x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from _________ to
_________
|
WILLIAM
PENN BANCORP, INC.
|
United
States
|
37-1562563
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
8150
Route 13, Levittown, Pennsylvania
|
19057
|
|||
(Address
of principal executive offices)
|
(Zip
Code)
|
(215)
945-1200
|
Not
applicable
|
Large
accelerated filer o
|
Accelerated
filer o
|
||
Non-accelerated
filer o
(Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
Page
|
||||
PART
I.
|
FINANCIAL
INFORMATION
|
|||
Item
1.
|
Financial
Statements
|
|||
Consolidated
Balance Sheets (Unaudited) as of December 31, 2009 and June 30,
2009
|
3
|
|||
Consolidated
Statements of Income - (Unaudited) for the three and six months ended
December 31, 2009 and 2008
|
4
|
|||
Consolidated
Statements of Cash Flows - (Unaudited) for the six months ended December
31, 2009 and 2008
|
5
|
|||
Notes
to Consolidated Financial Statements (Unaudited)
|
6
|
|||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
17
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
26
|
||
Item
4T.
|
Controls
and Procedures
|
26
|
||
PART
II.
|
OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
27
|
||
Item
1A.
|
Risk
Factors
|
27
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
27
|
||
Item
3.
|
Defaults
Upon Senior Securities
|
27
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
27
|
||
Item
5.
|
Other
Information
|
27
|
||
Item
6.
|
Exhibits
|
28
|
||
Signatures
|
29
|
December
31,
|
June
30,
|
|||||||
2009
|
2009
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 16,283 | $ | 15,855 | ||||
Interest
bearing time deposits
|
1,518 | 2,524 | ||||||
Securities
available for sale
|
15,970 | 10 | ||||||
Securities
held to maturity, for value of $42,654 and $59,603$
|
42,094 | 59,015 | ||||||
Loans
receivable, net of allowance for loan losses of
|
||||||||
$2,342
and $2,180, respectively
|
231,025 | 219,939 | ||||||
Premises
and equipment, net
|
2,065 | 1,953 | ||||||
Federal
Home Loan Bank stock, at cost
|
4,932 | 4,932 | ||||||
Deferred
income taxes
|
1,924 | 2,052 | ||||||
Accrued
interest receivable and other assets
|
2,582 | 1,748 | ||||||
Real
estate owned
|
428 | 206 | ||||||
TOTAL
ASSETS
|
$ | 318,821 | $ | 308,234 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest
bearing
|
$ | 1,290 | $ | 2,916 | ||||
Interest
bearing
|
172,616 | 164,176 | ||||||
Total
deposits
|
173,906 | 167,092 | ||||||
Advances
from Federal Home Loan Bank
|
92,000 | 89,000 | ||||||
Advances
from borrowers for taxes and insurance
|
1,450 | 2,157 | ||||||
Accrued
interest payable and other liabilities
|
2,674 | 3,078 | ||||||
TOTAL
LIABILITIES
|
270,030 | 261,327 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred
stock, no par value,1,000,000 shares authorized;
|
||||||||
no
shares issued
|
— | — | ||||||
Common
stock,$.10 par value, 49,000,000 shares authorized;
|
||||||||
3,641,018
shares issued and outstanding
|
364 | 364 | ||||||
Additional
paid-in capital
|
9,796 | 9,781 | ||||||
Unallocated
common stock held by the
|
||||||||
Employee
Stock Ownership Plan ("ESOP")
|
(699 | ) | (743 | ) | ||||
Retained
earnings
|
39,199 | 37,505 | ||||||
Accumulated
other comprehensive income
|
131 | — | ||||||
TOTAL
STOCKHOLDERS' EQUITY
