
$
0.09
 
 
$
0.06
 
 
$
0.21
 
 
$
0.20
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

William Penn Bancorporation and Subsidiaries
Average Balance Tables

 

 
Three months ended
 
 
Nine months ended
 

 

 
March 31, 2021
 
 
December 31, 2020
 
 
March 31, 2020
 
 
March 31, 2021
 
 
March 31, 2020
 

(Dollars in thousands)

 
Average Balance
 
 
Interest and Dividends
 
 
Yield/Cost
 
 
Average Balance
 
 
Interest and Dividends
 
 
Yield/Cost
 
 
Average Balance
 
 
Interest and Dividends
 
 
Yield/Cost
 
 
Average Balance
 
 
Interest and Dividends
 
 
Yield/Cost
 
 
Average Balance
 
 
Interest and Dividends
 
 
Yield/Cost
 

 

 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-earning assets:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loans

 
$
487,549
 
 
$
5,701
 
 
 
4.68
%
 
$
501,995
 
 
$
6,233
 
 
 
4.97
%
 
$
341,842
 
 
$
4,277
 
 
 
5.00
%
 
$
497,794
 
 
$
17,827
 
 
 
4.77
%
 
$
334,392
 
 
$
12,500
 
 
 
4.98
 

Investment securities

 
 
109,204
 
 
 
449
 
 
 
1.64
 
 
 
119,782
 
 
 
472
 
 
 
1.58
 
 
 
49,701
 
 
 
422
 
 
 
3.40
 
 
 
115,888
 
 
 
1,574
 
 
 
1.81
 
 
 
47,733
 
 
 
1,097
 
 
 
3.06
 

Other interest-earning assets

 
 
135,204
 
 
 
80
 
 
 
0.24
 
 
 
59,955
 
 
 
79
 
 
 
0.53
 
 
 
23,153
 
 
 
125
 
 
 
2.16
 
 
 
85,477
 
 
 
270
 
 
 
0.42
 
 
 
22,908
 
 
 
409
 
 
 
2.38
 

Total interest-earning assets

 
 
731,957
 
 
 
6,230
 
 
 
3.40
 
 
 
681,732
 
 
 
6,784
 
 
 
3.98
 
 
 
414,696
 
 
 
4,824
 
 
 
4.65
 
 
 
699,159
 
 
 
19,671
 
 
 
3.75
 
 
 
405,033
 
 
 
14,006
 
 
 
4.61
 

Non-interest-earning assets

 
 
61,811
 
 
 
 
 
 
 
 
 
 
 
59,975
 
 
 
 
 
 
 
 
 
 
 
40,201
 
 
 
 
 
 
 
 
 
 
 
60,572
 
 
 
 
 
 
 
 
 
 
 
31,635
 
 
 
 
 
 
 
 
 

Total assets

 
$
793,768
 
 
 
 
 
 
 
 
 
 
$
741,707
 
 
 
 
 
 
 
 
 
 
$
454,897
 
 
 
 
 
 
 
 
 
 
$
759,731
 
 
 
 
 
 
 
 
 
 
$
436,668
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing liabilities:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest-bearing checking accounts

 
$
99,812
 
 
 
17
 
 
 
0.07
%
 
$
100,026
 
 
 
22
 
 
 
0.09
%
 
$
57,967
 
 
 
15
 
 
 
0.10
%
 
$
101,719
 
 
 
89
 
 
 
0.12
%
 
$
57,133
 
 
 
47
 
 
 
0.11
 

Money market deposit accounts

 
 
157,016
 
 
 
166
 
 
 
0.42
 
 
 
154,343
 
 
 
248
 
 
 
0.64
 
 
 
89,494
 
 
 
301
 
 
 
1.34
 
 
 
150,055
 
 
 
740
 
 
 
0.66
 
 
 
79,547
 
 
 
903
 
 
 
1.51
 

Savings, including club deposits

 
 
100,044
 
 
 
24
 
 
 
0.10
 
 
 
96,301
 
 
 
24
 
 
 
0.10
 
 
 
31,582
 
 
 
11
 
 
 
0.14
 
 
 
97,028
 
 
 
91
 
 
 
0.12
 
 
 
31,829
 
 
 
34
 
 
 
0.14
 

Certificates of deposit

 
 
182,477
 
 
 
445
 
 
 
0.98
 
 
 
200,956
 
 
 
624
 
 
 
1.24
 
 
 
115,385
 
 
 
564
 
 
 
1.96
 
 
 
194,226
 
 
 
1,731
 
 
 
1.19
 
 
 
114,014
 
 
 
1,674
 
 
 
1.96
 

Total interest-bearing deposits

 
 
539,349
 
 
 
