William Penn Bancorp, Inc. Announces Quarter and Year End Results and Appointments of Executive Officers
William Penn Bancorp reported a net loss of $1.3 million for Q4 2020, with diluted earnings per share at ($0.32), compared to a net income of $1.3 million and $0.33 per share in Q4 2019. Total assets increased by 77.2% to $736.9 million, primarily due to recent acquisitions. Loans rose 56.0% to $508.6 million, with deposits up 99.2% to $560.1 million. Non-interest income increased significantly, driven by a gain on bargain purchase from the acquisitions. The company appointed new executive officers and strengthened capital positions as it navigated challenges stemming from the COVID-19 pandemic.
- Total assets increased by 77.2% to $736.9 million.
- Loans increased by 56.0% to $508.6 million, reflecting recent acquisitions.
- Deposits surged 99.2% to $560.1 million.
- Non-interest income rose significantly by 139.2%, totaling $1.1 million.
- Tangible book value per share increased by 13.4% to $20.12.
- Net loss of $1.3 million for Q4 2020 compared to net income of $1.3 million for Q4 2019.
- Non-interest expenses increased 184.7% to $6.8 million, largely driven by merger-related costs.
BRISTOL, PA / ACCESSWIRE / August 11, 2020 / William Penn Bancorp, Inc. ("William Penn" or the "Company") (OTC PINK:WMPN), the parent company of William Penn Bank (the "Bank"), today announced its financial results for the quarter and year ended June 30, 2020. William Penn recorded a net loss of
Kenneth J. Stephon, William Penn's President and CEO, stated "Despite a challenging operating environment related to the COVID-19 pandemic, we continued to make progress on our strategic priorities during the year. We successfully completed the acquisitions of Washington and Fidelity, organically grew deposits, and continued to invest in the growth of our business. In fiscal 2020, we opened a new branch in Collingswood, New Jersey and added five new offices through the two acquisitions, bringing our branch network up to twelve full-service locations. We continue to make strategic investments in technology and talent to help us continue to grow and serve our customers going forward. We are currently working to prudently deploy the excess cash we hold on our balance sheet from the two acquisitions to improve our asset mix and augment earnings."
Highlights for the quarter and year ended June 30, 2020 are as follows:
- William Penn completed the acquisition of Washington and Fidelity on May 1, 2020, which increased total loans by
$177.5 million and total deposits by$202.0 million . - The Company opened a new branch located in Collingswood, New Jersey that is currently offering curbside assistance.
- The Company appointed Jonathan Logan to the role of Chief Financial Officer, Gregory Garcia to the role of Chief Operating Officer, and Jill M. Ross to the role of Chief Retail & Commercial Officer.
- William Penn increased credit reserves amidst the uncertain economic environment and recorded a
$605 thousand provision for credit losses during the quarter ended June 30, 2020. - During the year ended June 30, 2020, William Penn recorded net income of
$1.3 million , or$0.33 per diluted share. - Tangible book value per share measured
$20.12 as of June 30, 2020, compared to$17.74 as of June 30, 2019, an increase of$2.38 , or13.4% . - Net interest income increased
$1.1 million , or33.3% , and$569 thousand , or4.0% , for the quarter and year ended June 30, 2020 compared to the same periods in the prior year. - Non-interest income for the quarter and year ended June 30, 2020 includes a
$746 thousand gain on bargain purchase associated with the acquisitions of Washington and Fidelity. - Non-interest expense for the quarter and year ended June 30, 2020 includes
$3.3 million of merger related expenses associated with the acquisitions of Washington and Fidelity. - Asset quality metrics continued to remain strong with non-performing assets to total assets of
0.46% as of June 30, 2020. Our allowance for loan losses totaled$3.5 million , or1.26% of total loans, excluding acquired loans, as of June 30, 2020.
Balance Sheet
Total assets increased
Cash and cash equivalents increased
Investments increased
Loans increased
Deposits increased
Borrowings increased
Stockholders' equity increased
Net Interest Income
For the quarter ended June 30, 2020, net interest income was
For the year ended June 30, 2020, William Penn reported net interest income of
Non-interest Income
For the quarter ended June 30, 2020, non-interest income totaled
For the year ended June 30, 2020, non-interest income totaled
Non-interest Expense
For the quarter ended June 30, 2020, non-interest expense totaled
For the year ended June 30, 2020, non-interest expense totaled
Income Taxes
For the year ended June 30, 2020, we recorded an income tax benefit of
Asset Quality
Our ratio of non-performing assets to total assets decreased to
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 June 30, 2020, William Penn's tangible capital to tangible assets totaled
Appointments of Executive Officers
William Penn announced the appointment of Jonathan Logan as Chief Financial Officer and Senior Vice President of the Company and the Bank. Mr. Logan is a Certified Public Accountant who started his career at Ernst & Young before joining Beneficial Bancorp, Inc., where he held progressively responsible positions including serving as Corporate Controller. He holds a Bachelor of Science degree in Business Administration from Susquehanna University, where he majored in Accounting.
William Penn also announced the appointment of Gregory Garcia as Chief Operating Officer and Executive Vice President, having previously served in the capacity of Chief Financial Officer of the Company and the Bank since January 2019. Mr. Garcia is a graduate of Rutgers University and the Stonier Graduate School of Banking at the University of Pennsylvania.
