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Mar 31, 2021
William Penn Bancorp Q3 2021 Earnings Report
William Penn Bancorp reported an increase in net income due to acquisitions and second-step conversion.
Key Takeaways
William Penn Bancorp reported a net income of $1.1 million, or $0.07 per diluted share, for the three months ended March 31, 2021. Net interest income increased by $1.7 million, or 48.9%, compared to the same period in the prior year. The company completed its second-step conversion and stock offering during the quarter, resulting in a tangible book value per share of $13.79 as of March 31, 2021.
Completed second-step conversion and stock offering, generating gross proceeds of $126.4 million.
Tangible capital to tangible assets significantly increased to 25.77% following the second-step conversion.
Net income for the quarter was $1.1 million, or $0.07 per diluted share.
Net interest income increased by $1.7 million, or 48.9%, compared to the same period in the prior year.
Forward Guidance
The company intends to deploy the second step proceeds to assist in achieving strategic and financial growth goals.
Challenges Ahead
- Experiencing reduced loan demand due to the difficult operating environment related to the COVID-19 pandemic.
- Low interest rate environment has made it challenging to effectively deploy the excess cash.
- Consolidating three existing Bank branches into one branch based on branch deposit levels and the close geographic proximity of the three consolidating branches.
- COVID-19 pandemic and low interest rate environment have created a highly competitive market for residential lending.
- Decrease in time deposits was consistent with the planned run-off associated with our re-pricing of higher-cost, non-relationship-based accounts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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