|
48,791 | 46,907 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 318,821 | $ | 308,234 |
Consolidated
statement of income
|
||||||||||||||||
(Dollars
in thousands, except share and per share data)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
INTEREST
INCOME
|
(unaudited)
|
(unaudited)
|
||||||||||||||
Loans
receivable, including fees
|
$ | 3,507 | $ | 3,341 | $ | 6,864 | $ | 6,554 | ||||||||
Taxable
securities
|
591 | 695 | 1,237 | 1,469 | ||||||||||||
Exempt
from federal income tax
|
2 | - | 5 | - | ||||||||||||
Other
|
20 | 85 | 41 | 196 | ||||||||||||
Total
Interest Income
|
4,120 | 4,121 | 8,147 | 8,219 | ||||||||||||
INTEREST
EXPENSE
|
||||||||||||||||
Deposits
|
807 | 1,171 | 1,653 | 2,390 | ||||||||||||
Borrowings
|
963 | 969 | 1,938 | 1,850 | ||||||||||||
Total
Interest Expense
|
1,770 | 2,140 | 3,591 | 4,240 | ||||||||||||
Net
Interest Income
|
2,350 | 1,981 | 4,556 | 3,979 | ||||||||||||
Provision
For Loan Losses
|
92 | 62 | 186 | 62 | ||||||||||||
NET
INTEREST INCOME AFTER PROVISION
|
||||||||||||||||
FOR
LOAN LOSSES
|
2,258 | 1,919 | 4,370 | 3,917 | ||||||||||||
OTHER
INCOME
|
||||||||||||||||
Service
fees
|
37 | 39 | 66 | 68 | ||||||||||||
Realized
gain on sale of
|
||||||||||||||||
available
for sale securities
|
7 | - | 77 | - | ||||||||||||
Other
|
54 | 32 | 95 | 69 | ||||||||||||
Total
Other Income
|
98 | 71 | 238 | 137 | ||||||||||||
OTHER
EXPENSES
|
||||||||||||||||
Salaries
and employee benefits
|
616 | 555 | 1,186 | 1,091 | ||||||||||||
Occupancy
and equipment
|
161 | 162 | 322 | 312 | ||||||||||||
FDIC
deposit insurance premium
|
52 | 7 | 103 | 14 | ||||||||||||
Professional
fees
|
26 | 18 | 69 | 123 | ||||||||||||
Other
|
251 | 237 | 393 | 407 | ||||||||||||
Total
Other Expenses
|
1,106 | 979 | 2,073 | 1,947 | ||||||||||||
Income
before Income Taxes
|
1,250 | 1,011 | 2,535 | 2,107 | ||||||||||||
Income
Tax Expenses
|
412 | 336 | 842 | 702 | ||||||||||||
NET
INCOME
|
$ | 838 | $ | 675 | $ | 1,693 | $ | 1,405 | ||||||||
Basic
and diluted earnings per share (Note 5)
|
$ | 0.23 | $ | 0.19 | $ | 0.47 | $ | 0.39 | ||||||||
See
accompanying notes to the unaudited consolidated financial
statements
|
Consolidated
Statements of Cash Flows (In Thousands)
|
||||||||
Six
Months Ended
|
||||||||
December
31,
|
||||||||
2009
|
2008
|
|||||||
Cash
Flows from Operating Activities
|
(Unaudited)
|
|||||||
Net
income
|
$ | 1,693 | $ | 1,405 | ||||
Adjustments
to reconcile net income to net cash provided by
|
||||||||
operating
activities:
|
||||||||
Provision
for loan losses
|
186 | 62 | ||||||
Provision
for depreciation
|
89 | 80 | ||||||
Net
amortization (accretion) of securities premiums and
discounts
|
209 | (67 | ) | |||||
Compensation
expense on ESOP
|
67 | 60 | ||||||
Deferred
income taxes
|
128 | 60 | ||||||
Origination
of loans for sale
|
(1,160 | ) | - | |||||
Proceeds
from sale of loans
|
1,171 | - | ||||||
Gain
on sale of loans
|
(11 | ) | - | |||||
Prepaid
FDIC expenses
|
(734 | ) | - | |||||
Realized
gains on sales of securities
|
(77 | ) | - | |||||
(Decrease)
increase in accrued interest receivable and other assets
|
(322 | ) | 173 | |||||
Decrease
in accrued interest payable and other liabilities
|
(404 | ) | (633 | ) | ||||
Net
