# EDGAR Filing Document

**Accession Number:** 0000885275
**File Stem:** 0001437749-23-007728
**Filing Date:** 2023-3
**Character Count:** 31921
**Document Hash:** a129abec9b4454435edf465ca0e65a42
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-007728.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001437749-23-007728

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**EFFECTIVENESS DATE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WILSON BANK HOLDING CO
- **CENTRAL INDEX KEY:** 0000885275
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 621497076
- **STATE OF INCORPORATION:** TN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-20402
- **FILM NUMBER:** 23758940

**BUSINESS ADDRESS:**
- **STREET 1:** 623 W MAIN STREET
- **STREET 2:** P.O. BOX 768
- **CITY:** LEBANON
- **STATE:** TN
- **ZIP:** 37087
- **BUSINESS PHONE:** 6154442265

**MAIL ADDRESS:**
- **STREET 1:** 623 W MAIN STREET
- **STREET 2:** P.O. BOX 768
- **CITY:** LEBANON
- **STATE:** TN
- **ZIP:** 37087

### Attached PDF Documents

**Attachment 1:** `ars.pdf`

**WILSON**
BANK HOLDING CO.

# Connected

*to our customers, our community and to each other*

2022
YEAR IN REVIEW

*inside*

Inside

**4** Cleaning Up
**8** Connect Through Compassion
**10** Bringing the Best to Chattanooga
**14** We're Right by Your Side
**16** Giving Back

AND MORE

Wilson Bank & Trust remains focused on serving our communities. We're local. We're independent. The people who make decisions and help you at the window are your neighbors and friends. As your local, independent bank, Wilson Bank & Trust takes a personal approach to business by providing customized banking solutions while staying committed to helping our communities prosper.

# by the numbers

Wilson Bank Holding Company is a bank holding company whose primary business is conducted by its wholly-owned subsidiary, Wilson Bank & Trust (the "Bank"). The Bank is a commercial bank headquartered in Lebanon, Tennessee. The Bank provides a full range of banking services in its primary market areas of Wilson, Davidson, Rutherford, Trousdale, Sumner, DeKalb, Smith, Williamson and Putnam counties, Tennessee.

31

locations

580+

employees

10

counties

# WILSON BANK HOLDING CO.
# Connected

2022 ANNUAL REPORT

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

## On the Cover

Nearly 200 WBT employees and their families joined Habitat for Humanity of Wilson County to build a home for a local resident. The build spanned over three weekends and 10 local restaurants even joined this community effort by donating meals each day for the volunteers.

Member FDIC

## 2 Letter to Shareholders

## 4 Shareholder Spotlight: Cleaning Up

Mitchell brothers partner with WBT to sustain a business where 'all are welcome'

## 8 Community Spotlight: Connect Through Compassion

## 9 Preventing Cybercrime

## 10 Bringing the Best to Chattanooga

WBT enters the Chattanooga market with a seasoned group of local lenders

## 12 Leave a Legacy that Goes Beyond Money

Raymond James' Heidi King shares some thoughts on planning for the next phase of your life

## 14 Commercial Business Spotlight: Middle Tennessee's Hughston Clinic Orthopedics

![img-2.jpeg](img-2.jpeg)

## departments

| 16 | Giving Back to Our Community | 30 | Board of Directors |
| --- | --- | --- | --- |
| 17 | Financial Section | 32 | Executive Management |

## Get Plugged In

Follow us on social media

![img-3.jpeg](img-3.jpeg)

WILSON BANK HOLDING COMPANY 1

Wilson Bank Holding Company

# To Our Shareholders

As we reflect on the previous year, we are proud to say that even through the fluctuation of economic conditions, your bank remained consistent and true to its mission of serving our customers and communities first. Our dedication to supporting local businesses and reinvesting in those economies was a key element of our success. We often remind ourselves of Wilson Bank & Trust’s humble beginnings, rooted in the shared belief that banking could mean more than checking accounts and loans. We are a business built on purpose, not products.

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

John McDearman,
left and John Foster

2

CONNECTED 2022 ANNUAL REPORT

Continual investment in technology is always a priority for the bank but our ability to connect competitive banking products with personalized service for our customers is what sets us apart. It is our belief that community banks like ours continue to persist and thrive because of our people and their attention to service standards. Key elements of banking like compassion and perspective are human touches which cannot be replaced by technology. We strive to ensure that our customers have access to innovative products and services without losing sight of the value of relationships, which leads to established trust within our communities. Simply put, community banks do something technology cannot - relate.