William Penn also announced that the role of Executive Vice President Jill M. Ross had been expanded, with a corresponding change in title to EVP - Chief Retail & Commercial Officer. Ms. Ross joined William Penn in March 2019 as Chief Retail Officer. She earned a Bachelor of Science Degree in Finance from Rutgers University and a Master's Degree from Rutgers in Social Work and Organizational Leadership.
About William Penn Bancorp, Inc.
William Penn Bancorp, Inc., headquartered in Bristol, Pennsylvania, is the holding company for William Penn Bank, which serves the Delaware Valley area through twelve 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, Bristol, Pennsylvania 19007. William Penn Bank's deposits are insured up to the legal maximum (generally
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. Additionally, other risks and uncertainties may be described in William Penn's Annual Report, which is available through the Company's website www.williampenn.bank. 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.
WILLIAM PENN BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition
(Dollars in thousands, except share amounts)
| June 30, | March 31, | June 30, | ||||||||||
| 2020 | 2020 | 2019 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 6,403 | $ | 7,185 | $ | 8,260 | ||||||
Interest bearing deposits with other banks | 76,512 | 12,967 | 17,908 | |||||||||
Total cash and cash equivalents | 82,915 | 20,152 | 26,168 | |||||||||
Interest-bearing time deposits | 2,562 | 2,000 | 8,486 | |||||||||
Securities available for sale | 89,208 | 56,042 | 20,660 | |||||||||
Securities held to maturity | 814 | 718 | 1,906 | |||||||||
Loans receivable, net of allowance for loan losses of | ||||||||||||
| 508,605 | 346,408 | 326,017 | ||||||||||
Premises and equipment, net | 16,733 | 10,786 | 8,406 | |||||||||
Regulatory stock, at cost | 4,267 | 3,175 | 2,785 | |||||||||
Deferred income taxes | 4,787 | 2,472 | 2,111 | |||||||||
Other real estate owned | 100 | - | - | |||||||||
Bank-owned life insurance | 14,758 | 11,452 | 11,203 | |||||||||
Goodwill | 4,858 | 4,858 | 4,858 | |||||||||
Intangible assets | 1,192 | 996 | 1,172 | |||||||||
Accrued interest receivable and other assets | 6,049 | 2,657 | 2,057 | |||||||||
TOTAL ASSETS | $ | 736,848 | $ | 461,716 | $ | 415,829 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
LIABILITIES | ||||||||||||
Deposits | $ | 560,110 | $ | 313,514 | $ | 281,206 | ||||||
Advances from Federal Home Loan Bank | 64,892 | 61,000 | 50,000 | |||||||||
Advances from borrowers for taxes and insurance | 4,536 | 3,584 | 3,814 | |||||||||
Accrued interest payable and other liabilities | 10,945 | 6,448 | 4,179 | |||||||||
TOTAL LIABILITIES | 640,483 | 384,546 | 339,199 | |||||||||
Commitments and contingencies | - | - | - | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Preferres stock, no par value | - | - | - | |||||||||
Common Stock, $.10 par value | 467 | 416 | 416 | |||||||||
Additional paid-in capital | 42,932 | 22,441 | 22,435 | |||||||||
Treasury stock | (3,710 | ) | (3,710 | ) | (3,710 | ) | ||||||
Retained earnings | 56,600 | 57,892 | 57,261 | |||||||||
Accumulated other comprehensive income | 76 | 131 | 228 | |||||||||
TOTAL STOCKHOLDERS' EQUITY | 96,365 | 77,170 | 76,630 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 736,848 | $ | 461,716 | $ | 415,829 | ||||||
WILLIAM PENN BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
| Quarter ended | Year ended | |||||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans receivable, including fees | $ | 5,414 | $ | 4,277 | $ | 4,172 | $ | 17,914 | $ | 16,595 | ||||||||||
Securities | 362 | 444 | 215 | 1,557 | 415 | |||||||||||||||
Other | 35 | 104 | 108 | 346 | 811 | |||||||||||||||
Total Interest Income | 5,811 | 4,825 | 4,495 | 19,817 | 17,821 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 946 | 892 | 780 | 3,604 | 2,297 | |||||||||||||||
Borrowings |
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FAQ
What were William Penn Bancorp's earnings for Q4 2020?
William Penn Bancorp reported a net loss of $1.3 million for Q4 2020.
How much did deposits increase for William Penn Bancorp in 2020?
Deposits increased by 99.2% to $560.1 million.
What notable acquisitions did William Penn Bancorp complete in 2020?
William Penn Bancorp completed the acquisitions of Washington Savings Bank and Fidelity Savings and Loan Association on May 1, 2020.
What is the current tangible book value per share for WMPN?
The tangible book value per share for William Penn Bancorp is $20.12.
What were the key factors driving revenue increases for WMPN?
Key factors include significant increases in loans and deposits due to recent acquisitions.
William Penn Bancorporation
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WMPN Stock Data
121.13M
9.21M
20.32%
21.96%
0.21%
Banks - Regional
Savings Institutions, Not Federally Chartered
United States of America
BRISTOL
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