William Penn Bancorporation (WMPN): History, Ownership, Mission, How It Works & Makes Money

William Penn Bancorporation (WMPN) was a community bank with total assets of approximately $0.79 billion as of December 2024, but does that number capture the full story of its final financial chapter? The real headline for 2025 is the all-stock acquisition by Mid Penn Bancorp, Inc., a deal valued at approximately $120 million that closed in April, fundamentally changing the landscape for its shareholders and customers. You need to understand how a community-focused institution, which posted a Q2 FY2025 net loss of nearly $1 million due to merger expenses, navigated a tough rate environment while maintaining a robust 16.66% Community Bank Leverage Ratio (CBLR). We'll break down their historic mission, core business model of generating net interest income (the difference between what they earn on loans and pay on deposits), and what the transition into a larger, $6.3 billion pro forma entity means for the Delaware Valley market.

William Penn Bancorporation (WMPN) History

William Penn Bancorporation's history is a great example of a community bank evolving through strategic capital restructuring, culminating in a significant merger. The institution's roots go back over a century, but its modern form as a publicly traded holding company was a much more recent development.

The biggest story here is the 2025 merger. It was a clear, decisive action that changed the company's trajectory, giving shareholders a defined exit at a valuation of approximately $120 million in an all-stock transaction with Mid Penn Bancorp, Inc.

Given Company's Founding Timeline

Year established

The original institution, William Penn Bank, was established in 1870. The holding company, William Penn Bancorporation (WMPN), was formed later in 2008, and then succeeded by a new Maryland corporation in 2020 following a mutual-to-stock conversion (the second step conversion).

Original location

The company is headquartered in Bristol, Pennsylvania, and has historically served the Delaware Valley area, including Bucks and Philadelphia Counties in Pennsylvania, and Burlington, Camden, and Mercer Counties in New Jersey.

Founding team members

While the names of the original 1870 founders are not readily public, the leadership team guiding the company through its final, transformative phase included Kenneth J. Stephon as Chairman, President, and Chief Executive Officer, alongside executives like Jeannine Cimino, Executive Vice President and Chief Retail Officer, and Alan B. Turner, Executive Vice President and Chief Lending Officer.

Initial capital/funding

The holding company's initial public offering (IPO) in 2008 was a key capital event. In that transaction, William Penn Bancorporation sold 1,025,283 shares (28.2% of its outstanding common stock) to the public. Plus, it issued 2,548,713 shares (70.0%) to its mutual holding company parent, William Penn, MHC, and 67,022 shares (1.8%) to the William Penn Community Foundation.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's most significant transformative period was defintely in the lead-up to and completion of the 2025 merger. This wasn't a slow drift; it was a fast-paced, decisive strategic move to maximize shareholder value in a challenging funding environment.

You can see the urgency and focus in the Q2 FY2025 data (quarter ended December 31, 2024). The company had a GAAP net loss of $(0.99) million, but management was quick to point out that $0.73 million of that was merger-related expenses. That tells you the leadership was prioritizing the merger over near-term GAAP profitability.

• The 2020 Conversion: The shift from a mutual holding company to a fully stock-owned structure in 2020 was the necessary precursor. It gave the company the capital structure flexibility it needed to be an attractive acquisition target or a growth vehicle.
• The 2025 Merger Approval: On April 2, 2025, over 96% of William Penn Bancorporation shares voted in favor of the merger. That kind of overwhelming support signals a clear consensus among investors that the $120 million all-stock deal was the best path forward.
• The Consolidation: The merger was completed on April 30, 2025. This single action immediately merged William Penn Bank into Mid Penn Bank, creating a combined entity with approximately $6.3 billion in consolidated assets. This fundamentally changed the scale and market reach for the former William Penn operations.

If you want to dive deeper into the financial health that led to this decision, you should read Breaking Down William Penn Bancorporation (WMPN) Financial Health: Key Insights for Investors.

William Penn Bancorporation (WMPN) Ownership Structure

The ownership structure of William Penn Bancorporation is defined by its merger with Mid Penn Bancorp, Inc. (MPB), which closed in April 2025, transforming the former public company into a fully integrated part of a larger, surviving entity.

This means that as of November 2025, the original William Penn Bancorporation (WMPN) no longer exists as an independent, publicly traded stock; its shareholders now hold shares in Mid Penn Bancorp, Inc. instead. You need to look at Mid Penn Bancorp, Inc.'s structure now, but understanding the former ownership of WMPN is key to seeing how the deal was valued at approximately $120 million.

