Executive Summary

Q4 2024 delivered stronger profitability: net earnings rose to $14.94M and diluted EPS was $1.26, up versus Q3 ($12.69M; $1.07) and Q4 2023 ($11.49M; $0.98), on higher net interest income and no outsized credit costs .
2024 was a record year: assets reached $5.359B (+10.6% YoY), loans $4.092B (+13.8%), deposits $4.830B (+10.6%), net income $56.5M, and diluted EPS $4.78; Board declared a $1.00/share cash dividend payable Jan 24, 2025 .
Net interest margin held flat YoY at 3.30% despite deposit cost pressure; efficiency improved to 58.21% (from 60.38%) on stronger revenue growth relative to expenses .
Asset quality normalized: nonaccrual loans were $4.82M at year-end (0.12% of loans) with robust allowance coverage (ACL $49.50M; 1,027% of nonaccruals); NPA ratio increased to 0.10% from 0.03% .
Catalysts: expansion (Century Farms opened, Chattanooga full-service branch planned, Cookeville branch acquisition pending) and deposit growth momentum; estimates comparison unavailable (S&P Global consensus not accessible) .

What Went Well and What Went Wrong

What Went Well

Record year results with balanced growth: assets $5.359B, loans $4.092B, deposits $4.830B; net income $56.5M; diluted EPS $4.78; underscores franchise strength and market expansion .
Net interest income resiliency: NIM steady at 3.30% YoY and net interest income rose to $157.3M (+13.2% vs. 2023), reflecting higher earning-asset yields and loan growth despite elevated deposit costs .
Efficiency gains: efficiency ratio improved to 58.21% from 60.38% on stronger revenue growth vs. expenses, indicating operating discipline .

What Went Wrong

Securities restructuring losses and higher funding costs: 2024 recorded $(2.742)M loss on securities as the bank repositioned the AFS portfolio in 2H; average rate on interest-bearing deposits climbed to 3.04% from 2.27% .
Asset quality normalization: nonaccrual loans rose to $4.82M (0.12% of loans), NPA ratio increased to 0.10%; internally classified loans rose to $48.0M, though well collateralized per management .
Liability-sensitive balance sheet: interest-sensitivity gap indicates liabilities reprice faster than assets, leaving earnings more exposed if deposit pricing cannot be reduced commensurately in falling-rate scenarios .

Financial Results

Quarterly performance vs prior periods

Metric	Q2 2024	Q3 2024	Q4 2024
Interest income ($M)	$68.945	$73.814	$76.415
Interest expense ($M)	$30.485	$32.799	$34.144
Net interest income ($M)	$38.460	$41.015	$42.271
Provision for credit losses – loans ($M)	$0.000	$3.563	$1.629
Earnings before income taxes ($M)	$20.683	$16.376	$19.515
Net earnings ($M)	$16.137	$12.686	$14.939
Diluted EPS ($)	$1.37	$1.07	$1.26

Notes: Wall Street consensus estimates unavailable (S&P Global daily limit exceeded). Values not compared to consensus.

Year-over-year KPIs (FY 2024 vs FY 2023)

Metric	FY 2023	FY 2024
Net interest income ($M)	$138.904	$157.307
Net interest margin (%)	3.30%	3.30%
Efficiency ratio (%)	60.38%	58.21%
ROA (%)	1.08%	1.12%
ROE (%)	12.47%	12.41%
Diluted EPS ($)	$4.20	$4.78

Asset quality and balance-sheet metrics (Year-end)

Metric	12/31/2023	12/31/2024
Loans ($M)	$3,595.5	$4,042.4
Deposits ($M)	$4,367.1	$4,830.0
Nonaccrual loans ($M)	$0.0	$4.818
ACL ($M)	$44.848	$49.497
NPA ratio (%)	0.03%	0.10%
ACL / Nonaccruals (%)	N/A	1,027%
Variable-rate loans (% of total)	82.8%	84.6%

Loan portfolio composition (Year-end)

