William Penn Bancorporation (WMPN): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at William Penn Bancorporation's next move after the merger, trying to figure out where the real growth lies in those core PA/NJ markets. Honestly, the playbook is laid out across four clear paths, from digging deeper with market penetration-like aggressively re-pricing Certificates of Deposit to fix that deposit mix-to taking bigger swings like developing a digital-only channel in New Jersey or even eyeing a FinTech acquisition for nationwide lending. We have to get that Net Interest Margin up from the 2.27% seen in Q2 FY2025, and with a strong capital base, shown by the 16.66% CBLR then, the options are real. So, let's break down exactly how William Penn Bancorporation can turn these strategic options into actual dollars, starting right now.

William Penn Bancorporation (WMPN) - Ansoff Matrix: Market Penetration

Market Penetration strategies for William Penn Bancorporation focus on increasing market share within its existing geographic footprint, which includes core Bucks and Burlington counties, alongside the broader Philadelphia County area. This involves intensifying efforts in current product lines to capture a larger share of the existing market's financial activity.

Aggressively re-price Certificates of Deposit (CDs) to reverse the sequential decline in noninterest-bearing deposits. As of September 30, 2024, William Penn Bancorporation held total deposits of approximately $630 million. The period ending December 31, 2024 (Q2 FY2025) showed a sequential contraction across noninterest-bearing, savings, and money market accounts, which must be countered with competitive pricing to stabilize and grow the funding base.

Increase commercial real estate loan originations in core Bucks and Burlington counties to boost loan volume. The established business strategy emphasizes continuing to increase originations of commercial real estate loans, which represented 36.0% of the total loan portfolio at $172.8 million as of June 30, 2023. This growth must adhere to conservative underwriting guidelines, such as maximum loan-to-value ratios of 80%.

Focus on cross-selling wealth management services to existing customers to grow noninterest income. For the three months ended December 31, 2024, noninterest income was temporarily boosted by a $0.21 million gain from an asset sale. The baseline noninterest income for the preceding quarter (Q1 FY2025) was $5.2 million, indicating the need for consistent, recurring fee income growth beyond one-time sales.

Launch a hyper-local digital marketing campaign to capture more market share in the Philadelphia County footprint. William Penn Bank operates twelve full-service branch offices across its market area, including locations in Bucks County and Philadelphia County in Pennsylvania, and Burlington, Camden, and Mercer Counties in New Jersey. Capturing greater share in the Greater Philadelphia area market is a key strategic alignment point.

Improve the Net Interest Margin (NIM) from the Q2 FY2025 level of 2.27% by optimizing the funding mix. This optimization involves shifting the balance away from higher-cost funding sources toward more stable, lower-cost core deposits, which directly impacts the margin performance. The NIM for Q2 FY2025 was reported at 2.27%, compared to 2.29% in the prior quarter.

Here's a quick view of the key financial metrics relevant to this strategy:

To execute this, you should prioritize the following areas for immediate action:

• Target noninterest-bearing deposit stabilization efforts in Bucks and Burlington counties.
• Increase CRE loan application volume by 15% quarter-over-quarter in core markets.
• Establish a measurable cross-sell ratio goal for wealth management services penetration.
• Allocate 75% of the digital marketing budget to Philadelphia County digital channels.
• Model the impact of shifting 5% of total funding mix from wholesale to core deposits to NIM.

The success of these penetration tactics hinges on retaining the existing customer base while aggressively soliciting new business within the established service area. What this estimate hides is the immediate impact of the April 30, 2025, merger on the standalone WMPN strategy execution.

William Penn Bancorporation (WMPN) - Ansoff Matrix: Market Development

You're looking at how William Penn Bancorporation, now integrated, can push its existing community banking services into new geographic areas. This is Market Development in action, using the scale achieved after the merger closing on April 30, 2025.

