WILSON BANK HOLDING CO

Balance Sheet Summary

The Company’s total assets increased in 2023 by $560,826,000 or 13.09%, to $4,846,476,000 at December 31, 2023, after increasing 7.42% in 2022 to $4,285,650,000 at December 31, 2022. Loans, net of allowance for credit losses, totaled $3,550,675,000 at December 31, 2023, a $436,879,000, or 14.03%, increase compared to December 31, 2022. In 2023, management targeted owner-occupied commercial real estate, residential real estate lending and small business lending as areas of focus. The increase in loans in 2023 resulted from the continued population growth and corporate relocations in the Bank's primary market areas, the opening of new branches, and increased marketing efforts. Although the Company continued to grow loans in 2023, the rate at which it grew loans slowed compared to 2022. The Company expects to experience slower loan growth in 2024 as elevated interest rates are expected to continue to dampen loan demand, particularly if a recessionary economic environment develops. In addition, we expect to continue to moderate the extent of our lending in 2024 to ensure adequate liquidity. At year-end 2023, securities totaled $811,081,000, a decrease of 1.43% from $822,812,000 at December 31, 2023, primarily due to a run-off of declining balance securities and the selling of securities, partially offset by the purchase of new securities and an improvement in the unrealized losses associated with our available-for-sale securities portfolio. As a result of deposit growth that outpaced loan growth, interest bearing deposits at other financial institutions increased by $135,007,000, to $213,701,000 at December 31, 2023. Deferred income taxes totaled $45,473,000 at December 31, 2023, a $5,850,000, or 11.40%, decrease compared to December 31, 2022. The decrease in deferred income taxes was largely attributable to a decrease in the unrealized losses on our available-for-sale securities portfolio of $30,145,000.

Total liabilities increased by $491,873,000, or 12.53%, to $4,417,071,000 at December 31, 2023 compared to $3,925,198,000 at December 31, 2022. This increase was composed primarily of the $474,401,000 increase in total deposits to $4,367,106,000, a 12.19% increase from December 31, 2022. The increase in total deposits since December 31, 2022 was primarily attributable to growth in market share, branching and brokered deposit activities, and concerted marketing efforts to drive deposit growth which resulted in the opening of new deposit accounts. Accrued interest and other liabilities increased to $49,965,000 from $32,493,000 at respective year ends 2023 and 2022. The increase in accrued interest and other liabilities was due to an increase in interest payable on CDs as customers moved from lower earning and non-interest earning accounts to take advantage of the higher rates, an increase in interest payable on brokered CDs, and an increase in reserve for income taxes, partially offset by a decrease in reserve for off-balance sheet commitments, a decrease in escrow payable, and a decrease in operating lease liability in connection with the branch closure in January 2024.

Shareholders’ equity increased $68,953,000, or 19.13%, in 2023, due to an increase in the fair value of available-for-sale securities net of taxes, net earnings, the issuance of common stock pursuant to the Company’s Dividend Reinvestment Plan and the exercise of stock options. This increase in equity was partially offset by dividends paid on the Company’s common stock. A more detailed discussion of assets, liabilities and capital follows.