OTC:WBHC
WILSON BANK HOLDING CO
A growing regional bank driving revenue growth through organic deposit expansion and strategic fee-based business lines with improving net income margins.
Key Metrics
Investment Thesis
Bull Case
Investors should consider this stock for its accelerating profitability trajectory with a 33% jump in net income year-over-year and a healthy cash position that supports dividend payments without dilution from equity issuance or share repurchases.
Bear Case
Caution is warranted due to the substantial retained earnings deficit of $442.0M which may signal historical losses requiring future capital rebuilding, alongside significant non-cash adjustments that could obscure true operating cash generation capabilities for short-term liquidity planning.
About WILSON BANK HOLDING CO
Wilson Bank Holding Co. is a regional financial institution providing comprehensive banking solutions including commercial lending, consumer deposits, and investment advisory services to businesses and individuals in its core operating markets.
Analysis
Management Discussion
The company demonstrated robust financial health with revenue climbing from $313.1M in 2024 to $357.5M in the latest period while net income surged from $56.7M to $75.7M, reflecting improved operational efficiency and effective asset management.
Industry Overview
The regional banking sector faces intense competition from fintech disruptors and large national banks while navigating a volatile interest rate environment that compresses net interest margins and increases credit loss provisions for loan portfolios.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 | 2025 |
|---|---|---|
| Revenue | $313.1M | $357.5M |
| Cost of Revenue | $0 | $0 |
| Gross Profit | $313.1M | $357.5M |
| Operating Expenses | $239.8M | $260.4M |
| Operating Income | $73.2M | $97.1M |
| Stock-Based Comp | $1.6M | $1.1M |
| Depreciation | $4.0M | $4.0M |
| Amortization | — | $34.0K |
| Non-Operating Income | $0 | $0 |
| Pre-Tax Income | $73.2M | $97.1M |
| Income Tax | $16.6M | $21.4M |
| Continuing Ops | $56.7M | $75.7M |
| Discontinued Ops | $0 | $0 |
| Net Income | $56.7M | $75.7M |
| Minority Interest | $134.0K | $25.0K |
| Net to Common | $56.5M | $75.7M |
| Metric | 2024 | 2025 |
|---|---|---|
| Cash & Equivalents | — | $367.4M |
| PP&E (Net) | $61.5M | $62.7M |
| Goodwill | $4.8M | $5.9M |
| Operating Leases | $2.6M | $2.1M |
| Total Assets | $5.36B | $5.88B |
| Total Liabilities | $4.88B | $5.30B |
| Shareholders' Equity | $479.7M | $581.7M |
| Retained Earnings | $393.2M | $442.0M |
| AOCI | $-88.2M | $-55.2M |
| Total L&E | $5.36B | $5.88B |
| Metric | 2024 | 2025 |
|---|---|---|
| Net Income (CFO) | $56.7M | $75.7M |
| Non-Cash Adjustments | $-246.2M | $-74.0M |
| Working Capital Changes | $251.6M | $88.2M |
| Cash from Operations | $62.0M | $90.0M |
| Capital Expenditures | $3.5M | $3.7M |
| Cash from Investing | $-521.2M | $-351.1M |
| Share Buybacks | $2.2M | $0 |
| Dividends Paid | $20.6M | $8.3M |
| Cash from Financing | $454.2M | $380.9M |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-5.0M | $119.8M |
| Beginning Cash | $252.6M | $247.6M |
| Ending Cash | $247.6M | $367.4M |
Frequently Asked Questions
How does WILSON BANK HOLDING CO make money?
Commercial and industrial lending providing capital for business expansion, consumer banking retailing checking and savings accounts to local communities, trust and wealth management offering personalized asset planning services, and investment securities holdings generating interest income and trading profits.
What are the main risks for WBHC?
Interest rate sensitivity impacting net interest margin stability as monetary policy shifts, concentration risk within regional economic exposure if local real estate or commercial sectors decline, reliance on wholesale funding given significant cash flow from financing activities relative to operating earnings, and potential regulatory capital requirement changes affecting expansion capabilities.
What is WBHC's competitive advantage?
Strong balance sheet liquidity with over $367M in cash reserves enabling flexible loan origination during market stress, consistent year-over-year revenue growth demonstrating effective cross-selling strategies, and a low capital expenditure profile allowing for high return on tangible common equity.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.