Category	12/31/2023 ($M; %)	12/31/2024 ($M; %)
Residential 1-4 family	$959.2; 26.6%	$1,134.0; 27.6%
Commercial & multi-family	$1,313.3; 36.4%	$1,544.3; 37.7%
Construction, land dev., farmland	$901.3; 25.0%	$941.2; 22.9%
Commercial/industrial/agricultural	$127.7; 3.5%	$144.6; 3.5%
1-4 family equity LOC	$202.7; 5.6%	$235.2; 5.7%
Consumer & other	$104.4; 2.9%	$106.2; 2.6%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	FY 2024 year-end	N/A	$1.00/share declared; payable Jan 24, 2025	Initiated/Declared
Share repurchase authorization	Oct 28, 2024–Mar 31, 2025	N/A	Up to $4.0M; none repurchased to date	New authorization
Branch expansion – Century Farms	Jan 16, 2025	Opening planned	Officially opened	Executed
Chattanooga office	Early spring 2025	LPO previously	Full-service branch planned	Raised scope
Cookeville branch acquisition (F&M Bank)	1H 2025 expected close	Proposed	Pending close	Maintained (transaction pending)

No formal revenue/EPS or margin guidance was provided in filings/letters reviewed.

Earnings Call Themes & Trends

No earnings call transcript was available; themes below reflect management letters and filings.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Deposit competition & rates	Elevated deposit rates; competitive market raised funding costs (Q2/Q3)	Fed cut 100 bps 9/18–12/31; began lowering some deposit rates; still liability-sensitive	Improving funding outlook; cautious
Securities portfolio repositioning	Limited realized losses vs 2022 (Q3)	2H 2024 restructuring; $(2.742)M loss; $86.5M AFS sale noted	One-time losses to improve yield/risk
Growth & expansion	Century Farms progress; market growth; surpassed $5B assets (Q3)	Century Farms opened; Chattanooga full branch planned; Cookeville branch acquisition pending	Expansion accelerating
Asset quality	Very low NPAs; minimal charge-offs (Q2/Q3)	Nonaccruals rose to $4.82M; coverage robust; internal classified loans increased	Normalization with strong reserves
Mortgage banking	Lower originations YoY (Q3)	Hedge performance improved; fees/gains $3.07M FY	Stabilizing
Community/market presence	Century Farms opening planned; Oktoberfest; philanthropy (Q3)	Continued community-centric messaging	Consistent brand narrative

Management Commentary

“Surpassing $5 billion in total assets and delivering record net income are accomplishments that reflect the strength of our team, the loyalty of our customers, and the growth of the communities we proudly serve.”
“Century Farms office is officially open... Chattanooga office... anticipated opening in early spring... proposed acquisition of a Cookeville branch office from F&M Bank...”
Rate backdrop: “The prime rate decreased by 100 basis points... we began lowering interest rates on some of our deposit products. However... competitive pressures begin to rise once again... the Bank may have to once again raise the rates it pays on deposits.”

Q&A Highlights

No Q4 2024 earnings call transcript was available; therefore, no analyst Q&A insights or clarifications were observed in primary sources [SearchDocuments returned none for earnings-call-transcript].

Estimates Context

S&P Global consensus estimates for WBHC (EPS and revenue) were not retrievable due to daily request limits; thus, comparisons to Wall Street consensus are unavailable (S&P Global data access error).

Key Takeaways for Investors

Quarterly momentum: Q4 net earnings and EPS improved sequentially with higher NII and moderated credit provisioning; diluted EPS rose to $1.26 (from $1.07 in Q3) .
Funding outlook: Fed’s 100bp cuts late in 2024 set the stage to ease deposit costs; management started lowering select rates, but liability sensitivity persists—watch deposit repricing pace vs. asset yields .
Asset quality normalization manageable: nonaccruals increased but are modest (0.12% of loans) with robust reserve coverage (ACL/nonaccruals >1,000%); monitor internal classified credits and collateral outcomes .
Growth catalysts: Century Farms opening, Chattanooga branch conversion, Cookeville acquisition—likely supports deposit gathering and loan growth, albeit 2025 loan growth is expected to slow to protect liquidity .
Margin/efficiency: NIM held at 3.30% YoY; efficiency improved to 58.21%—sustained operational discipline offsets higher funding costs .
Securities repositioning: 2H 2024 portfolio restructuring drove losses but aims to improve long-term yield and interest rate risk positioning—monitor realized vs. unrealized impacts .
Positioning: 84% variable-rate loans benefit in rising-rate environments but amplify downside in rapid rate declines if deposits reprice slower; focus on ALM execution .

Sources:
Quarterly and annual financials, KPIs, and ALM details .
Year-end balance sheet and asset quality metrics .
Loan composition .
Management letters and strategic updates .
Share repurchase authorization .

Estimates note: S&P Global consensus data was unavailable due to access limits (no consensus comparisons provided).

WILSON BANK HOLDING CO (WBHC)·Q4 2024 Earnings Summary