Regulatory Capital

9 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Regulatory Capital

Note 7. Regulatory Capital

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2024, the Bank and the Company meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is classified as adequately capitalized or lower, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is growth and expansion, and capital restoration plans are required. As of September 30, 2024 and December 31, 2023, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The Company’s and the Bank’s actual capital amounts and ratios as of September 30, 2024 and December 31, 2023 are presented in the following tables. The capital conservation buffer of 2.5% is not included in the required minimum ratios of the tables presented below.

	Actual					Minimum Capital Adequacy					For Classification as Well Capitalized (1) (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
September 30, 2024
Total capital to risk weighted assets:
Consolidated	$	597,992		14.5	%	$	330,949		8.0	%	$	413,686		10.0	%
Wilson Bank		592,688		14.3			330,829		8.0			413,536		10.0
Tier 1 capital to risk weighted assets:
Consolidated		547,366		13.2			248,212		6.0			248,212		6.0
Wilson Bank		542,062		13.1			248,121		6.0			330,828		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated		547,205		13.2			186,159		4.5		N/A		N/A
Wilson Bank		541,901		13.1			186,091		4.5			268,798		6.5
Tier 1 capital to average assets:
Consolidated		547,366		10.5			208,809		4.0		N/A		N/A
Wilson Bank		542,062		10.4			208,740		4.0			260,925		5.0

	Actual					Minimum Capital Adequacy					For Classification as Well Capitalized (1) (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
December 31, 2023
Total capital to risk weighted assets:
Consolidated	$	560,757		14.5	%	$	308,449		8.0	%	$	385,562		10.0	%
Wilson Bank		559,224		14.5			308,333		8.0			385,417		10.0
Tier 1 capital to risk weighted assets:
Consolidated		512,762		13.3			231,337		6.0			231,337		6.0
Wilson Bank		511,229		13.3			231,250		6.0			308,334		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated		512,693		13.3			173,503		4.5		N/A		N/A
Wilson Bank		511,160		13.3			173,438		4.5			250,521		6.5
Tier 1 capital to average assets:
Consolidated		512,762		10.6			193,564		4.0		N/A		N/A
Wilson Bank		511,229		10.6			193,492		4.0			241,865		5.0

1. Ratios for Wilson Bank are those under applicable FDIC regulations for prompt corrective action.

2. Well-capitalized minimum Common equity Tier 1 capital to risk weighted assets and Tier 1 capital to average assets are not formally defined under applicable regulations for bank holding companies.

Dividend Restrictions

The Company and the Bank are subject to dividend restrictions set forth by the Tennessee Department of Financial Institutions and federal banking agencies, as applicable. Additional restrictions may be imposed by the Tennessee Department of Financial Institutions and federal banking agencies under the powers granted to them by law.