Given Company's Current Status

William Penn Bancorporation (WMPN) is no longer an active, standalone public company. The merger with Mid Penn Bancorp, Inc. was completed on April 30, 2025, with William Penn merging into Mid Penn, and its banking subsidiary, William Penn Bank, merging into Mid Penn Bank. The company's common stock, which previously traded on NASDAQ under the ticker WMPN, ceased trading on that date.

The transaction was an all-stock deal, where William Penn shareholders received 0.426 shares of Mid Penn common stock for each share of William Penn common stock they held. This move expanded Mid Penn's consolidated assets to approximately $6.3 billion. The former William Penn is now a fully absorbed part of the larger Mid Penn organization.

Given Company's Ownership Breakdown

Before the merger closed in April 2025, William Penn Bancorporation was a publicly traded company with 9.21 million shares outstanding. The ownership breakdown below reflects the capital structure just prior to the acquisition, showing who controlled the majority of the shares that voted to approve the merger. Over 96% of William Penn shares voted in favor of the transaction.

Given Company's Leadership

The former executive team of William Penn Bancorporation has transitioned into new roles within the Mid Penn Bancorp, Inc. structure following the April 2025 merger. The leadership of the combined entity is now steered by Mid Penn's executive team, but key William Penn personnel were integrated to maintain continuity and expertise in the new markets.

• Kenneth J. Stephon, the former Chairman, President, and Chief Executive Officer of William Penn, was appointed to the Boards of Directors of Mid Penn Bancorp, Inc. and Mid Penn Bank.
• Mr. Stephon also assumed the roles of Vice Chair of Mid Penn Bank and Chief Corporate Development Officer of Mid Penn and Mid Penn Bank in May 2025.
• All other members of the former William Penn board of directors were offered a paid, three-year term on an advisory board of Mid Penn Bank.

The integration of the former CEO into a senior corporate development role is defintely a smart move to ensure the combined organization capitalizes on the William Penn franchise's regional knowledge. For a deeper dive into the strategic alignment that drove this merger, you should check out the Mission Statement, Vision, & Core Values of William Penn Bancorporation (WMPN).

William Penn Bancorporation (WMPN) Mission and Values

William Penn Bancorporation's core purpose centered on providing traditional community banking services to the Delaware Valley, prioritizing a strong balance sheet and superior asset quality to serve its local customers and small businesses.

This commitment to financial discipline was evident right up to the acquisition close on April 30, 2025, when it was acquired by Mid Penn Bancorp, Inc., a deal valued at approximately $120 million. The merger itself was a strategic move to accelerate growth and deliver value to shareholders, marking the culmination of its independent strategy.

Given Company's Core Purpose

The company's operational philosophy, which served as its de facto core purpose, was to be a dedicated community financial services provider (a mutual holding company structure before its full stock conversion) for the local markets in Pennsylvania and New Jersey.

Official Mission Statement

While a single, formal, public mission statement is not available, the company's consistent operational description and management commentary defined its mandate: to offer a full array of commercial and retail financial services to individuals and small- to medium-sized businesses in the Greater Philadelphia Metro market and Southern New Jersey.

• Deliver comprehensive, traditional banking services.
• Focus on the Delaware Valley area through its 12 branch offices.
• Prioritize customer service and community commitment.

Vision Statement

The company's vision was fundamentally about sustainable stability and growth, a goal it pursued through disciplined underwriting and expense control, which ultimately led to the strategic decision to merge.

• Maintain a strong balance sheet and exceptional asset quality.
• Ensure long-term viability for customers and shareholders through strategic growth.
• Translate this financial discipline into concrete results:
  • Non-performing assets (NPAs) to total assets improved from 0.38% in Q1 FY2025 to 0.30% in Q2 FY2025, demonstrating a commitment to credit quality.
  • The bank recorded a $395 thousand recovery for credit losses in Q1 FY2025, reflecting strong underwriting.

Honestly, the merger with Mid Penn Bancorp, Inc. was the ultimate near-term vision for shareholder value, providing an exchange ratio of 0.426 shares of Mid Penn stock for each William Penn Bancorporation share. You can learn more about the strategic rationale for the transaction in Exploring William Penn Bancorporation (WMPN) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

The company did not widely use a catchy slogan, but its identity was consistently defined by its function and geographic focus, which is typical for a community bank.

• 'Providing community banking services to individuals and small- to medium-sized businesses in the Delaware Valley area.'
• The operational goal was always to deliver 'unwavering service' while providing a wide array of products.

The Q2 FY2025 core net loss of $(0.74) million (core EPS $(0.09)) shows that even while facing merger-related expenses of $0.73 million, the focus remained on controlling underlying costs and maintaining asset quality. That's a defintely clear sign of financial discipline.

