Wilson Bank Holding Co. Posts 28% Earnings Jump, Loan Growth Surges

TL;DR

**WBHC is crushing it with double-digit earnings and loan growth, making it a solid regional bank bet.**

AI Summary

WILSON BANK HOLDING CO (WBHC) reported a strong financial performance for the nine months ended September 30, 2025, with net earnings attributable to the company increasing by 28.3% to $53.378 million, up from $41.591 million in the prior year. Total interest income rose significantly by 15.8% to $240.576 million, compared to $207.701 million in the same period of 2024, primarily driven by a 17.0% increase in interest and fees on loans to $213.117 million. Net interest income before provision for credit losses also saw a substantial jump of 24.3% to $143.004 million. However, the provision for credit losses on loans increased to $6.113 million from $3.563 million, reflecting a more cautious stance. Total assets grew by 8.9% to $5.836 billion from $5.358 billion at December 31, 2024, with net loans increasing by 6.7% to $4.313 billion. Total deposits expanded by 8.1% to $5.221 billion. The company also saw a significant increase in cash and cash equivalents, which surged by 50.5% to $378.989 million from $251.756 million at September 30, 2024.

Why It Matters

This strong performance from WBHC, particularly the significant increase in net earnings and loan growth, signals robust regional economic activity in their Tennessee markets. For investors, the 28.3% rise in net earnings and increased dividends per common share to $2.25 from $1.75 in 2024 demonstrate healthy profitability and shareholder returns, potentially making WBHC an attractive regional banking play. Employees benefit from a growing, profitable company, while customers see a stable bank with expanding lending capacity. In a competitive banking landscape, WBHC's ability to grow deposits and loans while managing credit risk positions it favorably against larger national and smaller local competitors.

Risk Assessment

Risk Level: medium — While WBHC shows strong growth, the provision for credit losses on loans increased by 71.6% to $6.113 million for the nine months ended September 30, 2025, compared to $3.563 million in the prior year. This significant increase, alongside a net loss on sale of securities of $2.515 million, suggests potential future asset quality concerns or market volatility impacts, warranting careful monitoring despite overall positive results.

Analyst Insight

Investors should consider WBHC's consistent earnings growth and increased dividend payout as indicators of financial health. However, closely monitor future credit loss provisions and the bank's asset quality metrics, especially given the notable increase in the provision for credit losses. This could be a buy for long-term growth, but with an eye on risk management.

Financial Highlights

debt To Equity

N/A

revenue

$240.576M

operating Margin

N/A

total Assets

$5.836B

total Debt

N/A

net Income

$53.378M

eps

$1.48

gross Margin

N/A

cash Position

$378.989M

revenue Growth

+15.8%

Revenue Breakdown

Key Numbers

• $53.378M — Net Earnings Attributable to WBHC (Increased 28.3% for the nine months ended September 30, 2025, from $41.591M in 2024.)
• $240.576M — Total Interest Income (Increased 15.8% for the nine months ended September 30, 2025, from $207.701M in 2024.)
• $4.313B — Net Loans (Increased 6.7% from $4.042B at December 31, 2024, to September 30, 2025.)
• $5.221B — Total Deposits (Increased 8.1% from $4.830B at December 31, 2024, to September 30, 2025.)
• $6.113M — Provision for Credit Losses - Loans (Increased 71.6% for the nine months ended September 30, 2025, from $3.563M in 2024.)
• $1.48 — Basic Earnings Per Common Share (Q3) (Increased from $1.07 in Q3 2024 to $1.48 in Q3 2025.)
• $2.25 — Dividends Per Common Share (YTD) (Increased from $1.75 for the nine months ended September 30, 2024, to $2.25 in 2025.)
• $378.989M — Cash and Cash Equivalents (Increased 50.5% from $251.756M at September 30, 2024, to September 30, 2025.)
• $5.836B — Total Assets (Increased 8.9% from $5.358B at December 31, 2024, to September 30, 2025.)
• $2.515M — Loss on Sale of Securities, Net (Increased from $1.732M for the nine months ended September 30, 2024, to $2.515M in 2025.)

