William Penn Bancorporation (WMPN): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of William Penn Bancorporation's business blocks right before its acquisition, so let's map its core segments onto the BCG Matrix using the latest 2025 fiscal year data. Honestly, the picture shows a bank with no clear Stars, relying on a solid, low-cost deposit base of $\sim$$627.4 million acting as its Cash Cow, while the traditional branch network drags as a Dog. The real tension was in the Question Marks: high-growth Commercial Real Estate lending versus digital initiatives that showed a hefty GAAP efficiency ratio of 122.9% in Q2 FY2025, all leading up to that final $120 million acquisition by Mid Penn Bancorp in April 2025. Dive in to see exactly where the capital was tied up.

Background of William Penn Bancorporation (WMPN)

You're looking at the history of William Penn Bancorporation (WMPN) right before it became part of a larger entity. William Penn Bancorporation was the holding company for William Penn Bank, operating as an independent community financial services provider headquartered in Bristol, Pennsylvania. William Penn Bancorporation provided community banking services to individuals and small- to medium-sized businesses primarily in the Delaware Valley area, conducting business through 12 branch offices located across Pennsylvania and New Jersey.

The bank offered a full suite of commercial and retail financial services. This included taking time, savings, and demand deposits, as well as offering certificates of deposit. On the lending side, they provided one- to four-family residential loans, investor commercial real estate loans, commercial non-residential real estate loans, and multi-family loans.

Looking at the final figures before the acquisition, the company faced some headwinds. For the full fiscal year 2024, WMPN reported revenue of $20.56 million, which was a decrease of -17.82% compared to the prior year. Earnings for that same full year were only $168,000, marking a significant drop of -94.00% year-over-year.

More recently, for the quarter ended December 31, 2024 (Q4 FY2025 in some reporting structures), WMPN posted a GAAP net loss of $(0.99) million, or $(0.12) Earnings Per Share. The revenue for that quarter was $4.62 million, falling 8.4% short of the revenue from the same quarter the year before. The Net Interest Margin (NIM) remained tight, reported at 2.27% for that quarter.

The final chapter for William Penn Bancorporation as a standalone entity came in the spring of 2025. Shareholders from both companies overwhelmingly approved the acquisition by Mid Penn Bancorp, Inc. on April 2, 2025. The all-stock transaction, valued at approximately $120 million, was officially completed after the close of business on April 30, 2025. Upon completion, William Penn Bank merged into Mid Penn Bank, with the consolidated assets of the combined company totaling approximately $6.3 billion.

William Penn Bancorporation (WMPN) - BCG Matrix: Stars

You're looking at the Stars quadrant for William Penn Bancorporation (WMPN) as of 2025, and honestly, the data points us to a clear conclusion: there aren't any. Stars require both high market share and high market growth. Given William Penn Bancorporation's reported $\sim\mathbf{$812$ million in total assets just prior to its acquisition, the relative market share in the highly competitive Greater Philadelphia market simply wasn't high enough to qualify any segment as a Star. That asset base, while respectable for a community bank, is dwarfed by regional giants in that metro area.

The company's small scale, which was a key factor leading to the April 30, 2025, acquisition by Mid Penn Bancorp, Inc., prevents any single business unit from achieving that dominant, high-share position necessary for Star status. To be a Star, you need to be the clear leader in a rapidly expanding space. Instead, William Penn Bancorporation was positioned as a strategic bolt-on acquisition, designed to bolster Mid Penn's footprint, which resulted in a combined entity with approximately $6.3$ billion in assets post-merger. This context underscores why WMPN, on its own, couldn't claim any Star businesses.

Here's a quick look at the scale of William Penn Bank just before the merger closed, which helps illustrate why market share dominance was elusive:

The operational footprint, while serving a defined geographic area, also reflects the scale limitations that kept the company out of the Star category:

• Serves the Delaware Valley area.
• Operates 12$ full-service branch offices.
• Geographic reach includes Bucks County and Philadelphia, Pennsylvania.
• Includes operations in Burlington, Camden, and Mercer Counties in New Jersey.
• Primary specialization in Commercial Lending.

William Penn Bancorporation (WMPN) - BCG Matrix: Cash Cows

Cash Cows represent the established, market-leading businesses within William Penn Bancorporation that generate more cash than they consume, funding other strategic areas. These units thrive in mature markets with high market share, requiring minimal investment for maintenance.

The core of this stability is the funding base. You see this in the Core Customer Deposit Base, which provided a stable, low-cost funding source, with deposits at $\sim$$627.4 million as of December 31, 2024. That figure, while slightly lower than the June 30, 2024, level of $629.8 million, still represented a substantial funding pool.

The profitability from these relationships, though in a low-growth segment, was evident in the net interest income. For the second quarter of Fiscal Year 2025, this segment generated consistent net interest income of $4.06 million. This cash generation is what supports the entire enterprise, including corporate overhead and shareholder returns.

Asset quality, a key indicator of a healthy cash cow, remained strong for William Penn Bancorporation. The High-quality, seasoned loan portfolio showed low credit risk, with non-performing assets (NPAs) measured at only 0.30% of total assets as of December 31, 2024. This is an improvement from the 0.40% reported as of June 30, 2024.