In celebration of our 35th year of service, we kicked off the year by formalizing our employee-led initiative, the We Believe Together program. The mission of this program is to ensure that our employees feel empowered and encouraged to be involved with local organizations of their choosing. In celebration of our anniversary, employees from nine counties came together in partnership with Habitat for Humanity of Wilson County to build a bank-sponsored home for a local resident.

In May, we announced the official grand opening of Encompass Home Lending. This newly formed entity in partnership between Wilson Bank & Trust and local residential home builders, Celebration Homes and Willow Branch Homes, offers home loans to over 27 residential communities across Middle Tennessee.

We were pleased to see signature bank events like the Southern Home & Garden Expo, local fair participation and Oktoberfest return to pre-pandemic norms. Each event brought record breaking attendance and above all, gave us the opportunity to spend quality time with teammates and customers from all of our markets.

Another highlight of 2022 was being named a Top Workplace by the Tennessean. This honor just further solidified what we already believe, our bank is led by the best workforce in banking and beyond. With the continued growth of our employees in mind, we doubled down on our commitment to professional development by allocating more resources to nurture and cultivate the talent within our teams and allow space to build a career with WBT. Our people worked diligently throughout the year to identify and create efficiencies in an effort to enhance our customer experience and ease of doing business. In addition, several operational teams joined forces to refine many of our products ensuring that our services continue to meet the needs of our customers.

Growth into other markets within our state has always been part of the bank's future plans but we know timing and finding the right people to lead those efforts is critical in deciding to take the leap. In 2022, the leadership of the bank was presented with the opportunity to enter the Chattanooga market with a seasoned group of local bankers in a position to lead a loan production office focused on commercial banking. These three veteran bankers come to WBT with decades

of banking experience and we are confident in their ability to lead our growth efforts in this market.

While we know some economic challenges lie ahead, we are optimistic about the days and years to come for WBT. Together, we will work to show our customers and shareholders that we are here for you even when times are tough. It's our intent to continue to step forward in advancing and enriching the communities in which we live, work and play. Community banking means shared perspective because we travel the same roads you do, have known you for years, and appreciate all you're trying to accomplish at every stage of life. Thank you for allowing us the opportunity to serve you for the last 35 years and we look forward to many more to come.

Sincerely,

John C. McDearman, III
President/CEO
Wilson Bank Holding Company

John Foster
President
Wilson Bank & Trust

WILSON BANK HOLDING COMPANY 3

![img-6.jpeg](img-6.jpeg)

4 CONNECTED 2022 ANNUAL REPORT

SHAREHOLDER SPOTLIGHT:
THE MITCHELL FAMILY

# Cleaning Up

Mitchell Brothers Partner With
WBT to Sustain a Business Where
‘All are Welcome’.

When Wade Mitchell
and his wife, Camille,
moved to Louisville,
Kentucky, in 2014, they left one very
important thing at home in Lebanon -
their banking. While they knew they would
eventually move back home to Wilson
County, the decision to keep their accounts
with Wilson Bank & Trust (WBT) stems
primarily from the Mitchell family’s deeply
rooted relationship with the bank.

“We had no interest in ever leaving
Wilson Bank,” Wade explained. “We have
so many relationships and connections
with the bank. The people we’ve grown up
with work there now, and Lebanon is so
near and dear to our hearts.”

Wade felt that, by continuing to bank
with WBT, he could continue to support
his hometown, even if he was nearly 200
miles away. For him, it is not just a financial
institution - it is a part of his upbringing.

Since he was born, Wade, along with
his brother Cale, and his cousins Griffin,
Ford, and Owen, have all received the
same gift from their grandfather, Bobby
Griffin - Wilson Bank shares. Whether
it’s a wedding or a birth, Christmas or a
birthday, Grandad is steadfast in his choice
of gift. It’s never excessive - just enough

to express his affection while teaching his
grandchildren about the stock market.

As Wilson County natives, the
Mitchell family knew the bank’s founders
personally. When Wilson Bank made
its first stock offering in 1987, Grandad
purchased shares, as did Dorie and Tim
Mitchell, Wade and Cale’s parents.