Key Players & Entities

• WILSON BANK HOLDING CO (company) — registrant
• Wilson Bank & Trust (company) — wholly-owned subsidiary
• Encompass Home Lending LLC (company) — former joint venture
• Encompass Home Lending Investors, LLC (company) — buyer of subsidiary interest
• SEC (regulator) — Securities and Exchange Commission
• Lebanon, Tennessee (location) — Bank headquarters
• Wilson, Davidson, Rutherford, Trousdale, Sumner, Dekalb, Putnam, Smith, Hamilton, and Williamson Counties (location) — primary market areas
• $53.378 million (dollar_amount) — Net earnings attributable to Wilson Bank Holding Company for nine months ended Sept 30, 2025
• $240.576 million (dollar_amount) — Total interest income for nine months ended Sept 30, 2025
• $6.113 million (dollar_amount) — Provision for credit losses - loans for nine months ended Sept 30, 2025

FAQ

Risk Factors

• Increased Provision for Credit Losses [medium — financial]: The provision for credit losses on loans increased by 71.6% to $6.113 million for the nine months ended September 30, 2025, up from $3.563 million in the prior year. This indicates a more cautious stance by management regarding potential loan defaults.
• Net Loss on Sale of Securities [low — financial]: The company reported a net loss on the sale of securities of $2.515 million for the nine months ended September 30, 2025, an increase from $1.732 million in the same period of 2024. This suggests potential underperformance or strategic divestment of certain investment assets.
• Dependence on Subsidiary Operations [medium — operational]: The company's primary business is conducted through its wholly-owned subsidiary, Wilson Bank & Trust. This concentration of operations in a single subsidiary creates operational risk if the subsidiary faces significant challenges.
• Compliance with Banking Regulations [high — regulatory]: As a bank holding company and commercial bank, WBHC is subject to extensive federal and state banking regulations. Changes in regulatory requirements or failure to comply could result in significant penalties and operational disruptions.
• Interest Rate Sensitivity [medium — market]: Fluctuations in interest rates can impact the bank's net interest margin and the valuation of its securities portfolio. The company's substantial holdings in securities available-for-sale are subject to market value changes.

Industry Context

Wilson Bank Holding Company operates in the U.S. commercial banking sector, characterized by increasing competition from traditional banks and fintech companies. The industry is sensitive to interest rate movements, regulatory changes, and economic conditions. Recent trends show a focus on digital transformation, customer experience, and managing credit risk in a dynamic economic environment.

Regulatory Implications

As a bank holding company, WBHC is subject to stringent oversight by the Federal Reserve and other banking regulators. Compliance with capital adequacy requirements, liquidity rules, and consumer protection laws is paramount. Any regulatory changes or enforcement actions could materially impact the company's operations and financial performance.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the impact of interest rate changes on net interest margin.
3. Evaluate the strategic implications of the Encompass divestiture.
4. Assess the growth in deposits and its cost.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for strong net earnings growth and asset expansion.
• 2025-06-01: Sale of Encompass Home Lending LLC interest — Divestiture of a joint venture, impacting the company's operational structure.
• 2025-02-28: Filing of 2024 Form 10-K — Provided audited financial statements for the prior fiscal year, serving as a basis for comparison.

Glossary

Allowance for credit losses

An estimate of the amount of loans that may not be repaid by borrowers. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (Indicates the bank's assessment of potential loan defaults and impacts net loan values.)

Securities available-for-sale

Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value on the balance sheet, with unrealized gains and losses recorded in other comprehensive income. (Represents a significant portion of the bank's earning assets and is subject to market value fluctuations.)

Net interest income

The difference between interest income generated by assets (like loans and securities) and interest expense paid on liabilities (like deposits and borrowings). (A core measure of a bank's profitability from its lending and borrowing activities.)

Provision for credit losses

An expense recognized by a financial institution to account for estimated losses on loans and other credit exposures. It is recorded on the income statement. (Reflects management's current assessment of credit risk and impacts net earnings.)

Accumulated other comprehensive losses

A component of shareholders' equity that includes unrealized gains and losses on certain investments (like available-for-sale securities) and other items that are not recognized in net income. (Shows the cumulative impact of unrealized gains/losses on the company's equity.)

Year-Over-Year Comparison

Compared to the prior year, Wilson Bank Holding Co. has demonstrated robust growth, with net earnings up 28.3% and total interest income rising 15.8%. Total assets and deposits have also seen healthy increases of 8.9% and 8.1%, respectively. However, the company has increased its provision for credit losses by 71.6%, signaling a more conservative approach to risk management. Cash and cash equivalents have surged by 50.5%, indicating a strong liquidity position.

