Executive Summary

Q4 FY2024 (quarter ended June 30, 2024) printed a small net loss of $0.16M, or $(0.02) per share, as funding costs kept the efficiency ratio above 100% even as net interest margin (NIM) improved sequentially to 2.25% from 2.15% .
Management highlighted a potential NIM “inflection point” with 10 bps linked‑quarter expansion and continued cost discipline; non‑interest expense fell 2.2% sequentially to $5.22M .
Credit quality remains strong (NPAs/Assets 0.40%) and capital robust (CBLR 16.10%); book value per share rose to $13.33; a $0.03 dividend was declared for August 8, 2024 .
No formal guidance or call transcript was provided; S&P Global consensus estimates were unavailable for this quarter (attempted, not mapped). Expect estimate models to reflect persistent deposit pricing pressure and only gradual NIM relief .

What Went Well and What Went Wrong

What Went Well
- Sequential NIM improvement: “net interest margin expanded by ten basis points on a linked‑quarter basis to 2.25%, signifying a possible inflection point” .
- Solid credit quality: NPAs/Assets improved to 0.40% YoY; recoveries for credit losses in FY2024 support benign loss content .
- Capital return: repurchased 96,117 shares in Q4 for $1.2M; book value per share reached $13.33, TBVPS $12.78; quarterly dividend maintained at $0.03 .
What Went Wrong
- Earnings pressure: Q4 net loss $(0.16)M (EPS $(0.02)) as efficiency ratio remained 109.07% (vs 89.30% a year ago) .
- Funding costs: interest expense more than doubled vs prior year (to $4.14M from $2.87M), reflecting intense deposit pricing competition .
- YoY margin compression: despite sequential progress, NIM was 2.25% vs 2.73% in Q4 FY2023, underscoring lingering rate‑pressure drag .

Financial Results

Metric	Q4 2023 (Jun 30, 2023)	Q3 2024 (Mar 31, 2024)	Q4 2024 (Jun 30, 2024)
Basic/Diluted EPS ($)	$0.05	$0.02	$(0.02)
Net Interest Income ($M)	$5.261	$4.014	$4.152
Non‑interest Income ($M)	$0.592	$0.725	$0.633
Total Interest Income ($M)	$8.135	$8.164	$8.287
Interest Expense ($M)	$2.874	$4.150	$4.135
Non‑interest Expense ($M)	$5.227	$5.338	$5.219
Net (Loss) Income ($M)	$0.531	$0.136	$(0.158)
NIM (%)	2.73%	2.15%	2.25%
Efficiency Ratio (GAAP, %)	89.30%	112.64%	109.07%

Banking KPIs and Balance Sheet (period-end unless noted):

KPI	Q4 2023	Q3 2024	Q4 2024
NPAs / Assets (%)	0.49%	0.41%	0.40%
Deposits ($M)	$635.3	$625.8	$629.8
Borrowings ($M)	$34.0	$65.0	$48.0
Book Value per Share ($)	$12.91	$13.30	$13.33
Tangible Book Value per Share ($)	$12.48	$12.74	$12.78
Stockholders’ Equity / Assets (%)	18.97%	15.09%	15.22%
CBLR (Bank)	20.08% (FY2023 ref)	16.01%	16.10%

Notes:

All Q4 FY2024 figures refer to the quarter ended June 30, 2024.
“Revenue” not disclosed as a single line; banking comparatives provided as Net Interest Income and Non‑interest Income (industry convention) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company financial guidance	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Dividend	Q4 2024	$0.03 per share (prior quarters)	$0.03 per share payable Aug 8, 2024	Maintained

Earnings Call Themes & Trends

No earnings call transcript was found for Q4 FY2024 despite a document search (no earnings‑call‑transcript available) [ListDocuments result showing 0 items].

Topic	Previous Mentions (Q2 FY2024)	Previous Mentions (Q3 FY2024)	Current Period (Q4 FY2024)	Trend
Interest rate environment and NIM	“Profitability remains under pressure”; NIM 2.28%; cost actions ongoing	NIM 2.15%; expenses down; focus on maximizing shareholder value	NIM 2.25%; “possible inflection point” with 10 bps linked‑quarter expansion	Improving sequentially, still below prior year
Deposit pricing/mix	Competitive pricing; deposit mix shifts (MMAs and savings down, checking/time up)	Continued competition; modest deposit outflow YTD	Net deposit inflows $4.0M in Q4; continued competition noted	Stabilizing with mix shift to time deposits
Credit quality	NPAs/Assets improved to 0.38%; benign losses	NPAs/Assets 0.41%; recoveries continue	NPAs/Assets 0.40%; recoveries in FY2024	Stable/strong
Expenses and efficiency	Lowering FTEs and occupancy; expense down YoY	Expense down 4.1% YoY in Q3; continued discipline	Expense down 2.2% sequentially; efficiency ratio still >100%	Cost control good; revenue pressure keeps efficiency elevated
Capital return	Aggressive buybacks; 1.19M shares in Q2	205,649 shares repurchased in Q3	96,117 shares repurchased in Q4; dividend maintained	Ongoing, scaled to conditions
Liquidity/borrowings	Borrowings up to fund buybacks	Borrowings elevated at $65M	Borrowings reduced to $48M as of 6/30/24	De‑leveraging in Q4

Management Commentary

“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.” — Kenneth J. Stephon, Chairman, President & CEO .
“We also continue to post strong credit quality metrics, with a non‑performing assets to total assets ratio of 0.40% as of June 30, 2024 and net recoveries for the quarter and year ended June 30, 2024.” .
“We maintain our commitment to delivering the maximum value to our shareholders through diligent capital management… we repurchased 96,117 shares at a total cost of $1.2 million” .

Q&A Highlights

No Q4 FY2024 earnings call transcript was available; therefore, no Q&A to report [ListDocuments result showing 0 items].

Estimates Context

Wall Street consensus via S&P Global was unavailable for WMPN this quarter due to missing mapping in S&P CIQ for this ticker. Values retrieved from S&P Global were unavailable due to mapping; therefore, no vs‑consensus comparisons are shown.

Key Takeaways for Investors

Sequential NIM expansion (2.25% vs 2.15%) and signs of an “inflection” point are constructive, but absolute margin remains below prior‑year levels and keeps the efficiency ratio >100% .
Funding costs are the core headwind; interest expense more than doubled YoY, reflecting deposit repricing and mix shift toward time deposits in a competitive market .
Asset quality continues to underpin the story (NPAs/Assets 0.40%, recoveries), limiting credit‑cost volatility amid macro uncertainty .
Capital return remains consistent but calibrated: buybacks continued (96K shares) and the quarterly dividend was maintained at $0.03, while borrowings were reduced in Q4 .
With no formal guidance or call, focus on tracking NIM trajectory, deposit flows/mix (especially time deposits), and expense control to assess path back to sub‑100% efficiency ratio .
For modeling: use bank‑specific revenue lines (Net Interest Income and Non‑interest Income); S&P Global consensus was unavailable this quarter, so near‑term revisions likely hinge on updated funding cost assumptions .

Sources: William Penn Bancorporation Q4 FY2024 8‑K and press release (July 17, 2024) ; Q3 FY2024 and Q2 FY2024 8‑Ks/press releases for trend context .

William Penn Bancorporation (WMPN)·Q4 2024 Earnings Summary