The commitment to shareholders, funded by these cash flows, was maintained even as the company navigated a challenging rate environment. For instance, William Penn Bancorporation's Board declared a cash dividend of $0.03 per share, payable on February 6, 2025, to shareholders of record on January 27, 2025.

Here's a quick look at the key metrics defining this segment's performance leading up to the 2025 transition:

• Core Deposits at December 31, 2024: $627.4 million
• Non-Performing Assets to Total Assets (Dec 31, 2024): 0.30%
• Net Interest Income (Q2 FY2025 estimate): $4.06 million
• Quarterly Dividend Maintained (Early 2025): $0.03 per share

The operational efficiency of this cash cow segment is what matters most for maximizing cash flow. Investments here are focused on infrastructure to maintain productivity rather than aggressive market expansion. The company's focus on controlling noninterest expenses, which were down by 5.3% year over year for the year ended June 30, 2024, speaks directly to this 'milking' strategy.

The strategic reality for William Penn Bancorporation in 2025 was the culmination of its existence as a standalone entity. The merger with Mid Penn Bancorp, Inc. received shareholder approval on April 2, 2025, with over 96% of William Penn shares voting in favor. The transaction was intended to close in the second quarter of 2025, effectively integrating these cash-generating assets into the larger combined entity.

The financial snapshot of the core business units positioned as Cash Cows, based on the latest available standalone data, is summarized below:

William Penn Bancorporation (WMPN) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help. You're looking at business segments that tie up capital without generating significant returns, so the focus must be on minimizing exposure.

Here are the components of William Penn Bancorporation that fit the Dogs quadrant based on early 2025 financial performance data:

• Traditional Retail Branch Network: The 12-branch footprint faces a low-growth market where community bank branches in Greater Philadelphia are declining.
• Investment Securities Portfolio: Contributed to a softening of net interest income in Q2 FY2025 due to lower securities income.
• Non-interest income streams, excluding one-time gains, which remain a small portion of revenue.

The financial contribution from the non-interest income streams, which represent the low-share/low-growth aspect of the business, was minimal for the second quarter of fiscal year 2025. For the three months ended December 31, 2024, this revenue component totaled $975 thousand.

The performance of the Investment Securities Portfolio illustrates the cash-trapping nature of these units. The net interest margin for the three months ended December 31, 2024, was 2.27%, down from 2.28% year-over-year. This compression was directly linked to a decrease in the average balance of investment securities, which lowered interest income.

You can see the key metrics for these Dog-like components below:

The non-interest income, when viewed excluding the one-time gain from a fixed-asset sale of $211 thousand in that same quarter, shows the recurring, low-yield nature of these operations. The bank defintely needs to evaluate the cost of maintaining the physical footprint against the revenue it generates in a consolidating market.

Specifically regarding the Investment Securities Portfolio's drag on performance:

• Net interest income softened in Q2 FY2025 compared to the prior year period ($4.06 million vs $4.21 million YoY).
• The decrease was primarily due to a decrease in interest income on investment securities.
• The decrease in the average balance of investment securities was a primary driver of the NIM change.

Finance: draft a divestiture impact analysis for the branch network by Friday.

William Penn Bancorporation (WMPN) - BCG Matrix: Question Marks

You're looking at the business units of William Penn Bancorporation (WMPN) that fit the Question Mark profile as of 2025: operating in high-growth markets but possessing a low relative market share, thus consuming cash without delivering significant immediate returns. These are the areas where the bank needed to decide quickly: invest heavily to gain traction or divest.

Consider the Commercial Real Estate (CRE) Lending segment. The market itself showed strong upward momentum, with projections indicating a 16% rise in total commercial and multifamily mortgage originations for 2025. This high-growth environment suggests a prime area for expansion, but for William Penn Bancorporation as a standalone entity, capturing significant share in this growing market required substantial capital deployment, fitting the Question Mark profile.

The Multifamily Loan Portfolio is a key part of that CRE exposure, often showing sustained growth for local banks operating in the tristate area. While the market is expanding, the necessary investment in underwriting technology, relationship building, and competitive pricing to grow this portfolio quickly against larger players meant these assets were cash-hungry, a classic trait of a Question Mark.

Digital Banking Initiatives represent another area demanding high investment for future relevance. These are necessary moves into a high-growth technology area, but they carry an unproven return on investment in the short term. The financial strain of this investment was visible in the reported efficiency ratio. For the second quarter of fiscal year 2025, William Penn Bancorporation's GAAP efficiency ratio was elevated to 122.9%, largely due to merger-related expenses, but this metric highlights the high cost structure associated with necessary, but not yet profitable, strategic investments.

Here's a quick look at the key financial context surrounding these Question Mark elements:

Ultimately, the entire standalone entity of William Penn Bancorporation was categorized as a Question Mark, facing the decision to invest heavily for future scale or find a resolution. This question was resolved when the company was acquired by Mid Penn Bancorp in April 2025. The all-stock transaction was valued at approximately $120 million, effectively ending the standalone Question Mark status by merging its operations and assets into the acquiring entity.

• These units require rapid market share gains or divestiture.
• High growth prospects are present in the underlying markets.
• Cash consumption is high due to necessary capital deployment.
• The resolution for WMPN was a strategic acquisition.