Consider opening a new full-service branch in a high-growth, adjacent county like Lehigh Valley, PA. This move uses the new scale, which, on a pro forma basis following the acquisition, projects total assets of approximately $6.3 billion. Before the merger, William Penn Bancorporation operated through 12 branch offices across Pennsylvania and New Jersey.

You should target small-to-medium enterprise (SME) lending in the broader Delaware Valley, pushing beyond the original five-county footprint. The merger itself was designed to bolster presence in the attractive Greater Philadelphia Metro area market, extending the reach from William Penn Bank's prior service area.

Another path is establishing a dedicated digital-only banking channel. This lets William Penn Bancorporation serve customers statewide in New Jersey without the need for physical branches, a different way to capture market share in that state.

The combined entity's capital position, which was robust with a Capital Buffer Liquidity Ratio (CBLR) of 16.66% reported in Q2 FY2025 (quarter ended December 31, 2024), provides the foundation to enter the Baltimore, MD, market organically. That capital strength supports this kind of aggressive geographic expansion.

Here's a quick look at the scale you're working with, comparing pre-merger figures to the combined projection. Honestly, the jump in asset size is the key enabler for this strategy.

The Market Development strategy relies on deploying capital and scale into new territories. You need to track the performance metrics in these new areas closely. For instance, William Penn Bancorporation's Q2 FY2025 results showed a GAAP net loss of $(0.99) million, though the core net loss was $(0.74) million, indicating underlying operational stability aside from merger costs.

Key considerations for this market expansion include:

• Geographic expansion into Lehigh Valley, PA.
• Deepening SME penetration in the Delaware Valley.
• Launching a digital-only channel in New Jersey.
• Organic entry into the Baltimore, MD, market.
• Funding expansion using robust capital levels.

The pre-merger dividend declaration was $0.03/share. You need to ensure any new market entry supports, or at least doesn't jeopardize, this level of shareholder return, defintely.

Finance: draft 13-week cash view by Friday.

William Penn Bancorporation (WMPN) - Ansoff Matrix: Product Development

For the quarter ended September 30, 2024, William Penn Bancorporation recorded a $21 thousand net loss, or $(0.00) per basic and diluted share. Total deposits stood at $630 million as of September 30, 2024.

Introduce a high-yield, tiered business checking account to attract larger commercial clients in the existing market.

• Interest-bearing checking accounts decreased by $6.0 million during the quarter ended September 30, 2024.
• Total revenue for William Penn Bancorporation in the last twelve months ending December 31, 2024, was $20.36 Million.
• The business strategy focuses on serving consumers and businesses in Southeastern Pennsylvania and Southern and Central New Jersey.

Develop a specialized residential construction loan product for multi-family developers in the Philadelphia metro area.

The Multifamily Portfolio represented 11% of the Nonowner Occupied CRE Portfolio as of June 30, 2024, with the Greater Philadelphia area accounting for 31% of the Nonowner Occupied (Retail) Portfolio. Residential and Commercial Construction Loans and Land Loans totaled $32.7 million, or 6.8% of the total loan portfolio, at June 30, 2023.

Launch a proprietary mobile payment and budgeting app to improve customer engagement and digital service adoption.

• Over 83% of U.S. adults have used digital banking services as of 2025.
• 72% of global banking customers now prefer using mobile apps for core banking services in 2025.
• Digital banking transactions rose by 21.5% year-over-year in 2025.

Offer a full suite of treasury management services to mid-sized businesses, a higher-margin product line.

The business strategy includes delivering cash management tools for small businesses. The company generated $879.8 million in total new loan production in 2024, with $713.5 million attributed to commercial loan production. The non-performing assets to total assets ratio was 0.38% as of September 30, 2024.

Create a defintely new line of consumer credit products, like personal installment loans, for existing deposit customers.

Consumer loan production for 2024 totaled $35.6 million. Secured and unsecured lines of credit for individuals and small businesses totaled $32.7 million at June 30, 2023.