652
 
 
 
0.48
 
 
 
551,626
 
 
 
918
 
 
 
0.67
 
 
 
294,428
 
 
 
891
 
 
 
1.21
 
 
 
543,028
 
 
 
2,651
 
 
 
0.65
 
 
 
282,523
 
 
 
2,658
 
 
 
1.25
 

FHLB advances

 
 
41,000
 
 
 
262
 
 
 
2.55
 
 
 
41,000
 
 
 
267
 
 
 
2.61
 
 
 
59,750
 
 
 
364
 
 
 
2.44
 
 
 
45,720
 
 
 
888
 
 
 
2.59
 
 
 
56,300
 
 
 
1,064
 
 
 
2.52
 

Total interest-bearing liabilities

 
 
580,349
 
 
 
914
 
 
 
0.63
 
 
 
592,626
 
 
 
1,185
 
 
 
0.80
 
 
 
354,178
 
 
 
1,255
 
 
 
1.42
 
 
 
588,748
 
 
 
3,539
 
 
 
0.80
 
 
 
338,823
 
 
 
3,722
 
 
 
1.46
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest-bearing liabilities:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-interest-bearing deposits

 
 
100,570
 
 
 
 
 
 
 
 
 
 
 
38,927
 
 
 
 
 
 
 
 
 
 
 
15,556
 
 
 
 
 
 
 
 
 
 
 
59,423
 
 
 
 
 
 
 
 
 
 
 
13,825
 
 
 
 
 
 
 
 
 

Other non-interest-bearing

 
 
6,898
 
 
 
 
 
 
 
 
 
 
 
13,909
 
 
 
 
 
 
 
 
 
 
 
8,659
 
 
 
 
 
 
 
 
 
 
 
11,973
 
 
 
 
 
 
 
 
 
 
 
8,027
 
 
 
 
 
 
 
 
 

liabilities

 
 
 

Total liabilities

 
 
687,817
 
 
 
 
 
 
 
 
 
 
 
645,462
 
 
 
 
 
 
 
 
 
 
 
378,393
 
 
 
 
 
 
 
 
 
 
 
660,144
 
 
 
 
 
 
 
 
 
 
 
360,675
 
 
 
 
 
 
 
 
 

Total equity

 
 
105,951
 
 
 
 
 
 
 
 
 
 
 
96,245
 
 
 
 
 
 
 
 
 
 
 
76,504
 
 
 
 
 
 
 
 
 
 
 
99,587
 
 
 
 
 
 
 
 
 
 
 
75,993
 
 
 
 
 
 
 
 
 

Total liabilities and equity

 
$
793,768
 
 
 
 
 
 
 
 
 
 
$
741,707
 
 
 
 
 
 
 
 
 
 
$
454,897
 
 
 
 
 
 
 
 
 
 
$
759,731
 
 
 
 
 
 
 
 
 
 
$
436,668
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest income

 
 
 
 
 
$
5,316
 
 
 
 
 
 
 
 
 
 
$
5,599
 
 
 
 
 
 
 
 
 
 
$
3,569
 
 
 
 
 
 
 
 
 
 
$
16,132
 
 
 
 
 
 
 
 
 
 
$
10,284
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest rate spread

 
 
 
 
 
 
2.77
%
 
 
 
 
 
 
 
 
 
 
3.18
%
 
 
 
 
 
 
 
 
 
 
3.23
%
 
 
 
 
 
 
 
 
 
 
2.95
%
 
 
 
 
 
 
 
 
 
 
3.15
%
 
 
 
 

Net interest-earning assets

 
$
151,608
 
 
 
 
 
 
 
 
 
 
$
89,105
 
 
 
 
 
 
 
 
 
 
$
60,518
 
 
 
 
 
 
 
 
 
 
$
110,411
 
 
 
 
 
 
 
 
 
 
$
66,210
 
 
 
 
 
 
 
 
 

Net interest margin

 
 
 
 
 
 
2.91
%
 
 
 
 
 
 
 
 
 
 
3.29
%
 
 
 
 
 
 
 
 
 
 
3.44
%
 
 
 
 
 
 
 
 
 
 
3.08
%
 
 
 
 
 
 
 
 
 
 
3.39
%
 
 
 
 

Ratio of interest-earning assets

 
 
126.12
%
 
 
 
 
 
 
 
 
 
 
115.04
%
 
 
 
 
 
 
 
 
 
 
117.09
%
 
 
 
 
 
 
 
 
 
 
118.75
%
 
 
 
 
 
 
 
 
 
 
119.54
%
 
 
 
 
 
 
 
 

to interest-bearing liabilities

 
 
 

 
 
 
 