“We always thought it would be
a worthwhile investment because of
the local tie. I knew the people. I had
relationships with them. I felt good
about the decision makers running the
bank,” Dorie explained. “I’ve always been
very community-minded, so I felt very
connected because of its community focus.”

To say she’s community-minded
is a bit of an understatement. In 2001,
Dorie was selected for Leadership Wilson,
a community leadership development
program that serves to identify, train, and
motivate individual citizens in community
leadership. She has been the program’s
Executive Director since 2007. Dorie
is also a licensed Realtor. She and her
business partner DeAnna Dodd own
Dorie and DeAnna Demo and Design,
a home purchasing and restoration
company. WBT has been an important
partner in their endeavors.

![img-7.jpeg](img-7.jpeg)

You’ll never see people
from so many different
walks of life chitchatting
about the things coming to
Lebanon. It really made me
realize this was so much
bigger than just business.

Wade Mitchell
PARTNER, QUIK WASH

![img-8.jpeg](img-8.jpeg)

Dorie Mitchell holding
her grandson, Camp and
granddaughters, left to right,
Crew and Cross at the family’s
Quik Wash in Lebanon.

WILSON BANK HOLDING COMPANY 5

## “I can’t imagine doing this through another bank.”

When Wade and Cale, along with their wives Camille and Caroline, started to flex their own entrepreneurial muscles, they too turned to WBT. “Wilson Bank & Trust is all we’ve ever known. Our entire family uses it, always have,” said Cale. The ability to work with people that knew their family has helped make it happen.

Wade got the idea of opening a laundromat while living in Louisville. He learned that laundromats are essential to the communities in which they operate. So, when he moved back to Lebanon, he teamed up with Cale and looked around for a laundry business to purchase. He got to know

the owner of Quik Wash, and soon after, the owner was in a position to sell it.

After buying the laundromat, the brothers quickly recognized that the laundry business is about connecting with others in a safe and welcoming space. This became apparent to Wade one day when he overheard a conversation at Quik Wash. A prominent business owner, an electrician, and a neighbor who had fallen on hard times were all engaging in a meaningful discussion about Lebanon’s growth - as equals.

“You’ll never see people from so many different walks of life chitchatting about the things coming to

Lebanon,” Wade said. “It really made me realize this was so much bigger than just a business.”

Wade, Cale, Camille, and Caroline are committed to ensuring Quik Wash remains a safe, comfortable place where all are welcome, and they do it, not only with the help of WBT, but their entire family, as well. “We come from a family that works hard,” said Cale. “We taught ourselves how to do repairs and are fortunate to have relationships with local experts to help with larger projects. We’ve learned a lot since becoming business owners. It has made us adaptable.” Every member of the Mitchell clan lends a hand, whether it is cleaning, maintaining, and repairing equipment, managing the bulk laundry drop-off service, or helping look after Wade’s three young children. Tim can be found at the laundromat every evening and on weekends. As they say, it takes a village, and in this case, that village includes WBT.

“We knew having WBT as a partner in building this business would add strength to it from the local perspective,” Wade said. “While doing business in the bank, the customer service has been fantastic. It’s been great to see their level of commitment. It’s always, ‘How are you guys doing? Anything we can do? Has everything worked out?’ I can’t imagine doing this through another bank.”

As with any small business, Wade and Cale experience a great deal of ups and downs, challenges and successes, but they and their family members are fueled by the positive impact that this business has made on the community they love.

*Standing left to right: Cale and Caroline Mitchell, Wade and Camille Mitchell and their three children; Cross (4), twins Camp and Crew(2)*

![img-9.jpeg](img-9.jpeg)

6 CONNECTED 2022 ANNUAL REPORT

![img-10.jpeg](img-10.jpeg)

![img-11.jpeg](img-11.jpeg)

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

WILSON BANK HOLDING COMPANY 7

![img-14.jpeg](img-14.jpeg)

## Connect Through Compassion

Comfort Connections, a Williamson County based non-profit organization, is on a mission to connect therapy comfort dogs with individuals working to heal after dealing with traumatic experiences. Jeanene Hupy, its founder, was inspired to establish this organization after working with students impacted by the tragic shooting at Sandy Hook Elementary. It was in this moment, Hupy was inspired to create a non-profit organization on a mission to provide a new approach to compassion and comfort to those in need.

