Form 4: William Penn Bancorporation President and CEO Reports Disposal of Shares and Options Following Merger with Mid Penn Bancorp

Kenneth John Stephon, President and CEO of William Penn Bancorporation, reports the disposal of shares and stock options due to the merger with Mid Penn Bancorp, Inc.

Summary

• Kenneth John Stephon, President and CEO of William Penn Bancorporation, filed a Form 4 detailing changes in beneficial ownership following the merger with Mid Penn Bancorp, Inc.
• The merger, effective April 30, 2025, resulted in the disposal of 85,019 shares of William Penn common stock held directly by Stephon.
• Additionally, 75,840 shares held by stock award, 40,912 shares held by 401(k), 38,400 shares held by IRA and 10,334 shares held by ESOP were disposed of indirectly.
• Stock options for 316,000 shares were also disposed of as part of the merger agreement.
• Each share of William Penn common stock was converted into the right to receive 0.426 shares of Mid Penn common stock.
• Restricted stock awards and stock options were assumed by Mid Penn and converted based on the exchange ratio.
• The closing price of William Penn's common stock on April 30, 2025, was $12.32 per share, while Mid Penn's was $29.05 per share.

Sentiment

Score: 7

Explanation: The document is a standard regulatory filing related to a merger. The sentiment is neutral, reflecting the completion of a previously announced transaction. The merger itself could be viewed positively for shareholders of both companies, hence the slightly above-average score.

Future Outlook

The document does not contain specific forward-looking statements beyond the completion of the merger.

Industry Context

This announcement reflects ongoing consolidation trends within the banking sector, where smaller institutions merge to achieve greater scale and efficiency.

Comparison to Industry Standards

• Mergers between regional banks are common, with exchange ratios and deal terms varying based on relative valuations and growth prospects.
• Comparable transactions include recent mergers among community banks seeking to expand their market presence and improve profitability.
• The conversion of stock options and restricted stock awards is a standard practice in mergers, ensuring that employees retain equity incentives in the combined entity.

Stakeholder Impact

• Shareholders of William Penn received 0.426 shares of Mid Penn for each share they held.
• Employees with stock options and restricted stock awards had their holdings converted to Mid Penn equivalents.
• The merger is expected to create a stronger, more competitive banking institution.

Key Dates

Keywords

Merger, William Penn Bancorporation, Mid Penn Bancorp, Form 4, Beneficial Ownership, Stock Options, Stock Awards