Cash Provided by Operating Activities
|
835 | 1,140 | ||||||
Cash
Flows from Investing Activities
|
||||||||
Securities
available for sale:
|
||||||||
Purchases
|
(5,418 | ) | (4 | ) | ||||
Proceeds
from sales of securities
|
2,806 | - | ||||||
Securities
held to maturity:
|
||||||||
Purchases
|
(11,278 | ) | (7,592 | ) | ||||
Maturities,
calls and principal paydowns
|
14,842 | 15,605 | ||||||
Net
increase in loans receivable
|
(11,272 | ) | (21,576 | ) | ||||
Interest
bearing time deposits:
|
||||||||
Purchases
|
- | (397 | ) | |||||
Maturities
& principal paydowns
|
1,006 | 885 | ||||||
Federal
Home Loan Bank Stock:
|
||||||||
Purchases
|
- | (955 | ) | |||||
Repurchases
|
- | 80 | ||||||
Purchases
of premises and equipment
|
(200 | ) | (168 | ) | ||||
Net
Cash Used for Investing Activities
|
(9,514 | ) | (14,122 | ) | ||||
Cash
Flows from Financing Activities
|
||||||||
Net
increase (decrease) in deposits
|
6,814 | (625 | ) | |||||
Proceeds
from advances from Federal Home Loan Bank
|
5,000 | 21,000 | ||||||
Repayment
of advances from Federal Home Loan Bank
|
(2,000 | ) | (4,000 | ) | ||||
Decrease
in advances from borrowers for taxes and insurance
|
(707 | ) | (580 | ) | ||||
Net
Cash Provided by Financing Activities
|
9,107 | 15,795 | ||||||
Net
Increase in Cash and Cash Equivalents
|
428 | 2,813 | ||||||
Cash
and Cash Equivalents-Beginning
|
15,855 | 7,233 | ||||||
Cash
and Cash Equivalents-Ending
|
$ | 16,283 | $ | 10,046 | ||||
Supplementary
Cash Flows Information
|
||||||||
Interest
paid
|
$ | 3,601 | $ | 4,182 | ||||
Income
taxes paid
|
$ | 875 | $ | 850 | ||||
See
accompanying notes to the unaudited consolidated financial
statements.
|
Three
months ended December 31,
|
Six
months ended December 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
thousands)
|
(in
thousands)
|
|||||||||||||||
Unrealized
holding gains
|
||||||||||||||||
(losses)
on available-for-
|
||||||||||||||||
sale
securities
|
$ | (135 | ) | $ | - | $ | 276 | $ | - | |||||||
Reclassification
adjustment for
|
||||||||||||||||
gains
included in net income
|
(7 | ) | (77 | ) | ||||||||||||
Net
Unrealized Gains
|
$ | (142 | ) | $ | - | $ | 199 | $ | - | |||||||
Income
tax effect
|
(48 | ) | - | 68 | - | |||||||||||
Net
of Tax Amount
|
$ | (94 | ) | $ | - | $ | 131 | $ | - |
Three
months ended
|
Six
Months Ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||
Weighted-average
common shares outstanding
|
3,641,018
|
3,641,018
|
3,641,018
|
3,641,018
|
|||||||||
Average
unearned ESOP shares
|
(70,660
|
)
|
(79,396
|
)
|
(71,756
|
)
|
(80,495
|
)
|
|||||
Weighted-average
common shares and common stock equivalents used
to calculate basic and diluted earnings per share
|
3,570,358
|
3,561,620
|
3,589,262
|
3,560,523
|
|||||||||
Net
income
|
$
|
838
|
$
|
675
|
$
|
1,693
|
$
|
1,405
|
|||||
Basic
and diluted earnings per share
|
$
|
0.23
|
$
|
0.19
|
$
|
0.47
|
$
|
0.39
|
December
31, 2009
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Available
For Sale:
|
||||||||||||||||
Mutual
funds
|
$ | 12 | $ | - | $ | - | $ | 12 | ||||||||
Collateralized
mortgage obligations
|
15,759 | 494 | (295 | ) | 15,958 | |||||||||||
Total
|
$ | 15,771 | $ | 494 | $ | (295 | ) | $ | 15,970 | |||||||
Held
to Maturity:
|
||||||||||||||||
U.S.