William Penn Bancorporation (WMPN) How It Works

William Penn Bancorporation, through its subsidiary William Penn Bank, operated as a traditional community bank, but as of November 2025, the company has been fully integrated into Mid Penn Bancorp, Inc. following a merger that closed on April 30, 2025. Its value creation model was simple: gather low-cost deposits from the local Delaware Valley community and recycle those funds into higher-yielding loans, primarily commercial real estate, to generate net interest income.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework of William Penn Bancorporation centered on a localized, branch-driven deposit gathering strategy to fuel its lending activity, a classic 'lend-to-fund' model for a community bank.

• Deposit Gathering: The company maintained 12 branch offices across Pennsylvania and New Jersey, which served as the main engine for attracting customer deposits.
• Net Interest Income Generation: The core profit driver was the spread between the interest earned on loans and the interest paid on deposits (Net Interest Margin, or NIM). The NIM for the quarter ended December 31, 2024, held steady at 2.27%.
• Asset Quality Management: A key focus was keeping credit risk low. Non-performing assets (NPAs) to total assets improved to a strong 0.30% in the quarter ended December 31, 2024, showing defintely controlled credit risk.
• Merger Integration: Post-April 30, 2025, the entire operation, including the 12 branches and the loan portfolio, was absorbed by Mid Penn Bank, shifting the focus to realizing merger cost synergies.

Here's the quick math: The company's total assets were about $812 million just before the merger, and its operational goal was to manage that balance sheet efficiently.

Given Company's Strategic Advantages

William Penn Bancorporation's primary advantage, prior to the merger, was its deep-rooted community presence and strong credit quality in the attractive Delaware Valley market, which made it an ideal acquisition target. You can read more about the foundational principles in the Mission Statement, Vision, & Core Values of William Penn Bancorporation (WMPN).

• Geographic Foothold: William Penn Bancorporation provided Mid Penn Bancorp, Inc. with immediate, established access to the high-growth Greater Philadelphia Metro area, Southeastern Pennsylvania, and Central/Southern New Jersey.
• Credit Quality: The company brought a clean loan book to the combined entity, evidenced by Non-Performing Loans (NPLs) to total loans falling to 0.51% in the quarter ended December 31, 2024.
• Capital Strength: The company maintained robust capital levels, with a Common Equity Tier 1 (CET1) ratio well above regulatory minimums, offering flexibility through the integration period.
• Scale and Efficiency: The merger created a larger, more competitive regional bank with projected pro forma assets of approximately $6.3 billion, allowing for greater operating efficiency and a wider product offering for former William Penn customers.

What this estimate hides is that the strategic advantage is now Mid Penn Bancorp, Inc.'s; the William Penn Bancorporation brand and infrastructure are used to enhance the acquiring company's market position.

William Penn Bancorporation (WMPN) How It Makes Money

William Penn Bancorporation, before its acquisition by Mid Penn Bancorp, Inc. in the second quarter of 2025, operated primarily as a traditional community bank, generating the vast majority of its revenue by borrowing money from depositors at a lower interest rate and lending it out at a higher rate. This core business model is centered on the spread between interest earned on its loan and investment portfolio and interest paid on customer deposits and other borrowings.

William Penn Bancorporation's Revenue Breakdown

As a regional bank, William Penn Bancorporation's revenue is heavily concentrated in Net Interest Income, which is the profit margin on its lending activities. Based on the financial results for the second quarter of the fiscal year 2025 (ended December 31, 2024), the revenue streams show a clear reliance on this interest-rate spread. Total revenue for the quarter was approximately $5.075 million, with the breakdown below.

The Net Interest Income of $4.1 million for Q2 FY2025 was slightly down from the prior quarter, reflecting the pressure of higher funding costs, specifically the interest paid on deposits. Non-Interest Income, at $975 thousand, saw a temporary spike due to a $211 thousand net gain from the sale of two bank-owned buildings, which is a one-time event that inflates the percentage for that quarter.

Business Economics

The economic engine of William Penn Bancorporation is governed by the Net Interest Margin (NIM), which is a key metric for banks. It tells you how efficiently they are converting interest-earning assets into profit. For the second quarter of the fiscal year 2025, the NIM measured 2.27%, indicating a narrow but stable margin in a challenging interest rate environment.

