William Penn Bancorp, Inc. Announces Completion Of Merger

LEVITTOWN, PA / ACCESSWIRE / July 2, 2018 / William Penn Bancorp, Inc. (the "Company") WMPN, the parent holding company for William Penn Bank (the "Bank"), announced today that the Bank has completed its previously announced merger of Audubon Savings Bank ("ASB") with and into the Bank, effective July 1, 2018. The merger was consummated pursuant to the terms of the Agreement and Plan of Merger, dated as of December 6, 2017, by and among William Penn, MHC (the "MHC"), the Company, the Bank and ASB (the "Merger Agreement"). With the completion of the merger, the combined institution has consolidated assets of approximately $460 million, $70 million in equity, and operates a network of six branches.

"We are pleased to welcome ASB's customers and employees to our Bank," said Terry L. Sager, the Company's President and Chief Executive Officer. "This is an exciting opportunity to jointly enhance our products, services, and delivery channels to better serve our customers. We look forward to providing both new and existing customers with the continued exceptional service they deserve, supported by a growing team that now includes ASB's banking professionals. As two long standing community banks in the Delaware Valley holding similar core values, we are confident this merger will prove beneficial to our customers and the community."

Kenneth J. Stephon, former President and Chief Executive Officer of ASB, has been appointed as the Senior Executive Vice President and Chief Operating Officer of the Company, the Bank, and the MHC, and will succeed Mrs. Sager as President and Chief Executive Officer in February 2019. Jan Summers, former Executive Vice President and Chief Financial Officer of ASB, will join senior management of the combined company in that same capacity.

Mr. Stephon stated, "We are excited to complete this merger that makes enormous sense for both banks. Together, we have a strong management team that can compete with the best community banks, our combined balance sheet is exceptionally strong, and we are intensely focused on execution and performance."

In addition to Mr. Stephon and Ms. Summers joining the senior management of the Company, the Bank and the MHC, Vincent P. Sarubbi, the former Chairman of ASB's Board, D. Michael Carmody, Jr., former Vice Chairman of ASB's Board, and Mr. Stephon have been appointed as directors of each of the Company, the Bank and the MHC.

Pursuant to the terms of the Merger Agreement, no consideration was paid to the members of ASB; however, the Company issued 517,095 additional shares of common stock to the MHC in connection with the consummation of the merger.

Silver, Freedman, Taff & Tiernan, LLP acted as legal counsel to William Penn Bancorp, Inc. and Kilpatrick Townsend & Stockton LLP acted as legal counsel to Audubon Savings Bank. Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor to William Penn Bancorp, Inc. and FinPro Capital Advisors, Inc. served as financial advisor to Audubon Savings Bank.

William Penn Bancorp, Inc. is the holding company for William Penn Bank, which serves Bucks County, Pennsylvania through its main office in Levittown, and additional branch offices in Morrisville and Richboro, Pennsylvania and as a result of the merger, serves also Burlington and Camden Counties in New Jersey through branch offices located in Audubon, Mount Laurel and Pine Hill, New Jersey. The Company's executive offices are located at 1309 S. Woodbourne Road, Levittown, Pennsylvania 19057. William Penn Bank's deposits are insured up to the legal maximum (generally $250,000 per depositor) by the FDIC. The primary federal regulator for William Penn Bank is the FDIC.

Senior Management: Terry L. Sager, President and Chief Executive Officer; Kenneth J. Stephon, Senior Executive Vice President and Chief Operating Officer; Jan Summers, Executive Vice President and Chief Financial Officer; and James Douglas, Senior Vice President and Chief Lending Officer.

Board of Directors: William J. Feeney (Chairman), Craig Burton, D. Michael Carmody, Charles Corcoran, Glenn Davis, William B. K. Parry, Jr., Terry L. Sager, Vincent P. Sarubbi and Kenneth J. Stephon.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations or predictions of future financial or business performance, conditions relating to the Company and ASB, or other effects of the merger on the Company and ASB. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond the Company's control). The words "may,'' "could,'' "should,''"would,'' "will,'' "believe,'' "anticipate,'' "estimate,'' "expect,'' "intend,'' "plan" and similar expressions are intended to identify forward-looking statements.

In addition, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: difficulties and delays in integrating the ASB business or fully realizing anticipated cost savings and other benefits of the merger; business disruptions following the merger; the strength of the United States economy in general and the strength of the local economies in which the Company and ASB conduct their operations; general economic conditions; legislative and regulatory changes, monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities; changes in interest rates, deposit flows, the cost of funds, demand for loan products, demand for financial services, competition, changes in the quality or composition of the Company's loan, investment and mortgage-backed securities portfolios; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and fees; and the success of the Company at managing the risks involved in the foregoing.

The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances arising after the date hereof.

CONTACT:

Terry L. Sager, President
215-269-1200

SOURCE: William Penn Bancorp, Inc.