Government corporations
|
||||||||||||||||
and
agencies securities
|
$ | 28,839 | $ | 309 | $ | (87 | ) | $ | 29,061 | |||||||
Mortgage-backed
securities
|
5,851 | 264 | - | 6,115 | ||||||||||||
Collateralized
mortgage obligations
|
7,005 | 75 | (3 | ) | 7,077 | |||||||||||
Corporate
bonds
|
100 | 1 | - | 101 | ||||||||||||
Municipal
bonds
|
299 | 2 | (1 | ) | 300 | |||||||||||
Total
|
$ | 42,094 | $ | 651 | $ | (91 | ) | $ | 42,654 | |||||||
June
30, 2009
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Available
For Sale:
|
||||||||||||||||
Mutual
Funds
|
$ | 10 | $ | - | $ | - | $ | 10 | ||||||||
$ | 10 | $ | - | $ | - | $ | 10 | |||||||||
Held
to Maturity:
|
||||||||||||||||
U.S.
Government corporations
|
||||||||||||||||
and
agencies securities
|
$ | 32,371 | $ | 669 | $ | (82 | ) | $ | 32,958 | |||||||
Mortgage-backed
securities
|
6,908 | 220 | - | 7,128 | ||||||||||||
Collateralized
mortgage obligations
|
19,236 | 271 | (491 | ) | 19,016 | |||||||||||
Corporate
bonds
|
201 | 1 | - | 202 | ||||||||||||
Municipal
bonds
|
299 | - | - | 299 | ||||||||||||
Total
|
$ | 59,015 | $ | 1,161 | $ | (573 | ) | $ | 59,603 |
December
31, 2009
|
December
31, 2008
|
|||||||||||||||
Held
to Maturity
|
Held
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Due
in one year or less
|
$ | 5,100 | $ | 5,167 | $ | — | $ | — | ||||||||
Due
after one year through five years
|
6,398 | 6,491 | — | — | ||||||||||||
Due
after five years through ten years
|
7,058 | 7,085 | — | — | ||||||||||||
Due
after ten years
|
10,682 | 10,719 | — | — | ||||||||||||
Mortgage-Backed
securities
|
5,851 | 6,115 | — | — | ||||||||||||
Collateralized
mortgage obligations
|
7,005 | 7,077 | 15,759 | 15,958 | ||||||||||||
$ | 42,094 | $ | 42,654 | $ | 15,759 | $ | 15,958 |
December 31, 2009 | ||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Available
For Sale:
|
||||||||||||||||||||||||
Collateralized
mortgage
|
||||||||||||||||||||||||
obligations
|
$ | 2,720 | $ | (195 | ) | $ | 1,734 | $ | (100 | ) | $ | 4,454 | $ | (295 | ) | |||||||||
$ | 2,720 | $ | (195 | ) | $ | 1,734 | $ | (100 | ) | $ | 4,454 | $ | (295 | ) | ||||||||||
Held
to Maturity:
|
||||||||||||||||||||||||
U.S.