The bank's strategy focused on serving individuals and small- to medium-sized businesses in the Delaware Valley area of Pennsylvania and New Jersey through 12 branch offices. Its pricing strategy centered on attracting deposits, which serve as its raw material for lending, and then extending loans, primarily in real estate. Here's the quick math on their core business:

• Funding Cost: The bank pays interest on deposits (like Certificates of Deposit, or CDs) and borrowings. Deposit interest expense was up to $3.491 million in Q1 FY2025, showing the rising cost of funds.
• Lending Yield: The bank earns interest from a diverse loan portfolio, including one- to four-family residential, commercial real estate, and consumer loans.
• The Spread: The difference is the Net Interest Income. Management noted the balance sheet was 'liability-sensitive,' meaning falling interest rates were expected to improve profitability by lowering their cost of funds more quickly than their loan yields.

What this estimate hides is the one-time impact of the merger with Mid Penn Bancorp, Inc., which closed in the second quarter of 2025. This transaction valued William Penn Bancorporation at approximately $127 million and fundamentally changed its operating structure and future financial reporting. If onboarding takes 14+ days, churn risk rises, but here, the merger itself is the major operational pivot.

William Penn Bancorporation's Financial Performance

The company's financial performance in the fiscal year 2025 was significantly impacted by merger-related costs and high funding expenses, leading to a net loss despite strong asset quality. This is defintely a period of transition, not steady-state operations.

• Quarterly Loss: William Penn Bancorporation recorded a GAAP net loss of $988 thousand, or $(0.12) per share, for the three months ended December 31, 2024 (Q2 FY2025). This loss included $731 thousand in professional fees tied to the pending merger.
• Asset Quality: Credit quality remained a bright spot, indicating strong underwriting. Non-Performing Assets (NPAs) to Total Assets fell to a low 0.30% at December 31, 2024, a notable improvement from 0.38% just three months prior.
• Balance Sheet Size: As of September 30, 2024, the bank had approximately $812 million in total assets, $465 million in total loans, and $630 million in total deposits.
• Efficiency Ratio: The GAAP efficiency ratio was elevated at 122.9% (core 118.0%) in Q2 FY2025. A ratio over 100% means non-interest expenses exceed net revenue, which is a clear sign of revenue pressure and the drag from merger-related costs.

For a deeper dive into how these metrics translate into long-term investment value, you should be looking at Breaking Down William Penn Bancorporation (WMPN) Financial Health: Key Insights for Investors. Now that the company is part of Mid Penn Bancorp, Inc., the focus shifts to the synergies and integration costs of the combined entity.

William Penn Bancorporation (WMPN) Market Position & Future Outlook

The future outlook for William Penn Bancorporation is defined entirely by its successful merger into Mid Penn Bancorp, Inc. (MPB), which closed on April 30, 2025. This strategic acquisition transformed the combined entity into a stronger regional competitor with pro forma assets of approximately $6.3 billion, significantly expanding its footprint into the lucrative Greater Philadelphia Metro market, Southeastern Pennsylvania, and Central/Southern New Jersey.

Competitive Landscape

In the vast Greater Philadelphia Metropolitan Statistical Area (MSA), the newly combined Mid Penn Bancorp, Inc. remains a smaller, expanding regional player. The market is overwhelmingly dominated by national and super-regional banks, which hold the majority of the deposit market share. This table illustrates the scale of the competition, using the latest available data for the region.

Opportunities & Challenges

The post-merger entity is positioned to capture growth from its expanded geographic reach, but it must navigate the inherent complexities of integrating two banking systems and managing credit quality in a fluctuating economic environment. The core challenge is successfully executing the integration while simultaneously driving organic growth in the new markets.

Industry Position

The acquisition of William Penn Bancorporation immediately elevated Mid Penn Bancorp, Inc. from a Central Pennsylvania-centric bank to a significant regional institution in the Mid-Atlantic. The combined entity's $6.3 billion in assets places it in a stronger position among the mid-tier regional banks, but still far from the national giants.

• Scale Jump: The merger provided an immediate boost of over $727 million in assets and $619.8 million in deposits on the closing date, a substantial inorganic growth move.
• Efficiency Focus: Management is focused on improving the core efficiency ratio, which stood at 62.8% in Q1 2025, by leveraging the scale of the combined operation.
• Capital Strength: Regulatory capital ratios remain above the levels required to be considered 'well capitalized' as of March 31, 2025, providing a defintely solid foundation for continued lending growth.
• Community Niche: The bank occupies a crucial niche, offering personalized community banking services that larger institutions often neglect, while having the balance sheet to handle larger commercial real estate (CRE) and commercial and industrial (C&I) loans.

To truly understand the new firm's financial footing, you should review the latest post-merger disclosures. Breaking Down William Penn Bancorporation (WMPN) Financial Health: Key Insights for Investors