“In the aftermath of a tragedy, often times students and adults do not possess the skillset needed to continue comforting one another after support organizations have moved on to the next crisis,” said Jeanene Hupy. “Our goal at Comfort Connections is to help individuals re-learn the skill of comfort. Some of the greatest instructors of compassion and comfort are dogs. It’s no secret that dogs have been used as therapy comfort animals for years. Studies have shown that simply petting a dog has tangible

evidence to reduce high blood pressure, reduce stress, increase socialization skills, and improve self-esteem. Dogs are accepting, with no criticism, and they truly enjoy interacting with people. Animals can sometimes understand and fill a need in ways that humans cannot.”

As a part of the bank’s “We Believe Together” initiative, the Cool Spring office partnered with Comfort Connections to help bring awareness to this organization and its powerful mission. Throughout the year, WBT and Comfort Connections worked together to provide opportunities to cultivate a culture of acceptance, inclusion, and comfort within their community. From visits to the local county fair, to “Hot Dog Day” and “Howl-O-Ween”, these two teams found various opportunities to spread awareness about this incredible cause. Throughout the year, the comfort dogs made visits to the Cool Springs office to spread happiness, comfort, and care through love and acceptance.

![img-15.jpeg](img-15.jpeg)

Scan here to learn more

8 CONNECTED 2022 ANNUAL REPORT

**Wilson Bank reported record high net income of $53.0 million for the year ended December 31, 2022 compared to $49.4 million for the same period in 2021. Diluted earnings per share for the twelve month period ended December 31, 2022 was $4.65 compared to $4.43 for the same period in 2021.**

Net interest income before the provision for credit losses was $141.4 million for the twelve months ending December 31, 2022 compared to $118.2 million for the year ended 2021. This increase was the result of a $27.7 million, or 21.3%, increase in interest income and an increase of $4.5 million, or 38.6%, in total interest expense. The net interest margin was 3.70% in 2022 as compared to 3.44% for 2021. The net interest margin was positively impacted by the Federal Reserve's move to increase the federal funds rate from .25% to 4.50% during 2022 and record loan growth for the period.

The 2022 provision for credit losses was $8,656,000, an increase of $7,513,000 from the provision in 2021. The increase in the provision in 2022 was largely attributable to an increase in the volume of loans originated during the period.

Non-interest income for the twelve months ended December 31, 2022 was $27.4 million compared to $32.9 million for the same period in 2021. Included in this decrease is a decrease in fees and gains on sales of mortgage loans due to the rising rate environment which contributed to weakened demand for purchase money mortgage loans and refinancing transactions, offset in part by gains in our mortgage hedging activities. Also negatively impacting non-interest income in 2022 was a loss we recognized on the sale of lower yielding securities due to management's decision to sell securities due to the rising rate environment to restructure a portion of the securities portfolio into higher yielding securities in an effort to increase net interest margin in future periods. These decreases were offset in part by an increase in service charges on deposit accounts. We also saw an increase in debit and credit card interchange income due to an increase in the number and volume of debit card and credit card holders and transactions. Brokerage income increased due to the opening of new investment accounts as well as growth in assets under management, which can be attributed to marketing efforts and overall population growth of the middle Tennessee markets. In addition, the increase in interest rates has increased customers' interest in opportunities to capitalize on products and services provided.

## NET INCOME

**7.32% INCREASE**

![img-0.jpeg](img-0.jpeg)

## NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

**19.63% INCREASE**

![img-1.jpeg](img-1.jpeg)

WILSON BANK HOLDING COMPANY 19

# Balance Sheet

Wilson Bank reported total assets of $4.3 billion at December 31, 2022 compared to $4.0 billion at December 31, 2021, an increase of $296.1 million, or 7.4%.

At December 31, 2022 securities were $822.8 million, a decrease of 8.3% from $897.6 million at December 31, 2021. The decrease in securities was due to an increase in interest rates that caused the fair market value of our securities portfolio to decline, partially offset by the purchase of new securities.

Loans, net of allowance for credit losses, totaled $3.1 billion at December 31, 2022, a $669.5 million, or 27.4%, increase compared to December 31, 2021. This increase resulted from an overall increase in loan demand across all loan segments, primarily driven by a robust local housing, construction and commercial real estate market.