Government
|
||||||||||||||||||||||||
corporations
and agencies securities
|
$ | 6,911 | $ | (87 | ) | $ | - | $ | - | $ | 6,911 | $ | (87 | ) | ||||||||||
Collateralized
mortgage obligations
|
648 | (3 | ) | - | - | 648 | (3 | ) | ||||||||||||||||
Corporate
bonds
|
99 | (1 | ) | 99 | (1 | ) | ||||||||||||||||||
7,658 | (91 | ) | - | - | 7,658 | (91 | ) | |||||||||||||||||
Total
Temporarily
|
||||||||||||||||||||||||
Impaired
securities
|
$ | 10,378 | $ | (286 | ) | $ | 1,734 | $ | (100 | ) | $ | 12,112 | $ | (386 | ) | |||||||||
June 30, 2009 | ||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Held
to Maturity:
|
||||||||||||||||||||||||
U.S.
Government
|
||||||||||||||||||||||||
corporations
and
|
||||||||||||||||||||||||
agencies
securities
|
$ | 7,309 | $ | (82 | ) | $ | - | $ | - | $ | 7,309 | $ | (82 | ) | ||||||||||
Collateralized
mortgage
|
||||||||||||||||||||||||
obligations
|
6,695 | (313 | ) | 2,503 | (178 | ) | 9,198 | (491 | ) | |||||||||||||||
Total
Temporarily
|
||||||||||||||||||||||||
Impaired
securities
|
$ | 14,004 | $ | (395 | ) | $ | 2,503 | $ | (178 | ) | $ | 16,507 | $ | (573 | ) |
At
December 31,
|
At
June 30,
|
|||||||||||||||
2009
|
2009
|
|||||||||||||||
Mortgage
loans on real estate:
|
||||||||||||||||
Residential
1-4 family
|
$ | 141,663 | 59.48 | % | $ | 142,499 | 62.36 | % | ||||||||
Residential
multi-family (five or more)
|
9,683 | 4.07 | % | 10,268 | 4.49 | % | ||||||||||
Commercial-non-residential
|
48,173 | 20.23 | % | 35,366 | 15.48 | % | ||||||||||
Construction
|
9,361 | 3.93 | % | 14,205 | 6.22 | % | ||||||||||
Land
|
4,411 | 1.85 | % | 3,999 | 1.75 | % | ||||||||||
Home
equity and second mortgages
|
6,678 | 2.80 | % | 7,276 | 3.18 | % | ||||||||||
Equity
lines of credit
|
15,402 | 6.47 | % | 12,142 | 5.31 | % | ||||||||||
Total
Mortgage Loans on Real Estate
|
235,371 | 225,755 | ||||||||||||||
Consumer
loans
|
2,275 | 0.96 | % | 2,347 | 1.03 | % | ||||||||||
Loans
on savings accounts
|
504 | 0.21 | % | 420 | 0.18 | % | ||||||||||
Total
Loans
|
238,150 | 100.00 | % | 228,522 | 100.00 | % | ||||||||||
Loans
in process
|
(4,017 | ) | (5,562 | ) | ||||||||||||
Unearned
loan origination fees
|
(766 | ) | (841 | ) | ||||||||||||
Allowance
for loan losses
|
(2,342 | ) | (2,180 | ) | ||||||||||||
Net
Loans
|
$ | 231,025 | $ | 219,939 |
Level
I:
|
Quoted
prices are available in active markets for identical assets or liabilities
as of the reported date.
|
|
Level
II:
|
Pricing
inputs are other than quoted prices in active markets, which are either
directly or indirectly observable as of the reported date. The nature of
these assets and liabilities include items for which quoted prices are
available but traded less frequently, and items that are fair valued using
other financial instruments, the parameters of which can be directly
observed.
|
|
Level
III:
|
Assets
and liabilities that have little to no pricing observability as of the
reported date. These
items
do not have two-way markets and are measured using management’s best
estimate of fair value, where the inputs into the determination of fair
value require significant management judgment or
estimation.
