William Penn Bancorporation (WMPN) Q2 2025 earnings summary

Executive summary

• Reported net loss of $988K for Q2 FY2025 and $1.0M for the six months ended Dec 31, 2024, compared to net income of $11K and $190K in the prior year periods, driven by $731K and $836K in merger-related expenses.

• Core net loss (non-GAAP) was $743K for the quarter and $744K for the six months, compared to core net losses of $168K and $46K in the prior year.

• Asset quality remains strong, with non-performing assets to total assets at 0.30%, down from 0.40% at June 30, 2024.

• Book value per share increased to $13.49 and tangible book value per share to $12.93 as of Dec 31, 2024.

• Board declared $0.03/share cash dividend, payable Feb 6, 2025.

Financial highlights

• Net interest income for the quarter was $4.1M, down 3.7% year-over-year; for six months, $8.2M, down 8.5%.

• Net interest margin was 2.27% for the quarter and 2.28% for six months, both slightly lower than prior year.

• Non-interest income rose 17.8% to $975K for the quarter, mainly from a $211K gain on sale of two buildings.

• Non-interest expense increased 21.9% to $6.2M for the quarter, driven by merger costs and higher salaries.

• Total assets decreased 2.7% to $796.4M; loans decreased 0.7% to $467.5M; deposits decreased 0.4% to $627.4M.

Outlook and guidance

• Merger with Mid Penn Bancorp expected to close in Q2 2025, subject to regulatory and shareholder approvals.

• Each William Penn share to convert into 0.426 shares of Mid Penn; transaction subject to customary closing conditions.

• Management expects continued focus on asset quality, conservative lending, and balance sheet strength.