WILSON BANK HOLDING CO

Off Balance Sheet Arrangements

At December 31, 2023, the Company had unfunded lines of credit of $1.0 billion and outstanding standby letters of credit of $106 million, compared to unfunded lines of credit of $1.2 billion and outstanding standby letters of credit of $118 million at December 31, 2022. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. If needed to fund these outstanding commitments, the Bank has the ability to access interest-bearing deposits in other financial institutions, liquidate Federal funds sold or securities available-for-sale or on a short-term basis to borrow and purchase Federal funds from other financial institutions. Additionally, the Bank could sell participations in these or other loans to correspondent banks. Liquidation of securities available-for-sale could trigger recognition of losses by the Bank if those securities sold to meet these commitments were in a loss position when sold. As mentioned below, Wilson Bank has been able to fund its ongoing liquidity needs through its stable core deposit base, brokered deposits, loan repayments, its investment security maturities, and short-term borrowings.