|
December
31, 2009
|
||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Total
|
|||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Mutual
funds
|
$ | 12 | $ | - | $ | - | $ | 12 | ||||||||||||
Collateralized
mortgage obligations
|
- | 15,958 | - | 15988 | 15988 | |||||||||||||||
$ | 12 | $ | 15,958 | $ | - | $ | 15,970 | 15,970 | ||||||||||||
June
30, 2009
|
||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Total
|
|||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Securities
available-for-sale
|
$ | 10 | $ | - | $ | - | $ | 10 | ||||||||||||
$ | 10 | $ | - | $ | - | $ | 10 |
December
31, 2009
|
||||||||||||||||
Level
I
|
Level
II
|
Level
III
|
Total
|
|||||||||||||
Impaired
loans
|
$ | — | $ | — | $ | 6,263 | $ | 6,263 | ||||||||
Other
real estate owned
|
— | 428 | — | 428 | ||||||||||||
$ | — | $ | 428 | $ | 6,263 | $ | 6,691 | |||||||||
June
30, 2009
|
||||||||||||||||
Assets:
|
Level
I
|
Level
II
|
Level
III
|
Total
|
||||||||||||
Impaired
loans
|
$ | — | $ | — | $ | 5,307 | $ | 5,307 | ||||||||
Other
real estate owned
|
— | 206 | — | 206 | ||||||||||||
$ | — | $ | 206 | $ | 5,307 | $ | 5,513 |
December
31,
|
June
30,
|
|||||||||||||||
2009
|
2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and due from
|
||||||||||||||||
Banks
|
$ | 16,283 | $ | 16,283 | $ | 15,855 | $ | 15,855 | ||||||||
Interest
bearing time deposits
|
1,518 | 1,518 | 2,524 | 2,524 | ||||||||||||
Securities
available for sale
|
15,970 | 15,970 | 10 | 10 | ||||||||||||
Securities
held to maturity
|
42,094 | 42,654 | 59,015 | 59,603 | ||||||||||||
Loans
receivable, net
|
231,025 | 242,471 | 219,939 | 229,070 | ||||||||||||
Federal
Home Loan Bank stock
|
4,933 | 4,933 | 4,932 | 4,932 | ||||||||||||
Accrued
Interest receivable:
|
||||||||||||||||
Loans
receivable
|
1,036 | 1,036 | 1,022 | 1,022 | ||||||||||||
Investment
securities
|
374 | 374 | 410 | 410 | ||||||||||||
Mortgage-backed
securities
|
93 | 93 | 94 | 94 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Non-interest
bearing demand
|
||||||||||||||||
deposits
|
1,290 | 1,290 | 2,916 | 2,916 | ||||||||||||
NOW
accounts
|
14,167 | 14,167 | 14,490 | 14,490 | ||||||||||||
Money
market accounts
|
41,935 | 41,935 | 40,273 | 40,273 | ||||||||||||
Savings
and club accounts
|
13,900 | 13,900 | 13,540 | 13,540 | ||||||||||||
Certificates
of deposit
|
102,614 | 105,355 | 95,873 | 98,451 | ||||||||||||
Advances
from Federal Home
|
||||||||||||||||
Loan
Bank
|
92,000 | 96,699 | 89,000 | 93,775 | ||||||||||||
Accrued
interest payable
|
332 | 332 | 342 | 342 | ||||||||||||
Off-balance
sheet financial
|
||||||||||||||||
instruments
|
- | - | - | - |
|
•
|
general
economic conditions, either nationally or in our market area, that are
worse than expected;
|
|
•
|
changes
in the interest rate environment that reduce our interest margins or
reduce the fair value of financial
instruments;
|
|
•
|
our
ability to enter into new markets and/or expand product offerings
successfully and take advantage of growth
opportunities;
|
|
•
|
changes
in accounting policies and practices, as may be adopted by the bank
regulatory agencies, the Financial Accounting Standards Board or the
Public Company Accounting Oversight
Board.
