William Penn Bancorporation(US:WMPN)2024-07-17 20:35Financial Performance - The company reported a net loss of $158 million for the quarter ended June 30, 2024, compared to a net income of $136 million in the previous quarter and $531 million a year ago [26]. - Basic loss earnings per share for the quarter was $(0.02), consistent with the previous quarter and down from $0.05 a year ago [26]. - For the quarter ended June 30, 2024, William Penn recorded a net loss of $158 thousand, or $(0.02) per share, compared to a net income of $531 thousand, or $0.05 per share for the same quarter in 2023 [33]. - Core net loss income (non-GAAP) for the year ended June 30, 2024, was $(211) million, down from $2,769 million in the previous year [63]. - The efficiency ratio for the quarter ended June 30, 2024, was 109.07%, an increase from 89.30% in the same quarter last year [70]. Interest Income and Expenses - Net interest income decreased by $1.1 million, or 21.1%, to $4.2 million for the quarter ended June 30, 2024, primarily due to increased interest expenses [15]. - Total interest income for the quarter ended June 30, 2024, was $8,287 million, an increase from $8,164 million in the previous quarter and $8,135 million a year ago [26]. - The company’s total interest expense for the quarter was $4,135 million, slightly down from $4,150 million in the previous quarter and significantly up from $2,874 million a year ago [26]. - Net interest income for the quarter ended June 30, 2024, was $4,152 million, down from $5,261 million in the same quarter last year [68]. - The net interest margin expanded by 10 basis points to 2.25% for the quarter ended June 30, 2024, despite a challenging interest rate environment [2]. Asset and Liability Management - Total assets decreased by $28.9 million, or 3.4%, to $818.7 million as of June 30, 2024, primarily due to a decrease in investments and net loans [10]. - Total assets decreased from $847,579 million on June 30, 2023, to $818,747 million on June 30, 2024, representing a decline of approximately 3.9% [62]. - Total liabilities decreased to $694,146 million as of June 30, 2024, from $707,427 million in the previous quarter and increased from $686,834 million a year ago [25]. - Average assets decreased from $860,279 million to $819,888 million, a decline of about 4.7% [63]. - Average equity decreased from $179,842 million to $122,961 million, a drop of approximately 31.5% [63]. Shareholder Actions - The company repurchased 96,117 shares at a total cost of $1.2 million during the quarter, with a total of 6,298,086 shares repurchased for $73.7 million as of June 30, 2024 [3]. - Stockholders' equity decreased by $36.1 million, or 22.5%, to $124.6 million at June 30, 2024, primarily due to share repurchases [38]. - The company declared a cash dividend of $0.03 per share, payable on August 8, 2024 [7]. - The company repurchased 96,117 shares at a total cost of $1.2 million during the fourth fiscal quarter, bringing total repurchases to approximately 49% of shares sold in the second-step conversion [34]. Non-Performing Assets and Credit Quality - Non-performing assets to total assets improved to 0.40% as of June 30, 2024, down from 0.49% as of June 30, 2023 [19]. - The company recorded a $606 thousand recovery for credit losses during the year ended June 30, 2024, reflecting strong asset quality metrics [9]. - Total non-performing assets as of June 30, 2024, were $3.311 million, a decrease from $4.174 million in the same period last year [31]. - Allowance for credit losses decreased from $3,313 million to $2,989 million, a reduction of approximately 9.8% [62]. - Total credit losses coverage ratio to total loans (non-GAAP) decreased from 1.20% to 1.08% [62]. Deposits and Borrowings - Deposits increased to $629,810 million as of June 30, 2024, compared to $625,797 million in the previous quarter and $635,260 million a year ago [25]. - Deposits decreased by $5.5 million, or 0.9%, to $629.8 million at June 30, 2024, driven by a decline in money market and savings accounts [37]. - Borrowings increased by $14.0 million, or 41.2%, to $48.0 million as of June 30, 2024, to fund share repurchases [12]. Equity and Book Value - Book value per share increased to $13.33 as of June 30, 2024, compared to $12.91 as of June 30, 2023 [5]. - Tangible book value per share increased from $12.48 to $12.78, reflecting a growth of 2.4% [62]. - Tangible common equity ratio was 14.68% as of June 30, 2024, down from 18.45% a year earlier [70]. - As of June 30, 2024, the company's stockholders' equity to assets ratio was 15.22%, indicating a strong capital position relative to regulatory requirements [48].