On July 17, 2024, William Penn Bancorporation (WMPN, Financial) released its 8-K filing announcing financial results for the quarter and year ended June 30, 2024. William Penn Bancorporation operates as an independent community financial services provider, offering traditional banking and related financial services to individual, business, and government customers.
Performance Overview
William Penn Bancorporation reported a net loss of $158 thousand, or $(0.02) per basic and diluted share, for the quarter ended June 30, 2024. For the fiscal year, the company recorded a net income of $168 thousand, or $0.02 per basic and diluted share. This compares to a net income of $531 thousand and $2.8 million, or $0.05 and $0.22 per basic and diluted share, respectively, for the same periods in 2023.
Financial Achievements and Challenges
Despite the challenging interest rate environment, William Penn Bancorporation managed to expand its net interest margin by ten basis points on a linked-quarter basis to 2.25%. The company also achieved net deposit inflows of $4.0 million during the quarter. However, the overall decrease in net interest income and the rise in interest expenses on deposits and borrowings have impacted profitability.
Kenneth J. Stephon, Chairman, President, and CEO, stated, “The current interest rate environment remains challenging for community banks with respect to profitability. Notwithstanding, our net interest margin expanded by ten basis points on a linked-quarter basis to 2.25%, signifying a possible inflection point in the current cycle while achieving net deposit inflows of $4.0 million during the quarter.”
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $(158) thousand | $531 thousand | $168 thousand | $2.8 million |
| Net Interest Income | $4.2 million | $5.3 million | $17.1 million | $23.1 million |
| Net Interest Margin | 2.25% | 2.73% | 2.30% | 2.97% |
| Non-Interest Income | $633 thousand | $592 thousand | $2.8 million | $1.9 million |
| Non-Interest Expense | $5.2 million | $5.2 million | $20.9 million | $22.0 million |
Income Statement Highlights
For the quarter ended June 30, 2024, net interest income decreased by $1.1 million, or 21.1%, compared to the same period in 2023. The decrease was primarily due to an increase in interest expense on deposits and borrowings. Non-interest income for the quarter increased by $41 thousand, or 6.9%, primarily due to higher earnings on bank-owned life insurance.
Balance Sheet Highlights
Total assets decreased by $28.9 million, or 3.4%, to $818.7 million at June 30, 2024, from $847.6 million at June 30, 2023. This decrease was primarily due to a reduction in available-for-sale and held-to-maturity investments and net loans. Stockholders’ equity decreased by $36.1 million, or 22.5%, to $124.6 million, mainly due to share repurchases and dividend payments.
Cash Flow and Liquidity
Cash and cash equivalents decreased by $595 thousand, or 2.9%, to $20.2 million at June 30, 2024. The decrease was primarily due to share repurchases and dividend payments, partially offset by increases in advances from the Federal Home Loan Bank and investment principal paydowns.
Asset Quality
Asset quality metrics remained strong, with non-performing assets to total assets decreasing to 0.40% as of June 30, 2024, from 0.49% as of June 30, 2023. The company recorded a $606 thousand recovery for credit losses during the year, reflecting strong asset quality and conservative lending practices.
Capital and Liquidity
As of June 30, 2024, William Penn’s stockholders’ equity to assets ratio was 15.22%, and the tangible capital to tangible assets ratio was 14.68%. The bank's capital position remains strong relative to regulatory requirements, with substantial liquidity retained in cash or invested in high-quality government-backed securities.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from William Penn Bancorporation for further details.