Filing Documents

• ck0000885275-20250930.htm (10-Q) — 9074KB
• ck0000885275-ex31_1.htm (EX-31.1) — 17KB
• ck0000885275-ex31_2.htm (EX-31.2) — 17KB
• ck0000885275-ex32_1.htm (EX-32.1) — 10KB
• ck0000885275-ex32_2.htm (EX-32.2) — 10KB
• 0001193125-25-272133.txt ( ) — 34659KB
• ck0000885275-20250930.xsd (EX-101.SCH) — 1952KB
• ck0000885275-20250930_htm.xml (XML) — 10568KB

Financial Statements

Financial Statements. 4 The consolidated financial statements of the Company and its subsidiary are as follows: Consolidated Balance Sheets — September 30, 2025 (unaudited) and December 31, 2024 (audited). 4 Consolidated Statements of Earnings (unaudited) — For the three and nine months ended September 30, 2025 and 2024. 5 Consolidated Statements of Comprehensive Earnings (unaudited) — For the three and nine months ended September 30, 2025 and 2024. 6 Consolidated Statements of Changes in Shareholders' Equity (unaudited) — For the three and nine months ended September 30, 2025 and 2024 . 7 Consolidated Statements of Cash Flows (unaudited) — For the nine months ended September 30, 2025 and 2024. 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 46 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 63 Disclosures required by Item 3 are incorporated by reference to Management's Discussion and Analysis of Financial Condition and Results of Operations. Item 4.

Controls and Procedures

Controls and Procedures. 63 Part II: OTHER INFORMATION 65 Item 1. Legal Proceedings. 65 Item 1A. Risk Factors. 65 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 65 Item 3. Defaults Upon Senior Securities. 65 Item 4. Mine Safety Disclosures. 65 Item 5. Other Information. 65 Item 6. Exhibits. 67

Signatures

Signatures 68 EX-31.1 SECTION 302 CERTIFICATION OF THE CEO EX-31.2 SECTION 302 CERTIFICATION OF THE CFO EX-32.1 SECTION 906 CERTIFICATION OF THE CEO EX-32.2 SECTION 906 CERTIFICATION OF THE CFO EX-101.INS EX-101.SCH EX-104 3 Table of Contents

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements WILSON BANK HOLDING COMPANY Consolidated Balance Sheets September 30, 2025 and December 31, 2024 (Unaudited) (Audited) September 30, 2025 December 31, 2024 (Dollars in Thousands Except Share Amounts) Assets Loans $ 4,368,958 $ 4,091,889 Less: Allowance for credit losses ( 55,012 ) ( 49,497 ) Net loans 4,313,946 4,042,392 Securities available-for-sale, at market (amortized cost $ 973,547 and $ 947,341 , respectively) 892,449 827,893 Loans held for sale 4,245 2,529 Interest bearing deposits 342,315 211,271 Restricted equity securities 4,285 3,876 Federal funds sold 9,756 9,791 Total earning assets 5,566,996 5,097,752 Cash and due from banks 26,918 26,527 Bank premises and equipment, net 62,650 61,549 Accrued interest receivable 17,924 16,914 Deferred income tax asset 37,458 46,048 Bank owned life insurance 68,799 61,948 Other assets 50,296 43,116 Goodwill 5,877 4,805 Total assets $ 5,836,918 $ 5,358,659 Liabilities and Shareholders' Equity Deposits: Noninterest-bearing $ 396,648 $ 383,168 Interest bearing 932,477 968,198 Savings and money market accounts 1,995,789 1,669,607 Time 1,896,348 1,809,061 Total deposits 5,221,262 4,830,034 Accrued interest payable and other liabilities 61,930 48,922 Total liabilities 5,283,192 4,878,956 Shareholders' equity: Common stock, $ 2.00 par value; authorized 50,000,000 shares, issued and outstanding 12,133,280 and 11,876,770 shares, respectively 24,267 23,754 Additional paid-in capital 169,670 150,739 Retained earnings 419,692 393,238 Noncontrolling interest in consolidated subsidiary — 203 Accumulated other comprehensive losses, net of taxes of $ 21,195 and $ 31,217 respectively ( 59,903 ) ( 88,231 ) Total shareholders' equity 553,726 479,703 Total liabilities and shareholders' eq

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Summary of Significant Accounting Policies Nature of Business — Wilson Bank Holding Company (the "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, Putnam, Smith, Hamilton, and Williamson Counties, Tennes see. The Bank was previously invested in Encompass Home Lending LLC ("Encompass"), a joint venture of which the Bank owned 51 % of the outstanding membership interests. Effective June 1, 2025, the Bank sold its 51 % membership interest in Encompass to Encompass Home Lending Investors, LLC, which owned 49 % of the outstanding membership interests in Encompass prior to the sale. Encompass offers residential mortgage banking services to customers of certain home builders in the Bank's markets as well as other mortgage customers. Basis of Presentation — The accompanying unaudited, consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company's consolidated audited financial statements and related notes appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securi

View Full Filing

View this 10-Q filing on SEC EDGAR