William Penn Bancorporation Reports Quarterly Loss Amid Merger

William Penn Bancorp, Inc. ( (WMPN) ) has released its Q2 earnings. Here is a breakdown of the information William Penn Bancorp, Inc. presented to its investors.

William Penn Bancorporation is a community bank holding company, operating through its subsidiary William Penn Bank, serving the Delaware Valley area with several branch offices across Pennsylvania and New Jersey. The company recently announced its quarterly financial results, highlighting a net loss for the period due to expenses linked to a pending merger.

In its latest earnings report, William Penn Bancorporation reported a net loss of $988 thousand for the quarter, largely impacted by professional fees related to its upcoming merger with Mid Penn Bancorp, Inc. Despite the loss, the company declared a $0.03 cash dividend per share, maintaining its commitment to returning value to shareholders.

Key financial metrics included a decrease in total assets by $22.3 million, primarily due to reductions in investments and cash. However, the company saw improvements in its asset quality, with non-performing assets down to 0.30% of total assets. Additionally, the bank’s book value and tangible book value per share saw modest increases, aided by a reduction in the accumulated other comprehensive loss component of equity.

Net interest income declined by 3.7% compared to the previous year, influenced by decreased interest income from investments. Non-interest income showed a positive trend, increasing by 17.8%, mainly due to gains from the sale of bank-owned properties. Meanwhile, non-interest expenses rose significantly, driven by merger-related costs and increased salaries.

Looking ahead, William Penn Bancorporation’s management remains focused on executing its business model, maintaining a strong balance sheet, and navigating the merger with Mid Penn Bancorp, Inc., while addressing challenges in the interest rate environment and regulatory conditions.