The merger with Mid Penn Bancorp resulted in combined total assets of approximately $6.3 billion as of April 30, 2025.

Finance: draft pro-forma asset composition for Q2 2025 by next Tuesday.

William Penn Bancorporation (WMPN) - Ansoff Matrix: Diversification

You're looking at growth beyond the core market, which for William Penn Bancorporation, based on its last reported Total Assets of $766,134 thousand as of March 31, 2025, means moving into new products and new geographies. This is the Diversification quadrant of the Ansoff Matrix.

Acquire a Small, Non-Bank FinTech Firm for Nationwide Digital Lending

Leveraging the scale of a hypothetical $120 million transaction, which aligns with some reported FinTech deal sizes in H1 2025, allows William Penn Bancorporation to immediately gain digital lending capabilities for a nationwide footprint. In H1 2025, FinTech acquisitions totaled $37.6 billion across 180 deals, with average Enterprise Value to Revenue multiples stabilizing around 4.7x TTM revenue. This acquisition would be a Product Development move (new product) combined with a Diversification move (new geography, nationwide). The target firm would need to show strong unit economics to justify a multiple near the sector average, especially given William Penn Bancorporation's recent Net Income of $(0.99) million for the quarter ended December 31, 2024.

Establish a Specialty Finance Division in the Mid-Atlantic

Focusing on niche lending like healthcare and equipment leasing targets established, high-demand segments within the existing geographic footprint. The global Medical Equipment Financing market size was valued at $186.02 billion in 2024, projected to reach $175.65 billion in 2025, with the U.S. segment alone estimated at $37.64 billion in 2024. The Healthcare Equipment Leasing market specifically was $65.07 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 9.2%. A specialty division would aim to capture a small fraction of this regional market, perhaps targeting initial loan originations of $50 million in the first full year of operation.

Here's a quick look at the market context for this niche:

Launch Private Banking in New York City

Entering New York City represents a clear geographical expansion coupled with a new high-touch product offering. The definition of a High-Net-Worth Individual (HNWI) starts at liquid assets of $1 million, excluding the primary residence. Ultra-High-Net-Worth Individuals (UHNWI) hold $30 million or more in investable assets. To compete, William Penn Bancorporation would need to attract significant Assets Under Management (AUM). For context, Blackstone reported $260 billion in private wealth AUM by the end of 2024. A realistic initial target for a new service line, given William Penn Bancorporation's existing Total Deposits of $623,549 thousand (March 31, 2025), might be to secure $150 million in new Private Banking AUM within 36 months.

The scale of wealth available in the US supports this move:

• Global Assets under Management (AuM) forecast to reach $145.4 trillion by 2025.
• The United States holds 35% of the world's personal wealth.
• UHNWIs hold 13% of the world's total wealth.

Invest in a Minority Stake in a Blockchain Trade Finance Platform

This is a high-risk, high-reward move into a new sector. The global trade finance gap was reported at $2.5 trillion in 2025, creating a massive opportunity for efficiency plays. Blockchain solutions are targeting this inefficiency; global investment in blockchain technology for supply chain applications is expected to exceed $11 billion by 2025. The Blockchain Supply Chain Finance market is projected to generate $24.7 billion in transaction volume in 2025. A minority stake investment would likely be in the range of $5 million to $20 million, depending on the platform's stage and valuation. The risk is clear: smart contract vulnerabilities caused $2.1 billion in losses in 2025 alone, so due diligence on the platform's security framework is defintely key.

Key sector statistics for this investment:

• Global trade finance gap (2025): $2.5 trillion.
• Projected Blockchain Supply Chain Finance transaction volume (2025): $24.7 billion.
• Global investment in blockchain for supply chain (2025 expectation): Exceed $11 billion.
• Reported losses from smart contract vulnerabilities (2025): $2.1 billion.

Finance: draft pro-forma balance sheet impact for a $15 million minority stake by next Tuesday.