|
For
The Three Months Ended Dec 31,
|
For
The Six Months Ended Dec 31,
|
|||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||||||||||||||||||||
Interest
-earning assets:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net
loans receivable (1) (2)
|
$ | 230,488 | $ | 3,507 | 6.09 | % | $ | 215,822 | $ | 3,341 | 6.19 | % | $ | 226,701 | $ | 6,864 | 6.06 | % | $ | 210,945 | $ | 6,554 | 6.21 | % | ||||||||||||||||||||||||
Securities
|
59,502 | 593 | 3.99 | % | 54,515 | 695 | 5.10 | % | 60,008 | 1,242 | 4.14 | % | 57,162 | 1,469 | 5.14 | % | ||||||||||||||||||||||||||||||||
Other
interest earning assets
|
17,449 | 20 | 0.46 | % | 20,488 | 85 | 1.66 | % | 18,820 | 41 | 0.44 | % | 18,469 | 196 | 2.12 | % | ||||||||||||||||||||||||||||||||
Total
interest earning assets
|
307,439 | 4,120 | 5.36 | % | 290,825 | 4,121 | 5.67 | % | 305,529 | 8,147 | 5.33 | % | 286,576 | 8,219 | 5.74 | % | ||||||||||||||||||||||||||||||||
Non-interest
earning assets
|
4,563 | 4,421 | 4,403 | 4,412 | ||||||||||||||||||||||||||||||||||||||||||||
Total
Assets
|
312,002 | 295,246 | 309,932 | 290,988 | ||||||||||||||||||||||||||||||||||||||||||||
Interest
-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
NOW
accounts
|
13,515 | 13 | 0.10 | % | 12,935 | 34 | 1.05 | % | 13,838 | 26 | 0.38 | % | 12,939 | 68 | 1.05 | % | ||||||||||||||||||||||||||||||||
Money
Market Accounts
|
40,305 | 111 | 1.10 | % | 37,804 | 220 | 2.33 | % | 40,444 | 214 | 1.06 | % | 37,919 | 451 | 2.38 | % | ||||||||||||||||||||||||||||||||
Savings
and Club accounts
|
13,601 | 30 | 0.88 | % | 12,884 | 49 | 1.52 | % | 13,582 | 60 | 0.88 | % | 13,225 | 100 | 1.51 | % | ||||||||||||||||||||||||||||||||
Certificates
of deposit
|
100,897 | 653 | 2.59 | % | 94,439 | 868 | 3.68 | % | 99,013 | 1,353 | 2.73 | % | 94,191 | 1,771 | 3.76 | % | ||||||||||||||||||||||||||||||||
Total
Deposits
|
168,318 | 807 | 1.92 | % | 158,062 | 1,171 | 2.96 | % | 166,877 | 1,653 | 1.98 | % | 158,274 | 2,390 | 3.02 | % | ||||||||||||||||||||||||||||||||
Federal
Home Loan Bank Advances
|
89,903 | 963 | 4.28 | % | 86,750 | 969 | 4.47 | % | 89,332 | 1,938 | 4.34 | % | 82,286 | 1,850 | 4.50 | % | ||||||||||||||||||||||||||||||||
Total
interest-bearing liabilities
|
258,221 | 1,770 | 2.74 | % | 244,812 | 2,140 | 3.50 | % | 256,209 | 3,591 | 2.80 | % | 240,560 | 4,240 | 3.53 | % | ||||||||||||||||||||||||||||||||
Non
interest bearing deposits
|
1,605 | 1,325 | 1,555 | 1,345 | ||||||||||||||||||||||||||||||||||||||||||||
Non
interest bearing liabilities
|
3,835 | 3,916 | 4,273 | 4,385 | ||||||||||||||||||||||||||||||||||||||||||||
Total
Liabilities
|
263,661 | 250,053 | 262,037 | 246,290 | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders
equity
|
48,341 | 45,193 | 47,895 | 44,725 | ||||||||||||||||||||||||||||||||||||||||||||
Total
Liabilities and Stockholders Equity
|
$ | 312,002 | $ | 295,246 | $ | 309,932 | $ | 291,015 | ||||||||||||||||||||||||||||||||||||||||
