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FOR IMMEDIATE RELEASE DATE : October 21 , 2021 CONTACT : Kenneth J. Stephon PHONE : Chairman , President and CEO ( 856 ) 656-2201 , ext . 1009 WILLIAM PENN BANCORPORATION ANNOUNCES FIRST QUARTER RESULTS BRISTOL , PENNSYLVANIA , October 21 , 2021 William Penn Bancorporation ( " William Penn " or the " Company " ) ( NASDAQ CM : WMPN ) , the parent company of William Penn Bank ( the “ Bank ” ) , today announced its financial results for the quarter ended September 30 , 2021. William Penn recorded net income of $ 1.2 million , or $ 0.08 per diluted share , for the quarter ended September 30 , 2021 , compared to net income of $ 670 thousand , or $ 0.05 per diluted share , for the quarter ended September 30 , 2020. Net income for the quarter ended September 30 , 2021 included a $ 235 thousand , or $ 0.02 per diluted share , income tax benefit related to refunds received associated with the carryback of net operating losses under the Coronavirus Aid , Relief , and Economic Security ( " CARES ” ) Act . Net income for the quarters ended September 30 , 2021 and 2020 , respectively , included $ 64 thousand and $ 161 thousand of prepayment penalties associated with the prepayment of $ 7.0 million and $ 23.2 million of higher - cost advances from the Federal Home Loan Bank of Pittsburgh ( “ FHLB ” ) . Kenneth J. Stephon , William Penn's Chairman , President and CEO , stated “ We continue to focus on the deployment of excess cash and the prudent management of our balance sheet to help us in achieving our strategic and financial growth goals . The low interest rate environment has made it challenging to effectively deploy the excess cash we hold on our balance sheet . We used $ 53.2 million of cash during the quarter to purchase high - quality investment securities that we anticipate will provide a steady stream of cash flows both in the current and in rising interest rate environments . In addition , we made a strategic decision during the quarter to use $ 7.0 million of cash to prepay higher - cost advances from the FHLB that effectively removed a negative spread from our balance sheet . Despite operating in a challenging environment because of the COVID - 19 pandemic , we had $ 23.8 million of new loan originations during the quarter . The results for the quarter include a benefit from a loan loss reserve release of $ 30 thousand , compared to a provision of $ 66 thousand in the same quarter last year , that we do not consider part of our core or recurring earnings . We have experienced strong growth in core deposits , which increased at an annualized rate of 17.4 % during the first quarter . We believe the recent opening of our new branch located in Doylestown in Bucks County , Pennsylvania will continue to bolster our core deposit growth . " Highlights for the quarter ended September 30 , 2021 are as follows : William Penn recorded net income of $ 1.2 million , or $ 0.08 per diluted share . William Penn recognized a $ 235 thousand , or $ 0.02 per diluted share , income tax benefit related to refunds received associated with the carryback of net operating losses under the CARES Act . William Penn purchased $ 53.2 million of high - quality investment securities that it anticipates will provide a steady stream of cash flows both in the current and in rising interest rate environments . William Penn prepaid $ 7.0 million of higher - cost advances from the FHLB and incurred $ 64 thousand of prepayment penalties in connection with such prepayments . William Penn originated $ 23.8 million of new loans . Core deposits increased at an annualized rate of 17.4 % . William Penn opened a new branch located in Doylestown in Bucks County , Pennsylvania . William Penn paid a $ 0.30 per share one - time special cash dividend in August 2021 .