The allowance for credit losses increased to $39.8 million in 2022 compared to $39.6 million in 2021. On January 1, 2022, we adopted FASB ASU 2016-13,

which introduces the current expected credit losses (CECL) methodology and requires us to estimate all expected credit losses over the remaining life of our loan portfolio. This resulted in a downward adjustment to the opening balance of the allowance for credit losses of $7.6 million, which during 2022 was offset by an increased provision expense principally due to loan growth. The allowance for credit losses was 1.26% of outstanding loans at December 31, 2022.

Total deposits were $3.9 billion at December 31, 2022 compared to $3.6 billion at December 31, 2021, representing growth of $337.6 million, or 9.5% during 2022. Deposit growth is primarily attributable to growth in market share which resulted in the opening of new accounts.

![img-2.jpeg](img-2.jpeg)

**Lisa Pominski**

EVP-CHIEF FINANCIAL OFFICER

*As the CFO of WBT, my staff and I strive on a daily basis to live out the Bank’s core values which are customer focus, community centric, faith, integrity, teamwork and success. One of the many ways we measure success is through financial performance and the return that we provide to our shareholders. 2022 was an exceptional year of maximizing earnings and shareholder return as the bank reported its highest net income in its history reflecting record loan growth and strong deposit growth from deepening existing customer relationships and the expansion into new markets.*

20 CONNECTED 2022 ANNUAL REPORT

## TOTAL ASSETS

![img-3.jpeg](img-3.jpeg)

**7.42%**

Increase in Assets

## TOTAL LOANS, NET OF ALLOWANCE FOR CREDIT LOSSES

![img-4.jpeg](img-4.jpeg)

**27.39%**

Increase in Loans

WILSON BANK HOLDING COMPANY 21

13.5%

Total Capital to Risk
Weighted Assets

8.41%

Equity to
Assets

14.36%

Return on
Average Equity

# Capital

Shareholders' equity totaled
$360.5 million at December 31,
2022 compared to $413.7 million
at December 31, 2021, a decrease of
$53.3 million or 12.9%. The decrease
in shareholders equity includes an
increase in net unrealized losses
on available-for-sale securities, net
of taxes, and dividends paid on the
Company's common stock, partially
offset by net earnings, the issuance
of stock pursuant to the Company's
Dividend Reinvestment Plan, and
the exercise of stock options. Return
on average shareholder's equity for
2022 was 14.36%, total capital to risk
weighted assets was 13.5%, and the
equity to assets ratio was 8.41%.

$360.5
MILLION

Shareholder's Equity

22 CONNECTED 2022 ANNUAL REPORT

# Holding Company & Stock Information

## Wilson Bank Holding Company Directors

H. Elmer Richerson, Chairman; James Anthony Patton; James F. Comer; J. Randall Clemons; Jack W. Bell; William P. Jordan; John C. McDearman III; Clinton M. Swain; Michael G. Maynard; and Deborah Varallo.

## Common Stock Market Information

The common stock of Wilson Bank Holding Company is not traded on an exchange nor is there a known active trading market. The number of stockholders of record at February 22, 2023 was 4,674. Based solely on information made available to the Company from limited numbers of buyers and sellers, the Company believes that the following table sets forth the quarterly range of sale prices for the Company's common stock during the years 2021 and 2022.

On January 1, 2021, a $.60 per share cash dividend was declared and on July 1, 2021, a $.75 per share cash dividend was declared and paid to shareholders of record on those dates. On January 1, 2022, a $.75 per share cash dividend was declared, on April 11, 2022, a $.35 per share cash dividend was declared, and on July 1, 2022, a $0.75 per share cash dividend was declared and thereafter paid to shareholders of record as of those dates. Future dividends will be dependent upon the Company's profitability, its capital needs, overall financial condition and economic and regulatory considerations.

## Stock Prices

| 2021 | High | Low |
| --- | --- | --- |
| First Quarter | $59.80 | $58.75 |
| Second Quarter | $60.95 | $59.80 |
| Third Quarter | $62.10 | $60.95 |
| Fourth Quarter | $63.25 | $62.10 |

| 2022 | High | Low |
| --- | --- | --- |
| First Quarter | $64.40 | $63.25 |
| Second Quarter | $65.55 | $63.25 * |
| Third Quarter | $70.00 ** | $65.55 |
| Fourth Quarter | $67.85 | $65.55 * |

* Represents one transaction of 712 shares during the second quarter of 2022 and one transaction of 500 shares during the fourth quarter of 2022 of which the Company is aware where the sale price was at least $1.15 lower than any other trade during the quarter. The volume weighted average stock price during the second quarter of 2022 was $64.44 and the volume weighted average stock price during the fourth quarter of 2022 was $67.36.