ASSET QUALITY INDICATORS

 
March 31,
 
 
December 31,
 
 
June 30,
 
 
March 31,
 

(Dollars in thousands)

 
2021
 
 
2020
 
 
2020
 
 
2020
 

 

 
 
 
 
 
 
 
 
 
 
 
 

Non-performing assets:

 
 
 
 
 
 
 
 
 
 
 
 

Non-accruing loans

 

5,956
 
 

5,085
 
 

3,172
 
 

1,914
 

Accruing loans past due 90 days or more

 
 

 
 
 

 
 
 
90
 
 
 
198
 

Total non-performing loans

 

5,956
 
 

5,085
 
 

3,262
 
 

2,112
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Real estate owned

 
 
100
 
 
 
100
 
 
 
100
 
 
 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total non-performing assets

 

6,056
 
 

5,185
 
 

3,362
 
 

2,112
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-performing loans to total loans

 
 
1.24
%
 
 
1.02
%
 
 
0.64
%
 
 
0.60
%

Non-performing assets to total assets

 
 
0.74
%
 
 
0.69
%
 
 
0.46
%
 
 
0.46
%

ALLL to total loans and leases

 
 
0.75
%
 
 
0.72
%
 
 
0.69
%
 
 
0.86
%

ALLL to non-performing loans

 
 
60.43
%
 
 
70.54
%
 
 
107.88
%
 
 
142.47
%

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Key annualized performance ratios are as follows for the three and nine months ended (unaudited):

 

 
For the Three Months Ended
 
 
For the Nine Months Ended
 

 

 
March 31,
 
 
December 31,
 
 
March 31,
 
 
March 31,
 
 
March 31,
 

 

 
2021
 
 
2020
 
 
2020
 
 
2021
 
 
2020
 

PERFORMANCE RATIOS:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(annualized)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Return on average assets

 
 
0.54
%
 
 
0.74
%
 
 
0.74
%
 
 
0.55
%
 
 
0.80
%

Return on average equity

 
 
4.03
%
 
 
5.72
%
 
 
4.38
%
 
 
4.17
%
 
 
4.60
%

Net interest margin

 
 
2.91
%
 
 
3.29
%
 
 
3.44
%
 
 
3.08
%
 
 
3.39
%

Net charge-off ratio

 
 
0.00
%
 
 
0.02
%
 
 
0.00
%
 
 
0.01
%
 
 
0.09
%

Efficiency ratio

 
 
77.04
%
 
 
72.75
%
 
 
73.38
%
 
 
78.07
%
 
 
75.96
%

Tangible common equity

 
 
25.78
%
 
 
12.32
%
 
 
12.37
%
 
 
25.78
%
 
 
15.65
%

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

William Penn Bancorporation and Subsidiaries

 
 
 
 
 
 
 
 
 
 
 
 

Non-GAAP Reconciliation

 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in thousands, except share and per share data)

 
 
 
 
 
 
 
 
 
 
 
 

 

 
March 31,
 
 
December 31,
 
 
June 30,
 
 
March 31,
 

 

 
2021
 
 
2020
 
 
2020
 
 
2020
 

 

 
 
 
 
 
 
 
 
 
 
 
 

Calculation of Tangible Book Value per Share:

 
 
 
 
 
 
 
 
 
 
 
 

Total Stockholders’ Equity

 

215,040
 
 

97,189
 
 

96,365
 
 

77,170
 

Less: Goodwill and other intangible assets

 
 
5,858
 
 
 
5,922
 
 
 
6,050
 
 
 
5,854
 

Total tangible equity (non-GAAP)

 

209,182
 
 

91,267
 
 

90,315
 
 

71,316
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total common shares outstanding (adjusted for 3.2585 exchange ratio)

 
 
15,170,566
 
 
 
14,628,530
 
 
 
14,628,530
 
 
 
12,969,332
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Book value per share (GAAP)

 

14.17
 
 

6.64
 
 

6.59
 
 

5.95
 

Tangible book value per share (non-GAAP)

 

13.79
 
 

6.24
 
 

6.17
 
 

5.50
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Calculation of the ratio of the allowance for loan losses to total loans, excluding acquired loans:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Gross loans receivable

 

479,329
 
 

498,392
 
 

512,124
 
 

349,535
 

Less: Loans acquired in a business combination

 
 
177,996
 
 
 
199,227
 
 
 
235,112
 
 
 
63,939
 

Gross loans receivable, excluding acquired loans (non-GAAP)

 

301,333
 
 

299,165
 
 

277,012
 
 

285,596
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

SOURCE: William Penn Bancorp, Inc.

View source version on accesswire.com:
https://www.accesswire.com/641872/William-Penn-Bancorporation-Announces-Third-Quarter-Results

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