WB
WILSON BANK HOLDING CO (WBHC)·Q1 2024 Earnings Summary
Executive Summary
- Q1 2024 delivered stable core profitability amid persistent funding cost pressure: net earnings were $12.8M and diluted EPS $1.08, down 10% year over year; net interest margin compressed to 3.14% vs 3.56% last year, reflecting higher deposit costs and mix shift to time deposits .
- Balance sheet growth continued: assets rose to $4.94B (+$93.8M vs Dec 31, 2023), loans to $3.62B (+$21.5M), and deposits to $4.45B (+$80.3M) in Q1 2024; equity increased to $435.5M (+$6.1M) despite AFS mark-to-market losses .
- Asset quality remained clean on nonaccruals (zero at quarter-end) but “potential problem loans” increased sharply to ~$47.2M from $5.9M at year-end, warranting monitoring; no loan loss provision was recorded in Q1 given slower loan growth and improved outlook .
- Management expects net interest margin to likely contract through the remainder of 2024, with deposit costs still rising but at a slower pace as competitive pressures ease; targeting continued loan and deposit growth in 2024 .
- No Wall Street consensus estimates were available via S&P Global for comparison this quarter; Wilson Bank does not appear to host earnings calls—no transcript found. Potential near-term stock narrative hinges on margin trajectory, deposit cost trends, and asset quality signals .
What Went Well and What Went Wrong
What Went Well
- “Assets as of March 31, 2024 were $4.9 billion” (+10.4% YoY); loans $3.6B (+10.7% YoY); deposits $4.4B (+9.8% YoY)—demonstrating healthy organic growth across core banking metrics .
- Nonaccrual loans stood at $0 at quarter end, indicating clean headline credit quality; total past-due and 90+ days still modest relative to portfolio size .
- Non-interest income grew modestly (+3.1% YoY) led by brokerage and service charges; total NII before provision was stable (+0.4% YoY) despite margin pressure .
- Management remains optimistic: “we will continue to be able to grow both loans and deposits in 2024” amid “settling in the interest rate environment,” highlighting competitive pressures that “eased” in Q1 .
What Went Wrong
- Net interest margin fell to 3.14% from 3.56% YoY, driven by higher funding costs and mix shift to time deposits; management anticipates further contraction in 2024 .
- Non-interest expense rose 9.6% YoY (salaries/benefits, data processing, FDIC assessments), pressuring ROA (1.05%) and ROE (11.91%) lower vs prior year .
- “Potential problem loans” increased materially to ~$47.2M from $5.9M at year-end—while not nonaccrual, they signal watch-list growth requiring ongoing surveillance .
Financial Results
Income Statement Summary
Balance Sheet and Capital
Loans by Category
KPIs and Asset Quality
Guidance Changes
Earnings Call Themes & Trends
No earnings call transcript found for Q1 2024; commentary reflects shareholder letters and 10-Q MD&A.
Management Commentary
- “We have observed some settling in the interest rate environment, predominately as a result of the easing of competitive pressures… we will continue to be able to grow both loans and deposits in 2024.” – President/CEO John McDearman .
- “We intend to remain committed to managing our balance sheet to support sustainable growth while attempting to maximize returns for our shareholders.” .
- “We anticipate that our net interest margin is likely to contract throughout the remainder of 2024… competitive pressures… continue to pressure… deposit and loan pricing and contribute to a compression in our margin.” .
- “Deposit costs [to] continue to increase… though at a slower pace compared to 2023.” .
Q&A Highlights
- No earnings call transcript was found for Q1 2024; thus, no analyst Q&A or clarifications are available from a call this quarter [SearchDocuments: no results].
Estimates Context
- S&P Global Wall Street consensus estimates were unavailable for WBHC this quarter due to retrieval limits; therefore, we cannot quantify beats/misses vs consensus. Management did not provide formal quantitative guidance ranges in the 8-K or 10-Q .
Key Takeaways for Investors
- Margin trajectory is the key near-term driver: NIM at 3.14% with management guiding for further contraction in 2024; trading setups likely center on any signs of stabilization in deposit costs and mix shift away from time deposits .
- Funding cost normalization is underway but gradual; watch quarterly progression of interest expense and deposit mix for inflection potential in H2 2024 .
- Credit watch-list expansion bears monitoring: potential problem loans rose to ~$47.2M; despite zero nonaccruals, updates on classification migration will be critical to valuation multiples .
- Balance sheet growth remains intact: sequential increases in assets, loans, and deposits support medium-term earnings power once funding pressures abate .
- Non-interest expense discipline will matter: Q1 uptick (salaries, FDIC) pressured efficiency ratio to 61%; cost control is a lever to defend ROA/ROE in a lower-margin backdrop .
- Capital remains strong; well-capitalized status provides flexibility to sustain dividends ($0.75/share) and growth investments while managing AFS OCI volatility .
- With no consensus and limited IR events, narrative catalysts will likely be internal prints (NIM trend, deposit cost progression, asset quality migration) rather than external expectations alignment .