**Represents one transaction of 2,429 shares during the third quarter of 2022 of which the Company is aware where the sale price was at least $3.30 higher than any other trade during the quarter. The volume weighted average stock price during the third quarter of 2022 was $66.14.

## Annual Meeting and Information Contacts

The Annual Meeting of Shareholders of Wilson Bank Holding Company will be held on Tuesday, April 25, 2023 at 6:00 p.m. (CDT) at the Clemons-Richerson Operations Center, located at 105 North Castle Heights Avenue, Lebanon, TN 37087.

For further information concerning Wilson Bank Holding Company or Wilson Bank & Trust, or to obtain a copy of the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission, which is available without charge to shareholders, please contact Lisa Pominski, CFO, Wilson Bank & Trust, P.O. Box 768, Lebanon, Tennessee 37088-0768, phone (615) 443-6612.

## Wilson Bank Holding Company Five Year Performance Index

The graph to the right compares the percentage change in the unaudited total return on the Wilson Bank Holding Company's common stock against the cumulative total return of the NASDAQ Composite Index and the KBW NASDAQ Bank Index between December 31, 2017 and December 31, 2022. The graph assumes the value of the investment in Wilson Bank Holding Company's common stock and each index was $100 at December 31, 2017 and that all dividends were reinvested.

![img-5.jpeg](img-5.jpeg)

| Index | Period Ending |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | 12/31/21 | 12/31/22 |
| Wilson Bank Holding Company | 100.00 | 113.35 | 127.45 | 139.72 | 153.82 | 169.80 |
| NASDAQ Composite Index | 100.00 | 97.16 | 132.81 | 192.47 | 235.15 | 158.65 |
| KBW NASDAQ Bank Index | 100.00 | 82.29 | 112.01 | 100.46 | 138.97 | 109.23 |

WILSON BANK HOLDING COMPANY 23

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

![img-8.jpeg](img-8.jpeg)

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

![img-11.jpeg](img-11.jpeg)

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

![img-14.jpeg](img-14.jpeg)

![img-15.jpeg](img-15.jpeg)

![img-16.jpeg](img-16.jpeg)

![img-17.jpeg](img-17.jpeg)

24 CONNECTED 2022 ANNUAL REPORT

# WILSON BANK HOLDING COMPANY

As of or for the year ended December 31,

|  | 2022 | 2021 | 2020 | 2019 |
| --- | --- | --- | --- | --- |
| Equity |  |  |  |  |
| Total capital to risk weighted assets | 13.5% | 13.9% | 14.3% | 15.0% |
| Equity to assets | 8.41% | 10.37% | 11.28% | 12.06% |
| Total assets | $4,285,650,000 | $3,989,596,000 | $3,369,604,000 | $2,794,209,000 |
| Loans, net of allowance for credit losses | $3,113,796,000 | $2,444,282,000 | $2,282,766,000 | $2,057,175,000 |
| Total deposits | $3,892,705,000 | $3,555,071,000 | $2,960,595,000 | $2,417,605,000 |
| Net interest margin | 3.70% | 3.44% | 3.60% | 3.81% |
| Return on average assets | 1.29% | 1.35% | 1.24% | 1.34% |

As of or for the year ended December 31,

|  | 2022 | 2021 | 2020 | 2019 |
| --- | --- | --- | --- | --- |
| Earnings & Performance Ratios |  |  |  |  |
| Net income | $53,042,000 | $49,426,000 | $38,492,000 | $36,044,000 |
| Return on average equity | 14.36% | 12.45% | 10.65% | 11.31% |
| Diluted earnings per share | $4.65 | $4.43 | $3.51 | $3.35 |
| Weighted average diluted shares outstanding | 11,408,924 | 11,162,956 | 10,953,746 | 10,761,467 |

For the year ended December 31,

|  | 2022 | 2021 | 2020 | 2019 |
| --- | --- | --- | --- | --- |
| Average Cost of Funds | 0.49% | 0.41% | 0.76% | 1.09% |