Net
interest income
|
$ | 2,350 | $ | 1,981 | $ | 4,556 | $ | 3,979 | ||||||||||||||||||||||||||||||||||||||||
Interest
rate spread
|
2.62 | % | 2.17 | % | 2.53 | % | 2.21 | % | ||||||||||||||||||||||||||||||||||||||||
Net
yield on interest -earning assets
|
3.06 | % | 2.72 | % | 2.98 | % | 2.78 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio
of average interest -earning assets to average interest-bearing
liabilities
|
119.06 | % | 118.80 | % | 119.25 | % | 119.13 | % |
(1)
|
Non-accruing
loans have been included in loans receivable and the effect of such
inclusion was not material. Allowance for loan losses has been included in
noninterest-earning assets. Interest income on loans includes
net amortized revenues (costs) on
loans.
|
(2)
|
Includes
both available for sale and held to maturity securities. For available for
sale securities, fair value adjustments have been included in the average
balance of noninterest-earning
assets.
|
(3)
|
Includes
interest-bearing deposits at other banks, federal funds purchased and
Federal Home Loan Bank of Pittsburgh capital
stock.
|
(4)
|
Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
(5)
|
Net
interest margin represents net interest income as a percentage of average
interest-earning assets.
|
December
31, 2009
|
June
30, 2009
|
|||||||
(in thousands) | ||||||||
Secured
by Real Estate
|
||||||||
One
to four-family mortgage loans
|
$ | 1,042 | $ | 1,280 | ||||
Construction
|
— | 203 | ||||||
Other
Loans
|
||||||||
Commercial
|
— | — | ||||||
Consumer
|
— | — | ||||||
Home
Equity Loans and Lines
|
2 | — | ||||||
Loans
on Savings accounts
|
— | — | ||||||
Total
|
1,044 | 1,483 | ||||||
Total
non-performing loans
|
$ | 1,044 | $ | 1,483 | ||||
Real
estate owned
|
428 | 206 | ||||||
Other
non-performing assets
|
— | |||||||
Total
non-performing assets
|
1,472 | 1,689 | ||||||
Total
non-performing loans/Loans
|
0.45 | % | 0.67 | % | ||||
Total
non-performing loans/Assets
|
0.33 | 0.48 | ||||||
Total
non-performing Assets/Assets
|
0.46 | 0.55 |
Actual
|
|||||
Amount
|
Ratio
|
||||
(Dollars
in thousands)
|
|||||
Total
risk-based capital
|
$
|
46,158
|
23.73%
|
||
Core
Capital (to risk-weighted assets)
|
44,495
|
22.88
|
|||
Core
Capital (adjusted total assets)
|
44,495
|
13.98
|
|||
Tangible
Capital (to adjusted total assets)
|
44,495
|
13.98
|
(1)
|
Election
of Directors
|
Nominee
|
For
|
Withheld
|
||
Charles
Corcoran
|
3,400,929 | 1,500 | ||
William
B.K. Parry
|
3,401,903 |
|
526 |
(2)
|
Ratification
of Appointment of Auditors
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
|||
3,402,254 | 0 | 175 | 0 |
|
31
|
Rule
13a-14(a)/15d-14(a) Certification
|
|
32
|
Section
1350 Certification
|
WILLIAM
PENN BANCORP, INC.
(Registrant)
|
|
/s/
Charles Corcoran
|
|
Date:
February
16, 2010
|
Charles
Corcoran, President
(Duly
authorized officer and principal
financial
officer)
|