WILSON BANK HOLDING COMPANY 25

# Consolidated Balance Sheets

WILSON BANK HOLDING COMPANY

## ASSETS

|  | Dollars in Thousands |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Loans, net of allowance for credit losses of $39,813 and $39,632, respectively | $3,113,796 | $2,444,282 |
| Available-for-sale securities, at market (amortized cost $972,315 and $906,135, respectively) | 822,812 | 897,585 |
| Loans held for sale | 3,355 | 11,843 |
| Interest bearing deposits | 78,694 | 400,940 |
| Federal funds sold | 308 | 27,055 |
| Restricted equity securities, at cost | 4,357 | 5,089 |
| Total earning assets | $4,023,322 | $3,786,794 |
| Cash and due from banks | 25,787 | 25,423 |
| Premises and equipment, net | 62,031 | 62,846 |
| Accrued interest receivable | 11,397 | 7,641 |
| Deferred income taxes | 51,323 | 12,792 |
| Bank owned life insurance | 58,007 | 46,206 |
| Goodwill | 4,805 | 4,805 |
| Other assets | 48,978 | 43,089 |
| Total assets | $4,285,650 | $3,989,596 |

26 CONNECTED 2022 ANNUAL REPORT

# LIABILITIES

Dollars in Thousands

2022 2021

Deposits:

| Noninterest-bearing | $414,905 | $433,500 |
| --- | --- | --- |
| Interest bearing | 3,477,800 | 3,121,571 |
| Total deposits | 3,892,705 | 3,555,071 |
| Accrued interest and other liabilities | 32,493 | 20,808 |
| Total liabilities | $3,925,198 | $3,575,879 |

# SHAREHOLDERS' EQUITY

Dollars in Thousands

2022 2021

| Common stock, par value $2.00 per share, authorized 50,000,000 shares, 11,472,181 and 11,201,504 shares issued and outstanding, respectively | $22,944 | $22,403 |
| --- | --- | --- |
| Additional paid-in capital | 122,298 | 105,177 |
| Retained earnings | 325,625 | 292,452 |
| Noncontrolling interest in consolidated subsidiary | 15 | - |
| Accumulated other comprehensive losses, net of taxes of $39,073 and $2,235, respectively | (110,430) | (6,315) |
| Total stockholders' equity | $360,452 | $413,717 |
| Total liabilities and stockholders' equity | $4,285,650 | $3,989,596 |

WILSON BANK HOLDING COMPANY 27

# Consolidated Statements of Earnings

WILSON BANK HOLDING COMPANY

## INTEREST INCOME

*Dollars in Thousands (except per share data)*

|  | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Interest and fees on loans | $138,161 | $118,676 | $113,224 |
| Interest and dividends on securities: |  |  |  |
| Taxable securities | 15,902 | 8,922 | 7,272 |
| Exempt from Federal income taxes | 1,392 | 1,229 | 1,102 |
| Interest on loans held for sale | 264 | 438 | 616 |
| Interest on Federal funds sold | 111 | 13 | 56 |
| Interest on interest bearing deposits | 1,522 | 445 | 582 |
| Interest and dividends on restricted equity securities | 188 | 118 | 116 |
| Total interest income | $157,540 | $129,841 | $122,968 |

## INTEREST EXPENSE

| Interest on negotiable order of withdrawal accounts | $2,546 | $1,866 | $2,150 |
| --- | --- | --- | --- |
| Interest on money market accounts and other savings accounts | 7,021 | 2,027 | 4,163 |
| Interest on certificates of deposit and individual retirement accounts | 6,486 | 7,610 | 10,939 |
| Interest on Federal funds purchased | 14 | - | - |
| Interest on Federal Home Loan Bank advances | - | 133 | 967 |
| Interest on finance leases | 66 | - | - |
| Total interest expense | $16,133 | $11,636 | $18,219 |
| Net interest income before provision for credit losses | $141,407 | $118,205 | $104,749 |
| Provision for credit losses - loans | 8,656 | 1,143 | 9,696 |
| Provision for credit losses - off-balance sheet exposures | (1,014) | 262 | 259 |
| Net interest income after provision for credit losses | $133,765 | $116,800 | $94,794 |

28 CONNECTED 2022 ANNUAL REPORT